Commercial Standby Generator Sets Market Size - By Power Rating, By Application, By Fuel, Growth Forecast, 2025 - 2034

Commercial Standby Generator Sets Market Size

The global commercial standby generator sets market was valued at USD 7.3 billion in 2024, with expectations to reach USD 15.2 billion by 2034, growing at a CAGR of 7.6% from 2025 to 2034. Growing dependency on continuous digital infrastructure including cloud computing, industrial automation, and data centers will stimulate industry scenario. Increasing growth of healthcare and medical facilities in emerging economies to cater to life-saving equipment will boost the demand for generator sets.

Commercial standby generator sets are backup power systems designed to automatically provide electricity to commercial facilities during utility power outages. These power solutions are permanently installed and integrated with an automatic transfer switch that activates the unit within seconds of a grid failure.
 

• The need for uninterrupted power supply to avoid operational downtime in line with the surge in climate-related disruptions will drive the demand for generator sets. These events including wildfires, hurricanes, floods, and other events are severe & more frequent.
   
• Moreover, it disrupts grid electricity, prompting institutions, industrial facilities, and commercial buildings to invest in efficient commercial gensets, which will bolster product deployment. Surging demand for these generators with fast start-up capabilities, scalability, and reliability will proliferate the industry scenario.
   
• For reference, in 2024, the U.S. surpassed 5,000 operational data centers, significantly increasing demand for generator sets to ensure reliable backup power. This expansion has reinforced the need for uninterrupted operations in sectors including telecommunication and cloud services.
   
• The commercial standby generator sets market was valued at USD 5.8 billion in 2019 and grew at a CAGR of over 8% through 2024. Continuous demand for reliable power supply in commercial infrastructure including schools, hospitals, and malls is driving industry potential.
   
• Growing transition to cleaner energy sources including dual-fuel generators, propane, biogas, and natural gas in association with incorporation of renewable sources including solar and wind will energize industry landscape. Rapid usage of data on account of the adoption of cloud computing, 5G, and AI has led to the expansion of data center facilities.
   
• The Asia Pacific commercial standby generator sets market driven by the expansion of commercial facilities including office complexes, telecom towers, hospitals, and malls are strengthening the industry growth. Rapid infrastructure development along with construction of cold storage chains, logistics parks, transportation hubs, and data centers will amplify business expansion.
   
• The Africa region is the fastest growing region on account of the aging electricity infrastructure which leads to frequent blackouts and grid failures. Governments focus on decentralization power generation in line with limited access to clean and reliable utility power in rural and urban areas will create favorable demand for these units.
   

Increasing adoption of AI algorithms and smart sensors to perform predictive maintenance, where these anticipate faults before they occur and automatically schedule servicing will bolster product demand. Growing shift toward decentralized energy architecture and commercial facilities are proliferating the adoption of standby generator sets.
 

Commercial Standby Generator Sets Market Trends

• In energy-sensitive and remote locations, these generators play a pivotal role in microgrids along with these enabling campuses and commercial buildings to operate independently during outage will proliferate business potential. Moreover, increasing innovation in modular design which can be scaled up or down based according to changing load conditions, thereby fostering industry dynamics.
   
• Rising frequency of natural disasters including hurricanes, floods, and wildfires disrupting grid infrastructure and commercial operation in key geographies. The businesses are prioritizing resilient power backup solutions to strengthen sustainable operations, which in turn will fuel product demand.
   
• For citation, in 2023, according to National Oceanic and Atmospheric Administration the U.S. recorded 28 individual weather and climate-related disasters, each resulting in economic loses over USD 1 billion. These disasters included one severe winter storm and cold waves affecting the Northeast. One catastrophic wildfire, which devastated the town of Lahaina and Maui Island, Hawaii.
   
• Surging building codes compliant in developing regions to deploy standby power for emergency lighting, fire suppression units, and elevators will fuel industry landscape. Robust expansion of 5G networks and telecom towers particularly in semi-urban and rural zones to maintain connectivity during outages will excel commercial standby generator sets market growth.
   
• Key industry manufacturers are deploying their gensets to cater to large construction, telecom, and disaster-prone areas where these units can be installed quickly, which in turn will sway industry growth. Continuous technological innovation enables customers to remotely monitor fuel levels, engine performance, fault alerts via cloud-based platform, and load capacity, which will augment business outlook.
   
• For instance, in July 2024, India’s Smart Cities Mission had achieved substantial progress completing 90% of over 8,000 projects across 100 cities, with a total investment of USD 16.7 billion. The remaining projects, valued at USD 2.3 billion, are in advanced stages of execution.
   
• Governments across key emerging economies are initiating public funding programs, tax incentives, and clean energy mandates which are driving investment in hybrid and backup power solutions. Moreover, the supportive distributed energy resources model, which reduces dependence and improves resilience on centralized grid will foster the commercial standby generator sets market landscape.
   
• For citation, in 2023, the Commission for Air Quality Management in the NCR mandated the conversion of diesel generator sets up to 800 kW into dual-fuel systems for commercial use. Under this directive, the generators are required to operate on a 70:30 gas-to-diesel fuel mix, supporting efforts to reduce emissions and promote cleaner energy adoption across India’s business and manufacturing sectors.
   
• Rising adoption of standby gensets across entertainment venues, convention center, and hotels to maintain service quality during blackouts along with ensures operational continuity, reputation management, and customer safety will boost industry potential. Furthermore, the development of ultra-quite gensets with better insulation, acoustic enclosure, and mufflers for use in urban zones will drive business growth.
   

Commercial Standby Generator Sets Market Analysis

• Based on application, the industry is segmented into telecom, data centers, healthcare, educational institutions, government centers, aquaculture, agriculture, retail sales, hospitality, and others. The data center commercial standby generator sets market holds a share of 17.8% in 2024 and is expected to grow at a CAGR of over 7.5% through 2034.
   
• The data centers are the most power sensitive facilities, making these gensets a fundamental part of their infrastructure. Rapid surge in AI-driven workloads, streaming services, big data, and cloud computing has led to the demand for backup power units, thereby strengthening product demand.
   
• The telecom commercial standby generator sets market is projected to register a CAGR of over 7.5% through 2034. The telecom industry is gaining rapid growth propelled by critical need for uninterrupted services and network expansion projects. Increasing internet connectivity and mobile usage in day-to-day life is become more prominent in line with deployment of telecom tower in grid-unstable regions, off-grid, and rural areas will boost industry growth.
   
• For reference, in 2023, the U.S. government enacted the Bipartisan Infrastructure Law allocating USD 1.2 trillion in federal funding to advance transportation, energy, and climate infrastructure initiatives.
   
• The healthcare commercial standby generator sets market will grow at a rate of over 7.5% till 2034. Emergency care facilities, clinics, and hospitals require continuous power supply to cater to critical equipment including medication refrigeration, surgical lighting, imaging machines, and ventilators will foster business perspective.
   
• Growing preference for quiet-operation to maintain a calm and patient-friendly environment will encourage industry dynamics. In this facility, these power units are installed with automatic transfer switches that ensure a seamless transition to backup power without manual intervention.
   

• Based on fuel, the commercial standby generator sets market is segmented into diesel, gas, and others. The diesel fueled segment dominates the market with 65.4% share in 2024 and is expected to grow at a CAGR of over 5.5% from 2025 to 2034.
   
• These generators remain preferred solution for high-power backup on account of their rapid response time, reliability, and robustness. These gensets are widely used in commercial complexes, retail sales, and hospitals, where immediate power is critical.
   
• The availability of fuel infrastructure ensures faster refueling and minimal logistical issues will drive the business landscape. Growing integration with digital monitoring platforms, which enable predictive maintenance and real-time tracking, will further accelerate product demand.
   
• For illustration, in August 2023, the U.S. Department of Energy committed USD 2.2 billion to strengthen grid resilience, lower energy costs for community, and meet the growing power demand of the manufacturing and data center sectors.
   
• The gas fueled commercial standby generator sets segment holds 31% market share in 2024 with over 10% CAGR through 2034. These units are gaining momentum owing to cleaner alternative to diesel, especially in eco-sensitive zones and urban areas.
   
• These power solutions are preferred choice for facilities with continuous access to natural gas pipelines which minimize onsite fuel storage infrastructure. In addition, these fuel source gensets exhibit lower vibration and noise levels, making it ideal for mixed-use buildings, schools, and hospitals.
   

• The U.S. dominated the commercial standby generator sets market in North America held around 87.9% share in 2024 and generated USD 799.9 million in revenue. The country is facing several weather-related power disruptions including winter storms, hurricanes, and wildfires, which will drive the demand for standby gensets.
   
• Aging grid infrastructure in both rural and urban areas is prompting heavily investment in localized backup power systems will create favorable business environment. The growing emphasis on building energy resilience in hospitals, municipalities, and industrial zones is further propelling the deployment of these gensets.
   
• The North America commercial standby generator sets market is projected to hit over USD 1.5 billion by 2034. In the region, consumers are moving toward adoption of propane and gas-powered solutions on account of cleaner emissions and availability of pipeline infrastructure which will create favorable business scenario.
• Escalating investment to expand healthcare infrastructure and data centers across the region will boost industry dynamics. Rapid adoption of these units in retail, banking, and manufacturing zones with limited inconsistent power access will proliferate the business outlook.
   
• The Asia Pacific commercial standby generator sets hold a market share of 66.8% in 2024. Rapid urbanization growth fueled by expansion of shopping malls, mixes-use complexes, and commercial offices in the region will fortify the commercial standby generator sets market landscape. Ongoing demand for modular gensets in line with rising power needs across urban developments will boost product expansion.
   
• China holds the largest market share propelled by increasing expansion of urban zones including business parks, transit hubs, and healthcare facilities. Rapid growth in digital infrastructure and expansion of data center facilities across the country will drive industry trends. Moreover, public safety mandates enforcing these units in critical municipal services will sway the product demand.
   
• The Europe commercial standby generator sets market was evaluated at USD 683 million in 2024. European facilities are increasingly deploying low-emission and low-noise gensets to comply with urban zoning laws & strict EU mandates, thereby strengthening business outlook.
   
• The development of EU-wide green building certification paired with power instability and outdated infrastructure will augment the product deployment. Furthermore, the rapid deployment of gas powered solutions across data centers, airports, and hospitals for climate-aligned energy planning goals will boost industry scenario.
   
• The Middle East commercial standby generator sets market is set to reach over USD 240 million by 2034. The region is facing extreme heat and desert climates which will foster the demand for high-durability standby gensets with specialized ventilation & cooling systems.
   
• Ongoing government projects including smart city development and airports are propelling the demand for high capacity standby gensets. Additionally, seasonal power peaks during summer are also prompting commercial facilities to use generators for load balancing.
   
• For instance, in May 2025, ADNOC announced that its supply chain partners will invest USD 817 million in new manufacturing across the UAE. This announcement was made during the ‘Make it in the Emirates’ forum held in Abu Dhabi.
   
• The Africa commercial standby generator sets market will grow at a rate of over 10% through 2034. Increasing grid instability and frequent blackouts along with rapid growth of digital infrastructure including telecom infrastructure and Tier III/IV data centers across the region will boost industry growth.
   

Commercial Standby Generator Sets Market Share

• The top 5 companies in the commercial standby generator sets industry are Generac Power Systems, Caterpillar, Cummins, Atlas Copco, and Rolls Royce contributing around 40% of the market in 2024.
   
• The industry is indicating moderate to high market concentration in the commercial standby generator sets market. This concentration reflects the technical barriers to entry, strong brand preference, and the dominance of established players in large-scale commercial procurement and government tenders.
   
• Generac Power System is gaining share through a focused strategy on decentralization and small-to-mid-sized commercial installations. The company is targeting retail outlets, healthcare clinics, telecom towers, and educational campuses to expand its presence. The company’s emphasis on factory-integrated transfer switches, plug-and-play models, and cloud-connected monitoring systems appeals to customers to adopt smart & self-managing solutions.
   
• Caterpillar focuses on high-capacity, custom-engineered systems for critical infrastructure and industrial applications. The company has retained its share by leveraging global engineering expertise, robust diesel engine technology, and wide dealer and service network. It continues to dominate in segments including data centers and healthcare campuses where reliability under extreme loads and environments is paramount.
   
• The key competitive factors in the market include advanced control technologies, competitive pricing strategies, and strategic partnerships with EPC contractors, facility management firms, and fuel suppliers. These elements collectively determine product selection, after-sales satisfaction, and brand loyalty in a highly application-drive market.
   
• Over the past 3 years, market concentration in the commercial standby generator sets has shifted from high to moderate concentration. While key prominent players including Generac Power System, Caterpillar, and Cummins continue to dominate, emerging regional manufacturers and mid-sized players have made inroads by offering tailored solutions, flexible pricing, and localized service support.
   
• MAHINDRA POWEROL has gained significant market share over the last three years on account of its strategic focus on small-to-medium capacity gensets and its strong dealership network across urban and semi-urban India. The company has capitalized on demand from telecom towers, educational institutions, retail chains, and SME clusters that require compact, cost-efficient, and reliable power backup solutions.
   

Commercial Standby Generator Sets Market Companies

• Cummins reported its 2024 revenue of USD 34.1 billion, remaining consistent with 2023 levels. Regional performance was mixed, with North America sales increasing 1%, while international revenues declined by 1% year-over-year. The company’s net income for 2024 rose sharply to USD 3.9 billion or USD 28.37 per diluted share.
   
• Generac Power Systems reported net sales of USD 4.3 billion in 2024, reflecting a 7% increase compared to USD 4.02 billion in 2023. In contrast, commercial and industrial product sales declined 7% totaling USD 1.39 billion in 2024, compared to USD 1.49 billion in the prior year, reflecting softness in certain end markets and project timing shifts.
   
• Caterpillar reported sales and revenue of USD 16.2 billion for quarter 4, representing a 5% year-over-year decline from USD 17.1 billion in the previous year. The operating profit margin stood at 18%, slightly down from 18.4% in the same period last year, while the adjusted operating profit margin decreased to 18.3%, compared to 18.9% in Q4 2023.
   

Major players operating in the commercial standby generator sets market are:

• Aggreko
• ASHOK LEYLAND
• Atlas Copco
• Caterpillar
• Cooper
• Cummins
• Generac Power Systems
• Genesal Energy
• Green Power International
• J C Bamford Excavators
• Kirloskar
• Kohler
• MAHINDRA POWEROL
• Mitsubishi Heavy Industries
• Powerica
• Rolls-Royce
• Siemens Energy
• Sudhir
• Supernova Genset
• Wärtsilä
   

Commercial Standby Generator Sets Industry News

• In June 2025, Aggreko has expanded its Greener Upgrades portfolio with the introduction of three new natural gas generators models. The latest additions include a 360 kW unit, a 1,500 kW generator, and a 1,500 kW Rapid Deploy trailer-mounted version. These generators are specifically designed to help customers lower emissions, reduce fuel expenses, and enhance overall energy efficiency, supporting Aggreko’s ongoing commitment to sustainable, low carbon energy solutions.
   
• In April 2025, Generac Holding expanded its portfolio with the introduction of new generator solutions tailored for the data center market. This strategic addition enhances Generac’s comprehensive energy solutions offering, which includes diesel and natural gas generators as well as scalable multi-asset energy systems. These new products are engineered to seamlessly integrate and scale with the evolving requirements of hyperscale, colocation, enterprise, and edge data center environments.
   
• In June 2024, JCB announced its first hydrogen-powered generator. This milestone aligned with the company’s ongoing commitment to zero-emission technologies. The company is investing over USD 117.93 million in the development of hydrogen as a clean energy solution for the construction and agriculture sectors.
   
• In April 2024, Cummins Power Generation expanded its Centum Series with the launch of two new high-capacity generator models, the C3000D6EB and C2750D6E powered by Cummins’ proven QSK78 engine. These portfolio deliver 2,750 kW and 3,000 kW respectively and are engineered to meet the rigorous performance requirements of mission-critical environments including healthcare facilities, data center, and wastewater treatment plants.
   

The commercial standby generator sets market research reports include in-depth coverage of the industry with estimates & forecast in terms of volume (‘000 Units) & revenue (USD Million) from 2025 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Power Rating

• ≤ 75 kVA
• > 75 kVA - 375 kVA
• > 375 kVA - 750 kVA
• > 750 kVA

Market, By Fuel

• Diesel
• Gas
• Others

Market, By Application

• Telecom
• Healthcare
• Data centers
• Educational institutions
• Government centers
• Hospitality
• Retail sales
• Agriculture
• Aquaculture
• Others

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

• North America
  • U.S.
  • Canada
• Europe
  • Russia
  • UK
  • Germany
  • France
  • Spain
  • Austria
  • Italy
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Vietnam
  • Philippines
  • Myanmar
  • Bangladesh
• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Turkey
  • Iran
  • Oman
• Africa
  • Egypt
  • Nigeria
  • Algeria
  • South Africa
  • Angola
  • Kenya
  • Mozambique
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile