PUBLISHER: The Business Research Company | PRODUCT CODE: 1932564
PUBLISHER: The Business Research Company | PRODUCT CODE: 1932564
Generator sets, or gensets, generate electricity by converting mechanical energy-usually from an engine-into electrical power via an alternator. They play a crucial role in supplying backup or primary power in areas where grid access is limited or unreliable. Gensets are widely utilized across multiple industries to ensure a steady power supply and come in various sizes and capacities to suit different energy needs.
The primary categories of generator sets include diesel, gas, and hybrid models. Diesel generator sets offer durable and fuel-efficient power, delivering dependable electricity for backup and off-grid scenarios in residential, industrial, and remote settings. These gensets come in different portability options such as portable, stationary, and vehicle-mounted, and are available in a range of power ratings including low, medium, and high power. Their applications span data centers, government and defense, healthcare, mining, oil and gas, telecommunications, and more, serving a diverse group of end-users including residential, commercial, and industrial 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 have affected the generator sets market by increasing costs of imported engines, alternators, control panels, and electronic components. High power and hybrid generator sets are most impacted, particularly in North America and Asia Pacific. Elevated equipment costs have influenced project budgets. At the same time, tariffs have supported domestic manufacturing and local assembly of gensets.
The generator sets market research report is one of a series of new reports from The Business Research Company that provides generator sets market statistics, including the generator sets industry global market size, regional shares, competitors with the generator sets market share, detailed generator sets market segments, market trends, opportunities, and any further data you may need to thrive in the generator sets industry. This generator sets market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The generator sets market size has grown strongly in recent years. It will grow from $33.4 billion in 2025 to $36.33 billion in 2026 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to grid power unreliability, industrial expansion, growth in telecom infrastructure, mining sector power needs, healthcare facility backup requirements.
The generator sets market size is expected to see strong growth in the next few years. It will grow to $50.31 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to data center capacity expansion, renewable hybrid integration, growth in remote infrastructure projects, demand for low emission gensets, expansion of smart grid systems. Major trends in the forecast period include growing adoption of hybrid generator sets, rising demand for backup power solutions, expansion of gensets in data centers, increasing use of gas based generator sets, focus on fuel efficient power generation.
The rising frequency of power outages is expected to drive growth in the generator sets market. Power outage frequency measures how often electricity disruptions occur within a specific area and time period. Aging infrastructure plays a significant role in the increase of power outages, as older grids struggle to meet growing demand and withstand extreme weather conditions. Generator sets help mitigate the effects of power outages by providing immediate backup power, ensuring continuous operation. They are especially important in regions prone to frequent disruptions, as they maintain power for critical systems and minimize operational downtime. For example, in April 2025, Construction Physics, a US-based newsletter focused on building technology and economics, reported 80 severe power outages in 2024, up from 68 in 2023. Hence, the growing frequency of power outages is boosting the generator sets market.
Leading companies in the generator sets market are emphasizing technological advancements, such as achieving large power output within a compact footprint to deliver high-capacity electricity efficiently in space-constrained environments. Large power output within a compact footprint refers to generating substantial electrical power relative to the generator's size, allowing deployment in urban or critical infrastructure settings. For example, in June 2025, Cummins Inc, a US-based company specializing in the design, manufacture, and distribution of diesel, gas, and hybrid engines and generator systems, launched the S17 Centum generator set. This generator provides up to 1 MW of power using a dual-turbo 17-liter engine while supporting hydrotreated vegetable oil (HVO) fuel flexibility and emission compliance. The fully integrated design of the S17 Centum ensures reliable, high-performance power for applications including commercial buildings, hospitals, and water treatment facilities.
In August 2024, DEUTZ AG, a Germany-based internal combustion engine manufacturer, acquired Blue Star Power Systems, Inc. for an undisclosed sum. Through this acquisition, DEUTZ AG aims to enhance its foothold in the North American power generation market and broaden its product offerings by incorporating Blue Star Power Systems' customized generator solutions. Blue Star Power Systems Inc. is a US-based manufacturer specializing in custom diesel- and gaseous-powered generator sets.
Major companies operating in the generator sets market are General Electric Company, Caterpillar Inc., Deere & Company, Mitsubishi Heavy Industries Ltd., Cummins Inc., Rolls-Royce plc, Atlas Copco AB, AGCO Corporation, Wartsila Corporation, Ashok Leyland Ltd., Generac Holdings Inc., Cooper Corporation, DEUTZ AG, Jakson Group, Sterling and Wilson Pvt Ltd, PRAMAC Group, Himoinsa S.L., Honda Siel Power Products Ltd., Supernova Engineers Ltd., SDMO Industries
Asia-Pacific was the largest region in the generator sets market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the generator sets market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the generator sets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The generator sets market consists of sales of engine, cooling system, control panel, exhaust system, battery and starter motor. 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.
Generator Sets 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 generator sets 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.
Where is the largest and fastest growing market for generator sets ? 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 generator sets 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.
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