Generator Sets Market Size

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.