HD Construction Equipment is speeding up its push into the European mobile generator market with low-emission engines.
HD Construction Equipment said on the 20th it signed a contract with Portugal-based generator maker Grupel to supply 264 G2 engines for generators (1.8–3.4L class small engines).
The deal responds to rising demand for mobile generators in Europe, driven by replacement needs for aging equipment as emissions rules tighten. The European generator market that uses small engines is estimated at about 105,000 units a year.
The G2 engine is a small engine that meets Europe's Stage V emissions standards, featuring an 1,800-bar high-pressure fuel injection system and fuel-efficiency improvement technologies.
HD Construction Equipment has supplied more than 500,000 G2 engines to North America and Europe over the past 10 years and is currently selling more than 2,000 G2 engines annually in the European market.
With this supply as a springboard, HD Construction Equipment plans to pursue additional supplies of mid-size engines such as the DX05 and DX08 and expand sales channels in the industrial engine market, including generators. The company aims to increase revenue from power-generation engines in Europe to about 67 billion won by 2030 from about 40 billion won now.
According to market research firm Mordor Intelligence, the European diesel generator market is expected to grow at a compound annual rate of 4.18% from 5.7 trillion won this year to 7 trillion won in 2031.
An HD Construction Equipment official said, "This order is another case that proves the competitiveness of the G2 engine in the European market, where emissions regulations are tightening," adding, "We will continue to expand our customer base across various industrial sectors, including the generator market."