Genset Market Research Report - Global Forecast to 2032

Genset Market Research Report Information by Power Rating, (Up to 100KVA, 100-350KVA, 350-1000KVA, above 1000KVA) Fuel Type (Natural Gas, Diesel, Propane) Application (Standby Power, Peak Shaving, Prime/Continuous Power) End-Use (Industrial, Commercial, Residential) and By Region (North America, Europe, Asia-Pacific, And Rest Of The World) โ€“ Market Forecast Till 2032

ID: MRFR/E&P/1177-HCR | 111 Pages | Author: Anshula Mandaokar | December 2023         

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Global Genset Market Overview:


Genset Market Size was valued at USD 19.8 Billion in 2022. The Genset market industry is projected to grow from USD 20.84 Billion in 2023 to USD 31.51 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.30% during the forecast period (2023–2032). Growing power demand worldwide, increasing frequency and intensity of natural disasters, expansion of the construction and infrastructure sectors, adoption of standby and prime power solutions in industries, advancements in genset technology, including improved efficiency and reduced emissions, are the key market drivers enhancing the market growth.


Global Genset Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Genset Market Trends




  • Growing power demand worldwide is driving market growth




The genset market is expanding as a result of rising power demand on a scale. power consumption has significantly increased as a result of rising population, fast urbanisation, and industry. The need for a dependable power source is more urgent as nations strive to build and modernise their infrastructure. Due to their growing industrial sectors and rising living standards, emerging economies in particular are seeing a boom in power consumption. A strong and reliable power supply is necessary to support the expansion of manufacturing businesses, commercial buildings, and residential complexes. However, many regions' current power networks would find it difficult to keep up with these rising demands, resulting in frequent power outages or insufficient power supply. By offering backup or extra power capacity to support the grid during periods of high demand or in locations with restricted access to electricity, gensets present a workable alternative. The dependence on digital technologies and information systems has also increased the demand for a reliable power sources. Continuous power supply is necessary for data centres, communication networks, and IT infrastructure in order to maintain operations and avoid data loss. Gensets act as essential backup power sources, protecting these vital infrastructures from interruptions and reducing the possibility of financial losses brought on by downtime. The home sector, in addition to the industrial and commercial sectors, contributes to the rising need for power. The burden on the electricity infrastructure increases as households depend more on electrical appliances, air conditioners, and other energy-intensive gadgets. When the grid fails, gensets can supply backup power, keeping vital household operations like lights, refrigeration, and heating operational.


Power demand is also anticipated to increase as a result of the electrification of transportation, particularly the switch to electric vehicles (EVs). In order to sustain widespread EV use, a charging infrastructure will be needed, which will put additional strain on the power grid. In off-grid or isolated locations, gensets can complement the charging infrastructure by offering backup charging choices. Governments and businesses are putting more money into gensets as part of their energy policies to fulfill the rising demand for power. With the flexibility, dependability, and scalability that gensets provide, businesses can guarantee ongoing operations and reduce the risks related to power outages. Gensets are becoming more environmentally friendly as a result of technology improvements that enhance fuel economy and lower emissions, in line with the international focus on sustainable energy solutions. Thus, driving the Genset market revenue.


Genset Market Segment Insights:


Genset Power Rating Insights


The Genset market segmentation, based on power rating includes Up to 100KVA, 100-350KVA, 350-1000KVA, above 1000KVA. The 100-350KVA segment accounted for the largest market share of 33%. Gensets in this range are appropriate for vital infrastructure such as data centres, hospitals, manufacturing facilities, and medium-sized businesses. They offer a compromise between cost-effectiveness and power capability.


Genset Fuel Type Insights


The Genset market segmentation, based on fuel type, includes Natural Gas, Diesel, Propane. The diesel segment accounted for the largest market share of 51%. In remote or off-grid locations where access to other fuel types may be limited, diesel gensets are frequently favored because they can deliver consistent energy under a variety of operating situations.


Figure 1: Genset Market, by Fuel Type, 2022 & 2032 (USD Billion)


Genset Market, by Fuel Type, 2022 & 2032 (USD Billion)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Genset Application Insights


The Genset market segmentation, based on application, includes Standby Power, Peak Shaving, Prime/Continuous Power. The standby power segment accounted for the largest market share of 53%. When the main power supply is disrupted, these are made to offer dependable and immediate electricity. When a power outage is detected, these generator sets are normally built to start automatically and supply backup power until the grid is restored.


Genset End-Use Insights


The Genset market segmentation, based on end-use, includes Industrial, Commercial, Residential. The commercial segment accounted for the largest market share of 47%. Due to the requirement for an uninterrupted power supply to support operations, assure customer satisfaction, and protect crucial systems, this industry is recognised as a key consumer of gensets.


Genset Regional Insights


By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific Genset Market dominated this market in 2022 (45.80%). This is owing to an increase in the number of persons affected by cardiovascular devices and obesity. In addition, the growing number of established health clubs and fitness facilities will boost market growth in this region. Further, China’s Genset market held the largest market share, and the Indian Genset market was the fastest growing market in the Asia-Pacific region.


Figure 2: Genset Market Share By Region 2022 (USD Billion)


Genset Market Share By Region 2022 (USD Billion)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


North America Genset market accounts for the second-largest market share. This is due to the low cost of bariatric surgery and the rise in the number of diabetes people. Further, the U.S. Genset market held the largest market share, and the Canada Armor Materials market was the fastest growing market in the North America 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.


The Europe Genset Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness of a healthy lifestyle and nutrition and rising per capita disposable income. Moreover, the German Genset market held the largest market share, and the UK Genset market was the fastest growing market in the European region.


Genset Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Genset market, grow even more. Market participants are also undertaking a variety of 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. To expand and survive in a more competitive and rising market climate, Genset industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Genset industry to benefit clients and increase the market sector. In recent years, the Genset industry has offered some of the most significant advantages to medicine. Major players in the Genset market, including Caterpillar, Cummins, Wartsila, Siemens, General Electric, ABB Ltd, PARAMAC, Generac Holdings Inc., Kohler Co., MTU Onsite Energy, Mitsubishi Heavy Industries, Kirloskar Electric Company, Yanmar Co.Ltd., and Himoinsa S.L and others, are attempting to increase market demand by investing in research and development operations.


Caterpillar Inc. is a renowned leader in the manufacturing and distribution of construction and mining equipment, industrial gas turbines, diesel and natural gas engines, and power generation systems. Caterpillar has a significant position in the genset market and is well known for producing dependable, high-quality generator sets. Caterpillar has a wide selection of generator sets that may meet a variety of needs in terms of power and applications. Their generator sets come in a variety of sizes, from compact portable models to big industrial generators that can produce many megawatts of power. These gensets are appropriate for critical power requirements in industries including construction, healthcare, telecommunications, data centres, and oil & gas because they are built to give efficient performance, durability, and extended operational lives. Caterpillar's broad network of dealers and servicing facilities is one of its significant competitive advantages in the genset market. By doing this, clients are guaranteed easy access to sales, service, and support for their Caterpillar generator sets in various parts of the world. Caterpillar's dedication to client satisfaction is demonstrated by the breadth of their post-purchase services, which include maintenance plans, original replacement parts, and technical assistance.


KEC offers a diverse portfolio of gensets that cater to various power requirements. They offer both gas and diesel generator sets, ranging in size from small portable units to huge industrial generators. These generator sets are well-known for their durable design, dependability, and fuel efficiency, making them appropriate for a variety of applications in the commercial,  residential, industrial, and agricultural sectors. KEC's strong engineering talents and emphasis on innovation are among its main advantages. To continually improve the functionality, effectiveness, and environmental sustainability of their generator sets, the corporation makes research and development investments. KEC gensets are built with cutting-edge features to guarantee top performance and user ease and are designed to adhere to strict emission requirements. With a vast distribution network and a strong after-sales support infrastructure, KEC has a significant presence in the Indian market. As a result, they can provide their clients prompt maintenance, support, and spare part availability.


Key Companies in the Genset market include



  • Caterpillar

  • Cummins

  • Wartsila

  • Siemens

  • General Electric

  • ABB Ltd

  • PARAMAC

  • Generac Holdings Inc.

  • Kohler Co.

  • MTU Onsite Energy

  • Mitsubishi Heavy Industries

  • Kirloskar Electric Company

  • Yanmar Co.Ltd.

  • Himoinsa S.L


Genset Industry Developments


July 2021: With the recent decommissioning of Grise Fiord’s aging diesel plant, Qulliq Energy Corp. has accelerated the replacement of community diesel gensets that have surpassed their life expectancy. The new diesel gensets have added reliability to the community’s power supply.


December 2021: A deal to supply 30 MW of diesel generators to a data centre in the Kingdom of Saudi Arabia was announced by the UK Company Enrogen. This is the biggest contract the business has ever signed, and it's expected to treble its revenue.


Genset Market Segmentation


Genset Power Rating Outlook



  • Up to 100 kVA

  • 100-350 kVA

  • 350-1000 kVA

  • above 1000 kVA


Genset Fuel Type Outlook



  • Natural Gas

  • Diesel

  • Propane


Genset Application Outlook



  • Standby Power

  • Peak Shaving

  • Prime/Continuous Power


Genset End-Use Outlook



  • Industrial

  • Commercial

  • Residential


Generator Market Regional Outlook



  • North America

    • U.S.

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 19.8 Billion
Market Size 2023 USD 20.84 Billion
Market Size 2032 USD 31.51 Billion
Compound Annual Growth Rate (CAGR) 5.30% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Power Rating, Fuel Type, Application, End-Use
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Caterpillar, Cummins, Wartsila, Siemens, General Electric, ABB Ltd, PARAMAC, Generac Holdings Inc., Kohler Co., MTU Onsite Energy, Mitsubishi Heavy Industries, Kirloskar Electric Company, Yanmar Co.Ltd., and Himoinsa S.L
Key Market Opportunities Increasing Demand for Reliable Power, Growing Industrialization and Infrastructure Development, Expansion of Telecom Networks
Key Market Dynamics Increasing Demand for Backup Power Solutions, Growing Industrialization and Infrastructure Development




Frequently Asked Questions (FAQ) :

The Genset market size was valued at USD 19.8 Billion in 2022.

The market is projected to grow at a CAGR of 5.30% during the forecast period, 2023-2032.

Asia-Pacific had the largest share in the market.

The key players in the market are Caterpillar, Cummins, Wartsila, Siemens, General Electric, ABB Ltd, PARAMAC, Generac Holdings Inc., Kohler Co., MTU Onsite Energy, Mitsubishi Heavy Industries, Kirloskar Electric Company, Yanmar Co.Ltd., and Himoinsa S.L.

The 100-350KVA category dominated the market in 2022.

The Diesel had the largest share in the market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major playersโ€™ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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