Diesel Gensets Market

Diesel Gensets Market Size

The global diesel gensets market size was estimated at USD 36.8 billion in 2024 and is expected to reach USD 73.6 billion by 2034, growing at a CAGR of 8.1% from 2025 to 2034.

• The market is experiencing a shift driven by increasing demand for reliable backup power in residential, commercial, and industrial sectors. Growth is notably strong in regions with unstable grids or frequent outages. These gensets offer immediate power restoration, making them vital for telecom, healthcare, and infrastructure continuity.
  
• The manufacturers are integrating automation, remote monitoring, and emissions-reduction features to meet stricter environmental standards. Hybrid systems combining diesel with renewables or battery storage are gaining attention, balancing reliability with sustainability. Such advancements are expanding applications and acceptance in environmentally sensitive areas.
  
• The diesel gensets market was valued at USD 30.1 billion in 2019 and grew at a CAGR of approximately 6% through 2024. Surging urbanization rate along with expanding infrastructure projects continue to fuel the industry momentum. Rising adoption due to construction activity and rural electrification needs. While noise and pollution concerns persist, ongoing innovation and regulatory adaptation are encouraging broader deployment of more efficient, cleaner genset solutions.
  
• For instance, in August 2023, the U.S. Department of Energy committed USD 2.2 billion to strengthen grid resilience, lower community energy costs, and meet the increasing power demands of manufacturing and data centers. The funding focused on improving infrastructure reliability, minimizing outages, and securing a stable electricity supply to support industrial development and digital expansion.
  
• Asia Pacific diesel genset market will grow on account of increasing frequent power interruptions in urban and rural areas. Increased infrastructure investments comprising of roads, data centers, hospitals will be accelerating the product demand. Moreover, the manufacturers are meeting these needs with compact, reliable, and easy-to-maintain gensets, ensuring consistent energy backup where the local grid is unreliable.
  
• Environmental considerations are prompting adoption of cleaner, lower-emission diesel gensets. Many manufacturers now offer remote-monitoring and automated controls for efficiency and cost savings. Hybrid setups that pair diesel units with solar or batteries are emerging in markets, balancing dependability with lower fuel consumption and reduced carbon impact.
  

Diesel Gensets Market Trends

• The increasing frequency and severity of weather-related disasters such as cyclones, floods, and wildfires are amplifying the demand for reliable backup power solutions. These generator sets are gaining traction as essential assets for ensuring operational continuity across hospitals, data centers, and emergency services during prolonged grid outages caused by extreme climatic events.
  
• As climate uncertainties intensify, critical infrastructure and commercial sectors are prioritizing resilience. Diesel gensets, with their rapid deployment and robustness, are being integrated into disaster preparedness strategies. This shift underscores a growing recognition of gensets not merely as backup systems but as vital components of risk mitigation in climate-vulnerable regions.
  
• For instance, in 2024, the U.S. experienced 27 confirmed weather and climate disaster events, each causing losses exceeding USD 1 billion. The events comprised 17 severe storms, 5 tropical cyclones, 1 drought, 1 flood, 1 wildfire, and 2 winter storms. These incidents underscore rising climate-related risks and the growing economic impact of extreme weather on infrastructure and communities.
  
• Rising costs associated with data center outages are compelling operators to invest in robust backup systems. These gensets are increasingly favored for their ability to provide instant, uninterrupted power, minimizing financial and reputational damage during unexpected disruptions, and ensuring compliance with stringent uptime requirements in an increasingly digital economy.
  
• As data centers become mission-critical to cloud computing, AI, and e-commerce, even brief downtimes can result in substantial losses. This urgency is driving data center managers to deploy high-capacity diesel gensets as part of their core infrastructure, reinforcing reliability and safeguarding against power instability or grid failures.
  
• For illustration, in January 2025, the UAE announced a strategic investment between USD 32 billion and USD 53 billion to develop Europe's largest AI data center in France. This initiative, a cornerstone of the expanding AI partnership between the two nations, will anchor a newly established AI campus, fostering innovation and reinforcing bilateral technological collaboration.
  
• The booming construction sector is fueling demand for mobile and reliable power sources, especially in off-grid or early-stage project sites. Diesel gensets are widely adopted to support continuous operations of tools, lighting, and machinery, enabling productivity in remote or undeveloped areas where grid connectivity is either delayed or unavailable.
  
• As urban expansion and infrastructure projects accelerate globally, contractors seek dependable energy solutions to meet tight timelines and ensure project continuity. Diesel gensets serve as practical, scalable options, offering flexibility in deployment and capacity, making them integral to the power mix on dynamic construction sites with varying energy demands.
  
• For instance, in December 2024, China launched 56,000 urban renovation projects aimed at enhancing infrastructure and living standards. The initiatives included installing over 25,000 elevators in existing buildings, developing more than 500,000 parking spaces, and constructing 2,254 elderly care centers. These efforts reflect a strategic push to modernize urban amenities.
  

Diesel Gensets Market Analysis

• Based on power rating, the industry is segmented into ≤ 50 kVA, > 50 kVA - 125 kVA, > 125 kVA - 200 kVA, > 200 kVA - 330 kVA, > 330 kVA - 750 kVA and > 750 kVA. The ≤ 50 kVA segment dominated the diesel gensets market accounting for 22.5% share in 2024 and is expected to grow at a CAGR of over 8% through 2034.
  

• The diesel gensets rated ≤ 50 kVA are witnessing steady demand across residential, small commercial, and rural applications owing to their compact size and affordability. These low-capacity units offer essential backup power during grid failures, especially in regions with unreliable electricity supply, supporting small-scale operations, shops, and individual households effectively.
  
• The > 50 kVA - 125 kVA rated diesel gensets market will register at a CAGR of 7.5% through 2034. These units are increasingly popular among small to mid-sized enterprises, healthcare facilities, educational institutions, and construction sites. These gensets enable uninterrupted operations for essential services, machinery, and temporary installations during power disruptions or grid unreliability.
  
• For instance, in 2024, Canada pledged over USD 40 million to a CENGN-led initiative focused on accelerating innovation in the telecom sector. The investment will fund a living lab program and 5G testbed infrastructure, supporting the development of AI-enabled network technologies and next-generation 5G applications to drive connectivity and digital advancement.
  
• The >125 kVA – 200 kVA diesel gensets segment is witnessing steady demand, especially from commercial buildings, healthcare facilities, and mid-sized industrial setups seeking robust backup power solutions. Growing emphasis on decentralized energy systems and rapid urbanization in emerging markets support its adoption.
  
• The >200 kVA – 330 kVA segment addresses high power reliability needs during grid failures and planned outages, particularly in power-deficient regions. Demand is further supported by construction boom and industrial expansion in developing economies. With rising environmental scrutiny, users are increasingly opting for low-emission, fuel-efficient gensets in this range, balancing high-capacity output with regulatory and sustainability considerations.
  
• The >330 kVA–750kVA diesel genset segment is set to exceed USD 10 billion by 2034. Rising applicability across heavy industries, large-scale manufacturing, mining operations, and major infrastructure projects will favor the business scenario. Its capacity aligns well with critical continuous-load requirements, particularly in remote locations where stable, high-power supply is essential.
  
• For instance, the IEA projects energy investment in the Middle East to reach approximately USD 175 billion in 2024. Under the Announced Pledges Scenario (APS), this figure is expected to rise significantly by 2030, fueled by expanding infrastructure initiatives and growing regional energy demand.
  
• The >750 kVA diesel gensets market was valued at USD 4.2 billion in 2024. Rising demand from heavy industries, data centers and large infrastructure projects will positively sway the business growth.
  
• This capacity range is increasingly preferred for its ability to ensure uninterrupted operations in power-critical environments. Trends such as urban expansion, grid instability in developing nations, and the integration of gensets in hybrid power systems are driving adoption.
  

• Based on application, the diesel gensets market is segmented into standby, peak shaving and prime/continuous. The standby segment holds 49% market share in 2024 with over 7.5% CAGR till 2034. The segment in the industry is gaining traction on account of increasing demand for uninterrupted power supply in critical sectors such as healthcare, data centers, and commercial infrastructure.
  
• As grid reliability concerns grow amid frequent outages and natural disasters, businesses are prioritizing backup systems to ensure operational continuity. Standby diesel gensets offer immediate power restoration, making them a preferred choice where downtime can lead to substantial losses. This trend reflects a strategic shift toward resilience and risk mitigation.
  
• For instance, in April 2023, China’s 14th Five-Year Plan prioritized large-scale investment in new infrastructure development. The focus includes modernizing transportation networks, upgrading energy and water systems, and advancing urban infrastructure. Furthermore, these initiatives aim to support economic growth and technological advancement.
  
• Peak shaving application was estimated at USD 6.7 billion in 2024. These systems are gaining traction as commercial and industrial users seek to reduce demand charges and manage grid load efficiently, offering the significant opportunities for industry expansion.
  
• By deploying diesel gensets during peak electricity usage periods, businesses can avoid high utility tariffs and ensure operational continuity. This trend aligns with the broader push for energy cost optimization and power reliability, especially in regions with unstable grids or rising electricity prices.
  
• The prime/continuous diesel gensets market is witnessing growth driven by industries requiring uninterrupted power for extended operations, such as mining, construction, oil and gas, and remote manufacturing. These gensets are increasingly favored where grid access is unreliable or unavailable, ensuring operational stability.
  

• The U.S. dominated the diesel gensets market in North America with around 85.9% share in 2024 and generated USD 6 billion in revenue. The industry is experiencing sustained demand owing to increasing concerns over grid reliability, frequent extreme weather events, and aging infrastructure.
  
• Industrial and commercial facilities are investing in backup power to ensure business continuity during outages. The push toward electrification and renewable energy integration has also led to greater interest in hybrid power systems, where diesel gensets serve as reliable supplements.
  
• The North America diesel gensets market is projected to surge over USD 12 billion by 2034. The market is witnessing steady demand driven by the need for reliable backup power across wide tandem of application areas. Increasing grid instability due to extreme weather events and growing power demands in remote and off-grid areas are major drivers. Industries such as healthcare, data centers, and oil & gas continue to rely on diesel generators for uninterrupted operations.
  
• For instance, in 2023, the U.S. government enacted the Bipartisan Infrastructure Law (BIL), allocating USD 1.2 trillion in federal funding to support transportation, energy, and climate infrastructure projects primarily administered by state and local authorities. The law introduced a shift in funding priorities by directing greater per capita investment toward lower-rated and lower-income states, moving away from the traditional emphasis on wealthier regions.
  
• The Europe diesel gensets market was evaluated at USD 3.9 billion in 2024.  The market is experiencing notable shifts driven by increasing energy insecurity, aging grid infrastructure, and rising demand for backup power across various sectors. Governments’ push for energy resilience and the integration of gensets in hybrid systems further sustain their relevance.
  
• The Asia Pacific diesel gensets hold a market share of 54.7% in 2024. The industry will gain an appreciable momentum on account of rapid industrialization, expanding construction activities, and increasing demand for reliable backup power across emerging economies. Frequent power outages and grid instability in rural and semi-urban areas will further propel the product adoption.
  
• For instance, in 2024, the Australian government announced an investment exceeding USD 15 billion to support new and ongoing infrastructure projects. The initiative is aimed at accommodating rapid urban growth and enhancing connectivity across major cities. Moreover, this move underscores a long-term commitment to sustainable urban development.
  
• The China holds the large market share in the region driven by a combination of rapid industrial expansion, frequent power outages in urban regions, and government-backed infrastructure development projects. Manufacturing hubs, construction sites, and rural healthcare facilities depend heavily on gensets for uninterrupted electricity supply. The rise of specialized applications comprising of telecom towers, data centers, and mining operations further boosts demand for reliable & high-efficiency units.
  
• The Africa diesel gensets market is set to grow at a rate of over 10% from 2025 to 2034. The market is shaped by growing energy demands, unreliable grid infrastructure, and the need for backup power in critical sectors such as oil & gas, mining, and healthcare. Urbanization and industrialization in regions with limited electricity access are further accelerating genset adoption. In remote areas and off-grid locations, diesel gensets remain vital for consistent power supply.
  
• For instance, in September 2024, Saudi Arabia launched a USD 1.3 trillion investment program focused on real estate and infrastructure development. The initiative is part of the Kingdom’s broader strategy to diversify its economy beyond oil. Projects aim to enhance global appeal by creating destinations for living, working, and tourism. This marks a key step in advancing Vision 2030 objectives.
  

Diesel Gensets Market Share

• The top 5 companies in the diesel gensets industry are Caterpillar, Cummins, Generac Power Systems, Aggreko and Rolls-Royce contribute around 40% of the market share in 2024.
  
• The diesel gensets market exhibits moderate market concentration, characterized by the presence of several global players along with strong regional manufacturers competing across different capacity segments. The market remains competitive, driven by technological advancements, product differentiation and after-sales service offerings.
  
• Over the past 3 years, the industry has experienced gradual yet resilient growth, despite global disruptions. Post-pandemic recovery in 2022 boosted demand from construction, manufacturing, and commercial sectors. By 2023, supply chains stabilized, and demand increased in data centers, healthcare, and telecom due to greater emphasis on energy reliability. In 2024, infrastructure development in emerging economies and heightened disaster preparedness further fueled adoption
  
• Caterpillar is recognized as one of the leaders in the diesel gensets market, offering a comprehensive range of generator sets known for their reliability, durability, and advanced engineering. The company leverages its strong brand reputation and vast dealer network to serve diverse sectors including construction, mining, data centers, and healthcare.
  
• Its units are favored for critical power backup and prime power applications, often integrated with cutting-edge control systems and remote monitoring technologies. Its continuous innovation in fuel efficiency, emissions control, and digital monitoring systems reinforces its position as a trusted brand in power generation.
  
• Rolls-Royce is one of the prominent players in the market through its MTU brand, known for delivering high-performance and reliable power generation solutions across various sectors, including industrial, commercial, and defense applications. The company emphasizes innovation and efficiency, integrating advanced engine technologies to ensure optimal fuel consumption and low emissions.
  
• Its systems are favored for critical power applications due to their durability and fast start-up capabilities. Additionally, the company is actively integrating digital monitoring and hybrid-ready systems to align with evolving energy demands and sustainability goals.
  

Diesel Gensets Market Companies

• Siemens generated USD 19.73 billion in revenue in Q1 2025, with smart infrastructure contributing USD 5.68 billion and siemens healthiness adding USD 5.89 billion. The smart infrastructure segment saw increased demand for energy management and backup systems, including diesel gensets, driven by rising grid instability and data center expansion.
  
• Caterpillar recorded a revenue of USD 14.2 billion in the first quarter of 2025, while it generated 64.8 billion in 2024, with an investment of USD 2.1 billion in research and development. The company's profit before tax rose to USD 13.4 billion, marking a 2.3% increase from USD 13.1 billion in 2023. Additionally, the company is enhancing its product portfolios by incorporating smart and energy-efficient solutions.
  
• Atlas Copco generated USD 4.1 billion in revenue in Q1 2025, supported by steady growth across its industrial and power technology divisions. The company reported strong demand for its portable diesel gensets, particularly in construction, mining, and emergency power applications across developing markets. Atlas Copco’s focus on fuel-efficient and low emission genset models also contributed to its resilient performance in the quarter.
  

Major players operating in the diesel gensets market are:

• Aggreko
• Ashok Leyland
• Atlas Copco
• Captiva Energy Solutions
• Caterpillar
• Cooper Corp.
• Cummins
• Deere & Company
• FG Wilson
• Generac Power Systems
• Greaves Cotton Limited
• HIMOINSA
• J C Bamford Excavators
• Kirloskar
• Rehlko
• Mahindra POWEROL
• Mitsubishi Heavy Industries
• Powerica Limited
• Rapid Power Generation
• Rolls-Royce
• Siemens
• Sterling and Wilson
• Sudhir Power
• Supernova Genset
• Wärtsilä
• Yamaha Motor

Diesel Gensets Industry News

• In June 2025, Rolls-Royce committed USD 24 million to establish a new 250,000 square feet Logistics Operations Center in Mankato, Minnesota, aiming to more than double production of its mtu Series 4000 diesel generator sets by 2026. The investment targets surging U.S. data center demand and will also enhance output at its Aiken, South Carolina plant. Moreover, Rolls-Royce highlighted the gensets compatibility with synthetic diesel and HVO fuels, reinforcing its strategic role in mission-critical backup power.
  
• In April 2025, Generac Holding introduced advanced generator solutions tailored for the data center sector, strengthening its portfolio of diesel, natural gas, and scalable multi-asset energy systems. These offerings are designed to integrate seamlessly with the dynamic needs of hyperscale, colocation, enterprise, and edge data center environments.
  
• In June 2024, Atlas Copco enhanced its QES diesel gensets series by introducing power nodes ranging from 200 kVA to 500 kVA. The upgraded models underwent extensive testing to withstand harsh weather, featuring a waterproof and corrosion-resistant canopy for durability. Additionally, generators above 250 kVA were designed with synchronization capabilities for parallel operation and load sharing.
  
• In March 2024, MAHINDRA POWEROL launched its CPCBIV+ emission-compliant diesel genset range at Taj Deccan, Hyderabad, in collaboration with Recon Technologies Pvt Ltd. This new range, with capacities up to 625 KVA, underscores their commitment to delivering advanced, environmentally responsible power solutions.
  

The diesel gensets market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & Volume (‘000 Units) from 2021 to 2034, for the following segments:

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Market, By Power Rating

• ≤ 50 kVA
• > 50 kVA - 125 kVA
• > 125 kVA - 200 kVA
• > 200 kVA - 330 kVA
• > 330 kVA - 750 kVA
• > 750 kVA

Market, By End Use

• Residential
• Commercial
• Industrial

Market, By Application

• Standby
• Peak shaving
• Prime/continuous

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
• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Turkey
  • Iran
  • Oman
• Africa
  • Egypt
  • Nigeria
  • Algeria
  • South Africa
  • Angola
  • Kenya
  • Mozambique
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile