Backup Reciprocating Power Generating Engine Market Size - By Fuel Type, By Rated Power, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Backup Reciprocating Power Generating Engine Market Size

The global backup reciprocating power generating engine market was valued at USD 6.9 billion in 2024 and is expected to reach USD 9.5 billion by 2034, growing at a CAGR of 3.1% from 2025 to 2034. The rising incidence of grid outages and blackouts will accelerate the need for dependable backup power systems.
 

The shift toward decentralized energy generation, particularly in remote and rural locations, will augment the industry landscape. Backup solutions are becoming essential to maintain consistent power supply in vulnerable and isolated areas. These engines are known for their reliable and robust emergency power solution and deliver electrical energy during blackouts or emergencies.
 

To illustrate, the Federal Energy Regulatory Commission (FERC) captured a 12% increase in yearly utility expenditure on electricity generation and distribution from USD 287 billion in 2003 to USD 320 billion in 2023. This demonstrates continued investment on modernization of the grid, advancement of infrastructure, and enhanced dependability of power technologies.
 

The increasing volatility of electric power supply in growing economies and the surging requirements for energy in areas that are vulnerable to disasters will increase the adoption of these engines. The addition of IoT-enabled engines will enhance the system’s intelligence, increasing emphasis on predictive maintenance will improve critical and remote application optimization.
 

The industry will witness surge in demand owing to the stricter emissions regulations along with the growing need for standby power in industrial facilities. These engines are integral to compliance requirements, operational continuity and the energy needs of growing manufacturing hubs.
 

For reference, in 2024, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act have significantly advanced U.S. manufacturing under the Biden-Harris Administration’s 2024 vision. Approximately USD 20 million was invested through the Challenge Grant initiative aimed for the Purpose of advancing clean energy manufacturing, fostering economic development, and strengthening national industry competitiveness.
 

The proposed tariffs on imported parts by the Trump administration are expected to have repercussions on international trade and raise the expenditure of manufacturing backup reciprocating power-generating engines. These tariffs are expected to lower global price competitiveness and further boost the domestic manufacturing. In this case, the expectations are that the newly formed supply chain would also possess the capabilities to independently nurture further sectoral growth.
 

Backup Reciprocating Power Generating Engine Market Trends

Continuous technological innovation coupled with the increasing frequency of power outages will positively sway the demand for reciprocating power generating engines. Furthermore, strengthening regulations and increased focus towards environmental sustainability will influence the industry landscape.
 

Additionally, the procurement of these power options will be influenced by the surge in public and private industry applications, including the need for emergency backup solutions. Furthermore, projects aimed at providing electricity in remote and underdeveloped areas will expand the demand for these systems owing to their flexible and efficient power generation.
 

For instance, in 2023, China’s 14th Five Year Plan reinforced building out infrastructure for transport, energy, water supply and urban planning. The aim is to modernize primary structures in an economically efficient manner, bolster systems, and evolve steadily while spending government funds and facing nominal impediments to technology adoption across sectors.
 

Increased government support for off-grid industrial operations coupled with the rising demand for energy security will accelerate the adoption of backup power solutions. Moreover, the growing reliability and extended operational life of these engines will propel the product penetration especially in the critical and high-importance sectors demanding continuous and seamless power supply.
 

The increased emphasis on energy security on mining and resource extraction activities will drive the demand for these systems growth. There is a growing need for dual fuel and biofuel compatible engines which increases operational flexibility while allowing for reduced emissions, which in turn will create a favorable business opportunity.
 

To illustrate, Canada strengthened its position as a global leader in mining in 2025 with the Critical Minerals Strategy. Additional Central Measures included extending the 15% Mineral Exploration Tax Credit to 2027, which sought to further stimulate exploration and economic development within Indigenous, northern, and remote communities.
 

Backup Reciprocating Power Generating Engine Market Analysis

• The global market for backup reciprocating power generating engine was valued at USD 6.4, 6.6 & 6.9 billion in 2022, 2023 and 2024 respectively. Based on fuel type, the market is segmented into gas-fired, diesel-fired, dual fuel, and others. Continuous innovation in engine systems comprising of electronic fuel injections, variable valve timing, and optimized combustion systems will augment the business scenario.
   
• The gas fired backup reciprocating power generating engine market will grow at a CAGR of over 4.5% through 2034. The adoption of these engines will accelerate owing to the strict enforcement of environmental regulations and low cost of natural gas. The increasing necessity to cut emissions will promote the transition from conventional energy systems.
   
• The market for diesel fired backup reciprocating power generating engines was valued at over USD 5 billion in 2024. The low ease of access to diesel fuel coupled with an easy upfront investment will foster the demand for these backup engines. Furthermore, the reliability of these engines and the restricted access to gas infrastructure in remote locations will augment the product penetration.
   
• For reference, the Government of Canada allocated around USD 207 million to aid LNG Canada's USD 30 billion liquefied natural gas project in Kitimat which is considered the largest investment from the private sector in the country to date. This Project seeks to foster the development of 10,000 positions while advancing the use of cleaner technologies as well as building energy-efficient systems.
   
• The dual fuel backup reciprocating power generating engine market is expected to reach over USD 200 million by 2034. These engines are gaining traction fueled by the growing utilization in remote areas along with their reliability and ease of operation. Moreover, the increasing expansion of mining and data centers facilities will drive industry growth.
   

• Based on application, the market is segmented into industrial, CHP, energy & utility, landfill & biogas and others. The industrial backup reciprocating power generating engine market holds a share of 40% in 2024. The demand for these systems is expected to surge with the continued growth of industrialization and infrastructure development in emerging economies.
   
• The CHP application will grow at a CAGR of over 4.5% through 2034. The rising need for an energy efficient system and the need for corporate fuel reduction will catalyze the incorporation of backup systems. These systems will gain popularity owing to their reduced operational costs and reduced emissions.
   
• For instance, in 2023, Natural Resources Canada funded 26 million USD for a new 6.5 MW biomass fired CHP plant on Whitesand First Nation. The facility uses local wood waste as fuel, will replace diesel while providing power and heat to nearby communities, this will reduce reliance on diesel for power generation.
   
• The energy & utility backup reciprocating power generating engine market was valued at over USD 1.5 billion in 2024. Ongoing urbanization and infrastructure development will tend to increase the applications for reliable backup power systems. Furthermore, improved engine emission control systems and advanced performance technology will drive new business opportunities for these systems.
   
• The market for landfill & biogas backup reciprocating power generating engine industry is projected to hit USD 350 million by 2034. The surge in the need for non-centralized energy sources will accelerate the implementation of these systems in landfill and farm energy application. Growing requirements for grid stability will further enhance infrastructure deployment for on-site backup power in areas with frequent service interruptions.
   
• For reference, the American Biogas Council reported a record investment of USD 3 billion in new biogas systems in the United States in 2025, which is an increase of 40% from the previous year. Additionally, for the first time, methane recovery from farms outpaced landfill projects which marks an important milestone for the industry.
   

• The U.S. backup reciprocating power generating engine market was estimated at USD 2.9, 3 & 3.1 billion in 2022, 2023 and 2024 respectively. The increase in electricity consumption together with modernization of aging grid systems will proliferate industry penetration. The rising concern of dependable energy-efficient technologies along with the advancement of commercial and industrial activities will encourage the business landscape.
   
• The North America backup reciprocating power generating engine market will witness at a CAGR of over 3% till 2034. The combination of private and government investments towards improving energy infrastructure and increasing grid resilience, along with the demand for economical backup power solutions, will expedite industrial growth.
   
• For instance, the Government of Canada invested around USD 9.7 million to enhance Antigonish's electrical grid through the Smart Renewables and Electrification Pathways Program (SREPs). This project seeks to improve the community's advanced dial-up grid resilience and ascertain additional outage mitigation, support cost-effective community electrification, and assist in attaining net-zero goals.
   
• The Asia Pacific backup reciprocating power generating engine market is set to reach over USD 2 billion by 2034. The rising transition toward distributed decentralized power generation combined with wide scale adoption of renewable energy sources will enhance the product penetration. In addition, ongoing infrastructure improvements and heightened consumption of power owing to population increase will improve industry dynamics.
   
• To illustrate, Australia initiated “A Future Made in Australia” in 2024 to boost global competitiveness in the clean energy sector and positioned Australia as the frontrunner in clean energy manufacturing. This initiative focuses on government investment, innovation, as well as sustainability, and competitiveness in the emerging energy economy.
   
• The Europe backup reciprocating power generating engine market is poised to grow at a CAGR of over 3% through 2034. The adoption of advanced low-emission reciprocating engines will be fueled by strict emission regulations in the region. Furthermore, the growing penetration of renewable energy drives the requirement for dependable backup engines to support the grid and provide uninterrupted power.
   
• For instance, France initiated the ‘France 2030’ investment strategy with the aim of transforming the economy and fostering innovation, at a whopping cost of USD 60 billion. This initiative enhances primary constituents such as energy, healthcare, digital technology, eco-friendly agribusiness and cultivates long term growth and sustainability by accentuating industrial decarbonization and environmentally friendly technology.
   
• The Middle East & Africa backup reciprocating power generating engine has a market share of over 10% in 2024. Continuous public investments in energy infrastructure will boost the demand for these power solutions, primarily in power generation and transmission systems. Furthermore, the transition to cleaner energy sources including natural gas and biogas will augment the growth of lower emission reciprocating engines in the region.
   
• The Latin America backup reciprocating power generating engine market is poised to grow at a CAGR of over 2.5% till 2034. Consistent outages and instability of the power supply will increase the demand for these systems. Growing urban industrial activities within the region along with the need for strong electricity infrastructure will foster business expansion.
   
• For instance, Argentina anticipated energy investments to reach USD 15 billion by 2025. Furthermore, the expected annual contribution of the RIGI investment promotion regime is projected to augment this growth by an additional USD 2 billion to USD 2.5 billion a year.
   

Backup Reciprocating Power Generating Engine Market Share

• The top 5 players including MAN Energy Solutions, GE Vernova, Rolls Royce, Caterpillar, and Wärtsilä together holds share of about 45% in the backup reciprocating power generating engine industry. GE Vernova holds the largest share owing to its strong corporate partnerships and joint ventures across major economies.
   
• GE Vernova is a prominent manufacturer of reciprocating power generating engines alongside competitors owing to their unparalleled solutions for standby and distributed power applications. The company empowers its customers with high-performance engines as well as serviced comprehensive maintenance, which enhances operational reliability while reducing lifecycle costs, safeguarding long asset value in capital intensive energy environments.
   
• AB Volvo Penta offers complete services for backup reciprocating power generating engines including system integration, engine provision, maintenance, and optimization. Using intelligent engineering and third-party support, Volvo Penta maintains high reliability, excellent fuel efficiency, and rapid response to standby power needs for industrial, commercial, and utility grade standby power systems.
   

Backup Reciprocating Power Generating Engine Market Companies

• Atlas Copco surpassed USD 18.3 billion in revenue which is a year-on-year growth of 2%. The firm's operating margin was also robust, achieving 21.6% and operating cash flow increased to USD 3.2 billion, demonstrating the company’s financial prudence and ongoing worldwide demand across its diversified portfolio of industrial assets.
   
• In the year 2024, Caterpillar reported sales and revenues of USD 64.8 billion. The operating profit margin for the previous year increased to 20.2% in the outgoing year. Given the company’s price realization and improved margins, the adjusted profit per share increased to USD 21.90 from USD 21.21.
   
• GE Vernova's annual revenue increased to USD 34.9 billion in 2024, which is a year-on-year growth of 5%. In parallel, net income grew significantly to USD 1.6 billion, an improvement of USD 2 billion roughly, with a 4.5% margin. company’s Adjusted EBITDA reached USD 2.0 billion which is a 5.8% margin and highlighted the firm’s efficiency as well as its growth strategy within the energy sector.
   

Major players operating in the backup reciprocating power generating engine industry are:

• AB Volvo Penta
• Atlas Copco
• Caterpillar
• Clarke Energy
• GE Vernova
• HIMOINSA
• Kirloskar
• MAN Energy Solutions
• Mitsubishi Heavy Industries
• Motorenfabrik Hatz
• Rehlko
• Rolls-Royce
• Scania
• Wärtsilä
• Yamaha Motor
• Yuchai International
   

Backup Reciprocating Power Generating Engine Industry News

• In April 2025, Wärtsilä has announced a plan to expand its sustainable technology hub located in Vaasa, Finland by announcing a USD 54 million investment. The addition will improve research and development for sustainable marine and energy technologies, further accelerating development cycles, emissions and cost reductions, and future manufacturing and fuel innovation capabilities.
   
• In September 2024, Rehlko presented significant updates to the KD Series generators designed for the extreme power needs of data centers and other operations with mission critical tasks. The latest engines, the KD62V12A and KD83V16A, have improved transient response, reduction in NOx emissions, and a remarkable 2,000 pounds of weight reduction for 2,000 to 4,000 kW class units.
   
• In September 2024, Caterpillar entered a Memorandum of Understanding with the Government of Tamil Nadu to expand its installations at Krishnagiri and Tiruvallur districts at an approximate budget of USD 60 million. This expansion is expected to increase local manufacturing capacity. This is part of a larger investment drive in the state.
   
• In February 2024, Wärtsilä partnered with the City of Farmington to provide the equipment for an 18 MW expansion of the local power plant. The advancement of Wärtsilä’s technology 34SG RICE aid in replacing a retired coal facility with a clean-burning natural gas plant which also transitions the region to cleaner energy.
   

The backup reciprocating power generating engine market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Units), capacity (MW) & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Fuel Type

• Gas-fired
• Diesel-fired
• Dual fuel
• Others

Market, By Rated Power

• 0.5 MW - 1 MW
• > 1 MW - 2 MW
• > 2 MW - 3.5 MW
• > 3.5 MW - 5 MW
• > 5 MW - 7.5 MW
• > 7.5 MW

Market, By Application

• Industrial
• CHP
• Energy & utility
• Landfill & biogas
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Denmark
  • Norway
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Thailand
  • Singapore
  • Indonesia
  • Malaysia
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • Oman
  • Kuwait
  • Iran
  • Egypt
  • Turkey
  • Jordan
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Peru