U.S. Genset Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Genset Market Emerging Trends & Growth Drivers

Shift to Low-Emission and Sustainable Gensets Is Key Market Trend

• Industries in the U.S. have started focusing on environment-friendly, fuel-efficient, and overall sustainable power solutions, primarily low-emission gensets.
• The government is implementing stricter policies and regulations to force the integration of low-emission and sustainable gensets.
• The Environmental Protection Agency has established stringent emissions standards to reduce the amount of pollutants, such as nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), sulfur dioxide (SOâ‚‚), and lead, from diesel- and gasoline-driven generators.
• These regulations prompt manufacturers to develop more-efficient gensets that consume less fuel, discharge lower emissions, use cleaner fuels, such as natural gas, or can be integrated with renewable sources, such as solar panels.
• In October 2024, the U.S. Department of Energy invested USD 87 million in Mainspring Energy to build a linear generator manufacturing facility in Allegheny, Pennsylvania.
• The facility has the capacity of producing 1,000 low-emission linear generators annually.

Power Outages and Grid Reliability Issues Are Driving Market Growth

• The rising incidence of power outages and grid stability issues in the U.S. due to the aging T&D infrastructure, increasing electricity demand, and extreme weather conditions drive the necessity for reliable power backup.
• In October 2024, in the aftermath of Hurricane Berly, Generac Power Systems expanded its generator manufacturing facilities in Wisconsin and South Carolina.
• The main reason for power outages is an aging power grid infrastructure in the U.S., which struggles to meet the rising electricity demand.
• This aging infrastructure requires regular maintenance and upgrades, which are costly and, often, slow.
• Due to this, many industries opt for gensets for reliable backup power support.
• Furthermore, state and federal governments are supporting the integration of backup and power solutions by providing incentives and rebates.
• In January 2025, the Texas government invested USD 1.8 billion for the establishment of reliable backup power solutions.

U.S. Genset Market Segmentation and Category Analysis

Fuel Type Insights

Diesel held the largest share, of 65%, in 2024 due to their widespread adoption across various industries due to its high efficiency. Additionally, these machines are used in heavy-duty applications, such as manufacturing plants, data centers, hospitals, and emergency backup systems. These systems, as well as diesel itself, are cost-effective, easily available, well-understood, and efficient.

The gas category will grow at the higher CAGR of 6.8%, during the forecast period. This growth is due to the widespread adoption of the natural gas genset for their lower emissions and environment-friendliness. Additionally, natural gas generators can integrate with renewable energy sources, such as solar and wind energy storge systems, which enhances the overall sustainability.

Based on fuel type, the market has the following categories:

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

Power Rating

The 76–375 kVA category held the largest share, of 40%, in 2024. These types of generators are used in the most commercial establishments, SMEs, and small industrial facilities. These mid-capacity gensets are popular at individual retail stores, supermarkets, large residential estates, and office buildings.

The above 750 kVA category will grow at the highest CAGR. of 7%, during the forecast period. This is due to the rising demand for backup power solutions from heavy-duty industries, such as data centers and healthcare facilities, which require power without any disruptions to their operations.

Based on power rating, the market has the following categories:

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

Application

The commercial category held the largest market share, of 50%, in 2024. The healthcare, data center, retail, and hospitality sectors require an uninterrupted power supply for continuous operations and maximum client/customer comfort. While power cuts can be deadly for patients on life support at hospitals, data centers must maintain operations as per their tier rating. All tiers mandate an uptime of over 99%, which makes gensets vital at data centers.

The residential category will grow at the highest CAGR, of 6.5%, during the forecast period. This is due to the increasing dependence on electronic items in the daily life, which has increased the demand for a continuous supply of power at homes. The boom in residential construction due to the burgeoning population and urbanization also drive the market in this category.

Based on application, the market has the following categories:

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

U.S. Genset Market Regional Outlook

The Southern region is the largest market, with 45% share in 2024. This is because the region witnesses frequent hurricanes and severe storms, which lead to power outages. This, along with the large population of the region, whose accommodation needs are driving construction on a massive scale, propels the demand for gensets as both a primary and backup electricity source.

The Western region of the U.S. will grow at the highest CAGR, of 7.5%, during the forecast period. This is due to the expansion of data centers, which require an uninterrupted power supply. Other reasons for the market growth in the region is an expanding hospitality industry, presence of large hospitals and office zones, and the changing lifestyles of people, apparent in the rising adoption of smart devices for just about everything.

The market has been categorized into the following regions:

• Northeast
• Midwest
• West (Fastest-Growing Regional Market)
• South (Largest Regional Market)

U.S. Genset Market Share

The market for gensets in the U.S. is consolidated due to the presence of several key players, such as Generac Holdings Inc., Caterpillar Inc., Cummins Inc., Kohler Co., and Briggs & Stratton Corporation. The main reason for the market consolidation among them is the initial high investment for the manufacturing of generators and the extensive distribution channel requirements, which make entry of new market players very difficult. The major players are investing in new technologies and developing gensets that are easily integrated with renewable energy sources.

U.S. Genset Market News & Updates

• In February 2025, Generac Power Systems Inc. announced that it will launch new genset products for hyper-scale data centers in the U.S.
• In December 2024, ABB Ltd. acquired the power electronics business of Gamesa Electric, adding doubly-fed induction generator (DFIG) wind converters, industrial utility-scale solar power inverters, and battery energy storage system (BESS) to its portfolio.
• In April 2024, Cummins Inc. launched two new models of generators in the Centum series: C2750D6E and C3000D6EB, with a power output of 2,750 kW and 3,000 kW, respectively.
• In March 2024, Cummins Inc. launched its new Cat DG450 compact natural gas generator set for non-attainment areas.