As per MRFR analysis, the US Genset Market Size was estimated at 6.78 (USD Billion) in 2023. The US Genset Market Industry is expected to grow from 7.14 (USD Billion) in 2024 to 13.1 (USD Billion) by 2035. The US Genset Market CAGR (growth rate) is expected to be around 5.672% during the forecast period (2025 - 2035).
Key US Genset Market Trends Highlighted
The US genset market is experiencing several notable trends that are shaping its landscape. One key market driver is the growing demand for reliable and uninterrupted power supply across various sectors, such as healthcare, telecommunications, and data centers. Increasing extreme weather events and natural disasters in recent years have led to a heightened awareness of the need for backup power solutions, further propelling the market. As electric grids become more susceptible to outages, end-users are seeking gensets as a safeguard against potential disruptions. Recent times have shown a significant shift towards cleaner energy sources within the genset market.
There is growing interest in hybrid and renewable energy gensets, in part due to federal incentives for reducing carbon emissions and promoting sustainable practices. This change coincides with the US government’s 2021 goal to significantly reduce the nation’s greenhouse gas emissions. Along with the emission goals, the developments in modern technology focus on the efficiency and noise level of the gensets, which attract residential and commercial buyers. The adoption of electric vehicles and the growing trend of off-grid living offers new opportunities for charging infrastructure powered by gensets. Additionally, the construction and event management industries are increasing their use of portable and mobile power solutions.
The integration of smart technology into genset systems offers another avenue for growth, enabling real-time monitoring and maintenance. Ultimately, the US genset market is evolving rapidly, driven by the quest for enhanced reliability, sustainability, and technological innovation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Genset Market Drivers
Increasing Demand for Uninterrupted Power Supply
In the United States, the demand for uninterrupted power supply is rising significantly, driven by the growth of critical infrastructure sectors like healthcare, telecommunications, and data centers. According to the U.S. Energy Information Administration, power outages have doubled from 2012 to 2021, primarily affecting critical facilities that require constant energy supply. This statistic reflects a growing reliance on generator sets (gensets) as a backup to avert costly losses from downtimes.
Major companies like Caterpillar Inc. and Cummins Inc., which dominate the US Genset Market Industry, are expanding their product lines to cater to this need, indicating a strategic pivot towards meeting the increasing demands in various sectors. As industries focus on minimizing operational interruptions, the attractiveness of gensets as a contingency solution is expected to drive growth in the US genset market.
Government Initiatives for Clean Energy Transition
The U.S. government has set forth various initiatives targeted at transitioning to cleaner energy solutions, which actively influence the US Genset Market Industry. The Biden administration's commitment to achieve a 50% reduction in greenhouse gas emissions by 2030 emphasizes the importance of increasing the adoption of cleaner technologies. A report from the U.S. Department of Energy indicates that investments in alternative energy sources have increased by 40% over the past five years.
As a result, there is ongoing growth in the market for gensets that operate on cleaner fuels, such as natural gas and biofuels, aligning the genset industry's growth with government objectives. This trend toward sustainable power generation will likely provide a significant boost to the genset market.
Rising Number of Natural Disasters
The frequency of natural disasters in the U.S. has steadily increased, prompting a growing need for reliable backup power solutions. According to the National Oceanic and Atmospheric Administration, the U.S. experienced 22 major weather-related disasters in 2020, with a collective economic impact exceeding 100 billion USD. These events highlight the necessity for robust backup power systems, leading homeowners and businesses to invest in generator sets.
As reported by the Federal Emergency Management Agency, preparedness initiatives have called for greater public and private sector commitment to energy reliability. Major players in the US Genset Market Industry are responding to this growing demand by developing resilient and reliable genset solutions tailored to disaster recovery needs.
Technological Advancements in Generator Sets
Technological innovations have significantly influenced the US Genset Market, enhancing efficiency, fuel economy, and operational capabilities. The development of smart generator technologies, such as remote monitoring and automated emissions management, has become increasingly prevalent. According to the U.S. Department of Commerce, investments in Research and Development within the energy sector have surged by over 30% from 2018 to 2022. This increase in innovation capacity allows organizations such as Kohler Co. and Generac Holdings to introduce more efficient and compact gensets to the market. As industries and consumers alike recognize the benefits of these advanced solutions, the demand for sophisticated generator sets is expected to rise significantly, bolstering growth in the US Genset Market Industry.
US Genset Market Segment Insights:
Genset Market Portability Insights
The Portability segment of the US Genset Market indicates a strong presence within the broader energy landscape, reflecting the growing need for reliable power solutions across various applications. With an increasing demand for temporary and backup power supply, portable generators are seeing significant adoption in residential, commercial, and industrial settings, where the need for mobility and ease of use is crucial. This segment comprises different types of generators designed to be easily transported, making them essential for outdoor events, construction sites, and in regions prone to power outages. While stationary generators serve as a backbone for fixed installations, providing consistent power to essential systems, portable generators add a layer of flexibility suited for diverse applications, thereby holding a significant market share.
As technology evolves, advancements in inverter technology and fuel efficiency are enhancing the appeal of portable generators, thereby attracting a broader customer base looking for sustainable energy solutions. Moreover, the increasing frequency of natural disasters, as documented by FEMA reports, has led to a heightened awareness of the importance of backup power, further driving interest in both portable solutions and their related features. The U.S. market also emphasizes the integration of smart technologies in portable gensets, making power management more intuitive for consumers.
In addition to usage in residential settings, portable generators play an essential role in providing energy at job sites, where they offer convenience and adaptability. The demand for these units is driven not only by their operational efficiency but also by evolving consumer preferences toward mobility and on-demand power usage. This reflects a trend where consumers are increasingly seeking solutions that combine reliability with adaptability to meet their power generation needs. As stakeholders look to innovate further, opportunities in enhancing fuel options and expanding product offerings remain prominent, ensuring that the US Genset Market continues to grow, particularly within the Portability segment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Genset Market Fuel Insights
The Fuel segment of the US Genset Market plays a crucial role in supporting a diverse range of applications, from emergency backup power to prime power generation. Diesel fuels have historically dominated the segment due to their reliability, efficiency, and the widespread availability of infrastructure, making them a popular choice for industrial and commercial operations. Natural Gas, gaining traction recently, offers a cleaner alternative with fewer emissions, appealing to organizations focused on sustainability and regulatory compliance. Compressed Natural Gas (CNG) is also emerging as a cost-effective, eco-friendly solution for Genset applications, particularly in transportation sectors.
The shift towards cleaner energy sources is shaping US Genset Market trends, with increased demand for natural gas and CNG solutions driven by both economic incentives and government policies aimed at reducing carbon footprints. This segmentation reflects not only the varying energy needs across different industries but also the ongoing transition within the US energy landscape as market participants adapt to the evolving regulatory framework and consumer preferences. Overall, the Fuel segment remains a pivotal area for innovation and growth, influenced by factors such as energy security, environmental considerations, and advancements in fuel efficiency technologies.
Genset Market End User Insights
The US Genset Market has been characterized by distinct sectors such as Industrial, Commercial, and Residential, each playing a pivotal role in driving market dynamics. The Industrial segment is particularly significant due to its reliance on backup power for manufacturing processes and critical infrastructure, which has led to a consistent demand for gensets in various industrial applications. Meanwhile, the Commercial segment, encompassing businesses such as retail and hospitality, has demonstrated substantial growth as companies seek to ensure business continuity and protect customer service during power outages.
In the Residential segment, trends show a rising interest in home backup power solutions, propelled by factors like increasing natural disasters and the modernization of smart homes. The interplay among these sectors shapes the overall landscape of the US Genset Market, highlighting diverse needs and applications that are influenced by varying operational requirements, energy reliability standards, and environmental regulations. Such segmentation brings unique opportunities and challenges that reflect the broader trends within the US power infrastructure and energy landscape, contributing to the complexity and dynamism of the market.
Genset Market Power Rating Insights
The Power Rating segment within the US Genset Market illustrates a dynamic landscape that addresses diverse energy requirements across various industries. The segment is structured into categories such as Up to 100KVA, 100-350KVA, 350-1000KVA, and Above 1000 KVA, each serving specific power needs and applications. The Up to 100KVA range is particularly essential for small businesses and residential applications, as it offers cost-effective solutions for backup power, enhancing energy reliability in everyday operations. Meanwhile, the 100-350KVA segment garners significance in commercial sectors, where moderate power demands necessitate dependable systems for uninterrupted workflows.
The 350-1000KVA range caters to higher operational necessities, often utilized in manufacturing and industrial setups requiring substantial power for machinery and processes. Lastly, the Above 1000 KVA category dominates the market by serving large enterprises and critical infrastructures, such as hospitals or data centers, where consistent power supply is crucial for uninterrupted service delivery. Such delineation of power rating segments highlights the evolving US Genset Market, driven by growth trends, rising energy demands, and increasing reliance on backup power solutions.
This market growth is further supported by technological advancements and the need for energy security, making the Power Rating segment a critical focus area for stakeholders aiming to optimize operational efficiency.
Genset Market Application Insights
The US Genset Market, particularly within the Application segment, showcases a diverse array of industries integral to the nation's infrastructure and economic activities. Each application plays a vital role, with key sectors such as Agriculture driving demand for reliable power sources to support equipment like irrigation systems and harvesters, facilitating greater productivity. The Construction industry relies heavily on generators to ensure uninterrupted power supply at sites, allowing projects to progress efficiently. In Forestry operations, gensets power essential machinery, contributing to sustainable practices in timber harvesting and management.
The Industrial sector utilizes generators for various processes, enhancing operational efficiency and maintaining production continuity. Pumps, often influenced by climatic conditions and irrigation needs in the US, require dependable energy sources to manage water levels and facilitate agricultural processes. Additionally, the Power Generation application remains critical as it supports grid stability and backup solutions across urban and rural areas. With increasing demands stemming from infrastructure development and energy resilience initiatives, the US Genset Market is set to experience growth across these applications, reflecting the evolving needs of various sectors in the economy.
US Genset Market Key Players and Competitive Insights:
The US Genset Market is characterized by a competitive landscape that has continually evolved to meet the diverse energy needs of various sectors. With an increasing demand for reliable and efficient backup power sources, the market has seen the entry of numerous players offering a wide range of generator sets tailored for both residential and commercial applications. The need for sustainable energy solutions has compelled manufacturers to innovate, leading to advancements in technology and performance. As environmental regulations become more stringent, companies are also focusing on creating gensets that not only deliver power but also comply with emissions standards. Consequently, the competition in this market is not just about pricing but also includes aspects of fuel efficiency, noise levels, and overall reliability, making strategic positioning critical for market players.
LG Silent Power has established a solid presence in the US Genset Market by emphasizing its commitment to offering high-quality, low-noise generator sets that cater to both residential and commercial users. The company's strengths lie in its advanced engineering and technology, which ensure that products are not only efficient but also environmentally friendly. The quiet operation of LG Silent Power gensets makes them particularly appealing for residential areas and noise-sensitive environments, giving the company an edge over competitors who may not focus as heavily on sound levels. Moreover, their customer service and support structures have strengthened their reputation, resulting in a loyal customer base that values both reliability and performance. This strategic focus on innovative, silent generators places LG Silent Power in a favorable position within the competitive landscape of the US market.
Doosan Portable Power has a well-defined role in the US Genset Market, known for supplying durable and robust generator sets capable of handling various industrial applications. This company has carved out a niche by offering versatile products such as diesel generators, light towers, and air compressors that cater primarily to construction, rental, and emergency response sectors. The strength of Doosan Portable Power lies in its brand reputation for reliability and efficiency, which has been bolstered by continuous investments in product development and engineering initiatives. Furthermore, the company has expanded its market presence through strategic mergers and acquisitions that have enriched its product offerings and distribution channels in the US. By providing comprehensive power solutions backed by excellent customer service, Doosan Portable Power maintains a competitive advantage while continually adapting to the changing needs of the market.
Key Companies in the US Genset Market Include:
US Genset Market Industry Developments
The US Genset Market is experiencing significant developments, particularly in the area of sustainable energy solutions. Major companies such as Caterpillar and Cummins are actively expanding their product portfolios to include cleaner, more efficient generators, with Cummins recently announcing a new range of hydrogen-fuelled generators aimed at reducing carbon emissions as of September 2023. A notable merger occurred in August 2023, when MTU Onsite Energy acquired a smaller generator manufacturing company, which positions them to enhance their market share. Generac is also making strides, having launched its new line of high-efficiency generators designed to meet the growing demand for renewable energy sources. Over the last two years, the US Genset Market valuation has grown significantly, driven by increased demand for backup power solutions across residential and commercial sectors, particularly during severe weather events. Regulatory shifts aimed at reducing emissions are expected to influence market dynamics further. Companies like Honda and Atlas Copco are investing heavily in Research and Development to innovate environmentally friendly technologies. Additionally, with the ongoing increase in the electrification of various industries, the demand for reliable and efficient generator sets remains robust in the US market.
Genset Market Segmentation Insights
Genset Market Portability Outlook
Genset Market Fuel Outlook
Genset Market End User Outlook
Genset Market Power Rating Outlook
Genset Market Application Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | 6.78 (USD Billion) |
| Market Size 2024 | 7.14 (USD Billion) |
| Market Size 2035 | 13.1 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 5.672% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | LG Silent Power, Doosan Portable Power, Yanmar, MTU Onsite Energy, SDMO, Caterpillar, Pramac, Cummins, Briggs and Stratton, Generac, Wacker Neuson, Honda, Atlas Copco, KOHLER, Deere |
| Segments Covered | Portability, Fuel, End User, Power Rating, Application |
| Key Market Opportunities | Increased demand for renewable energy, Expanding telecommunications infrastructure, Urban resilience and disaster recovery, Growing construction sector needs, Adoption of advanced hybrid systems |
| Key Market Dynamics | Growing demand for backup power, regulatory support for renewable energy, increasing construction activities, advancements in generator technology, rising industrial applications |
| Countries Covered | US |
Frequently Asked Questions (FAQ) :
The US Genset Market is expected to be valued at 7.5 USD billion in 2024.
By 2035, the US Genset Market is projected to reach a valuation of 14.2 USD billion.
The expected CAGR for the US Genset Market from 2025 to 2035 is 5.975 percent.
Caterpillar is one of the major players holding a significant share in the US Genset Market.
The stationary segment of the US Genset Market is valued at 3.5 USD billion in 2024.
The portable segment of the US Genset Market is expected to reach a valuation of 7.7 USD billion by 2035.
Key applications driving growth in the US Genset Market include construction, events, and emergency power supply.
Challenges for the US Genset Market may include increasing competition and regulatory requirements.
Regional demand variations significantly influence the growth dynamics of the US Genset Market.
Other key competitors in the US Genset Market include Generac, Cummins, and Kohler.
By 2035, the US Genset Market is projected to reach 13.1 billion USD.
Prominent players in the US Genset Market include Caterpillar, Cummins, Generac, and Honda among others.
The Portable segment is valued at 2.85 billion USD in 2024.
The Stationary segment is projected to be valued at 7.65 billion USD by 2035.
The market will benefit from advancements in technology and increasing demand for reliable power sources.
Current global conflicts may lead to fluctuating supply chains and influence market stability.
The Portable segment is expected to see faster growth compared to the Stationary segment.
The residential and commercial sectors are major contributors to the growth of the US Genset Market.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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