Soochow Securities·2025-09-25 05:07Investment Rating - The report maintains a positive outlook on the AIDC diesel generator market, indicating high demand and potential for domestic manufacturers to replace foreign counterparts [2]. Core Insights - Diesel generators are a key growth point for diesel engines, with applications in remote power supply, data centers, and industrial facilities [2][18]. - The demand for diesel generators is expected to accelerate due to increased capital expenditure (CAPEX) in the AI sector, with North American CSPs projected to spend approximately $340 billion in 2025, a 49% year-on-year increase [2][30]. - The domestic diesel generator market is currently dominated by foreign and joint-venture companies, which hold an 83% market share, leaving significant room for domestic manufacturers to grow [2][41]. - Investment recommendations include focusing on companies like Weichai Power, Yuchai International, and Weichai Heavy Machinery, which are well-positioned to benefit from the market dynamics [2]. Industry Trends - The AIDC infrastructure is experiencing high demand, with diesel generators playing a critical role in ensuring power reliability for data centers [5][18]. - The diesel engine market is closely tied to the commercial vehicle cycle, with generator sales showing consistent growth [11][12]. - The market for diesel generators is projected to reach 12.5 billion yuan in 2025, reflecting a 53% year-on-year increase, with a compound annual growth rate (CAGR) of 22% from 2024 to 2028 [34]. Market Dynamics - The global diesel generator market is expected to grow from $3 billion in 2023 to $12 billion by 2030, with a CAGR of 22% [17][34]. - The report highlights that diesel generators account for 2-3% of the capital expenditure for large data centers, emphasizing their importance in infrastructure investment [24][27]. - Domestic manufacturers are expected to gain market share as they improve production capacity and respond to demand more effectively than foreign competitors [2][41]. Supply Chain and Key Players - The supply chain includes three main segments: engines, OEMs, and component suppliers, all of which are expected to benefit from the growing demand for diesel generators [42]. - Key players in the engine segment include Cummins, MTU, and Weichai Power, with significant revenue contributions from diesel generator sales [43][44]. - The report identifies specific companies to watch, including Weichai Heavy Machinery and KOTAI Power, which are focusing on the diesel generator OEM market [65].