Diesel Genset Market Outlook:
Diesel Genset Market size was over USD 20.6 billion in 2025 and is estimated to reach USD 37.5 billion by the end of 2035, expanding at a CAGR of 6.9% during the forecast timeline, i.e., 2026-2035. In 2026, the industry size of diesel genset is evaluated at USD 22 billion.
The international diesel genset market is growing steadily, and this demand is highly fueled by the requirement for reliable backup power across residential, commercial, and industrial sectors. This is readily possible with evolving sustainability and technology regulations that are reshaping product offerings. According to an article published by the World Nuclear Association in January 2025, the United Nations has estimated that the world’s population is poised to grow from almost 8 billion in 2024 to almost 9.8 billion by the end of 2050. Therefore, the challenge lies in rapidly increasing the energy demand. Regarding this, the global energy-based carbon dioxide emissions surged to 37.4 Gt, which is more than 60% above the overall growth. Besides, nearly 9.6% of the world’s population, which is almost 760 million people, reside in rural locations, thereby enhancing the need for power.
Furthermore, the hybrid power systems integration, Internet of Things (IoT) and digitalization monitoring, emission compliance, market diversification, and improvements regarding efficiency and noise are other factors that are driving the diesel genset market internationally. As per an article published by the Journal of Energy Storage in February 2025, there has been an enormous expansion of the global renewable energy industry, comprising installed capacities as of 2023, with an increase of 405.5 GW for solar power, 24.0 GW for hydropower, 123.1 GW for wind, and 150.3 GW for bioenergy. Additionally, nearly 97% of the world’s energy storage is presently provided by pumped hydro storage. Therefore, with an increase in the continuous energy supply and capacity facilities, there is a huge growth opportunity for the market across different nations globally.
