Global Diesel Generator Set Market Overview:
As per MRFR analysis, the Diesel Generator Set Market Size was estimated at 18.36 (USD Billion) in 2022. The Diesel Generator Set Market Industry is expected to grow from 19.02 (USD Billion) in 2023 to 26.2 (USD Billion) by 2032. The Diesel Generator Set Market CAGR (growth rate) is expected to be around 3.62% during the forecast period (2024 - 2032).
Key Diesel Generator Set Market Trends Highlighted
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.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Diesel Generator Set Market Drivers
Economic growth in emerging markets
The growing economies of countries such as China, India, and Brazil are driving the demand for diesel generator sets. These countries are experiencing rapid industrialization and urbanization, which is leading to an increase in the need for reliable and affordable power. Diesel generator sets are often used as a backup power source in these countries, as they can provide power during blackouts or brownouts. Additionally, the growing construction industry in these countries is also contributing to the demand for diesel generator sets, as they are used to power construction equipment and machinery.
Increasing demand for reliable power
Another major driver of the diesel generator set market is the increasing demand for reliable power. Businesses and industries are becoming increasingly dependent on electricity for their operations and cannot afford to have it interrupted. Diesel generator sets provide a reliable source of backup power that can keep businesses and industries running even when the power goes out. Additionally, the increasing use of electronic devices and appliances is increasing the demand for reliable power.Power outages can damage these devices and appliances, so businesses, industries, and individuals are increasingly turning to diesel generator sets to protect their investments.
Government regulations
Another factor aiding to growth of the diesel generator set market is government regulations. In several countries, there is a rule by the government that businesses need to have a back power source. For most businesses or sectors, the diesel generator set is one of the cheapest options. Moreover, the government is also implementing rules on reducing the emission of the diesel generator. This is further leading to the growth of the more efficient and cleaner diesel generator set market.
Diesel Generator Set 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.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
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.
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.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Diesel Generator Set Market 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 Include:
- 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
Diesel Generator Set Market 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 2024 to 2032. 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.
Diesel Generator Set Market Segmentation Insights
- Diesel Generator Set Market Fuel Type Outlook
- Diesel
- Gasoline
- Natural Gas
- Biodiesel
- Diesel Generator Set Market Power Capacity Outlook
- Up to 75 kVA
- 75 to 250 kVA
- 250 to 500 kVA
- 500 kVA and above
- Diesel Generator Set Market Application Outlook
- Residential
- Commercial
- Industrial
- Military
- Diesel Generator Set Market Cooling System Outlook
- Air-cooled
- Liquid-cooled
- Diesel Generator Set Market Emissions Compliance Outlook
- Tier 1
- Tier 2
- Tier 3
- Tier 4
- Diesel Generator Set Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
18.36 (USD Billion) |
| Market Size 2023 |
19.02 (USD Billion) |
| Market Size 2032 |
26.2 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.62% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| 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 |
Frequently Asked Questions (FAQ) :
The global diesel generator set market is expected to reach USD 26.2 billion by 2032, from USD 19.02 billion in 2023, exhibiting a CAGR of 3.62% during the forecast period.
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.
Diesel generator sets find applications in various sectors, including construction, healthcare, manufacturing, telecommunications, and data centers, as they provide backup power during power outages.
Major players in the diesel generator set market include Caterpillar, Cummins, Generac, Kohler, and Atlas Copco.
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.
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.
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.
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.
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.
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.
