Generator Sets Global Market Report 2025

The generator sets market size has grown strongly in recent years. It will grow from $30.65 billion in 2024 to $33.4 billion in 2025 at a compound annual growth rate (CAGR) of 9%. The expansion during the historic period resulted from a heightened reliance on backup power in remote locations, rising demand from construction projects, the critical need for continuous power in hospitals, increased diesel consumption in mining activities, and greater dependence on standby power for telecommunications towers.

The generator sets market size is expected to see strong growth in the next few years. It will grow to $46.44 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. During the forecast period, growth is driven by the expanding adoption of hybrid power systems, increasing demand from data centers, a stronger preference for cleaner fuel alternatives, more widespread use in commercial buildings, and greater support for decentralized power generation. Key trends include technological progress in smart generator controls, innovations in dual-fuel generator designs, increased investment in noise reduction research and development, the creation of eco-friendly fuel technologies, and improvements in remote monitoring systems.

The rising frequency of power outages is expected to drive growth in the generator sets market. Power outage frequency measures how often electricity disruptions occur within a specific area and time period. Aging infrastructure plays a significant role in the increase of power outages, as older grids struggle to meet growing demand and withstand extreme weather conditions. Generator sets help mitigate the effects of power outages by providing immediate backup power, ensuring continuous operation. They are especially important in regions prone to frequent disruptions, as they maintain power for critical systems and minimize operational downtime. For example, in April 2025, Construction Physics, a US-based newsletter focused on building technology and economics, reported 80 severe power outages in 2024, up from 68 in 2023. Hence, the growing frequency of power outages is boosting the generator sets market.

Key players in the generator sets market are developing advanced products like diesel-powered generator sets to deliver dependable backup power across industrial, commercial, and residential sectors. Diesel generator sets use diesel engines to operate alternators, producing reliable electricity. Known for their efficiency and durability, these generators are ideal for continuous power supply in areas with unstable or limited grid access. For instance, in March 2022, Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), a Japan-based company specializing in engines and turbochargers, introduced the MGS-R Series of diesel standby generator sets. Targeted at large commercial facilities such as data centers, this new series - the first major upgrade in over two decades - features 21 models with outputs from 500 to 2,750 kVA (50 Hz), a rapid 10-second startup, a compact design, and compliance with top standards such as ISO’s Class G3 and NFPA, ensuring high reliability for mission-critical applications.

In August 2024, DEUTZ AG, a Germany-based internal combustion engine manufacturer, acquired Blue Star Power Systems, Inc. for an undisclosed sum. Through this acquisition, DEUTZ AG aims to enhance its foothold in the North American power generation market and broaden its product offerings by incorporating Blue Star Power Systems’ customized generator solutions. Blue Star Power Systems Inc. is a US-based manufacturer specializing in custom diesel- and gaseous-powered generator sets.

Major players in the generator sets market are General Electric Company, Caterpillar Inc., Deere & Company, Mitsubishi Heavy Industries Ltd., Cummins Inc., Rolls-Royce plc, Atlas Copco AB, AGCO Corporation, Wärtsilä Corporation, Ashok Leyland Ltd., Generac Holdings Inc., Cooper Corporation, DEUTZ AG, Jakson Group, Sterling and Wilson Pvt Ltd, PRAMAC Group, Himoinsa S.L., Honda Siel Power Products Ltd., Supernova Engineers Ltd., SDMO Industries.

Asia-Pacific was the largest region in the generator sets market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in generator sets report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the generator sets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generator sets, or gensets, generate electricity by converting mechanical energy - usually from an engine - into electrical power via an alternator. They play a crucial role in supplying backup or primary power in areas where grid access is limited or unreliable. Gensets are widely utilized across multiple industries to ensure a steady power supply and come in various sizes and capacities to suit different energy needs.

The primary categories of generator sets include diesel, gas, and hybrid models. Diesel generator sets offer durable and fuel-efficient power, delivering dependable electricity for backup and off-grid scenarios in residential, industrial, and remote settings. These gensets come in different portability options such as portable, stationary, and vehicle-mounted, and are available in a range of power ratings including low, medium, and high power. Their applications span data centers, government and defense, healthcare, mining, oil and gas, telecommunications, and more, serving a diverse group of end-users including residential, commercial, and industrial sectors.

The generator sets market research report is one of a series of new reports that provides generator sets market statistics, including the generator sets industry global market size, regional shares, competitors with the generator sets market share, detailed generator sets market segments, market trends, opportunities, and any further data you may need to thrive in the generator sets industry. This generator sets market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generator sets market consists of sales of engine, cooling system, control panel, exhaust system, battery and starter motor. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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