Diesel Generator Market Report and Forecast 2025-2034

The global diesel generator market attained a value of about USD 22.39 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 8.10% to reach nearly USD 48.79 Billion by 2034.

Rising Demand for Diesel Generators in the Oil and Gas Industry Bolstering the Growth of the Market

The robust growth of the oil and gas industry is surging the use of diesel generators, hence driving the growth of the market. As digging and drilling are some of the most crucial processes in oil extraction, the demand for diesel generators to provide reliable and uninterrupted power supply is increasing, which is augmenting the market growth. In addition, the extensive use of diesel generators in gas stations to ensure continuous functionality during extreme weather conditions and natural disasters is significantly contributing to the market growth. The trend is expected to be fuelled by the rapid climate change, which, in turn, is increasing the prevalence of natural disasters.

The low operating costs of diesel generators are increasing their use in commercial and industrial applications, which is driving the industry growth. The growing supply-demand gap in the power industry is leading to a surge in diesel generators, especially in developing countries, hence strengthening the growth of the market. Furthermore, the rising use of electronic devices in the construction industry is surging the demand for diesel generators for optimal power supply, which is providing impetus to the market growth.

Diesel Generator: Market Segmentation

A diesel generator is a piece of machinery that utilises diesel to convert chemical energy into electrical energy to provide optimal power supply in various applications. It is typically deployed in emergency power outages in the residential, commercial, and industrial sectors. Diesel generators are extensively used in various industries like telecommunication, construction, and oil and gas, among others.

Market Breakup by Power Rating

• Low Power Generator (0-75 kVA)
• Medium Power Generator (75-375 kVA)
• High Power Generator (375 kVA and Above)
• Others

Market Breakup by Mobility

• Portable
• Stationary

Market Breakup by Cooling System

• Air Cooled
• Liquid Cooled

Market Breakup by Application

• Standby Backup Power
• Peak Shaving

Market Breakup by End Use

• Industrial
• Commercial
• Residential

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Increasing Development of Diesel Generators with Enhanced Power Outputs to Catalyse the Market Growth

The weather-resistant and durable properties of diesel generators make them ideal for challenging industrial applications, which is significantly contributing to the market growth. The effective power backup provided by diesel generators is surging their demand in residential applications with frequent power cuts. In addition, surging research and development (R&D) activities to boost the power output of generators is providing further impetus to the growth of the market for diesel generators.

As diesel-powered engines can be controlled by computerised engine management systems, the demand for diesel generators is surging, which is estimated to bolster the market growth. The deployment of innovative solutions to reduce carbon emission and exhaust from diesel generators is expected to propel the market growth. Moreover, the increasing research activities to develop a machine that can trap the particulate matter from the exhaust of diesel generators to minimise greenhouse gas emissions is predicted to propel the market growth. Moreover, the increasing attempts to surge the fuel-efficiency of diesel generators is predicted to propel the industry growth.

Key Industry Players in the Global Diesel Generator Market

The report presents a detailed analysis of the following key players in the global diesel generator market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Atlas Copoco AB
• Caterpillar Inc.
• Cummins Inc.
• Generac Holdings Inc.
• Aggreko Ltd.
• AKSA Power Generation
• Others

The comprehensive report looks into the macro and micro aspects of the industry. The report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.