Diesel Generator Global Market Report 2025

A diesel generator functions by utilizing a diesel engine to generate electrical energy through an electric generator. Primarily, it serves as a backup power source during electric shutdowns or emergencies. Diesel generators commonly use liquid fuel or natural gas as their primary fuel sources.

The key types of diesel generators include small, medium, and large variants. Small diesel generators, ranging from 0 to 75 kVA, are typically portable and often air-cooled. They serve as backup power solutions for mobile applications such as mining sites, farming operations, and professional contractor needs. Diesel generators come in both stationary and portable forms, offering power ratings below 75kVA, between 75-375kVA, 375-750kVA, and above 750kVA. They are extensively utilized for standby backup power, peak shaving, and continuous load applications across industrial, commercial, and residential sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp escalation of U.S. tariffs and resulting trade tensions in spring 2025 are significantly affecting the electrical and electronics sector. Key components such as semiconductors, display panels, and rare-earth metals crucial for batteries and motors are now facing heavy duties. Consumer electronics companies are seeing profit margins shrink, as fierce competition makes it difficult to pass on rising costs to consumers. At the same time, industrial electronics firms are experiencing project delays due to shortages of tariff-impacted parts like printed circuit boards. In response, businesses are shifting assembly operations to tariff-exempt nations, building up inventory reserves, and redesigning products to reduce reliance on restricted materials.

The diesel generator market research report is one of a series of new reports from The Business Research Company that provides diesel generator market statistics, including diesel generator industry global market size, regional shares, competitors with a diesel generator market share, detailed diesel generator market segments, market trends and opportunities, and any further data you may need to thrive in the diesel generator industry. This diesel generator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The diesel generator market size has grown steadily in recent years. It will grow from $20.52 billion in 2024 to $21.44 billion in 2025 at a compound annual growth rate (CAGR) of 4.5%. The growth in the historic period can be attributed to strong economic growth in emerging markets, rapid industrialization, an increase in energy demand and consumption, and a rise in focus on electricity generation using fossil fuel energy sources.

The diesel generator market size is expected to see strong growth in the next few years. It will grow to $27.25 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to the expanding construction industry, thriving growth of the manufacturing industry, and remote work revolution. Major trends in the forecast period include improving the efficiency of diesel generators, developing rental generators, hybridization of diesel generators, designing compact and mobile solutions, and integration of advanced technologies such as remote monitoring, predictive maintenance, and data analytics.

The forecast of 6.2% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through increased costs for heavy-duty alternators and engine control units, predominantly manufactured in India and Italy, raising prices for backup power systems. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth of the diesel generator market is anticipated to be driven significantly by the expansion of the construction industry in the forecast period. With construction projects on the rise, the need for reliable power sources becomes paramount to sustain operations at various stages of development. Diesel generators play a crucial role as backup power solutions, ensuring uninterrupted functionality in construction sites where grid power may be unreliable or unavailable. As of August 2023, the U.S. Census Bureau reported a construction expenditure of $1,938.4 billion, marking a 3.5% increase from the estimated $1,873.2 billion in June 2022. Moreover, Oxford Economics projects global construction output to grow from $9.7 trillion in 2022 to $13.9 trillion by 2037. Hence, the expanding construction industry is poised to be a key factor propelling the diesel generator market's growth.

The ongoing remote work revolution is expected to be a significant driver for the diesel generator market in the forecast period. The surge in remote working, accelerated by the COVID-19 pandemic, has led businesses to seek reliable backup power solutions to ensure continuous operations, especially in regions with unreliable grid power. This increased reliance on backup power sources, such as diesel generators, aims to maintain productivity during power outages, contributing to heightened market demand. As of June 2023, Forbes reported that 12.7% of full-time employees were engaged in remote work, with an additional 28.2% adopting a hybrid work approach. Projections for 2025 suggest that approximately 32.6 million American professionals, constituting around 22% of the workforce, will be involved in remote work. Consequently, the remote work revolution is expected to drive the growth of the diesel generator market in the coming years.

Major players in the diesel generator market are focusing on delivering technologically advanced solutions, such as ultra-silent generators, to enhance their market position. These ultra-silent generators are engineered to operate with minimal noise, making them suitable for noise-sensitive environments while ensuring reliable power output. For example, in May 2024, Trime, an Italy-based company known for designing and manufacturing innovative and eco-friendly lighting solutions, introduced a new range of diesel-powered generators with power capacities ranging from 6 kVA to 670 kVA. These generators feature advanced engines from Kohler Stage V, Yanmar, FPT Iveco, and Perkins. Tailored for the hire markets in the UK and Ireland, these ultra-silent generators offer versatile single and three-phase outputs for various applications, built to the same high standards of reliability and durability as Trime's previous lighting tower products.

Digital technologies have significantly enhanced the diesel generator market, prompting manufacturers to invest in research and development to create advanced diesel generators that incorporate features like remote monitoring, predictive maintenance, and data analytics for improved fuel efficiency optimization. For example, in August 2022, Caterpillar Inc., a US-based manufacturer of construction and mining equipment, engines, and industrial turbines, introduced three new standby diesel generator sets. These generators provide reliable backup power for commercial, industrial, and residential applications. Engineered for high capacity and fuel efficiency, they come equipped with automatic start capabilities and a robust construction, ensuring a continuous electricity supply during outages. Furthermore, these new generator sets include Cat Connect hardware and a Remote Asset Monitoring subscription, allowing users to monitor performance, receive alerts, troubleshoot remotely, and analyze data for operational enhancements through a web interface or mobile app.

In March 2022, UK-based DTGen, specializing in diesel and gas generators, disclosed its acquisition of Power Electrics Generators (PEG) for an undisclosed sum. This acquisition involves DTGen obtaining PEG's sales and projects division, intending to bolster its capacity and proficiency while achieving nationwide coverage across the UK. The deal includes locations in the Midlands, Scotland, and southern regions. Power Electrics Generators, also UK-based, offers a variety of diesel generators, fuel and control systems, along with services encompassing diesel generator sales, hire, parts, and service provisions.

Major companies operating in the diesel generator market include Mitsubishi Heavy Industries Ltd, Caterpillar Inc, Cummins Inc, Rolls-Royce Holdings plc, Generac Holdings Inc, Aggreko, Atlas Copco AB, Yanmar Co. Ltd., Wartsila Corporation, Doosan Portable Power, Wuxi Huayou Power Equipment Co. Ltd, GIANT Power OEM Co. Ltd, Detra (HK) International, Jiangsu Dohigh Generator Trading Co. Ltd, Shangyu Diesel Engine Co. Ltd, Yanmar Holdings Co. Ltd, Kubota Corporation, Honda India Power Products Limited, Enrogen, Excel Power Ltd, JS Power, German Generator GmbH, Fischer Panda GmbH, Energy XPRT, Andoria-Mot Ltd, Dfme Sp. Z O. O, Poland Generators Manufacturers, Kohler Co, Powerhouse Diesel Generators Inc, Smith's Diesel and Power Systems, BC Diesel Generators, GAL Power Systems, MWM Motors Diesel Inc, Tupy S.A, Soenergy Sistemas Int De Energia, Geraforte Grupos Geradores LTDA, Jubaili Bros, Ultimate Power Solution Fzc, AQT Generators, Ade Power, Algen Power Generation, Mikano International Limited

Asia-Pacific was the largest region in the diesel generator market in 2024. The regions covered in the diesel generator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the diesel generator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The diesel generator market consists of sales of portable generators, inverter generators, and standby generators. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Diesel Generator Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on diesel generator market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for diesel generator ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The diesel generator market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Small Diesel Generator, Medium Diesel Generator, Large Diesel Generator
• 2) By End User: Industrial, Commercial, Residential
• 3) By Application: Standby Backup Power, Peak Shaving, Continuous Load
• 4) By Mobility: Stationery, Portable
• 5) By Power Rating: 75 kVA, 75-375 kVA, 375-750 kVA, Above 750 kVA
• Subsegments:
• 1) By Small Diesel Generator: Portable Diesel Generators; Residential Diesel Generators
• 2) By Medium Diesel Generator: Industrial Diesel Generators; Commercial Diesel Generators
• 3) By Large Diesel Generator: High-Capacity Diesel Generators; Standby Power Generators For Large Facilities
• Companies Mentioned:Mitsubishi Heavy Industries Ltd; Caterpillar Inc; Cummins Inc; Rolls-Royce Holdings plc; Generac Holdings Inc; Aggreko; Atlas Copco AB; Yanmar Co. Ltd.; Wartsila Corporation; Doosan Portable Power; Wuxi Huayou Power Equipment Co. Ltd; GIANT Power OEM Co. Ltd; Detra (HK) International; Jiangsu Dohigh Generator Trading Co. Ltd; Shangyu Diesel Engine Co. Ltd; Yanmar Holdings Co. Ltd; Kubota Corporation; Honda India Power Products Limited; Enrogen; Excel Power Ltd; JS Power; German Generator GmbH; Fischer Panda GmbH; Energy XPRT; Andoria-Mot Ltd; Dfme Sp. Z O. O; Poland Generators Manufacturers; Kohler Co; Powerhouse Diesel Generators Inc; Smith's Diesel and Power Systems; BC Diesel Generators; GAL Power Systems; MWM Motors Diesel Inc; Tupy S.A; Soenergy Sistemas Int De Energia; Geraforte Grupos Geradores LTDA; Jubaili Bros; Ultimate Power Solution Fzc; AQT Generators; Ade Power; Algen Power Generation; Mikano International Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.