Generator Sets Market size is estimated at USD 41.2 billion in 2024 and is expected to reach USD 95.2 billion by the end of 2037, witnessing over 6.7% CAGR during the forecast period, i.e., between 2025-2037. In 2025, the industry size of generator sets is assessed at USD 43.4 billion.
The rising need for a reliable and uninterrupted power supply across sectors such as healthcare, telecommunications, and industries is expected to boost the generator sets market growth during the forecast period. Key players are investing in research and development to launch technologically advanced, fuel-efficient generator sets. For example, in August 2023, Cummins announced that its Performance Series engine lineup was compatible with Hydrotreated Vegetable Oil (HVO) biofuel, providing a more sustainable fuel option for generator sets. Besides this, firms are also increasing their manufacturing capacity to fulfill rising demand.
Governments of different countries are also making efforts to encourage energy efficiency and lessen carbon emissions. For example, India’s central government has increased the capital expenditure allocation to USD 133.9 billion for the fiscal year starting April 2024 to promote economic growth by advancing India's infrastructure. This emphasis on infrastructure development is projected to create a positive market environment for generator set makers. Additionally, the market is expected to grow significantly due to the importance of generators in offering stable power supply for building projects and new cities.
Growth Drivers:
Challenges:
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.7% |
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Base Year Market Size (2024) |
USD 41.2 billion |
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Forecast Year Market Size (2037) |
USD 95.2 billion |
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Regional Scope |
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Type (Diesel Generator Sets, Gas Generator Sets, Hybrid Generator Sets)
The diesel generator sets market is likely to capture a share of 65.9% during the forecast period. Diesel generator sets remain high in demand due to their fuel efficiency and low running cost, which makes them very popular across all sectors. In March 2022, Mitsubishi Heavy Industries Engine & Turbocharger launched the MGS-R Series of diesel generator sets. This series provides commercial facilities with reliable backup power to meet the rapidly growing demands made by the digital economy, particularly by data centers across Asia and the Middle East.
Continued innovation in diesel generator technology serves to further establish its critical role in supporting essential infrastructures across key regions.
Mobility (Stationary Generator Sets, Portable Generator Sets)
Stationary generator sets market is poised to hold over 70.6% revenue share by the end of 2037. Stationary generator sets have sustained their growth due to the critical role they serve by providing reliable, high-capacity power generation for infrastructures and industries. These generators provide continuous services and protection from costly outages to facilities, such as data centers, industrial facilities, and commercial facilities.
Phase (Single-Phase Generator Sets, Three-Phase Generator Sets)
Three-phase generator sets market are likely to hold a revenue share of 65.2% by 2024. The three-phase generators segment has garnered popularity over the past few years as more industries and commercial entities apply and harness highly effective power output and efficiency from the generators.
In May 2024, Jakson Group launched its state-of-the-art power generation solution with advanced fuel efficiency and real-time monitoring capabilities, and christened the CPCB IV+ Compliant Genset, further affirming the industry's commitment to innovations. Innovations such as these are likely to drive the available potential in three-phase generator sets in the years ahead as industrial activities keep expanding.
Our in-depth analysis of the market includes the following segments:
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Type |
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Mobility |
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Phase |
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Fuel Type |
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Power Rating |
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Application |
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Asia Pacific Market Statistics
Asia Pacific generator sets market is likely to witness a CAGR of 8% during the forecast period. The key drivers include the increasing incidence of power cuts, rapid industrialization, and urbanization, which demand a reliable and continuous power supply. China holds the largest share within the Asia Pacific market. This country's growth is mainly due to rapid industrialization, urbanization, and the rising construction and manufacturing sectors.
Moreover, the Chinese government is stressing infrastructure development, such as building data centers and telecom towers and improving the transportation network; this, again, is boosting the market growth. In India, the market growth is driven by factors like increased power failures, improving infrastructural development, and expansion in the telecom sector. The growing demand for a continuous power supply from industries, commercial establishments, and households increases the country's use of generator sets.
In January 2024, Cooper Corporation, jointly with Sinfonia Technology, introduced India's first-ever 10 KVA LPG CPCB IV+ certified genset. The genset is designed to meet the stringent emission requirements that the CPCB IV+ Act under Indian Legislation has mandated. These are significant steps toward an ultimate zero carbon footprint and achieve clean power generation.
North America Market Analysis
In generator sets market, North America region is estimated to grow at around 7.1% CAGR by 2037. This expansion is driven by several key factors, such as rising incidences and intensity of power blackouts due to calamities and unfavorable climates. Moreover, the increasing use of generator sets in residential and commercial end-users due to concerns for energy security and reliability of power supply is also fueling the growth of this market.
U.S. is projected to hold a significant market share in the forecast period. Some of the drivers behind this growth include the rising incidence of power outages, rapid developments in industrial sector, and the rising need for standby power in commercial and residential facilities. Also, the new investments in upgrading the grid and the infrastructure development projects from the U. S. government are also helping in the growth of the market. In June 2023, the U. S. Department of Energy offered USD 48 million to improve the resilience of the nation’s electric grid to weather and natural calamities.
Canada is another strategic market in North America’s generator sets industry due to the country’s extensive coverage, unfavorable climate, and increasing need for power backup from various industries. The growth of mining, oil and gas, and construction industries in Canada, along with the usage of generator sets as standby power solutions, is adding to the market growth. To address this, in May 2024, the Canadian government allocated USD 35 million to promote clean energy technologies, including hybrid generator systems, indicating the focus on sustainable power solutions in this country.
The global generator sets market is highly concentrated, with some established players dominating the landscape. Some key players are Caterpillar Inc., Cummins Inc., Kohler Co., Atlas Copco, Mitsubishi Heavy Industries Ltd., and Generac Power Systems, Inc., which hold substantial market shares. Indeed, strong brand recognition, technology expertise, and global reach raise tough entry barriers to new entrants.
Market players have been embarking on mergers and acquisitions as a strategic step towards consolidating positions and diversifying product lines. For example, in June 2024, DEUTZ AG completed the acquisition of Blue Star Power Systems. This buyout is likely to help the company get a stronger foothold in North America’s market and provide an opportunity to leverage the expertise of Blue Star in developing and manufacturing generator sets. Such strategic initiatives are likely to increase competition among existing players while opening up opportunities for new entrants with innovative and differentiated products.
Here are some leading companies in the generator sets market:
Author Credits: Dhruv Bhatia
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