Genset Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type, By Power Rating, By Portability, By Application, By Region & Competition, 2021-2031F

Description

The Global Genset Market is projected to expand from USD 38.61 Billion in 2025 to USD 58.99 Billion by 2031, registering a CAGR of 7.32%. A generator set, or genset, functions as an integrated unit merging an internal combustion engine with an electrical generator to supply continuous or backup electricity. The market is primarily propelled by the declining reliability of aging utility infrastructure and the absolute uptime necessities of growing data centers, which require uninterrupted operations. Additionally, the global shift toward variable renewable energy has heightened the need for reliable backup systems to guarantee grid stability, a trend supported by Eurelectric data showing that renewable sources accounted for 48% of the European Union's power mix in 2024.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 38.61 Billion
Market Size 2031	USD 58.99 Billion
CAGR 2026-2031	7.32%
Fastest Growing Segment	100-350 kVA
Largest Market	Asia Pacific

However, a major hurdle restricting market growth is the implementation of strict environmental regulations designed to lower carbon emissions from diesel engines. Adhering to these tough standards requires the use of expensive exhaust after-treatment technologies, which significantly raises the upfront capital costs for buyers. This increased financial burden poses a considerable obstacle to expansion, especially in price-sensitive international markets where budgetary limitations hinder the uptake of compliant power generation technologies.

Market Driver

The rapid expansion of data center infrastructure and cloud computing is reshaping the global genset sector, as hyperscale operators demand uninterruptible power for artificial intelligence and storage applications. Modern facilities require massive energy capacities that frequently surpass local utility limits, necessitating on-site power generation to ensure absolute uptime. This surge in power consumption creates a continued reliance on high-capacity diesel and gas generators as essential safeguards against failure. According to a May 2024 analysis by Goldman Sachs titled "AI Set to Propel 160% Surge in Data Center Power Demand," power requirements for data centers are expected to jump 160% by 2030, largely due to AI adoption, leading manufacturers to see a sharp increase in orders for large-scale backup systems designed for these high-energy environments.

Concurrently, the rising incidence of severe weather-induced power outages is driving the uptake of backup solutions in both residential and commercial markets. As climate change increases storm intensity, aging utility grids are struggling to maintain service, prompting end-users to invest in decentralized power assets to reduce operational risks. A report by Climate Central in April 2024, "Weather-related Power Outages Rising," noted that weather events caused 80% of all major U.S. power outages between 2000 and 2023. This instability has generated financial growth for equipment suppliers; for example, Cummins reported a 24% rise in third-quarter power generation revenues in 2024, driven primarily by strong global demand for backup applications.

Market Challenge

The imposition of stringent environmental regulations intended to curb carbon emissions from diesel engines creates a significant barrier to the global genset market's development. To meet these exacting standards, manufacturers are compelled to incorporate sophisticated exhaust after-treatment systems, such as selective catalytic reduction and diesel particulate filters. This integration drastically increases the manufacturing costs of standard diesel generators, thereby inflating the initial capital investment required from end users. In regions where cost sensitivity is high and budgets are tight, this price surge effectively excludes a large segment of potential customers, impeding infrastructure upgrades and widespread market adoption.

The financial strain placed on traditional fuel-based power systems is clearly reflected in recent industrial manufacturing data. According to the China Internal Combustion Engine Industry Association, cumulative sales of diesel engines fell by 2.08% in the first half of 2024 compared to the prior year. This decline in sales volume for the core prime mover component underscores the direct market-dampening impact of the escalating costs and technical complexities linked to regulatory compliance. As these financial obstacles endure, they continue to limit the growth potential of the conventional diesel genset segment.

Market Trends

The adoption of Hydrotreated Vegetable Oil and sustainable biofuels is accelerating as a viable strategy for immediate decarbonization. Acting as a direct substitute for mineral diesel, HVO allows existing internal combustion engines to deliver significant carbon reductions without necessitating costly hardware changes or infrastructure overhauls. This ability is spurring adoption among heavy power users who need to meet strict corporate environmental targets while preserving the performance of traditional engines. For instance, DataCentreNews UK reported in December 2024 that a partnership between AVK and Rolls-Royce Power Systems resulted in the delivery of over 500 HVO-powered mtu generators to the data center industry during the year.

Meanwhile, the growth of decentralized power generation and microgrid architectures is transforming the market by lowering dependence on centralized utility providers. Commercial entities are increasingly combining generator sets with battery energy storage and renewable resources to build autonomous on-site ecosystems that guarantee continuity during grid instability. This structural evolution empowers businesses to actively control power reliability and manage energy costs independently of public infrastructure. According to Aggreko's October 2024 report, "Rebalancing the Energy Transition," 87% of surveyed European business leaders have already deployed decentralized energy solutions, such as on-site generation, to protect their operations against volatility.

Key Market Players

Caterpillar Inc.
Cummins Inc.
Kohler Co.
Generac Power Systems, Inc
Rolls-Royce plc
Wartsila Corporation
Aggreko Ltd
Kirloskar Oil Engines Limited
Honda Motor Co., Ltd
Atlas Copco AB

Report Scope

In this report, the Global Genset Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Genset Market, By Fuel Type

Diesel Gensets
Natural Gas Gensets
Gasoline Gensets

Genset Market, By Power Rating

Up to 100 kVA
100-350 kVA
350-1000 kVA
Above 1000 kVA

Genset Market, By Portability

Portable Gensets
Stationary Gensets

Genset Market, By Application

Standby Power
Prime Power
Peak Shaving

Genset Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Genset Market.

Available Customizations:

Global Genset Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Genset Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Fuel Type (Diesel Gensets, Natural Gas Gensets, Gasoline Gensets)
- 5.2.2. By Power Rating (Up to 100 kVA, 100-350 kVA, 350-1000 kVA, Above 1000 kVA)
- 5.2.3. By Portability (Portable Gensets, Stationary Gensets)
- 5.2.4. By Application (Standby Power, Prime Power, Peak Shaving)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Genset Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Fuel Type
- 6.2.2. By Power Rating
- 6.2.3. By Portability
- 6.2.4. By Application
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Genset Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Fuel Type
    - 6.3.1.2.2. By Power Rating
    - 6.3.1.2.3. By Portability
    - 6.3.1.2.4. By Application
- 6.3.2. Canada Genset Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Fuel Type
    - 6.3.2.2.2. By Power Rating
    - 6.3.2.2.3. By Portability
    - 6.3.2.2.4. By Application
- 6.3.3. Mexico Genset Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Fuel Type
    - 6.3.3.2.2. By Power Rating
    - 6.3.3.2.3. By Portability
    - 6.3.3.2.4. By Application

7. Europe Genset Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Fuel Type
- 7.2.2. By Power Rating
- 7.2.3. By Portability
- 7.2.4. By Application
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Genset Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Fuel Type
    - 7.3.1.2.2. By Power Rating
    - 7.3.1.2.3. By Portability
    - 7.3.1.2.4. By Application
- 7.3.2. France Genset Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Fuel Type
    - 7.3.2.2.2. By Power Rating
    - 7.3.2.2.3. By Portability
    - 7.3.2.2.4. By Application
- 7.3.3. United Kingdom Genset Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Fuel Type
    - 7.3.3.2.2. By Power Rating
    - 7.3.3.2.3. By Portability
    - 7.3.3.2.4. By Application
- 7.3.4. Italy Genset Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Fuel Type
    - 7.3.4.2.2. By Power Rating
    - 7.3.4.2.3. By Portability
    - 7.3.4.2.4. By Application
- 7.3.5. Spain Genset Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Fuel Type
    - 7.3.5.2.2. By Power Rating
    - 7.3.5.2.3. By Portability
    - 7.3.5.2.4. By Application

8. Asia Pacific Genset Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Fuel Type
- 8.2.2. By Power Rating
- 8.2.3. By Portability
- 8.2.4. By Application
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Genset Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Fuel Type
    - 8.3.1.2.2. By Power Rating
    - 8.3.1.2.3. By Portability
    - 8.3.1.2.4. By Application
- 8.3.2. India Genset Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Fuel Type
    - 8.3.2.2.2. By Power Rating
    - 8.3.2.2.3. By Portability
    - 8.3.2.2.4. By Application
- 8.3.3. Japan Genset Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Fuel Type
    - 8.3.3.2.2. By Power Rating
    - 8.3.3.2.3. By Portability
    - 8.3.3.2.4. By Application
- 8.3.4. South Korea Genset Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Fuel Type
    - 8.3.4.2.2. By Power Rating
    - 8.3.4.2.3. By Portability
    - 8.3.4.2.4. By Application
- 8.3.5. Australia Genset Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Fuel Type
    - 8.3.5.2.2. By Power Rating
    - 8.3.5.2.3. By Portability
    - 8.3.5.2.4. By Application

9. Middle East & Africa Genset Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Fuel Type
- 9.2.2. By Power Rating
- 9.2.3. By Portability
- 9.2.4. By Application
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Genset Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Fuel Type
    - 9.3.1.2.2. By Power Rating
    - 9.3.1.2.3. By Portability
    - 9.3.1.2.4. By Application
- 9.3.2. UAE Genset Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Fuel Type
    - 9.3.2.2.2. By Power Rating
    - 9.3.2.2.3. By Portability
    - 9.3.2.2.4. By Application
- 9.3.3. South Africa Genset Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Fuel Type
    - 9.3.3.2.2. By Power Rating
    - 9.3.3.2.3. By Portability
    - 9.3.3.2.4. By Application

10. South America Genset Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Fuel Type
- 10.2.2. By Power Rating
- 10.2.3. By Portability
- 10.2.4. By Application
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Genset Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Fuel Type
    - 10.3.1.2.2. By Power Rating
    - 10.3.1.2.3. By Portability
    - 10.3.1.2.4. By Application
- 10.3.2. Colombia Genset Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Fuel Type
    - 10.3.2.2.2. By Power Rating
    - 10.3.2.2.3. By Portability
    - 10.3.2.2.4. By Application
- 10.3.3. Argentina Genset Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Fuel Type
    - 10.3.3.2.2. By Power Rating
    - 10.3.3.2.3. By Portability
    - 10.3.3.2.4. By Application

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Genset Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Caterpillar Inc.
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Cummins Inc.
15.3. Kohler Co.
15.4. Generac Power Systems, Inc
15.5. Rolls-Royce plc
15.6. Wartsila Corporation
15.7. Aggreko Ltd
15.8. Kirloskar Oil Engines Limited
15.9. Honda Motor Co., Ltd
15.10. Atlas Copco AB