Generator Sets Market Report 2026

The generator sets market size has grown strongly in recent years. It will grow from $33.4 billion in 2025 to $36.33 billion in 2026 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to grid power unreliability, industrial expansion, growth in telecom infrastructure, mining sector power needs, healthcare facility backup requirements.

The generator sets market size is expected to see strong growth in the next few years. It will grow to $50.31 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to data center capacity expansion, renewable hybrid integration, growth in remote infrastructure projects, demand for low emission gensets, expansion of smart grid systems. Major trends in the forecast period include growing adoption of hybrid generator sets, rising demand for backup power solutions, expansion of gensets in data centers, increasing use of gas based generator sets, focus on fuel efficient power generation.

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.

Leading companies in the generator sets market are emphasizing technological advancements, such as achieving large power output within a compact footprint to deliver high-capacity electricity efficiently in space-constrained environments. Large power output within a compact footprint refers to generating substantial electrical power relative to the generator’s size, allowing deployment in urban or critical infrastructure settings. For example, in June 2025, Cummins Inc, a US-based company specializing in the design, manufacture, and distribution of diesel, gas, and hybrid engines and generator systems, launched the S17 Centum generator set. This generator provides up to 1 MW of power using a dual-turbo 17-liter engine while supporting hydrotreated vegetable oil (HVO) fuel flexibility and emission compliance. The fully integrated design of the S17 Centum ensures reliable, high-performance power for applications including commercial buildings, hospitals, and water treatment facilities.

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 companies operating 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 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the generator sets market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generator sets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 that 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.

This product will be delivered within 1-3 business days.