| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| CAGR | 5.37 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Diesel Generator Market Analysis
The Diesel Generator Market is expected to register a CAGR of 5.37% during the forecast period.
- Over the medium period, the increasing demand for uninterrupted and reliable power supply and increased demand from the commercial sector, including the healthcare industry, is expected to drive the diesel generator market.
- On the other hand, the growing demand for generators based on alternative fuels, such as natural gas and biofuels, is expected to restrain the diesel generator market growth.
- Nevertheless, the commercial and industrial sectors in emerging economies, the residential sector in developed economies, and the increasing need for power in defence operations are expected to create significant opportunities for market participants in the near future.
- Asia-Pacific is the fastest-growing market during the forecast period due to the rising energy demand, with a majority of the demand coming from countries such as China and India.
Diesel Generator Market Trends
The Industrial Sector to Dominate the Market
- The industrial sector accounted for the largest share of the diesel generator market. Industrial operations mainly depend on electricity generated from diesel generators during power outages (to avoid production risks) and in regions with limited grid access.
- The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for any end user's largest share of energy consumption. Therefore, the increasing demand for continuous and reliable power supply from these industries, especially healthcare facilities, pharmaceutical industries, and manufacturing facilities, is expected to escalate the demand for diesel generators.
- Many different industries, like the construction industry, require a reliable source of electricity. Such industries make up a large user base for backup generators. With the growth of such sectors globally, the demand for backup generators is expected to increase further during the forecast period.
- China and India are expected to witness robust industrial growth in the coming years because of the sharp increase in the manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.
- According to global steel production, China is the world leader in crude steel production, with 77.9 million metric tonnes produced in December 2022, a 10% decrease from the previous year. India, Japan, the United States, and Russia trail far behind, which makes it a massive market for diesel generators, as the steel industry is extremely energy-intensive, and its operations are highly dependent on power generated from diesel generators during power outages.
- Furthermore, government initiatives to expand the industrial sector, especially in China and India, are expected to propel the demand for diesel generators over the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific dominated the global diesel generator market in 2022 and is expected to continue its dominance during the forecast period.
- China is the leading diesel generator market in the Asia-Pacific region, owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the country, and rising commercial office spaces. The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power backup devices.
- Moreover, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) and IT-enabled services, existing manufacturing units across the country, and the dedicated 'Made in China' initiative launched by the Chinese central government, are expected to drive the diesel generator market in the country.
- The Indian government focuses on improving the economy through increased infrastructure spending, mainly on roads, railways, and metro rail. With a new metro rail policy on the anvil and every large city in India looking to construct a metro rail network, diesel generators have immense growth opportunities in metro rail projects.
- On the other hand, in February 2022, A subcommittee of the government's air quality council removed the ban on diesel generator sets in Delhi-NCR today, effective immediately. The panel reported that air quality has improved recently and is anticipated to improve further in the coming days.
- Also, in Indonesia, the increasing power blackouts have significantly hampered the manufacturing sectors, which has increased the adoption of diesel generators in the country to ensure a continuous and reliable power supply. Due to frequent blackouts in these areas, South Sumatra and Jakarta are the key contributing areas for the growth of the diesel generator market in Indonesia.
- Therefore, based on the above-mentioned factors, Asia-Pacific is expected to dominate the global diesel generator market during the forecast period.
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Diesel Generator Industry Overview
The diesel generator market is moderately fragmented. Some of the major players in the market (in no particular order) include Caterpillar Inc., Generac Holdings Inc., Kohler Co., Cummins Inc., and Atlas Copco AB, among others.
Diesel Generator Market Leaders
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Caterpillar Inc.
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Generac Holdings Inc.
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Kohler Co.
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Cummins Inc.
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Atlas Copco AB
- *Disclaimer: Major Players sorted in no particular order
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Diesel Generator Market News
- June 2023: Sterling Generators formed a strategic alliance with Moteurs Baudouin, a French manufacturer of power generation, both gas and diesel engines. The collaboration will capitalise on Baudouin's tradition of engineering and producing high-quality diesel and petrol engines and Sterling Generators' fuel-efficient, sensibly engineered auxiliary power solutions that meet the most recent emission standards.
- May 2023: Cummins Inc. introduced the marine diesel cummins turbo (MDCT) genset. This durable genset can be equipped with either a low or high kW Cummins B4.5 auxiliary engine, resulting in genset ratings of 40 kWe - 80 kWe and 80 kWe - 110 kWe. The MDCT generator set is available for order, with delivery expected in late 2023.
- July 2022: Octopus Hydrogen and GeoPura collaborated to offer green hydrogen for cutting-edge clean technology that will replace polluting diesel generators. The agreement calls for the two companies to work together to provide viable alternatives to fossil fuels and speed the decarbonisation of various industries.
Diesel Generator Industry Segmentation
A diesel generator is an electrical energy generator that combines a diesel engine and an electric generator. This is an example of an engine generator. A diesel compression-ignition engine is typically built to run on diesel fuel, but certain models are also designed to run on other liquid fuels or natural gas.
The diesel generator market is segmented by capacity, end user, application, and geography. By capacity, the market is segmented into less than 75 kVA, between 75 and 375 kVA, and more than 375 kVA. By end user, the market is segmented into residential, commercial, and industrial. By application, the market is segmented into standby backup power, prime power, and peak shaving power. The report also covers the market size and forecasts for the diesel generator market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
| Capacity | Less Than 75 kVA | ||
| Between 75 and 375 kVA | |||
| More Than 375 kVA | |||
| End User | Residential | ||
| Commercial | |||
| Industrial | |||
| Application | Standby Backup Power | ||
| Prime Power | |||
| Peak Shaving Power | |||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | North America | United States of America | |
| Canada | |||
| Rest of the North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| Norway | |||
| Italy | |||
| France | |||
| Rest of the Europe | |||
| Asia-Pacific | China | ||
| India | |||
| South Korea | |||
| Rest of the Asia-Pacific | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of the South America | |||
| Middle-East and Africa | Saudi Arabia | ||
| United Arab Emirates | |||
| Iran | |||
| Rest of the Middle-East and Africa | |||
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Diesel Generator Market Research FAQs
What is the current Diesel Generator Market size?
The Diesel Generator Market is projected to register a CAGR of 5.37% during the forecast period (2025-2030)
Who are the key players in Diesel Generator Market?
Caterpillar Inc., Generac Holdings Inc., Kohler Co., Cummins Inc. and Atlas Copco AB are the major companies operating in the Diesel Generator Market.
Which is the fastest growing region in Diesel Generator Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Diesel Generator Market?
In 2025, the Asia Pacific accounts for the largest market share in Diesel Generator Market.
What years does this Diesel Generator Market cover?
The report covers the Diesel Generator Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Diesel Generator Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Diesel Genset Industry Report
The Global Diesel Genset Market Growth & Forecast report provides an in-depth industry analysis, including industry information and industry outlook. The market is segmented by capacity, end user, application, and geography, covering North America, South America, Europe, Middle-East and Africa, and Asia-Pacific. The industry reports highlight market data, market forecast, and market growth, offering a comprehensive market overview and market predictions.
The market segmentation includes capacities of less than seventy-five kVA, between seventy-five and three hundred seventy-five kVA, and more than three hundred seventy-five kVA. The end users are categorized into residential, commercial, and industrial sectors. The applications are divided into standby backup power, prime power, and peak shaving power. The market review also includes market leaders and market outlook, providing valuable insights into market trends and market value.
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