Diesel Generator Market 2030: The Impact of Regulatory Changes

Diesel Generator Market Summary

The global diesel generator market was valued at USD 17.74 billion in 2024 and is projected to reach USD 30.75 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.7% from 2025 to 2030. The primary driver behind this growth is the widening gap between global energy demand and supply. This demand is being fueled by population growth, ongoing infrastructure development, and rapid industrialization in emerging economies.

Diesel generators are widely adopted due to their advantages, including low operating costs and high fuel efficiency. These attributes make them especially popular in developing regions, particularly in the Asia Pacific, where access to consistent grid power may be limited.

However, despite their utility, diesel generators come with certain drawbacks such as noise pollution and the emission of harmful gases. These concerns are amplified as the world moves toward cleaner energy alternatives. According to the World Nuclear Association, global electricity demand is expected to double from current levels. Simultaneously, the U.S. Department of Energy predicts that solar energy will eventually become the most abundant energy source globally.

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Key Market Trends & Insights

• Asia Pacific led the global diesel generator market in 2024, with a 30.00% revenue share.
• China dominated the Asia Pacific market and is expected to retain this leading position through the forecast period.
• By power rating, the medium power gensets segment is anticipated to expand at a CAGR of 12.8% during the forecast timeline.
• By application, the commercial sector accounted for the largest share, representing over 45% of total revenue in 2024.

Market Size & Forecast

• 2024 Market Size: USD 17.74 Billion
• 2030 Projected Market Size: USD 30.75 Billion
• CAGR (2025–2030): 9.7%
• Largest Market (2024): Asia Pacific

Key Diesel Generator Company Insights

To maintain and grow their market share, companies are engaging in organic and inorganic strategies, including product launches, capacity expansions, joint ventures, and mergers & acquisitions. Notable developments include:

• In October 2024, Baudouin (France) launched a new series of diesel generator sets for data centers, offering outputs between 2000 kVA and 5250 kVA, powered by the M33 and M55 series.
• In April 2025, Lakshya Powertech secured an order worth ₹11.17 crore from Powerica to supply and install 8 x 2250 KVA DG sets within 6–8 months.
• In May 2023, Cummins Inc. introduced a diesel generator powered by its B45 engine (4.5-liter, four-cylinder), targeting industries such as construction, rental, and prime power.
• In August 2022, Caterpillar launched three new standby diesel generator sets (20–30 kW) for the North American market, powered by the Cat C2.2 engine. These meet U.S. EPA emergency emission standards and industry certifications, offering compact size and dependable performance.

Leading Companies in the Diesel Generator Market

The following companies dominate the global diesel generator market, shaping key trends and technological advancements:

• AKSA Power Generation Company
• Atlas Copco AB
• Caterpillar
• Cummins Inc.
• Doosan Portable Power
• Generac Power System Inc.
• Honda India Power Products Ltd.
• Kohler Co.
• Rolls-Royce plc
• Wärtsilä Corporation

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Conclusion

The global diesel generator market is set for robust growth through 2030, driven by surging energy demands in developing regions, industrial expansion, and infrastructure projects. Diesel generators remain a reliable and cost-effective power solution, particularly where grid access is limited or unstable. While challenges such as emissions and noise pollution persist, ongoing product innovation and new applications—especially in commercial and data center environments—are reinforcing their relevance. Meanwhile, growing interest in renewable alternatives and evolving environmental standards may shape the long-term trajectory of the market, encouraging manufacturers to adapt through cleaner technologies and hybrid solutions.