| Study Period | 2019 - 2030 |
| 2024 Market Size | USD 179.8 Million |
| 2025 Market Size | USD 187.9 Million |
| 2030 Forecast | USD 240.9 Million |
| Growth Rate (CAGR) | 4.9% |
| Largest Application | Commercial |
| Fastest-Growing Power | 76-375 kVA |
| Nature of the Market | Consolidated |
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The Thai DG set market size is USD 179.8 million in 2024, and it is expected to generate USD 240.9 million in 2030, progressing at a CAGR of 4.9% during 2025–2030. This is attributed to the increasing demand for standalone and backup power sources, primarily in offices, residential buildings, retail stores, hospitals, and hotels. Thailand is one of the major tourist destinations in the world. The Thai tourism industry has witnessed an average growth rate of 13% per annum since 2010, and it contributes a significant percentage to the country’s GDP.
The increasing number of tourists is creating opportunities for the growth of the hospitality sector in the country. The development of new hotels, resorts, and other related infrastructure would create the requirement for power backup solutions, such as DG sets, in the nation, once the units have been thrown open to people. Another major factor contributing to the growth of the market is the rising demand for power generation systems on islands with no or unreliable grid connectivity. For instance, according to an article published in Taipei Times, Phaluai Island has no central source of electricity, due to which people use small diesel-fueled generators in their homes.
Major players in the market are focusing on innovating the mechanism and power system of diesel generators, so they can meet the specific requirements of people living in Thailand. For instance, Cummins’ C550D5 (50 Hz) and C500D6 (60 Hz) series diesel generator sets for prime and standby applications are engineered to deliver a higher power density over 15- and 16-liter competitors with 42 kVA per liter of displacement, with the help of the Cummins QSZ13 engine with 13-liter displacement. The QSZ13 engine features XPI fuel injection with three-stage fuel filtration that protects the genset from poor-quality fuel.
Moreover, players are partnering and collaborating with other companies to innovate diesel generators, using each other’s expertise. For instance, Cummins Inc. collaborates with Isuzu Motors Limited for a mid-range diesel powertrain and an advanced engineering collaboration, marking another step forward in the Isuzu Cummins Powertrain Partnership (ICPP). Through this partnership, the two companies have been involved in evaluating and carrying out opportunities jointly to develop and bring new diesel and alternate powertrains to global markets, including Thailand.
Investments by real estate companies and governments are rising in the residential sector. The growth of this sector is well complemented by that of the corporate sector, as it is driving the need for urban and semi-urban accommodations, which, in turn, propels the demand for residential DG sets.
The Thai government has poured heavy investments to expand and improve its infrastructure over the past few years, through public investments and public–private partnerships (PPP). Over the last 10 years, the government has invested almost USD 116 billion (around THB 4,000 billion) for the development of infrastructure. As per the Private Participation in Infrastructure (PPI) database of the World Bank, PPP investments in infrastructure have amounted to USD 28 billion over the past 20 years. A significant part of this investment was for the housing sector.
Energy security has long been a top priority for Thailand. More than half of its energy supply relies on imported energy, a proportion that is likely to increase further as its proven reserves of oil and gas are depleting, unless other indigenous energy sources are explored. Also, the Government of Thailand is planning to reduce greenhouse gas emissions by 20–25% by 2030. Hence, Thailand has set a new renewable energy target of 30% of total final energy consumption by 2036 under its Alternative Energy Development Plan (AEDP) 2015. With the increasing energy demand in Thailand, it is expected that renewables will play an important role in meeting this demand.
Moreover, the increasing penetration of renewables, such as wind and solar energy, is regarded as a critical pathway for the transition to a decarbonized power system. Over the last decade, the penetration of renewables in the power sector has increased. In addition, emerging techniques, such as smart inverters, advanced communication protocols, and machine learning, provide more regulatory norms and policies available for better penetration of renewables. Thus, the advantages and the surge in the usage of renewable sources for power supply may hinder the growth of the diesel genset market.
The above 750 kVA category holds the largest Thailand DG set market share in 2024, of 37%, in terms of revenue. This is primarily because of the high-power requirement in the industrial sector. Thailand is one of the leading manufacturers of high-tech products, notably those related to automobiles and electronics. Additionally, the country’s focus is on the production of more value-added goods, for the enhancement of its economy, which impels startups to expand their production facilities, thus contributing in the requirement for gensets.
The 76–375 kVA category is set to witness the highest CAGR, of 5.0%, over this decade. The variants are deployed in manufacturing facilities, hospitals, hotels, and other buildings (residential and commercial). The demand for them is driven by the growth of mid-sized commercial and industrial facilities in the country. The tourism & hospitality sector of Thailand, which is growing rapidly, also prefers diesel gensets that are rate for 76 to 375 kilovolt-Amperes.
The following power ratings have been studied:
The commercial sector holds the largest Thailand DG set market share, of 45%, in 2024, and it is set to grow with the highest CAGR, off 3.2%, during 2024–2030. Thailand's commercial sector has been showing positive growth since the last economic slowdown in 2015. The increasing number of shopping malls and restaurants has been giving a push to its commercial sector. Additionally, tourism is a main factor making the kingdom’s commercial sector prosperous. With the growing number of shopping malls, restaurants, and hotels, the requirement for DG sets in these buildings is increasing.
The segment is categorized as below:
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The Thailand DG set market is consolidated as a few major players hold prominent shares. Manufacturing gensets that offer enough power, while complying with the regulations for emissions and noise is capital-intensive. Additionally, major commercial and industrial entities generally contract established players, which can also offer consulting on which model to choose. These companies also have comprehensive distribution channels, including factory outlets, distributors, and online stores.
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