Genset Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The global genset market size reached around USD 25.37 Billion in 2024. The market is projected to grow at a CAGR of 5.60% between 2025 and 2034 to reach nearly USD 43.75 Billion by 2034.

Global Genset Market Growth

The total data centre storage capacity is expected to increase from 10.1 zettabytes in 2023 to 21.0 ZB in 2027, recording a 5-year CAGR of 18.5%. The United States of America has emerged as one of the primary markets for data centre colocation, with regions such as Northern California (693 MW), Phoenix (698 MW), Dallas (737 MW), and Northern Virginia (3640) boasting substantial capacity. Many European cities, such as Dublin (227 MW), London (912 MW), and Frankfurt (660 MW) are also major data centre colocation markets. This is expected to increase the demand for reliable and uninterrupted power supply solutions, thereby fuelling the genset market expansion.

Over the forecast period, leading manufacturers are expected to launch HVO-powered gensets due to their relatively higher environmental credibility. While an average diesel genset releases 2.7kg of carbon emissions upon burning 1 litre of fuel, HVO-powered gensets can cut emissions by around 85% and nitrogen oxide emissions by around 30%. As per the genset market analysis, hydrogen-powered gensets are also expected to play a critical role in the energy transition, which is expected to drive the market growth in the upcoming years.

Key Trends and Developments

Challenges posed by power blackouts; technological advancements; rapid industrialisation and urbanisation; and increasing infrastructure development are the major factors favouring the genset market growth

April 2024

Discovery Energy Holdings acquired the energy division of Kohler Co., which is expected to bolster its range of product offerings, including home energy solutions, industrial energy systems, and powertrain technologies.

September 2023

Sudhir Power Ltd. and Cummins India Limited launched a new range of CPCBIV+ compliant gensets, fully equipped with advanced after-treatment systems and next-generation monitoring devices to facilitate emission reduction and enhance fuel efficiency.

May 2023

Mitsubishi Heavy Industries and Mitsubishi Electric established a joint venture by merging their power generator businesses. This is creating a favourable genset market outlook.

June 2021

Aggreko developed the first 50 kVA hydrogen-powered genset to accelerate the transition towards renewable energy sources.

Challenges posed by power blackouts

The United States has recorded over 900 incidences of power outages pertaining to climate change since 2010. This is creating an urgent requirement for a stable power supply among consumers, which is driving genset adoption by consumers.

Technological advancements

The introduction of hybrid gensets, which provide a quieter, more efficient, and relatively more environmentally friendly operational environment, is expected to contribute to the genset market development over the forecast period.

Rapid industrialisation and urbanisation

Nearly 68% of the global population is projected to reside in urban areas by 2050. This trend is expected to be most prominent in Africa and Asia, which is expected to lead to genset market expansion.

Increasing infrastructure development activities

In 2023, the US government spent USD 44.8 billion on infrastructure development and transferred an additional amount of USD 81.5 billion for the same to the states. Gensets are essential to power heavy machinery and equipment required for infrastructural development.

Global Genset Market Trends

The demand for gensets in North America is expected to rise substantially, driven by the rising incidence of climate-related power outages, which rose by 2x from 2010 levels. As per the Energy Information Administration, an average customer of the US electricity grid lost power for around 8 hours in 2021, which is 2x longer than a decade ago. This is expected to fuel the genset market development in the region, as consumers switch towards portable and powerful solutions for securing their long-term future.

Global Genset Industry Segmentation

The EMR’s report titled “Global Genset Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Portability

• Stationary
• Portable

Breakup by Fuel

• Diesel
• Gas
• Others

Breakup by Power Rating

• Up to 100KVA
• 100-350KVA
• 350-1000KVA
• Above 1000 KVA

Breakup by End User

• Industrial
• Commercial
• Residential

Breakup by Region

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

Global Genset Market Share

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2024-32, the market for genset in the Asia Pacific is estimated to grow at a CAGR of 6.3% due to the increasing popularity of hydrogen powered gensets and their increasing adoption in residential, commercial, and industrial spaces. As per the genset market analysis, portable gensets are expected to drive the market growth, as people switch towards easy-to-handle power generation solutions.

Leading Companies in the Global Genset Market

Major players are expected to begin manufacturing hydrogen-powered gensets on a large scale, which can boost the genset market value in the upcoming years.

Cummins Inc.

Cummins Inc. was founded in February 1919 and is headquartered in Indiana, United States. It specialises in manufacturing power generation systems, engines, and other electrical power solutions.

Aggreko Ltd.

Aggreko Ltd. was founded in 1962 and is headquartered in Dumbarton, Scotland. It specialises in producing diesel generators, transformers, chillers, industrial heaters, and other similar equipment.

Discovery Energy, LLC

Discovery Energy, LLC is headquartered in Utah, United States. It is engaged in providing business strategies for minimising electricity bills to companies.

Generac Power Systems, Inc.

Generac Power Systems, Inc. was founded in 1959 and is headquartered in Wisconsin, United States. It manufactures pressure washers, generators, and energy storage solutions, among other devices and equipment.

Other players included in the genset market report are Caterpillar Inc., Deere & Company, Siemens AG, Kirloskar Electric Company Limited, Mitsubishi Heavy Industries, Ltd., and Wärtsilä, among others.