Mexico Generator Sets Market

Mexico Generator Sets Market Size

According to a recent study by Global Market Insights Inc., the Mexico generator sets market was estimated at USD 622.2 million in 2024. The market is expected to grow from USD 659 million in 2025 to USD 1.17 billion by 2034, at a CAGR of 6.6%.

• Rising industrial expansion in tandem with increased factory commissioning will spur the demand across new power plants which require reliable on-site energy during construction and initial operations. The rising need for remote and offshore power generation coupled with growing interest in renewable energy solutions will drive business expansion.
  
• A generator set, commonly referred to as a genset, is an engine and an alternator designed to produce electrical power. It serves as a reliable source of backup or primary electricity in applications where grid power is unavailable, unstable, or insufficient.
  
• For citation, in the first quarter of 2025, Mexico attracted an unprecedented USD 21.4 billion in foreign direct investment (FDI), marking a 165% increase compared to the previous quarter.
  
• The rapid growth of data center capacity in line with limited or constrained local grid capacity will bolster purchases of high-reliability and modular gensets. The increasing frequency of heat-driven peak load events along with heightened corporate continuity planning will strengthen the demand for generator sets.
  
• The telecom densification for 5G coupled with expansion of edge computing nodes will drive adoption of compact, automated gensets designed for remote, unattended operation with remote monitoring and fast automatic start. The growth of cold-chain and logistics hubs will fuel the demand for low-vibration power units.
  
• For reference, in June 2025, Humanscale announced a nearly USD 30 million investment to expand its facility in Nogales, Sonora. The initiative will enhance both manufacturing and logistics capabilities, reinforcing the company's operational footprint across North America.
  
• The booming e-commerce distribution across the country in association with the demand for fuel-efficient gensets that protect perishable inventory and maintain continuous refrigeration, which in turn will escalate product penetration. The rise in municipal and regional disaster-preparedness programs will foster product demand.
  
• The greater emphasis on emergency response logistics along with rapid-deploy gensets fleets for hospitals, shelters, and utility recovery will energize business trends. The growing corporate emphasis on sustainability coupled with urban air-quality concerns will accelerate adoption of cleaner backup options.
  
• For illustration, in June 2025, Hengli Hydraulics inaugurated its first manufacturing facility in Latin America with a capital investment of USD 325 million. Located in Santa Catarina, Nuevo León, the plant will specialize in the production of hydraulic cylinders for heavy machinery, marking a strategic expansion of the company's global manufacturing footprint.
  
• The Mexico generator sets market was valued at USD 500.9 million in 2021 and grew at a CAGR of over 6% through 2024. The growth of mission-critical manufacturing in line with sensitivity to power quality will drive procurement of low-THD, grid-code-compliant gensets that protect sensitive equipment.
  
• In addition, the increasing severity and frequency of coastal storms coupled with infrastructure vulnerability awareness will fortify purchases of weather-rated enclosures, elevated fuel source, and quick-start portable sets for resilience. The proliferation of automation and robotics in factories will augment the deployment of efficient power backup units.
  

Mexico Generator Sets Market Trends

• The surging frequency and intensity of weather-related disasters in tandem with growing power reliability concerns will bolster the demand for generator sets as backup power solutions. Mexico is prone to hurricanes tropical storms, and heavy rainfall events, particularly in coastal and central regions, which often lead to widespread grid disruptions.
  
• In recent years, climate change has amplified the severity of these weather patterns, increasing the risk of extended blackouts. The rise in natural disasters, paired with the government’s limited ability to modernize aging grid infrastructure quickly, is accelerating the reliance on gensets for emergency preparedness.
  
• For reference, in May 2025, Safran inaugurated its 6^th facility in Chihuahua, Mexico, following a USD 7 million investment. Spanning 210,000 square feet, the new plant will focus on the production of evacuation systems, further strengthening Safran’s aerospace manufacturing capabilities and expanding its footprint in the Mexico generator sets market.
  
• The rapid expansion of data centers industry coupled with mounting outage costs will drive the demand for high-capacity and fuel-efficient generator sets across the country. As the country becomes a hub for cloud-computing, fintech, e-commerce, and digital services, data center investments are witnessing exponential growth.
  
• Additionally, Mexico’s ambitious digital transformation agenda in association with increasing 5G deployment will spur the construction of edge data centers in remote regions. These smaller facilities, often located in areas with weak grid infrastructure, heavily depend on reliable on-site power generation.
  
• For instance, in April 2025, Unilever is set to double its investment in a new manufacturing facility in Mexico, allocating USD 800 million for the development of a plant in Salinas, Victoria. The facility will be located within the Salinas Industrial Park, specifically in the Nexxus and Nexxus 2 zones.
  
• The growing construction sector in line with urbanization boom will fuel the need for generator sets to power equipment, tools, and temporary facilities at project sites. Project ranging from highways, airports, and rail networks to residential complexes and commercial spaces are rapidly expanding across the country, which will accelerate the product demand.
  
• Urbanization trends coupled with population growth will augment the need for new housing, shopping centers, and industrial parks, further strengthening genset demand. Furthermore, the government’s investments in transport and energy infrastructure in tandem with foreign direct investments in manufacturing facilities will bolster Mexico generator sets market growth.
  
• For citation, in May 2025, Bulkmatic initiated construction of a USD 250 million intermodal terminal in Pesquería, Nuevo León. Designed to facilitate rail-to-truck liquid transfers, the facility is expected to commence operations in 2026.
  
• Rapid industrialization paired with increasing infrastructural investment will drive long-term growth in Mexico market as manufacturing clusters and large-scale projects demand consistent power availability. Rising energy consumption in tandem with grid modernization gaps will bolster reliance on generator sets for prime and backup power needs.
  

Mexico Generator Sets Market Analysis

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• Based on fuel, the industry is segmented into diesel, gas, gasoline, and hybrid. The diesel generator sets hold a market share of 58% in 2024 and is projected to grow at a growth rate of over 5.5% through 2034.
  
• Rapidly expanding manufacturing clusters coupled with the country’s robust mining activities will fuel the demand for diesel-powered gensets owing to their high power density and reliability in off-grid locations. Increasing investment in oil & gas exploration, paired with the rising energy security concerns, will bolster the adoption of diesel units for mission-critical operations.
  
• For reference, in July 2025, NBHX Trim Mexico launched a new production line at its Aguascalientes facility, backed by an investment exceeding USD 23 million. The expansion will focus on delivering comprehensive interior systems for premium and electric vehicles, including dashboards, door panels, metal components, and specialized parts.
  
• The gas generator sets market is anticipated to reach over 250 million by 2034. Growing natural gas infrastructure coupled with declining gas prices will bolster the adoption of gas-powered gensets for both prime and standby applications. Increasing emphasis on clean energy transitions and strict emission regulations will fuel the replacement of diesel units with low-emissions gas generators.
  
• The gasoline generator sets market was valued at USD 13.6 million in 2024. Rising number of residential housing projects together with growing small-scale commercial facilities will drive the demand for gasoline gensets. Increasing popularity of recreational activities and tourism growth in remote destinations will energize the use of gasoline units.
  
• For citation, in July 2025, Giant Motors Latinoamérica (GML) announced an approximately USD 165 million investment to expand its manufacturing facility in Ciudad Sahagún, Hidalgo. The expansion will double the plant’s annual production capacity to 60,000 vehicles by 2026, reinforcing GML’s commitment to innovation and operational excellence in the automotive sector.
  
• The hybrid generator sets market will project a growth rate of over 7.5% till 2034. The country’s renewable energy integration goals coupled with the need to cut fuel costs will accelerate the adoption of these gensets combining with solar PV with conventional units.
  
• The growing ESG commitments paired with corporate sustainability initiatives will foster the demand for hybrid solutions across industrial and commercial end-users. Increasing government support for clean technologies coupled with hybrid system ability to reduce GHG emissions will strengthen industry dynamics.
  
• Based on end use, the industry is segmented into residential, commercial, and industrial. The industrial segment will exceed USD 500 million by 2034. Rapid industrialization across manufacturing hubs in association with factory expansions and new plant setups will fuel large capacity gensets installations.
  
• Growing mining and oil & gas exploration activities, paired with remote industrial operations will drive off-grid gensets requirements. Integration of automation and robotics in factories coupled with higher power quality needs will augment demand for continuous power backup.
  
• For instance, in May 2025, Bühler commenced construction of a new manufacturing facility in Torreón, Mexico. The first phase of the project represents a USD 24 million investment. Scheduled to become operational in Q2 2026, the facility will support Bühler’s Grains & Food business and plays a strategic role in the company’s long-term growth plans across the Americas.
  
• The residential generator sets market was valued at USD 178 million in 2024. Rising frequency of grid power outages in suburban and rural regions coupled with growing adoption of home backup solutions will fuel residential gensets demand. Increasing awareness of emergency preparedness and a rise in extreme weather-related blackouts will drive business momentum.
  
• The commercial generator sets market will project a growth rate of over 6.5% till 2034. Rising digital transformation of businesses together with greater dependence on uninterrupted internet connectivity will strengthen commercial genset installations.
  
• For reference, in November 2024, The Mexican government unveiled the National Strategy for the Electricity Sector 2024-2030, outlining a planned investment of USD 23.4 billion in the state-owned Federal Electricity Commission (CFE).
  
• Under this strategy, CFE will allocate USD 23.4 billion across key infrastructure initiatives, including USD 12.3 billion for new generation projects totaling 13,024 MW, USD 7.5 billion for transmission network enhancements, and USD 3.6 billion for distribution system upgrades.
  
• Growing commercial infrastructure projects in tandem with retail and hospitality expansion will spur the demand for reliable backup power. Increasing outage costs for SMEs coupled with the growth of cloud-based enterprises will drive the adoption of standby and prime-power gensets.
  

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• Based on application, the Mexico generator sets market is segmented into standby, peak shaving, and prime/continuous. The standby segment holds a share of 67.7% in 2024 and is set to exceed USD 750 million by 2034. Surging grid instability caused by aging transmission infrastructure and frequent power interruptions is accelerating demand for standby gensets to ensure reliable backup power.
  
• The peak shaving generator sets market was valued at USD 60.6 million in 2024. Escalating electricity tariffs during peak hours are encouraging industrial and commercial users to deploy gensets for peak shaving and cost savings. Manufacturing sector growth is creating demand for gensets to reduce dependency on expensive grid power during production peaks.
  
• For illustration, in April 2025, Walmart of Mexico and Central America have announced a USD 6 billion investment aimed at expanding its retail footprint across the country.
  
• The prime/continuous generator sets market will project a growth rate of over 6.5% by 2034. Agricultural irrigation systems in rural regions increasingly rely on prime gensets to ensure uninterrupted operations during the growing season. Cross-border logistics hubs are installing continuous power solutions to support 24/7 warehouse and cold-storage facilities.
  

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• The Northern Border dominated the 38.3% share of the Mexico generator sets market in 2024 and generated USD 238.3 million in revenue. The region benefit from cross-border trade and export-oriented manufacturing fueled by robust demand for generator sets to ensure uninterrupted power in industrial parks.
  
• The Central Bajío generator sets market is expected to reach over USD 300 million by 2034. The region’s warehouse and logistics parks require continuous energy solutions coupled with irrigation systems, food processing plants, and storage facilities need power security in off-grid locations, which will drive business potential.
  
• For reference, in May 2025, ODATA launched its largest facility in Mexico, DC QR03, which is in PyME Industrial Park, Querétaro. The total investment for the project exceeds USD 3 billion, positioning it as a cornerstone of ODATA’s regional expansion strategy.
  
• The Mexico City Metropolitan generator sets market will witness a CAGR of over 6.5% through 2034. Massive energy demand from households, businesses, and healthcare facilities boost standby gensets adoptions. In addition, malls, hotels, and office towers increasingly deploy gensets to avoid downtime during outages, which will escalate product demand.
  
• The Southern Region generator sets market was valued at USD 70.3 million in 2024. Expanding ports activities across the region is creating demand for gensets in cargo handling and storage facilities. Moreover, ongoing rural broadband projects which require reliable and efficient gensets to power remote telecom towers will drive industry growth.
  

Mexico Generator Sets Market Share

• The top 5 companies in the Mexico generator sets industry are Caterpillar, Cummins, Generac Power Systems, IGSA Power, and Rehlko contributing around 52% of the market in 2024. The market is very competitive, with both global manufacturers and strong domestic players vying for market share. Price sensitivity, regulatory compliance, and the shift toward hybrid and renewable solutions further intensify competition, pushing companies to innovate and differentiate their offerings.
  
• Caterpillar competes with a strong legacy of reliability, offering a wide range of generator sets tailored for industrial, commercial, and residential use. Its extensive dealer network and after-sales service give it a strategic edge, especially in remote and critical infrastructure projects. The brand’s reputation for durability and performance makes it a preferred choice for large-scale operations, though its premium pricing can be a barrier in cost-sensitive segments.
  
• Cummins maintains a competitive position through its integrated power solutions and advanced engine technology. Known for fuel efficiency and low emissions, its generator sets appeal to industries focused on sustainability and operational cost control. Cummins benefits from a strong service network and local partnerships, enabling quick deployment and maintenance. Its versatility across diesel, gas, and hybrid systems allows it to serve diverse market needs.
  
• Generac Power Systems thrives in Mexico’s residential and light commercial segments, offering compact, user-friendly, and cost-effective generator solutions. Its competitive edge lies in scalable systems and smart technologies that appeal to homeowners and small businesses. Generac’s growing distributor network and focus on automation and remote monitoring enhance its market reach.
  
• IGSA Power is a prominent local player in Mexico, leveraging domestic manufacturing and deep market knowledge to offer customized generator solutions. Its competitive strength lies in rapid delivery, flexible configurations, and expertise in cogeneration and mission-critical systems. IGSA’s ability to tailor products for telecom, healthcare, and industrial clients gives it an edge over global brands in niche applications.
  
• Rehlko competes by offering high-performance generator sets with a focus on engineering excellence and customization. Its product range spans up to 4MW, catering to industrial, commercial, and mission-critical applications. Rehlko’s strength lies in its ability to deliver tailored solutions with advanced control systems and low-emission technologies.
  

Mexico Generator Sets Market Companies

• In the first half of 2025, Cummins reported strong financial performance, with net sales totaling USD 16.8 billion. The company achieved a gross margin of USD 4.4 billion, reflecting efficient cost management and solid demand across key segments. Operating income reached USD 2.4 billion, indicating healthy profitability from core operations. Net income stood at USD 1.8 billion, underscoring Cummins’ ability to convert operational success into shareholder value.
  
• In the second quarter of 2025, Caterpillar delivered solid financial results, reporting a profit per share of USD 4.62, with adjusted profit per share reaching USD 4.72. The company generated USD 3.1 billion in enterprise operating cash flow, reflecting strong operational efficiency and disciplined capital management. During the quarter, Caterpillar strategically deployed USD 1.5 billion in cash toward shareholder returns, including share repurchases and dividend payments.
  
• In the second quarter of 2025, net sales rose by 6% to USD 1,061 million, up from USD 998 million in the same period last year, reflecting solid organic growth. The impact of acquisitions and foreign currency movements contributed modestly to this increase. Residential product sales demonstrated strong momentum, advancing approximately 7% year-over-year to USD 574 million, compared to USD 538 million in the prior-year quarter.
  

Major players operating in the Mexico generator sets industry are:

• Aggreko
• Atlas Copco AB
• Briggs & Stratton
• Brilltech
• Caterpillar
• Cummins
• Deere & Company
• Evans
• FG Wilson
• Generac Power Systems
• General Power
• Genesal Energy
• GenMANN Generators
• GH POWER México
• HIMOINSA
• Honda Motor
• IGSA Power
• J C Bamford Excavators
• Kirloskar Oil Engines
• MITSUBISHI HEAVY INDUSTRIES
• Ottomotores, S.A.
• Planelec
• Potencia Industrial
• Rehlko
• Rolls-Royce
• Selmec
• Sterling and Wilson Renewable Energy
• Wärtsilä
• Yamaha Motor
• YANMAR HOLDINGS
  

Mexico Generator Sets Industry News

• In April 2025, Generac expanded its energy portfolio with five new standby generators, 2.25 to 3.25 MW designed for data centers. Featuring Baudouin engines, Deep Sea controllers, and DataMAX alternators, the systems offer high performance, low emissions, and scalability. This launch strengthens Generac’s position in the growing data center market amid rising energy demand and the expansion of AI infrastructure.
  
• In May 2025, Rehlko expanded its strategic partnership with Liebherr to advance next-generation KD Series generators. The collaboration focuses on co-developing compact, high-efficiency G-drive engines for mission-critical applications like data centers. This move reinforces Rehlko’s commitment to innovation, sustainability, and enhanced production efficiency to meet rising global demand.
  
• In October 2024, Caterpillar and Trimble extended their joint venture to accelerate innovation in grade control technologies. The renewed agreement expands access to interoperable solutions across mixed fleets and OEMs. Caterpillar offers factory-fit and upgradable systems, while Trimble enhances distribution through its SITECH network. This collaboration strengthens both firms’ positions in digital construction solutions.
  
• In April 2025, Kirloskar Oil Engines Limited unveiled the Optiprime Dual Core generator, the world’s most compact model in its class tailored for industrial and commercial use. The company also launched the Sentinel Series, designed for residential and small business needs. Both lines focus on performance, efficiency, and emission compliance.
  

The Mexico generator sets market research reports include in-depth coverage of the industry with estimates & forecast in terms of volume (Units) & revenue (USD Million) 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 - 1,500 kVA
• > 1,500 kVA - 2,250 kVA
• > 2,250 kVA - 3,000 kVA

Market, By Fuel

• Diesel
• Gas
• Gasoline
• 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 states:

• Northern Border
  • Baja California
  • Sonora
  • Chihuahua
  • Coahuila
  • Nuevo León
  • Tamaulipas
• Central Bajío
  • Aguascalientes
  • Guanajuato
  • Querétaro
  • San Luis Potosí
  • Jalisco
• Mexico City Metropolitan
  • Mexico City
  • Mexico State
  • Morelos
  • Hidalgo
  • Puebla
• Southern Region
  • Guerrero
  • Oaxaca
  • Chiapas
  • Veracruz
  • Tabasco
  • Campeche
  • Yucatán
  • Quintana Roo