The Global Generator Sets Market was worth US$23 billion in 2023 and is projected to reach a valuation of US$34 billion by 2029 from US$24.28 billion in 2024. It is predicted to register a CAGR of 6.94% during 2024-2029.
A Generator Set is a piece of portable energy-generating equipment consisting of an engine and an alternator/electric generator. Gensets are commonly utilized in underdeveloped countries and other areas not linked to the electricity grid, places where power outages are common, and/or places where a power outage might cause very serious or dangerous problems, such as deep underground in a mine. They can be used as the primary source of energy or as a backup supply of power, such as during peak usage hours.
The growing demand for reliable power supply as a result of real estate growth, infrastructure expansion, and increasing industrialization is estimated to enhance the global industrial generator sets market. The need to expand generation capacity to meet rising demand in a variety of industries would keep these units running and boost demand. Because of their quick responsiveness, dependability, and ease of operation, industrial gensets are widely employed. The continuous deployment of gensets as a key power source throughout the industrial sector, as well as the rising severity and frequency of weather disasters resulting in extended outages, will drive demand.
Despite diesel generator sets' low initial investment and low running expenses, gas generator sets seem to have a higher adoption rate in the forecast period. Demand for diesel generator sets is expected to be limited across all end-use industries due to severe regulations aimed at reducing high carbon emissions.
Environmental regulations requiring greater energy efficiency and a growing focus on cleaner sources will drive the industrial generator market forward during the forecast period. The industry situation will benefit from the increased demand for continuous and consistent power supply from end-users such as manufacturing facilities, oil and gas, mining, and construction sites. Government regulations, as well as a mindset change toward chronic outages, will have a favorable impact on the industry's success.
The industry's potential will be further shaped by the increasing significance of a reliable emergency power supply. The growing reliance on electronics and electrical equipment to support day-to-day operations among a diverse range of end-users will hasten product deployment. Furthermore, the adoption of these systems will continue to be necessitated by rising customer demand for zero downtime and continuous electricity supply.
The manufacturing sector will also play a crucial role in the growth of this market. The demand for goods and services is a result of rapid urbanization, which is moving the manufacturing sector forward.
Also, In China, Brunei, India, and Thailand, new oil refineries are being built, as well as new power generation projects resulting in the expansion of the generator set market.
In the recent decade, global investments in renewable energy technology have increased. The steep falling installation cost of solar panels as a result of rapidly growing technology breakthroughs, as well as the progression of many countries toward green energy generation, are driving up demand for renewable energy technologies. As a result, during the projection period, Asia Pacific's demand for fuel-based power generators is likely to be hampered by the growing acceptance of energy storage products and the development of renewable energy power generation technologies.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
6.94% |
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Segments Covered |
By Capacity, End-User, Fuel Type, Application, and Region. |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Cummins, Kirloskar Oil Engines, Kohler SDMO, Generac Power Systems, Powerica, Sterling Generators, HIMOINSA, Caterpillar, Atlas Copco, Supernova Gensets, and Others. |
Due to rising demand from mining activities and increased infrastructure construction, the > 750 kVA generator market expects a CAGR of 6.1% until 2027. These units are capable of powering heavy-duty machineries such as cranes, digging machinery, and conveyor belts. Moreover, with the changing business sector landscape, demand for small generators in the range of 0-75 kVA is skyrocketing, particularly in Asia-Pacific and African emerging countries. During the projected period, generator sets with a capacity of less than 75 kVA are expected to hold the biggest market share.
Residential, commercial, and Industrial are the types of end-users in the sector. Industrial users account for the majority of generator sales. Diesel and gas generators are in high demand among industrial end-users, especially in developing countries. The increase in demand from the mining, defense, chemicals, maritime, and industrial industries accounts for the segment's growth. In the event of grid system failure, industrial generators provide uninterrupted power. The growing demand for distributed power generation in the Asia Pacific. Moreover, the oil and gas boom in North America is driving the industrial segment's expansion. Favorable government policies for the growth of industries in various nations are the main driving force behind the market.
By 2029, the diesel industrial generator market is expected to grow at a CAGR of more than 7.4 percent. These units provide essential advantages such as scalable, flexible, and weather-independent functioning, allowing the company to expand. Low upfront costs and a round-the-clock power supply are also major elements that are propelling the business forward. The ongoing industrial revolution will result in a large increase in operating industry power requirements, resulting in favorable industry growth.
Due to strong infrastructure development and the resurgent industry, the standby application segment of the Generator Set Market will reach USD 7 billion by 2027. The commercial landscape will be boosted by widespread adoption across power utilities, mines, and construction sites. When the amount of electricity that may be drawn from the power system is limited, these units are commonly used.
The Asia-Pacific region's generator sets market is predicted to be the largest in 2023 and will dominate the market from 2024 to 2029.
Due to escalating infrastructure projects, a widening power demand-supply gap, the growth of manufacturing facilities across the country, and rising commercial office spaces, China is the largest generator set market in the Asia-Pacific region. The country benefits from low-cost and high-efficiency diesel generators and the increased need for power backup devices as living standards rise.
In 2023, the North American Generator Sets Market had the most revenue, and it is expected to grow at a substantial rate. The market for generator sets in the United States was valued at about USD 21.23 billion in 2021. The increasing severity and frequency of weather-related calamities have prompted the widespread deployment of generator sets.
Over the period 2024-2029, the European generator sets market is predicted to develop at a CAGR of more than 1%. The generator sets market is likely to be driven by factors such as demand for continuous and reliable power supply, backup requirements during power outages, and the longer period necessary to put up transmission and distribution infrastructure. In the projection term, the United Kingdom is expected to be a large market, with the majority of demand coming from the industrial sector and an increase in commercial office spaces and small-scale businesses.
Rising power outages are driving the demand for backup power choices, which is driving the expansion of the latin american diesel genset market. The global pandemic, on the other hand, dealt a huge blow to the generator set business. It resulted in the closure of construction sites and a nationwide lockdown, although the market is anticipated to recover in the following years.
The Middle East business landscape will be stimulated by further regional infrastructure investment and an increasing focus on economic diversification. Furthermore, poor grid infrastructure and rapid population increase are two significant factors that favor industrial statistics.
Companies playing a prominent role in the global generator sets market include Cummins, Kirloskar Oil Engines, Kohler SDMO, Generac Power Systems, Powerica, Sterling Generators, HIMOINSA, Caterpillar, Atlas Copco, Supernova Gensets, and Others.
By Capacity
By End-User
By Fuel Type
By Application
By Region
Frequently Asked Questions
Asia Pacific region has the largest share in the Generator Sets Market.
Diesel and gas generators are in high demand among industrial end-users, especially in developing countries. The increase in demand from the mining, defense, chemicals, maritime, reason, and industrial setups are credited with the growth of the segment. In the event that the grid system failure, industrial generators provide uninterrupted power.
End-user need for uninterrupted and stable power supply, as well as rising demand for IT infrastructure management, are driving the global generator sales industry. Generators and power generation systems are in high demand due to the continually developing manufacturing sector.
Generator Sets are commonly utilized in underdeveloped countries and other areas that are not linked to the electricity grid; places where power outages are common; and/or places where a power outage might cause very serious or dangerous problems, such as deep underground in a mine.
Under this report, the Global Generator Sets Market is being researched for the period of 2024-2029.
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