Diesel Powered Real Estate Generator Market was valued at USD 736.5 million in 2024 and is projected to reach USD 2.1 billion by 2037, growing at a CAGR of 8.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of diesel powered real estate generator is assessed at USD 799.8 million.
The market’s consistent growth is attributed to growing demands for reliable and uninterrupted power supply in real estate projects. Diesel powered real estate generators provide reliable power backup options during grid failures or in areas besieged with unreliable electricity. The reliable power solution ensures construction timelines of real estate projects are met increasing the demands and fueling the market’s growth.
The increasing urbanization and building of smart cities globally position the market to cater to increased demands for stable power solutions. The efficiency and durability make diesel powered generators feasible to be adopted on a large scale to cater to real estate power solutions demands. In 2024, the World Bank estimated that 56% of the world’s population, i.e., 4.4 billion people, live in cities. The World Bank estimates that 7 out of 10 people to be living in cities by 2050. These trends lead to a global real estate boom in urban areas. Additionally, the market takes advantage of demands in both residential and commercial real estate sectors.
Market opportunities are evident due to the global focus on energy efficiency and reducing emissions. Manufacturers are poised to leverage the shift in demands by providing diesel generators with cleaner technology and investing in hybrid models that can combine diesel and renewable energy sources. In the next decade, the largest opportunities are expected to be from data centers owing to the artificial intelligence (AI) boom that requires power densities often more than an office building, and diesel powered real estate generators can answer the demands for solutions in this sector. With innovations increasing lifespans and heavy load capacity of diesel powered real estate generators, the market growth is poised to continue on a profitable growth curve by the end of the forecast period.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8.6% |
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Base Year Market Size (2024) |
USD 736.5 million |
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Forecast Year Market Size (2037) |
USD 2.1 billion |
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Regional Scope |
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Application (Continuous, Standby)
The prime/continuous segment in the diesel powered real estate generator market is projected to dominate the global revenue share accounting for 68.4% by the end of the forecast period. The segment’s rapid growth is attributed to increasing demand for continuous power supply over extended periods. Diesel powered generators are used as a primary source of continuous power supply for public and private infrastructures leading to a rapid growth of the segment. The prime/continuous segment is essential for industries such as mining, construction, and remote real estate projects where grid reliability is uncertain. For instance, in construction in remote areas such as Alaska or Lakshadweep, diesel powered generators ensure activities requiring continuous power supply runs without interruption.
The demand for prime/continuous generators is poised to grow as construction activities in remote regions increase. For instance, according to the Department of Climate Change, the Environment, and Water, the Australian Antarctic Division stated that in July 2020, the diesel generators of RSV Nuyina, the lifeline of Australia’s Antarctic research station, started and it will provide a propulsion power of 26.6 megawatts.
The standby segment is poised to exhibit a profitable growth curve by the end of the forecast period. The segment’s growth is attributed to diesel powered generators solidifying as a robust backup power solution during emergencies. Standby generators remain idle until they are needed unlike prime generators and ensure operations remain uninterrupted in real estate. The demand for standby diesel powered generators is increasing in hospitals, commercial buildings, and high-rise complexes where power loss can incur significant losses. For instance, in February 2022, grid failure in South and Central Mumbai failed to impact hospitals due to standby generators as per the commissioner of the Brihanmumbai Municipal Corporation. This highlights the significance of standby generators and boosts the adoption rate in multiple real estate settings.
Power Rating (>200 kVA-350 kVA, 350 kVA-500 kVA, >125 kVA-200 kVA, >50 kVA-125kVA, <50 kVA)
The >200 kVA-350 kVA segment is projected to increase its revenue share by the end of the forecast period owing to its use in a wide range of commercial and industrial applications. Real estate buildings, commercial complexes, and industrial facilities require backup generators, and diesel powered generators in this power range have a high adoption rate owing to their capacity. Additionally, the advent of silent and portable generators boosts the segment as greater convenience increases adoption. Manufacturers are integrating automated load management systems in >200 kVA-350 kVA, allowing the genset to adjust the power output automatically based on real-time use. This cost-effective solution leads to diesel powered real estate generator market growth as it prolongs the lifespan of the generator.
Our in-depth analysis of the diesel powered real estate generator market includes the following segments
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Application |
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Power Rating |
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APAC Market Forecast
The Asia Pacific diesel powered real estate generator market is projected to hold a dominant revenue share of 54.8% by the end of the forecast period owing to surging energy demands across the region. Asia Pacific is undergoing rapid urbanization leading to a surge in construction activities that increase demands for reliable backup power solutions. In 2022, IEA reported that the largest final consumer of electricity in the Asia Pacific is the industrial sector.
Unstable grid reliability also boosts demands for diesel powered generators in remote areas to power homes or as backup power solutions in community events. Unstable electricity supply and large-scale electricity demands are expected to continue boosting the growth of the market in APAC as more real estate projects adopt diesel powered real estate generators.
China is projected to hold the largest share in the APAC market owing to the large-scale adoption of diesel gensets. China is the global leader in the export of diesel powered generators with more than 90 thousand shipments exported globally. Manufacturers in China are answering the domestic demands for low-emission models boosting the market’s growth. Additionally, the diesel powered real estate generator market is boosted by the frequent power outages in the region. For instance, the Global Sustainable Electricity Partnership reported electricity demand in China to rise by 10.3 kWh in 2030 and 13.6 kWh in 2050.
Due to high demand, the domestic grid networks are under stress. In September 2024, the South China Morning Post reported that there had been more power disruptions in the first half of the year. These trends position diesel powered generators to supply robust continuous or backup solutions to numerous real estate projects in the country, further boosting the market’s profitable growth curve.
India is poised to increase its revenue share by the end of the forecast period. The market’s growth is attributed to the rising demand for portable diesel generators in real estate. India is witnessing rapid urbanization. For instance, in January 2024, the World Bank estimated towns and cities in the country account for 600 million people, almost 40% of its population. The rapid rate of urbanization has fueled construction activities in the real estate sector leading to an increase in demands for backup genset solutions. Additionally, the growth of data centers and smart cities positions the diesel powered real estate generator market for a rapid growth curve by boosting the real estate construction sector, which in turn fuels the demand for diesel powered generators.
North America Market Analysis
The market in North America is poised to register the fastest growth during the forecast period owing to demands in areas prone to hurricanes and other natural disasters, and real estate projects in remote areas such as Alaska. The U.S. and Canada lead the diesel powered real estate generator market’s growth in North America with rising investments in backup power solutions for large-scale infrastructure projects, hospitals, and data centers. Additionally, the demand for Tier 4 compliant diesel powered generators, that meet the emission standards set by the Environmental Protection Agency is growing in the region. Key manufacturers are positioned to cater to the demands by providing innovative hybrid gensets that have low emissions. For instance, in October 2024, Hyliion signed a letter of intent with ANA to deploy hybrid KARNO generators.
The U.S. is projected to account for the largest revenue share in the North America market owing to surging demands for backup power solutions in the commercial real estate sector. Diesel powered generators are in high demand in areas affected by hurricanes in the country to ensure power solutions during grid outages. For instance, in October 2024, Generac announced that many of their gensets had been sold out after Hurricane Helene. Additionally, the demand for microgrid compatible diesel generators boost the diesel powered real estate generator market’s growth. In April 2024, Schneider Electric announced that it will use Mainspring Energy’s fuel-flexible generator that will appeal to microgrid customers.
Canada is positioned to increase its revenue share in the diesel powered real estate generator market by the end of the forecast period. The demands for backup power sources are high in the real estate sector of the country during winters owing to harsh weather conditions that can disrupt grid power supply. Manufacturers are pushing robust standby generators to support remote infrastructure projects and cater to commercial and residential real estate infrastructure that require power solutions during outages. In August 2022, Caterpillar Inc. launched three standby diesel generator sets from 20 kW to 30 kW for commercial, telecommunications, and small industrial customers.
The global diesel powered real estate generator market is projected for a profitable growth curve during the forecast period. Key manufacturers in the sector are pushing for smart diesel generators that can manage fuel consumption, offering cost-effective power solutions to the real estate sector.
Here are some key players in the market:
Author Credits: Radhika Pawar
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