United States Diesel Generator Market Outlook Report - Market Size, Share Analysis and Forecast (2025-2034)

The United States diesel generator market value reached approximately USD 3.37 Billion in 2024. The market is estimated to grow at a CAGR of 5.10% in the forecast period of 2025-2034, reaching a value of around USD 5.54 Billion by 2034.

United States Diesel Generator Market Growth

A diesel generator is a type of generator that uses a diesel engine to generate electricity and is commonly used as a backup power supply. This generator works on the mechanism of the conversion of chemical energy present inside the diesel fuel into mechanical energy.

Growing demand for diesel generator in data centres as a reliable power backup system boosts the United States diesel generator industry growth. As data centres require a constant power supply to prevent data loss and downtime, diesel generators can offer a seamless and cost-effective solution for their proper functioning.

United States Diesel Generator Market Analysis

Increased integration of renewable energy with diesel generators in microgrids to promote sustainability is another crucial trend aiding the growth of the United States diesel generator industry. Microgrids readily combine renewable energy with diesel power to offer an eco-friendly and economical solution as it can generate power from renewable sources and cut fuel costs. Furthermore, when renewable energy is not available, diesel generators can offer instant electricity and support the constant operation of a microgrid.

The advent of smart technology such as IoT in diesel generators to optimise their performance is expected to support the United States diesel generator market demand. IoT-based monitoring systems offer real-time data on fuel consumption, temperature, and pressure, identification of any potential issues, and remote control of diesel generators for efficient generator management.

United States Diesel Generator Industry Outlook

US data centre power consumption is set to grow at a robust 10% annually until 2030, with power usage increasing from approximately 5 gigawatts in 2014 to over 30 gigawatts by 2030. The growth rate peaked at 13% CAGR between 2014 and 2020, stabilising at 9.6% and 8.7% in subsequent periods. Enterprises currently account for the largest share of consumption, though their dominance is gradually diminishing as co-location companies and hyperscalers expand their footprints.

Furthermore, according to the USDA, in 2020, Texas led with 247,000 agricultural farms, underscoring its position as the state with the largest number of farms. Iowa, another significant agricultural state, reported 85,000 farms. Similarly, Missouri had 95,000 farms whereas California recorded 69,600 farms. In the Southeastern region, Kentucky stood out with 74,500 farms. Georgia recorded 41,400 farms. The Midwest featured prominently with states like Illinois (71,100 farms), Indiana (55,500 farms), and Minnesota (67,500 farms) all contributing significantly to the U.S. agricultural output. In the Northern Plains, Kansas had 58,300 farms whereas Nebraska followed with 45,500 farms. The large number of farms drives the United States diesel generator industry revenue, as diesel generators are widely used for irrigation, grain drying, and other critical farming operations, providing reliable power in off-grid locations and enhancing productivity.

Consistent need for backup power across industries, especially in healthcare and data centres, fuels United States diesel generator market growth.

• Innovations in diesel generator efficiency and emissions reduce operational costs and environmental impact.

A robust network of suppliers and service providers supports market stability and reliability.

Diesel generators face scrutiny due to their environmental impact and regulatory pressures on emissions.

• Fuel and maintenance costs can be significant, affecting overall affordability.
• Market reliance on diesel limits flexibility in energy sourcing.

Expansion in developing regions offers growth potential as infrastructure improves.

• Integration with renewable energy sources can enhance market appeal and sustainability.
• Advances in digital controls and smart technology present opportunities for the United States diesel generator market.

Stricter emissions regulations could increase compliance costs or reduce market viability.

• Economic downturns can decrease industrial investments and demand for generators.
• Growth in renewable energy options could reduce reliance on diesel generators.

Key Players in the United States Diesel Generator Market and Their Key Initiatives

Cummins, Inc.

• Launched new Tier 4-compliant diesel generators to capture the United States diesel generator market opportunities.
• Expanded its PowerCommand® microgrid controller integration.

Doosan Corp.

• Launched advanced low-emission diesel generators.
• Initiated collaborations with U.S. energy firms.

Mitsubishi Heavy Industries Ltd.

• Introduced the MGS-R Series diesel generators.
• Collaborated with U.S. energy providers to meet the growing demand of the United States diesel generator market.

United States Diesel Generator Industry Segmentation

United States Diesel Generator Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Power Rating

• Below 75 KVA
• 75-375 KVA
• 375-750 KVA
• Above 750 KVA

Market Breakup by Application

• Standby Backup Power
• Prime Power
• Peak Shaving Power

Market Breakup by End Use

• Residential
• Commercial
• Industrial

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States Diesel Generator Market Share

The United States diesel generator demand growth is boosted by the industrial sector due to the increasing utilisation of diesel generators in power plants for their uninterrupted function. They are also used in agriculture, construction, mining, and pharmaceutical sectors for a reliable and steady power supply.

In the healthcare sector, these generators are extremely vital in providing a power supply for patients who require ventilation machines or oxygen pumps to survive. Additionally, they ensure continuous power supply in telecom towers to prevent signal outages in areas due to blackouts.

Leading Companies in the United States Diesel Generator Market

The companies offer home backup power, clean energy, mobile generators, and portable backup power solutions to its customers. Its power systems are easily available through dealers, retailers, and wholesalers.

• Generac Power Systems, Inc.
• Cummins, Inc.
• Caterpillar Inc.
• Doosan Corp.
• Mitsubishi Heavy Industries Ltd.
• Yanmar Holdings Co., Ltd.
• Kubota Corp.
• Kohler Co.
• KAZANCI HOLDING
• Kirloskar Oil Engines Ltd.