Generator Sets Market Size - By Power Rating, By Fuel, By End Use, By Application, By Sales Channel, Analysis, Share, Growth Forecast, 2025 - 2034

Generator Sets Market Size

The global generator sets market was valued at USD 44.6 billion in 2024. The market is expected to reach USD 91.1 billion in 2034, at a CAGR of 7.4%. Growing demand for reliable backup power solutions in association with increasing global infrastructure projects will proliferate the business scenario.
 

Expansion of data centers requiring uninterrupted power supply and rapid deployment of gensets in commercial establishment in tandem with rising adoption of energy efficient power solutions in industrial spaces will augment the business landscape. Positive government policies, grants, and compliance directed toward disaster mitigation, energy security, and environmental sustainability will improve industry penetration.
 

For citation, as of 2024, global energy investment surpassed USD 3 trillion, with investments towards clean energy infrastructure reaching USD 2 trillion. The incremental shift towards achieving sustainability and long-term decarbonization are supported by robust growth in renewables, grid enhancements, and energy efficiency.
 

Increasing need for reliable power in remote mining applications coupled with the growing adoption of gensets in oil & gas drilling operations will stimulate the demand for industrial generator. Moreover, growing advancement in emissions control systems in line with increasing investment in off-grid power generation solutions will enhance the business potential.
 

Stringent energy efficiency standards and expanding backup power mandates for critical infrastructure paired with AI-driven predictive maintenance technology will drive industry expansion. Rising grid failures and blackouts along with increasing demand for cost-effective power solutions in emerging economies will strengthen the business outlook.
 

For instance, the Federal Energy Regulatory Commission (FERC) reported a 12% increase in annual utility expenditures on electricity generation and distribution, rising from USD 287 billion in 2003 to USD 320 billion in 2023. This growth underscores continued investments in grid upgrades, infrastructure development, and energy reliability.
 

Emerging investments in residential construction alongside government funding for resilient energy infrastructure will further incentivize the adoption of standby home gensets. At the same time, increasing worries regarding power outages from storms and hurricanes will drive the implementation of these units.
 

Generator Sets Market Trends

The combination of increasing demand for distributed energy resources in rural areas and the modernization of transmission and distribution networks will improve business momentum. Moreover, the adoption of units for primary power supply, emergency backup, as well as for temporary power plants will further enhance industry prospects.
 

The increasing adoption of hybrid power solutions in industrial spaces in line with rising R&D investments to enhance genset technology will drive business growth. Expanding mega commercial hubs, smart city projects, and mixed-use developments in conjunction with government incentives for low-emission fuels is accelerating the demand for generator sets.
 

For illustration, in 2022, the business enterprise sector topped R&D expenditure, growing from USD 22.1 billion to USD 24.5 billion, which constituted more than a half of the growth. The additional contribution by the higher education sector was USD 8.9 million, by the private non-profit sector USD 2.4 million, and by federal government USD 8.4 million. Further, as per Statistics Canada, R&D expenditure is estimated to be USD 53.1 billion in 2023 and USD 55 billion in 2024.
 

The expansion of regional infrastructure and a growing focus on economic diversification will elevate industry penetration. Environmental policies promoting cleaner generator technologies in conjunction with rising adoption of low-NOx and Tier 4 generators will additionally improve the business opportunities.
 

Expanding partnerships between genset manufacturers and energy providers in tandem with rising investment in genset-as-a-service models will drive industry growth. Growing focus on genset lifecycle sustainability in line with the increasing demand for net-zero power solutions in commercial buildings will amplify the business potential.
 

For instance, Canada allocated about USD 362.1 million under the Smart Renewables and Electrification Pathways Utility Support Stream to advance clean energy infrastructure. As part of the USD 2.1 billion funding in the 2023 budget, the initiative supported renewable energy, energy storage and grid modernization to strengthen electricity reliability.
 

Rising adoption of AI-based load balancing systems, remote diagnostics and automated fault detection techniques will escalate the demand of these units. Moreover, the growing deployment of telecom towers requiring off-grid power coupled with rising demand for gensets in government and municipal buildings will fortify the business growth.
 

Generator Sets Market Analysis

• The market was estimated at USD 38.9, 41.6 & 44.6 billion in 2022, 2023 and 2024 respectively. Based on power rating, the market 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 generator sets industry is projected to grow at a CAGR of over 7% by 2034. Facing more power outages due to severe weather and grid issues is prompting homeowners to buy compact, fuel-efficient generators.
   
• The > 50 kVA - 125 kVA generator sets market is projected to reach over USD 15 billion by 2034. The gensets provide power during grid failures in addition to being the primary power source in remote work areas which results in greater product demand.
   
• For citation, from the year 2000 through 2023, the U.S. saw weather-related power outages account for 80% of all outages, which is projected to increase due to the aggravating climate change fueled extreme weather events.
   
• The > 125 kVA - 200 kVA generator sets market is projected to reach over USD 8 billion by 2024. The increasing need for powering construction sites, as well as the growing application of generators in underground metro and railway projects, will boost business opportunities. Moreover, the fuel level, engine functioning, and maintenance timing technological advancements will alter the business landscape.
   
• The > 200 kVA - 330 kVA generator sets market has a market share over 12% in 2024. The escalating need for such units is driven by the higher occurrence of typhoons and hurricanes. The growth of retail stores and high-end adoption of generators along with the expansion of research laboratories with essential power requirements will improve the economic climate.
   
• For illustration, in April 2023, China's 14th Five-Year Plan underlined the significance of modern infrastructure as a key component of a region’s transportation networks, energy systems, water resources, and even urban expansion which, if improved, has the potential to foster economic growth and sustainment.
   
• The > 330 kVA - 750 kVA generator sets market is projected to grow at a CAGR of over 7% by 2034. These categorizations of units are often utilized in expansive industrial plants, commercial buildings, and infrastructural projects. Development in industrial automation along with extensive data center and logistics hub construction will enhance the industry.
   
• The > 750 kVA generator sets market is projected to reach over USD 9 billion by 2034. These generators function as either primary or auxiliary power supply units for important infrastructures that cannot rely on the grid. These systems employ diagnostics and analytics to anticipate and prevent failures, enhancing uptime while lowering maintenance expenses for industrial customers.
   
• For citation, in 2024, the Australian government had budgeted an investment on infrastructure development amounting to over USD 15 billion for the new and existing projects. The aims of this investment is to enable city expansion, improve linkages, and develop the key infrastructure.
   

• Based on fuel, the industry is segmented into diesel, gas and hybrid. The diesel fueled generator sets market has a market share of 76.4% in 2024. Their ability to provide high torque and longer runtime makes them indispensable in heavy-duty operations. Furthermore, ongoing investment in next-generation diesel engines along with their ability to operate in harsh environments will sway the business outlook.
   
• The gas generator sets market is projected to reach over USD 13.5 billion by 2034. The sector will grow due to the increasing availability of liquefied and compressed natural gas infrastructure as well as tighter environmental policies and increasing demand from consumers for cleaner options.
   
• For citation, in 2023, European LNG Imports capacity was increased by over 50 bcm/year, mainly through the utilization of Floating Storage Regasification Units (FSRUs), to lessen dependence on Russian gas. Additional Euros 7 billion were invested in natural gas, while total oil & gas expenditure surpassed Euros 30 billion, indicating determent of industry activities.
   
• The hybrid generator sets market will project at a CAGR of over 7.5% by 2034. The growth of the market is being fostered by the global integration of renewable energy and the optimization of fuel efficiency. Additionally, the rising adoption of digital twin technology in hybrid genset systems is set to enhance industry potential.
   

• The U.S. generator sets market was valued at USD 7, 7.4 & 7.9 billion in 2022, 2023 and 2024 respectively. The country will project over USD 15 billion by 2034. Increasing demand for backup power in cloud computing facilities along with expansion of electric vehicle charging stations needing backup power solutions will augment the business landscape.
   
• The North America market will witness a CAGR of over 6.5% in 2034. Rising costs of data center downtimes and outages are accelerating the widespread adoption of gensets. Additionally, increasing demand for fast, automatic start-up and highly reliable power solutions will fuel industry expansion.
   
• For instance, the Canada set around USD 9.5 million aside for upgrading Antigonish’s electrical grid with added efficiency, resilience, and a focus on renewable energy sources. This investment is part of the Smart Renewables and Electrification Pathways Program which seeks to minimize outages, enable effective electrification, and help the town achieve its net-zero targets.
   
• The Europe generator sets market was valued over USD 5.5 billion in 2024. The advancement of electrification projects and enhanced funding into the manufacturing domain shall boost businesses. In addition, the rising need for a dependable power supply in healthcare and industrial establishments will hasten genset provisioning.
   
• The Asia Pacific market will grow at a CAGR of 7% from 2025 to 2034. The adoption of certain products will be propelled by economic development, an increase in population and a higher degree of urbanization. Additionally, foreign investments in line with the surging industrial development activities in the area will enhance the business climate.
   
• For instance, the focus of India’s Interim Budget of 2024-25 was aimed towards enhancing infrastructure development, with total expenditure projected monetary allocation of approximately USD 134 billion, which accounts for 3.4% of the GDP. When calculated, this shows an 11.1% increase compared to the previous year.
   
• The Middle East generator sets market will reach over USD 4.5 billion by 2034. The growth of smart city initiatives, advancements in gensets with Dynamic load-balancing capabilities and rising investments in energy resilience programs will accelerate industry expansion.
   
• The Africa generator sets industry will witness a CAGR of over 9.8% in 2034. Rising chronic power shortages in commercial areas will stimulate business dynamics. Additionally, advancements in genset technology, including optimized engine designs, advanced cooling systems, and sophisticated control mechanisms will escalate business outlook.
   
• For instance, the African Development Bank approved a USD 7 million SEFA grant to accelerate private mini-grid investments in Africa through the Africa Mini-Grid Market Acceleration Program (AMAP). The initiative focuses on national-scale grid acceleration, financial de-risking solutions, and capacity-building efforts.
   
• The Latin America market will grow on account of growing demand for backup power in high-density industries coupled with expanding trade activities requiring energy resilience will drive business growth. Moreover, the rising adoption of gensets in decentralized data storage centers will proliferate the industry trajectory.
   

Generator Sets Market Share

• The top 5 players including Caterpillar, Atlas Copco, Cummins, Generac Power Systems and Rolls-Royce together hold share of about 42% in the generator sets industry. Atlas Copco stays ahead of the competition due to its fuel-efficient and low emission patented mobile engines incorporated in the QAS series, stationary QES series, and other generators. The company is well known for its advanced technology and other reliable and efficient products.
   
• The advancements in commercial genset technology by Deere & Company will continue to enhance their industry leadership. The organization continues to innovate by increasing fuel efficiency, optimizing power output, and reducing emissions, thus maintaining a competitive advantage in the marketplace.
   
• Atlas Copco expanded their QES diesel generator range by adding new reliable solutions power nodes from 200 kVA to 500 kVA. Their waterproof and corrosion-resistant canopy provided extreme durability, and rigorous testing further improved their harsh weather survivability.
   

Generator Sets Market Companies

• Caterpillar recorded USD 64.8 billion in revenue for 2024. The company allocated USD 2.1 billion toward research and development, reinforcing its commitment to innovation. Profit before tax reached USD 13.4 billion, a 2.3% increase from USD 13.1 billion in 2023, highlighting steady financial growth.
   
• Deere & Company reported USD 51.7 billion in net sales for 2024, driven by its diverse operations across production & precision agriculture, construction & forestry, small agriculture & turf and financial services. The construction & forestry segment contributed USD 13 billion in net sales, reflecting its strong performance within the portfolio.
   
• Cummins reported USD 34.1 billion in net sales for 2024, with operating income surging 113% to USD 3.8 billion from USD 1.8 billion in the previous year. Additionally, the company's EBITDA reached USD 6.3 billion, reflecting its strong financial performance and operational efficiency.
   

Major players operating in the generator sets industry are:

• Aggreko
• ASHOK LEYLAND
• Atlas Copco
• Briggs & Stratton
• Caterpillar
• Cummins
• Deere & Company
• FG Wilson
• Generac Power Systems
• Greaves Cotton
• HIMOINSA
• Honda Motor
• Huu Toan
• J C Bamford Excavators
• Kirloskar
• MAHINDRA POWEROL
• MITSUBISHI HEAVY INDUSTRIES
• Rehlko
• Rolls-Royce
• Sterling and Wilson
• Sudhir Group
• Supernova Genset
• Wartsila
• Yamaha
• Yanmar

Generator Sets Industry News

• In September 2024, Cummins India Limited has launched the Retrofit Aftertreatment System (RAS) that allows customers to modify their existing CPCBII and CPCBI gensets to comply with new emission standards. This solution developed in India improves the company’s cutoff mark of 90% in particulates, carbon monoxide, and hydrocarbons emissions which underscores firm’s sustainable power solutions devotion.
   
• In April 2024, Atlas Copco has launched new compact series nitrogen membrane generators - NM 3000-25, NM 2000-25, etc., targeted for different production capacities of nitrogen. The NM series uses new membrane technology which improves energy efficiency and provides custom solutions by producing nitrogen with a purity of up to 99 percent for a multitude of industrial applications.
   
• In May 2024, Briggs & Stratton launched the 26 kW Power Protect Home Standby Generator boasting cutting-edge motor starting features and best-in-class warranty coverage. With integrated dual fuel capability for natural gas and liquid propane, it maximizes efficiency with NGMax Technology which increases natural gas performance by 7%. Designed for modern gas-reliant homes, it delivers dependable and efficient backup power.
   
• In January 2024, Caterpillar launched the DG450 natural gas genset, a low NOx 450-kW power solution engineered for non-emergency use in EPA-designated non-attainment zones. Designed to meet strict environmental standards, the genset provides dependable performance while addressing the increasing demand for sustainable power solutions.
   

The generator sets market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (‘000 Units) & revenue (USD Million) from 2021 - 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 Fuel

• Diesel
• Gas
• Hybrid

Market, By End Use

• Residential
  • Single family
  • Multi family
• Commercial
  • Telecom
  • Healthcare
  • Data centers
  • Educational institutions
  • Government centers
  • Hospitality
  • Retail sales
  • Real estate
  • Commercial complex
  • Infrastructure
  • Others
• Industrial
  • Oil & gas
  • Manufacturing
  • Construction
  • Electric utilities
  • Mining
  • Transportation & logistics
  • Others

Market, By Application

• Standby
• Peak shaving
• Prime/continuous

Market, By Sales Channel

• Online
• Dealer
• Retail

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