North America Generator Sets Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The North America Generator Sets Market size is estimated at USD 9.09 billion in 2025, and is expected to reach USD 11.14 billion by 2030, at a CAGR of 4.16% during the forecast period (2025-2030).

Key Highlights

• Over the medium term, the ever-increasing demand for power, lack of reliable grid infrastructure, and the need for emergency backup power solutions are expected to drive the growth of the market studied.
• On the other hand, increasing the installation of distributed renewable energy sources is expected to hamper the growth of the North American generator sets market during the forecast period.
• Nevertheless, technological advancements in generator sets are likely to create lucrative growth opportunities for the North American generator sets market in the forecast period.
• The United States dominates the market and is also likely to during the forecast period. This growth is attributed to the increasing investments in industrial and commercial sectors.

North America Generator Sets Market Trends

Commercial Segment o be the Fastest Growing Segment

• For small to medium-sized enterprises (SMEs), the commercial generator market is crucial for maintaining business continuity. Power outages can disrupt critical sectors like retail, hospitality, healthcare, and offices, where a steady power supply is vital to prevent operational losses.
• In healthcare facilities, generators serve as essential backup power sources. They keep critical systems and life-saving equipment running during outages or emergencies, ensuring patient safety and uninterrupted care. These generators support vital equipment, such as ventilators, oxygen pumps, and monitors, crucial for patients in critical condition.
• North America's healthcare facilities are expanding, fueled by a rising demand for modernized infrastructure. For example, in Canada, the Non-Democratic Party (NDP) announced that British Columbia will see over USD 6.4 billion in new hospital constructions starting in 2025, with some projects extending into 2026.
• This initiative is part of the NDP's broader commitment, which includes constructing and upgrading 30 hospitals, 11 long-term care centers, and four cancer centers across five health regions. Highlighted projects encompass Prince George’s University Hospital of Northern B.C. (USD 103 million), Richmond Hospital Redevelopment (USD 1.9 billion), and Vancouver's St. Vincent’s Heather LTC facility (USD 207 million). Such developments are poised to drive significant growth for generator sets in the coming years.
• Further, in 2023, health expenditures in Canada reached 12.1% of the nation's gross domestic product (GDP), as reported by the Canadian Institute for Health Information
• Moreover, the surge of data centers in North America is fueling the gensets market. As cloud computing, artificial intelligence (AI), and big data analytics gain prominence, tech giants and colocation providers are pouring investments into new data center facilities.
• The National Telecommunications and Information Administration reports that the U.S., home to over 5,000 data centers, expects a 9% annual demand increase until 2030. This growth, backed by both public and private sectors, sees state governments offering incentives like reduced property and sales tax rates. At the same time, private firms are harnessing advanced technologies to develop globally competitive data centers.
• As urbanization accelerates and businesses grow, the appetite for commercial generators rises. With the expansion of small businesses and the retail sector, SMEs are on the lookout for cost-effective, reliable power solutions to sidestep operational downtimes. Generators under 50 kW have gained traction in this segment, offering an economical yet robust solution for areas with frequent outages.

United States is Expected to Dominate the Market

• In North America, the U.S. stands out as a primary user of generators, employing them for everything from residential power backups to outdoor activities.
• Recently, the U.S. generator sets market has expanded, fueled by rising demands for reliable power solutions in residential, commercial, and industrial sectors. The nation grapples with severe weather events—storms, hurricanes, and cyclones—that are responsible for a staggering 80% of its power outages.
• States like Texas, Michigan, California, and North Carolina have endured the longest power outages. For instance, Hurricane Beryl's July 2024 onslaught left nearly 3 million homes and businesses in the dark, while a May 2024 thunderstorm knocked out power for about 600,000 Texans. Such incidents have intensified the nation's appetite for backup power solutions, especially generators.
• As domestic manufacturing expands, industries are increasingly turning to generator sets to maintain seamless operations. With new factories and production facilities sprouting up, these industries recognize the value of backup power in averting costly downtimes due to grid failures.
• Industries ranging from automotive and electronics to pharmaceuticals are not just adopting generators but are also using them to bolster energy resilience. As these sectors embrace advanced manufacturing and automation, their dependence on reliable power sources grows, leading to a notable uptick in the adoption of diesel, natural gas, and hybrid generator systems.
• According to the Association for Accessible Medicines, U.S. spending on medicines hit around USD 714 billion in 2023, marking a consistent annual rise since 2012.
• In February 2025, Eli Lilly and Company unveiled plans to enhance its domestic medicine production by establishing four new pharmaceutical manufacturing sites across the U.S. This move pushes Lilly's total U.S. capital expansion commitments beyond USD 50 billion since 2020. Three of the new sites will specialize in manufacturing active pharmaceutical ingredients (API), a step towards reshoring vital small molecule chemical synthesis capabilities and fortifying Lilly’s supply chain. The fourth site will bolster the company's global network for future injectable therapies.
• Given these developments, the demand for generators in the U.S. is poised for a significant uptick in the coming years.

North America Generator Sets Industry Overview

The North America generator sets market is fragment. Some of the key players in the market (not in any particular order) include Caterpillar Inc., Cummins Inc., Generac Holdings Inc., Atlas Copco AB, and Aksa Power Generators.

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