Generator Sets Market Focuses on Integration with Renewable Energy Sources

The global generator sets market is projected to reach USD 57.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.3% from 2025 to 2030, according to a recent report by Grand View Research, Inc. Increasing demand for reliable and uninterrupted power supply across various end-use sectors—including manufacturing, construction, power generation, oil and gas, marine, healthcare, telecom, and chemicals—is expected to drive market expansion over the forecast period.

Key growth drivers include infrastructure development, rapid industrialization, and steady population growth, all contributing to unprecedented power demand. Additionally, the growing use of electronic loads in mid-scale facilities like data centers has increased the reliance on generator sets to ensure a stable power supply during prolonged outages and to avoid business interruptions.

Natural gas-powered generator sets are anticipated to experience stronger growth compared to their diesel counterparts, primarily due to volatile diesel prices and tighter regulations favoring cleaner energy sources. These gensets also offer higher fuel efficiency, which can lower the cost of power generation and encourage wider adoption across industries.

Manufacturers of generator sets must comply with various codes and standards governing design, installation, and safety. For example, production facilities should be ISO 9001 or ISO 9002 certified, while design centers must also adhere to ISO 9001 standards. Prototype testing programs validate the performance reliability of genset designs. Certifications from leading regulatory bodies such as the International Building Code, Underwriters Laboratories, CSA Group, and the U.S. Environmental Protection Agency (EPA) enhance product credibility and market acceptance.

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Generator Sets Market Report Highlights

• Diesel generators held the largest revenue share in 2024, driven by their dependable performance, low initial investment, and long engine lifespan.
• Gas generators are expected to register the fastest CAGR, fueled by strict emissions regulations and a shift toward cleaner fuel alternatives.
• Low-power generator sets dominated the power rating segment in terms of revenue, owing to their widespread use in residential and commercial settings.
• Medium-power generator sets are projected to grow at a CAGR of 10.2% during the forecast period, due to their increasing adoption in sectors such as telecom, commercial buildings, small industries, and fuel stations.
• The commercial segment accounted for the highest revenue in the application category and is forecasted to grow significantly, supported by diverse use cases including government facilities, data centers, and educational institutions.
• The Asia Pacific region is expected to exhibit the highest CAGR, propelled by surging electricity demand in rapidly developing economies like China and India.

Key Companies in the Generator Sets Market

• Atlas Copco AB
• Caterpillar Inc.
• Cummins Inc.
• Generac Holdings Inc.
• General Electric
• Briggs and Stratton Corporation
• AKSA Power Generation
• Cooper Corporation
• Kohler Co.
• MTU Onsite Energy
• Mitsubishi Heavy Industries Ltd.
• Doosan Corporation
• Wartsila Corporation
• Honda Siel Power Products Ltd.

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