Genset Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

Genset Market Size

Genset Market Trends & Growth Drivers

Strategic Developments by Market Players Are Key Trend

• The major manufacturers in the genset market are taking a number of steps aimed at improving portfolio depth and distribution reach, developing brand identity in foreign markets, aligning prices with the markets, and ensuring service and spare part availability across different countries and regions.
• The steps include launching diesel and gasoline gensets in several regions and nations, acquisitions, and partnership agreements.
• For instance, in October 2024, HIMOINSA, a brand of Yanmar Holdings Co. Ltd., launched the HGY Series ranging from 1,250 to 3,500 kVA.
• This includes the GY175L engine family, featuring multiple models with 12 and 16 cylinders and future engine developments with 20 cylinders, all of which are electronically controlled.
• Additionally, players are engaging in partnerships to lower their capital expenditure (CAPEX), develop and localize production lines, and offer customized solutions.
• For instance, in June 2024, Denyo Co. Ltd. signed a memorandum of understanding (MoU) with Schwager Service S.A. for the distribution of generators.

Growing Number of Data Centers Is Most-Important Market Driver

• The hyperscale creation and consumption of data, globally, has led to the rapid development of supportive infrastructure to collate, analyze, and supply services for data.
• As per reports, over 800 MW of data center capacity was added in North America in the first quarter of 2024 from the same period the previous years, while Europe increased its capacity by 20% over the same period.
• Similarly, data center capacity rose by almost 15% in LATAM and more than 20% in APAC.
• Moreover, as per studies, the global data center market, including all the IT, HVAC, power, and security equipment, enabling software, and services, is primed to reach USD 622.4 billion by 2030.
• The advancements in technology and adoption of autonomous cars, intelligent personal assistants, internet of things (IoT), digital currencies, and accounting services are expected to create an additional demand for data centers.
• This will drive the demand for gensets to serve the auxiliary and prime power requirements at these installations.
• Gensets are employed to power critical and non-critical components, such as servers, backup controls, heating, ventilation, and air conditioning (HVAC) systems, and security systems, at these facilities.
• With the advent of globalization and delocalization of service requirements of companies, digitization projects undertaken by the government, and revival in the commercial real estate sector, an additional demand for the establishment of single- and multi-tenant data centers is expected to be witnessed in the near future.
• This would provide smaller companies with the ability to host their data at third-party sites, which is a major factor providing economics of scale to all stakeholders: companies and host parties.
• Additionally, this growth in the volume of data centers is expected to occur across multiple countries, such as the U.S., China, Japan, the U.K., Germany, Australia, and India, thereby offering opportunities to several international and local genset manufacturers.

Emission and Noise Concerns Hamper Market Growth

• The exhaust of a diesel genset releases high amounts of gas and solid particles.
• The gases include carbon dioxide, carbon monoxide, nitric oxide, nitrogen dioxide, sulfur oxides, and hydrocarbons, whereas, the solid pollutants in the exhaust include polycyclic aromatic hydrocarbons (PAHs), carbon, and traces of metallic compounds. A major fraction of these chemicals is toxic to plants, animals, and human beings.
• The International Agency for Research on Cancer (IARC), an intergovernmental organization which is associated with the World Health Organization (WHO) and the United Nations (UN), classifies diesel engine exhaust as “carcinogenic to humans.”
• Furthermore, the U.S. Environmental Protection Agency (EPA) and National Institute for Occupational Safety and Health (NIOSH) have also earmarked diesel exhaust as a “potential carcinogenic” substance and identified a list of occupational hazards upon exposure to it, which include lung and bladder cancers.
• Similarly, the Centre for Science and Environment (CSE) has also indicated that the operation of diesel generator sets can lead to an increase in the particulate matter (PM)2.5 and PM10 concentration by 30% and 50–100%, respectively, compared to levels before the usage of these sets.
• Additionally, during research, when diesel genset usage exceeded a period of eight hours, the PM levels were found to be high throughout the major portion of the day.
• As increasingly stringent environmental laws and regulations start to take center stage at the global level, the global demand for diesel generators is likely to suffer.
• Specific limits on the emission of hydrocarbons, oxides of nitrogen, particulate matter, and CO & CO2 have been implemented in India by the Central Pollution Control Board, with the actual limits varying according to the generator power output.
• Prime power and portable generators are subject to the EPA Tier 4 standards, the strictest in force yet in the U.S.
• In the EU, the Industrial Emission Directive and the Medium Combustion Plant Directive are in place to check emissions from engines.
• Compliance with such regulations requires major modifications in the engines, as well as the installation of aftertreatment systems, so that the exhaust vented out into the environment is somewhat cleaner.
• This makes the generators more expensive, forcing cash-strapped entities to make do with long power outages.

Genset Market Analysis

Fuel Insights

The diesel genset category holds the largest share in the genset market in terms of revenue, with 81.0% in 2024. This is primarily ascribed to the wider availability of diesel in comparison to natural gas and gasoline. Even though low-power gas gensets are cheaper than diesel variants, the poor supply of natural gas negatively affects their uptake. Even though low-powered gas gensets are low in price over diesel powered gensets, gas supply connectivity is very poor in the APAC, LATAM, and MEA regions. In addition, diesel has a longer shelf life over other fuels and high fuel efficiency, so do these gensets are preferred.

The gas category will witness the highest value CAGR over the forecast period. This is credited to the cleaner nature of natural gas over both gasoline (petrol) and diesel. Over 90% les nitrogen oxide is emitted by CNG than a similar volume of diesel and gasoline. Similarly, the combustion of natural gas releases 30% less CO2, 85% less CO, and almost 99% less PM than petrol and diesel. As a result and forced by government regulations to cut their carbon footprint, companies across industries are transitioning to gas gensets. For instance, in March 2024, Samsung Electronics Co. Ltd. announced the complete replacement of all the diesel generators at its Noida plant in India with those running on gas.

Gensets using the following fuels have been considered:

• Diesel (Largest Category)
• Gas (Fastest-Growing Category)
• Gasoline

Power Rating Insights

The 5–75 kVA category holds the largest market share and it also witness the highest revenue CAGR, of 7.81%. during the forecast period. This is be attributed to the extensive use of these gensets in the commercial and residential sectors, globally.

In the residential sector, these gensets are used mainly for standby purposes in case of power outages. Rising instances of power outage and inefficient power infrastructure, particularly in developing countries, are further driving the demand for 5 kVA–75 kVA gensets for residential applications. Additionally, the growth in the hospitality and retail industries, owing to increasing consumer spending and rising corporate travel, complemented by the rise in the number of middle-class consumers, is expected to generate the demand for gensets in the commercial sector in the near future.

Below are the power ratings part of the research scope:

• 5–75 kVA (Largest and Fastest-Growing Category)
• 76–375 kVA
• 376–750 kVA
• Above 750 kVA

Application Insights

The commercial classification, on the basis of application, has the highest revenue in the genset market in 2024, of USD 13,291.6 million, and it is also the fastest-growing category. This is a result of the increasing funding for public infrastructure advancement, rapid construction of smart cities, and growing in retail sector, on account of the surging consumer spending. India has a large number of corporate zones with offices of large and small companies from around the world. The biggest ones operational or under various stages of establishment include the Special Economic Zones in Noida, Kochi, Visakhapatnam, Surat, Kandla, Chennai, Indore, Bidhannagar (Kolkata), Jaipur, Jodhpur, and Moradabad.

The report offers analysis on these applications:

• Commercial (Largest and Fastest-Growing Category)
  • Retail establishments
  • Commercial offices
  • Telecom towers
  • Hospitals
  • Hotels
  • Others
• Industrial
  • Manufacturing
  • Energy and power
  • Others
• Residential

Regional Analysis

APAC dominates the generator industry. The high-volume demand for medium- and high-power gensets from the commercial sector and notable growth in the construction and manufacturing industries are expected to drive the market. Furthermore, the growth in these industries is expected to be driven by macroeconomic development, increasing capex by public and private players, and government reforms and incentives to encourage foreign and domestic investments in the end-use industries of the country.

Gensets are majorly employed as an auxiliary power source in China, India, and other countries. These systems, therefore, find wide adoption among all kinds of users—residential, industrial, and commercial. A large number of domestic and international companies are involved in the productions of gensets with different configurations for both domestic and export markets. Furthermore, these companies have a diversified and comprehensive product portfolio to offer gensets of various nodes/power ratings.

MEA is the fastest-growing regional market, with a 7.49% CAGR over this decade. In the Middle East, the market growth is mainly driven by the infrastructure developments, particularly in hospitality and manufacturing sectors, tech cities, and development of state and national highways. Saudi Vision 2030 and other such initiatives that display governments’ focus on economic diversification are the key drivers for the genset market in the Middle Eastern region.

Countries in the region are mainly focusing on strengthening their non-oil sectors, which encourages investments in infrastructure development in other sectors in the region. To attract FDI in construction projects in healthcare, real estate, and finance, Saudi Arabia has targeted to increase private sector’s contribution to 65% of the GDP by 2030, from 40% in 2016, under Saudi Vision 2030. The low oil prices in the MEA region make power generation from gensets cheaper in comparison to the grid power.

Additionally, substantial power deficit, transmission losses, and growing demand for prime and auxiliary power in telecom and construction industries are expected to result in the high-volume adoption of gensets in the region. Moreover, oil & gas fields in Africa are majorly located in remote locations and, on most occasions, lack grid connectivity, thereby exerting heavy dependence on gensets for power.

The following regions and countries have been studied:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • U.K.
  • Germany (Largest Country Market)
  • Italy
  • France
  • Spain
  • Russia
  • Poland (Faster-Growing Country Market)
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Philippines (Faster-Growing Country Market)
  • India
  • Vietnam
  • Indonesia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Faster-Growing Country Market)
  • Mexico
  • Argentina
  • Rest of LATAM
• Middle East & Africa (MEA) (Fastest-Growing Regional Market)
  • U.A.E.
  • Saudi Arabia
  • Nigeria (Largest Country Market)
  • Turkey
  • Algeria (Faster-Growing Country Market)
  • Rest of MEA

Genset Market Share

The genset market is consolidated as a few established players with a global presence hold the majority of the share. While manufacturing generators is not difficult, complying with the emission, fuel efficiency, noise, and other government regulations is. The market is characterized by diversity in the portfolio of major market players offering low-, medium-, and high-capacity gensets. Among the key players offering low-to-high-power gensets are Caterpillar Inc., Cummins Inc., Siemens AG, Kirloskar Oil Engines Limited, and Generac Holdings Inc. These players have a strong global presence and offer gensets that range from 1 kVA to more than 32,500 kVA. Moreover, few brands including Kohler, YTO, FAW, Lovol, Scania, Elepaq, Elemax, and Kipor are available in the market for low-to-medium-power gensets.

Genset Market News

• In November 2024, Yanmar Energy System Co. Ltd., a subsidiary of Yanmar Holdings, completed its acquisition of Czech cogeneration system manufacturer TEDOM.
• In October 2024, Yanmar Holdings Co. Ltd. revealed plans to restructure its subsidiary Yanmar Power Technology Co. Ltd. into two distinct companies by October 2025. This reorganization will create one company focused on industrial engines and another specializing in large power products.
• In August 2024, Caterpillar Inc. announced the launch of the Cat G3520 Fast Response natural-gas generator set for 50-Hz applications. This power solution offers load acceptance and transient response for mission-critical operations using fuels that reduce tailpipe emissions.
• In April 2024, Mitsubishi Electric Corporation and Mitsubishi Heavy Industries Ltd. jointly announced today that they have completed the integration of their respective power generator systems businesses under Mitsubishi Generator Co. Ltd.