Diesel Generator Global Market Report 2026

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.

Tariffs are influencing the diesel generator market by increasing the costs of imported components such as engines, alternators, control systems, and steel housings, thereby raising manufacturing expenses and extending production timelines. The impact is most pronounced across large-capacity generator segments and in regions dependent on imported machinery-including Asia-Pacific, the Middle East, and Africa. Higher tariff burdens slow procurement and elevate installation costs, prompting manufacturers to localize production, develop tariff-resilient supply chains, and optimize designs to reduce dependence on affected components. On the positive side, tariffs are encouraging regional manufacturing investment and accelerating innovation in more efficient, compliant, and cost-optimized diesel generator solutions.

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 strongly in recent years. It will grow from $21.44 billion in 2025 to $22.78 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth in industrialization and infrastructure projects, rising frequency of power outages, early adoption of diesel-based backup systems, cost advantages of diesel fuel over alternatives, expansion of construction and mining activities.

The diesel generator market size is expected to see strong growth in the next few years. It will grow to $28.86 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to increasing demand for reliable off-grid power, rising need for high-capacity standby systems in data centers, stricter emission compliance driving generator redesign, expansion of remote operations in oil & gas and mining sectors, growth of hybrid diesel-renewable generator systems. Major trends in the forecast period include rising demand for backup and emergency power solutions, increasing deployment of generators in industrial and commercial facilities, growing need for high-capacity continuous power in remote locations, increased adoption of portable diesel generators, expansion of standby power systems driven by outage frequency.

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.

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.

In November 2023, DEUTZ AG, a Germany-based manufacturing and power technology company, acquired 100 percent of the shares in Blue Star Power Systems, Inc. for an undisclosed amount. Through this acquisition, DEUTZ aims to strengthen its presence in the decentralized energy supply market, expand its product portfolio, and accelerate its strategic transition toward scalable, distributed power solutions. Blue Star Power Systems, Inc. is a US-based company that manufactures complete diesel generator sets ranging from 20 to 2000 kWe.

Major companies operating in the diesel generator market are 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 2025. The regions covered in the diesel generator market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, 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. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• 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 technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• 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.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• 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 company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

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; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; 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.
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