Gas Generator Market Size was valued at USD 6.15 billion in 2023. The Gas Generator market industry is projected to grow from USD 6.41 Billion in 2024 to USD 8.62 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.76% during the forecast period (2024 - 2032). Immensely contributing towards the growing demand and Rapid industrial development are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The amendment in several energy policies to support the clean energy movement to reduce carbon emissions might boost the growth of the market CAGR. A report published by the Intergovernmental Panel on Climate Change in 2022 estimates that warming is likely to reach 1.5°C between 2030 to 2052. Human activities and industries caused a severe threat to the quality of the environment, which resulted in frequent natural calamities. The government and private entities joined hands to mitigate the impacts of warming by introducing advanced and clean energy technologies. This will undoubtedly propel the growth of the natural gas generator industry.
Moreover, Energy is the backbone of the economic development of the world. However, the exponential use of fossil fuels has raised severe environmental threats, such as deforestation, rising sea levels, warming, etc. The international regulatory and government organization took the initiative to lower the severity of pollution by introducing sustainable energy development programs.
Additionally, the multifold growth in varied industrial sectors, coupled with the population explosion, is set to increase the demand for reliable and continuous power supply. Information and communication technology is crucial in shaping the industry size, as every single data center requires a generator to avoid power outages. Also, in many commercial & industrial, and industrial applications, gas-fired generators are widely used to meet the increased demand for electricity. Subsequently, the natural gas generator industry is expected to see robust Gas Generator market revenue in the forecasted period.
Based on power capacity, the Gas Generator market segmentation includes > 300 KW, 301 KW-1 MW, and < 1 MW. The < 1 MW segment dominated the market; the small-scale industries use the generator with < 1 MW capacity because of the short time in operation and less load. Hence, these categories' demands are propelling due to the emerging industries of the countries like India and China. These regions are growing power outage rates and growing gas generator demand. Also, this Region is considered the center of small cost-driven businesses, driving the growth of the Gas Generator Market.
Figure 1: Gas Generator Market, by Power Capacity, 2024 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on end-user, the Gas generator market segmentation includes residential, commercial & industrial and utilities. The commercial & industrial segment was estimated as the largest natural gas generator market globally. The commercial & industrial segment is projected to expand at the highest CAGR of 12.0% during the forecast period, owing to the growing demand for cleaner and greener fuel-fired gensets for commercial & industrial applications. Developing economies in the Asia Pacific have witnessed strong growth in their commercial & industrial sectors. IT, telecom, and retail are major sectors that are growing rapidly in developing countries in the Asia Pacific, resulting in high demand for natural gas gensets as they are crucial for backup power in these facilities. Hospitals and medical institutes are the main contributors to the commercial & industrial segment of the natural gas generator market. Medical facilities and the communities they support depend heavily on emergency generator sets for critical power. The growing demand for gensets from healthcare facilities is expected to drive the demand for natural gas gensets for commercial & industrial applications during the forecast period.
October 2021:Â Sales of certain types of generators (portable gas-powered generators) will no longer be permitted in 2028. The new law affects portable gas-powered generators that run under 25 horsepower. These generators may be used to power a fridge or other mid-sized appliances.
August 2020:Â Caterpillar Inc. announced its gas-fueled generator set with the United States Environment Protection Agency (EPA) Stationary Emergency Certification rated at 500 kW for 60 Hz markets. Caterpillar Inc. manufactures and designs various generators and engines, including diesel and gas generators.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Gas Generator Market area will dominate this market due to a surge in economic activities in gulf countries, and more electronic devices are integrated into lives; people are likely to increase the installation of natural gas generators to provide uninterrupted power supply. Moreover, China’s Gas Generator market held the largest market share, and the Indian Gas Generator market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Gas Generator Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Gas Generator market accounts for the second-largest market share due to immensely contributing to the growing demand and Rapid industrial development. Further, the German Gas Generator market held the largest market share, and the UK Gas Generator market was the fastest-growing market in the European Region.
North America is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increased demand for cleaner, less expensive gas generators as a power source compared to other non-renewable fuels is predicted to drive market expansion in the Region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Gas Generator market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Industrial gas generator industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Gas Generator industry to benefit clients and increase the market sector. The Gas Generator industry has offered some of the most significant environmental advantages in recent years. Major players in the Gas Generator market, including APR Energy (USA), Siemens Ltd. (Germany), General Electric Company (USA), Aggreko plc (U.K), Toshiba Corporation (Japan), Hyundai Heavy Industries Co., Ltd. (South Korea), Mitsubishi Electric Corporation (Japan), Hyosung Corporation (South Korea), Bharat Heavy Electricals Limited (India) and Perkins Engines Company Limited (U.K), are attempting to increase market demand by investing in research and development operations.
Caterpillar Inc. is an American construction equipment manufacturer. The company is the world's largest manufacturer of construction equipment. In 2018, Caterpillar was ranked number 65 on the Fortune 500 list and 238 on the Fortune 500 list. Caterpillar Inc. announced its gas-fueled generator set with the United States Environment Protection Agency (EPA) Stationary Emergency Certification rated at 500 kW for 60 Hz markets. Caterpillar Inc. manufactures and designs various generators and engines, including diesel and gas generators.
Rolls-Royce was a British luxury car and later an aero-engine manufacturing business established in 1904 in Manchester by the partnership of Charles Rolls and Henry Royce. Rolls-Royce and its distribution partner Knopf & Wallisch (K&W) delivered three MTU customized and containerized combined cooling, heat, and power plant (CCHP) trigeneration units to ClusterPower, a Romanian cloud service provider.
Cummins Inc. announced in February 2023 that it was expanding its range of natural gas standby generators offered to the North American market by adding 175kW and 200kW units. These generator sets are novel, with both being borne out of Cummins’ continuous investment in new and sustainable technologies under Destination Zero plan – which aims towards zero emissions across Cummins products. The newly developed 175kW and 200kW natural gas generator sets promise customers exceptional performance as well as consistence reliability for their power needs, given that they come with power density industry benchmarks or leading the business.
Caterpillar has revealed a $5 million funding deal with Lithos Energy Inc., a company focused on creating and manufacturing battery packs, in January 2023.
Generac Industrial Power Expanded Its Offering of Innovative Transfer Switches in January 2023.
In January 2023, GE entered into an agreement with the Polish Export Credit Agency (Polish ECA).
For example: Vantage had decided to open a new Montreal campus and expand existing data centre facilities in Montréal and Quebec City until August 2022. This will be accompanied by an additional USD713m increase in capital expenditures aimed at scaling operations within Canada. In addition to building another Montreal campus, two campuses located in Montreal & Quebec City will also be expanded so that Quebec is home to four Vantage campuses capable of supporting up to when fully built-out, totaling 143MW capacity.
Sterling Generators has partnered with Moteurs Baudouin, a French Diesel and Gas engine manufacturer, for power generation purposes in July 2022. The idea is based on the fact that Baudouin’s gasoline engines have been traditionally good at making clean, efficient diesel engines, while Sterling Generators builds fuel-efficient auxiliary power solutions.
January 2022 saw Caterpillar unveil its Cat G3516 Fast Response genset, which offers market's fastest load acceptance, transient response and EPA-certified mission-critical applications.
| Attribute/Metric | Details |
| Market Size 2023 | USD 6.15 billion |
| Market Size 2024 | USD 6.41 billion |
| Market Size 2032 | USD 8.62 billion |
| Compound Annual Growth Rate (CAGR) | 3.76% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Power Capacity, End-User, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â APR Energy (USA), Siemens Ltd. (Germany), General Electric Company (USA), Aggreko plc (U.K), Toshiba Corporation (Japan), Hyundai Heavy Industries Co., Ltd. (South Korea), Mitsubishi Electric Corporation (Japan), Hyosung Corporation (South Korea), Bharat Heavy Electricals Limited (India) and Perkins Engines Company Limited (U.K) |
| Key Market Opportunities | Immensely contributing towards the growing demand |
| Key Market Dynamics | Rapid industrial development R&D and utilization of modern gas generators in China and India |
Gas Generator Market Highlights:
Frequently Asked Questions (FAQ) :
The Gas Generator market size was valued at USD 6.15 Billion in 2023.
The market is projected to grow at a CAGR of 3.76% during the forecast period, 2024-2032.
Asia Pacific had the largest share of the market
The key players in the market are APR Energy (USA), Siemens Ltd. (Germany), General Electric Company (USA), Aggreko plc (U.K), Toshiba Corporation (Japan), Hyundai Heavy Industries Co., Ltd. (South Korea), Mitsubishi Electric Corporation (Japan), Hyosung Corporation (South Korea), Bharat Heavy Electricals Limited (India).
The < 1 MW Gas Generator category dominated the market in 2022.
The commercial & industrial had the largest share of the market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
