Vietnam Diesel Generator Set Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

Vietnam Diesel Generator Set Market Size

Vietnamese Diesel Generator Set Market Trends and Growth Drivers

Privatization of Power Plants Is Key Trend in Market

• Vietnam is pushing to speed up the privatization of power plants under three state groups that control its energy sector, with an aim to cut the government ownership.
• The program includes the privatization of Electricity Vietnam (EVN)'s main generating facilities and distribution subsidiaries.
• EVN has already completed the privatization of several power plants and a distribution company.
• In addition, PetroVietnam Power Corporation (PV Power) has launched a successful initial public offering (IPO).
• PVN currently holds more than 51% of the charter capital of PV Power, and it will hold this percentage until the end of 2025.
• Vinacomin Power Holding Corporation, similarly, had a successful IPO. As a result, EVN is looking to own strategic power plants and projects serving several purposes, such as flood control or irrigation only.

Increasing Sales of Properties Is Major Driver for Market

• Vietnam is one of the fastest-growing economies in the world, and it is expected to continue its stellar growth in the coming years.
• Since 2015, new laws have opened up the Vietnamese property market to international customers. Any overseas traveler with a valid visa, whether resident or tourist, can buy property on a 50-year leasehold, with options for extension.
• Moreover, the government has made the price of properties in Vietnam affordable compared to the other property hotspots favored by Chinese entities, such as Bangkok.
• Vietnam’s plan to improve its infrastructure is also a plus factor for cross-border real estate investors.
• Cities such as Ho Chi Minh City are quickly developing and emerging as major business hubs, and plans to upgrade residential properties, schools, hospitals, and roads are afoot.
• Moreover, between 2021 and 2025, the government plans to increase the expressway length to 2,000 km Hanoi already has a mass transit railway, and Ho Chi Minh City will see its first metro system, which will connect the city center with eastern districts, become operational by 2023.
• Meanwhile, various expressway projects are being planned or under construction to improve connectivity with major cities. These factors are eventually increasing the demand for diesel gensets in the country.

Increasing Penetration of Renewable Sources Is Key Challenge

• In 2020, more than 100,000 rooftop solar installations and at least 15 utility-scale solar plants were connected to the grid.
• In 2021, at least 84 wind power plants came online. Most of these projects are concentrated in Ho Chi Minh City and a few southern provinces.
• Vietnam is planning an aggressive switch from coal to wind and solar power from now through 2045, and industry analysts believe grid enhancements and policy incentives are required for the country to reach the ambitious goal amid the rising domestic electricity demand.
• In addition, emerging techniques, such as smart inverters, advanced communication protocols, and machine learning, encourage the implementation of regulatory norms and policies for the 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.

Vietnamese Diesel Generator Set Market Analysis

By Power Rating

• The above 750 kVA diesel genset category hold the largest value share, of 46%, in the market in 2024.
• This sizeable portion demonstrates the rising need for high-capacity generator sets, especially in large-scale commercial and industrial applications.
• 5–75 kVA category will grow at a CAGR of 5.7% in the forecast period.
• This is mainly attributed to the low price of these gensets and their high demand in residential facilities, small industries, telecom towers, restaurants, commercial complexes, and hotels.
• Their adaptability enables a wide range of uses, including supplying telecom towers necessary for mobile services, sustaining small businesses that depend on dependable electricity, and supplying backup power for houses during blackouts.

The power ratings analyzed in this report are:

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

By Application

• The industrial sector in Vietnam holds the largest market share in 2024.
• Vietnam is a desirable industrial hub because of its relatively big and educated workforce.
• In addition, the Vietnamese government supports businesses that provide raw materials, spare parts, and components to sectors such as electronics, apparel and textile, leather and footwear, IT, and automotive.
• Thus, due to the surging need for power in the growing industrial sector, the demand for generator sets is rising.
• Commercial sector is expected to be the fastest-growing category, advancing at a CAGR of 5.5%, during the forecast period.
• The need for diesel generators in the commercial sector is fueled by Vietnam's continuous urbanization and infrastructure development.
• Reliable backup power solutions are more important than ever due to the growth of new retail centers, business complexes, and lodging facilities.

The applications analyzed in this report are:

• Commercial (Fastest-Growing Category)
• Industrial (Largest Category)
• Residential

Vietnamese Diesel Generator Set Market Share

The competition in the Vietnamese diesel genset market is consolidated in nature, with the top five players, namely Cummins Inc., Yanmar Holdings Co. Ltd., Caterpillar Inc., HUU Toan, and Atlas Copco AB, holding a 55.7% share in 2021. The market is expected to turn even more competitive in the coming years, since the demand for diesel gensets is increasing because of the rapid industrialization and the shortage of reliable grid infrastructure. Moreover, many other international players are expanding their business in Vietnam, seeing the growth of the manufacturing sector in the country.

Vietnamese Diesel Generator Set Market News

• In May 2024, Kohler Co. spun off its generator business into a separate entity, named Kohler Energy. Platinum Equity now owns the majority of the shares of the new business, while Kohler Co. has become an investment partner.
• In April 2024, Cummins Inc. introduced two new models—C2750D6E (2,750 kW) and C3000D6EB (3,000 kW) to its Centum series. Powered by the QSK78 engine, these gensets are designed for demanding settings, including data centers, wastewater treatment plants, and healthcare facilities.
• In September 2023, Aksa Power Generation acquired the majority of the shares of DAGARTECH, a Spanish manufacturer of diesel generators.