• Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor
    Hero Background

    Diesel Generator Set Market

    ID: MRFR/E&P/23669-HCR
    128 Pages
    Priya Nagrale
    October 2025

    Diesel Generator Set Market Research Report By Fuel Type (Diesel, Gasoline, Natural Gas, Biodiesel), By Power Capacity (Up to 75 kVA, 75 to 250 kVA, 250 to 500 kVA, 500 kVA and above), By Application (Residential, Commercial, Industrial, Military), By Cooling System (Air-cooled, Liquid-cooled), By Emissions Compliance (Tier 1, Tier 2, Tier 3, Tier 4) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    Diesel Generator Set Market Infographic
    Purchase Options

    Diesel Generator Set Market Summary

    The global diesel generator set market is projected to grow from 20.43 USD billion in 2024 to 30.21 USD billion by 2035, reflecting a steady demand for reliable power solutions.

    Key Market Trends & Highlights

    Diesel Generator Set Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate of 3.62 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 30.2 USD billion, indicating robust growth opportunities.
    • in 2024, the market is valued at 20.43 USD billion, showcasing a solid foundation for future expansion.
    • Growing adoption of diesel generator sets due to increasing demand for uninterrupted power supply is a major market driver.

    Market Size & Forecast

    2024 Market Size 20.43 (USD Billion)
    2035 Market Size 30.21 (USD Billion)
    CAGR (2025-2035) 3.62%

    Major Players

    Cummins, Caterpillar, Kohler, Rolls Royce Power Systems, Atlas Copco, Generac Holdco, Himoinsa, FG Wilson, Powerica International, SDMO Industries, Wacker Neuson, Ingersoll Rand, JCB Power Products, Hyundai Heavy Industries

    Diesel Generator Set Market Trends

    The increasing need for uninterrupted power supply in rural and impoverished regions, more frequent and prolonged power cut-offs, and surging investments in telecommunication and data centers are some of the major drivers of diesel generator sets. New diesel generator set market opportunities for expansion and acquisition are present in the creation of green generator sets with lower emissions and improved fuel efficiency, and in the integration of advanced remote diagnostic and management technologies. 

    The trends that have characterized the diesel generator set industry over the recent past include containerized and portable generator set enclosures, incorporation of wind and solar energy and an increasing market for application-specific generator sets. New control technologies and predictive maintenance approaches are also coming on stream and will contribute to growth in the market in the near future.

    The Global Diesel Generator Set Market is poised for growth as industries increasingly seek reliable power solutions to meet their operational demands, particularly in regions with unstable electricity supply.

    U.S. Energy Information Administration

    Diesel Generator Set Market Drivers

    Market Growth Projections

    The Global Diesel Generator Set Market Industry is projected to experience steady growth, with a compound annual growth rate (CAGR) of 3.62% anticipated from 2025 to 2035. This growth trajectory suggests a sustained demand for diesel generators, driven by various factors including infrastructure development, energy needs in emerging markets, and technological advancements. The market's expansion is indicative of the essential role diesel generators play in providing reliable power solutions across diverse sectors. As the industry adapts to changing market dynamics, stakeholders are likely to benefit from increased opportunities and innovations.

    Infrastructure Development Initiatives

    Infrastructure development initiatives globally contribute significantly to the expansion of the Global Diesel Generator Set Market Industry. Governments and private sectors are investing heavily in infrastructure projects, including roads, bridges, and airports. These projects often require substantial power supply solutions, particularly in remote areas where grid connectivity is limited. Diesel generators provide a practical solution for construction sites and temporary facilities. As infrastructure spending increases, the demand for diesel generators is expected to rise correspondingly, further solidifying their role in supporting economic growth and development.

    Growing Demand for Reliable Power Supply

    The Global Diesel Generator Set Market Industry experiences a robust demand for reliable power supply across various sectors, including healthcare, telecommunications, and manufacturing. As industries increasingly rely on uninterrupted power for operations, diesel generators serve as a dependable backup solution. In 2024, the market is projected to reach 20.4 USD Billion, reflecting the critical role of diesel generators in maintaining operational continuity. This trend is likely to continue as businesses prioritize energy security, particularly in regions prone to power outages. The increasing reliance on diesel generators underscores their importance in ensuring productivity and operational efficiency.

    Rising Energy Needs in Emerging Economies

    Emerging economies are witnessing a surge in energy needs, which significantly influences the Global Diesel Generator Set Market Industry. Rapid urbanization and industrialization in countries such as India and Brazil create an increasing demand for reliable power sources. Diesel generators are often preferred due to their ability to provide immediate power solutions in areas lacking stable electricity infrastructure. As these economies continue to grow, the market is expected to expand, with projections indicating a market size of 30.2 USD Billion by 2035. This growth reflects the essential role of diesel generators in supporting economic development and energy access.

    Regulatory Compliance and Emission Standards

    The Global Diesel Generator Set Market Industry is also shaped by regulatory compliance and stringent emission standards. Governments worldwide are implementing regulations to reduce emissions from diesel generators, prompting manufacturers to innovate and adapt their products. Compliance with these standards not only enhances the marketability of diesel generators but also encourages the development of cleaner technologies. As regulations evolve, the industry may witness a shift towards more sustainable practices, potentially influencing purchasing decisions among consumers and businesses alike.

    Technological Advancements in Diesel Generators

    Technological advancements in diesel generators enhance their efficiency and reduce emissions, positively impacting the Global Diesel Generator Set Market Industry. Innovations such as electronic fuel injection and advanced control systems improve fuel efficiency and performance. These developments not only meet regulatory standards but also appeal to environmentally conscious consumers. As the market evolves, manufacturers are likely to invest in research and development to create more efficient and eco-friendly diesel generators. This focus on innovation may drive market growth, as businesses seek to balance operational needs with sustainability goals.

    Market Segment Insights

    Diesel Generator Set Market Fuel Type Insights

    Diesel Generator Set Market – Fuel Type The Global Diesel Generator Set Market is segmented based on fuel type into – Diesel, Gasoline, Natural Gas, and Biodiesel. The Diesel fuel type segment held the largest market share in 2023 and is expected to dominate the market throughout the forecast period. This led to the widespread use of diesel generators across a broad array of industries, such as construction, manufacturing, and healthcare, among others.

    The popularity of diesel generators is attributed to their reliability, fuel efficiency, and cost-effectiveness.These generators offer longer run times compared to gasoline and other fuel types, making them an ideal power source for extended and remote operations. The Gasoline segment is expected to grow at a substantial rate during the forecast period. The demand for gasoline generators is rising among end-users, primarily for recreational and emergency backup purposes.

    These technologies are generally lightweight and can be easily transported to different outdoor events such as camping and provide a temporary power supply. The demand for gasoline-powered generators in emerging markets like India and China, with limited and unreliable grid infrastructure and frequent power outages, will provide market opportunities.The Natural Gas segment is expected to grow at a stable rate over the forecast period. Natural generators are expected to increase in demand owing to their eco-friendly and relatively cost-efficient nature.

    This fuel type is ideally suited for regions with abundant natural gas supplies as they provides an environment-friendly alternative to diesel generators.

    They produce largely less emission and are affordable compared to other generator sets, thereby offering enterprises considerable operating cost savings. The Biodiesel segment is expected to grow at a moderate rate over the forecast period.The growth is attributed to the green’ nature of the product and its potential to lower the carbon footprint of generators using this fuel type. Factors such as higher associated production costs and low market penetration due to the limited availability of bio-fuel will limit segment growth.

    Diesel Generator Set Market Power Capacity Insights

    The Global Diesel Generator Set Market is characterized based on the power capacity of up to 75 kVA, 75 to 250 kVA, 250 to 500 kVA, and 500 kVA and above. The up to 75 kVA segment is expected to dominate the market in 2023, reaching roughly USD 6.3 billion due to the increasing demand for small generator sizes in activities related to residential and commercial tasks.

    The 75 to 250 kVA segment is likely to witness a surge in CAGR over the forecast period since generator usage in industrial and construction activities, among others, is on the rise.The 250 to 500 kVA segment is showcased to exhibit healthy growth as demands for generators to cater to the need for critical backup power increase. The 500 kVA and above segment is deemed to constitute a minute share of the market but has the potential to experience steady growth over the forecast period.

    Diesel Generator Set Market Application Insights

    The Global Diesel Generator Set Market is segmented by Application into Residential, Commercial, Industrial, and Military. Among these, the Industrial segment held the largest market share in 2023, accounting for over 40% of the Global Diesel Generator Set Market revenue. The Industrial segment is expected to continue to dominate the market over the forecast period, driven by the increasing demand for reliable and backup power sources in industries such as manufacturing, mining, and construction.

    The Commercial segment is expected to witness significant growth over the forecast period, owing to the rising demand for diesel generator sets in commercial establishments such as hospitals, hotels, and offices.The Residential segment is also expected to grow steadily, driven by the increasing use of diesel generator sets as backup power sources in homes. The Military segment is expected to account for a smaller share of the market but is expected to witness moderate growth over the forecast period.

    Diesel Generator Set Market Cooling System Insights

    The cooling system segment plays a pivotal role in the Global Diesel Generator Set Market, influencing market growth and segmentation. Air-cooled and liquid-cooled systems are the two primary types of cooling systems employed in diesel generator sets, each catering to specific applications and market demands. Air-cooled systems utilize fans or blowers to circulate air around the engine and dissipate heat. This design offers simplicity, cost-effectiveness, and ease of maintenance. However, air-cooled systems may be less efficient in high-temperature environments or under heavy loads.

    Liquid-cooled systems, on the other hand, employ a liquid coolant, typically water or a water-glycol mixture, to absorb and transfer heat away from the engine. Liquid-cooled systems provide superior cooling performance, allowing for higher power output and continuous operation even in challenging environments. They are often preferred in larger generator sets and applications requiring extended run times.

    The market data indicates that in 2023, the liquid-cooled segment held a larger share of the Global Diesel Generator Set Market revenue, driven by increasing demand for reliable and efficient power generation systems in industrial, commercial, and critical infrastructure sectors.However, the air-cooled segment is projected to witness steady growth in the coming years, particularly in regions with hot and arid climates.

    Diesel Generator Set Market Emissions Compliance Insights

    The Emissions Compliance segment of the Global Diesel Generator Set Market is anticipated to register significant growth owing to stringent emission regulations imposed by various governments worldwide. Tier 1, Tier 2, Tier 3, and Tier 4 are the four main emission tiers that regulate the emission levels of diesel generator sets. Tier 4 emission standards, which are the most stringent, are expected to drive the demand for diesel generator sets that comply with these regulations.

    The Global Diesel Generator Set Market revenue for Tier 4 compliant diesel generator sets is projected to reach USD 2.55 billion by 2024, exhibiting a notable growth rate.Tier 3 compliant diesel generator sets are also witnessing increasing adoption due to their lower emission levels compared to Tier 1 and Tier 2 counterparts. The market growth for Tier 1 and Tier 2 diesel generator sets is expected to remain steady, catering to applications where emission regulations are less stringent or where cost-effectiveness is a primary concern.

    Get more detailed insights about Diesel Generator Set Market

    Regional Insights

    The regional segmentation of the Global Diesel Generator Set Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is projected to dominate the market in terms of revenue, accounting for a significant share due to the presence of major industrial and commercial sectors.

    Europe is expected to follow closely, driven by increasing demand for backup power solutions in critical infrastructure. APAC is anticipated to witness substantial growth, fueled by rapid urbanization and industrial development in emerging economies such as China and India.South America and MEA are expected to contribute steadily to the market, driven by the growing need for reliable power supply in remote areas.

    Diesel Generator Set Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the Diesel Generator Set Market are always implementing innovative strategies and are focused on improving their product portfolios to meet the changing demands of customers. These players are also investing heavily in research and development to develop advanced and efficient diesel generator sets. Leading Diesel Generator Set Market players are adopting various strategies, such as partnerships, collaborations, and acquisitions, to expand their market presence and strengthen their market position. The Diesel Generator Set Market industry is highly competitive, and the leading players are constantly striving to gain a competitive advantage.

    The Diesel Generator Set Market development is driven by factors such as increasing demand for reliable and efficient power backup solutions, rising infrastructure development, and growing industrialization. The competitive landscape of the Diesel Generator Set Market is expected to remain dynamic in the coming years, with new entrants and established players vying for market share.A leading company in the Global Diesel Generator Set Market is Cummins.

    Cummins is a global power leader that designs, manufactures, sells, and services diesel engines, generators, and related technologies. The company offers a wide range of diesel generator sets, from small portable units to large industrial generators. Cummins has a strong distribution network and provides excellent customer support. The company is focused on innovation and has invested heavily in research and development to develop advanced and efficient diesel generator sets. Cummins is a trusted brand in the Diesel Generator Set Market and has a strong reputation for quality and reliability.

    A competitor company in the Global Diesel Generator Set Market is Caterpillar. Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company offers a wide range of diesel generator sets, from small portable units to large industrial generators. Caterpillar has a strong global presence and provides excellent customer support. The company is focused on innovation and has invested heavily in research and development to develop advanced and efficient diesel generator sets.

    Caterpillar is a trusted brand in the Diesel Generator Set Market and has a strong reputation for quality and reliability.

    Key Companies in the Diesel Generator Set Market market include

    Industry Developments

    The global diesel generator set market is anticipated to reach USD 26.2 billion by 2032, exhibiting a CAGR of 3.62% from 2025 to 2034. Increasing demand for reliable and backup power sources in various industries and regions is driving market growth. The market is witnessing technological advancements, such as the integration of renewable energy sources and emission control systems, to meet environmental regulations and reduce operating costs. Key players are focusing on product innovation, strategic partnerships, and expanding their presence in emerging markets to gain a competitive edge.

    Recent news developments include the launch of new products with enhanced features and the acquisition of smaller players by larger companies to strengthen their market positions.

    Future Outlook

    Diesel Generator Set Market Future Outlook

    The Diesel Generator Set Market is projected to grow at a 3.62% CAGR from 2025 to 2035, driven by increasing energy demands and technological advancements.

    New opportunities lie in:

    • Invest in hybrid generator technologies to enhance fuel efficiency and reduce emissions.
    • Expand service networks in emerging markets to capture growing demand for reliable power solutions.
    • Leverage IoT integration for predictive maintenance services, improving operational efficiency and customer satisfaction.

    By 2035, the Diesel Generator Set Market is expected to demonstrate robust growth, reflecting evolving energy needs and innovative solutions.

    Market Segmentation

    Diesel Generator Set Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Diesel Generator Set Market Fuel Type Outlook

    • Up to 75 kVA
    • 75 to 250 kVA
    • 250 to 500 kVA
    • 500 kVA and above

    Diesel Generator Set Market Application Outlook

    • Air-cooled
    • Liquid-cooled

    Diesel Generator Set Market Cooling System Outlook

    • Tier 1
    • Tier 2
    • Tier 3
    • Tier 4

    Diesel Generator Set Market Power Capacity Outlook

    • Residential
    • Commercial
    • Industrial
    • Military

    Diesel Generator Set Market Emissions Compliance Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024   20.43 (USD Billion)
    Market Size 2025   21.17 (USD Billion)
    Market Size 2035 30.21 (USD Billion)
    Compound Annual Growth Rate (CAGR) 3.62% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Kohler, RollsRoyce Power Systems, Atlas Copconewera, Generac Holdco, Himoinsa, FG Wilson, Powerica International, SDMO Industries, Caterpillar, Wacker Neuson, Ingersoll Rand, JCB Power Products, Hyundai Heavy Industries, Cummins
    Segments Covered Fuel Type, Power Capacity, Application, Cooling System, Emissions Compliance, Regional
    Key Market Opportunities Growing demand for backup power solutions Increased need for reliable power in remote areas Government incentives for renewable energy Rising demand from emerging economies Technological advancements in diesel generator sets
    Key Market Dynamics Increasing infrastructure spending Growing demand for backup power Adoption of renewable energy sources Stringent emission regulations Advancements in technology
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the market size of the global diesel generator set market?

    The global diesel generator set market is expected to reach USD 29.16 billion by 2034, from USD 20.43 billion in 2024, exhibiting a CAGR of 3.62% during the forecast period.

    Which region is expected to dominate the diesel generator set market?

    Asia Pacific is expected to dominate the diesel generator set market throughout the forecast period, owing to the increasing demand for reliable power supply in developing countries such as China, India, and Indonesia.

    What are the major applications of diesel generator sets?

    Diesel generator sets find applications in various sectors, including construction, healthcare, manufacturing, telecommunications, and data centers, as they provide backup power during power outages.

    Who are the key competitors in the diesel generator set market?

    Major players in the diesel generator set market include Caterpillar, Cummins, Generac, Kohler, and Atlas Copco.

    What are the factors driving the growth of the diesel generator set market?

    The increasing demand for reliable power supply, the growing adoption of diesel generators in remote areas, and the stringent environmental regulations are driving the growth of the diesel generator set market.

    What are the challenges faced by the diesel generator set market?

    The challenges faced by the diesel generator set market include the high cost of diesel fuel, the environmental concerns associated with diesel emissions, and the increasing competition from renewable energy sources.

    What are the key trends in the diesel generator set market?

    Key trends in the diesel generator set market include the increasing demand for low-emission diesel generators, the adoption of advanced technologies such as remote monitoring and control, and the growing popularity of rental services.

    What is the expected growth rate of the diesel generator set market in North America?

    The diesel generator set market in North America is expected to grow at a CAGR of 2.8% during the forecast period, owing to the increasing demand for backup power in critical infrastructure applications.

    What is the expected growth rate of the diesel generator set market in Europe?

    The diesel generator set market in Europe is expected to grow at a CAGR of 3.2% during the forecast period, driven by the growing demand for reliable power supply in remote areas and stringent environmental regulations.

    What is the expected growth rate of the diesel generator set market in the Middle East and Africa?

    The diesel generator set market in the Middle East and Africa is expected to grow at a CAGR of 4.5% during the forecast period, owing to the increasing demand for power generation in developing countries and the growing adoption of diesel generators in remote areas.

    Download Free Sample

    Kindly complete the form below to receive a free sample of this Report

    Case Study
    Chemicals and Materials