Gas Generator Sets Market Report 2026

The gas generator sets market size has grown steadily in recent years. It will grow from $9.22 billion in 2025 to $9.65 billion in 2026 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to expansion of power infrastructure gaps, increased frequency of grid outages, growing industrial demand for reliable backup power, adoption in remote and off-grid locations, availability of natural gas resources.

The gas generator sets market size is expected to see steady growth in the next few years. It will grow to $11.55 billion in 2030 at a compound annual growth rate (CAGR) of 4.6%. The growth in the forecast period can be attributed to increasing investments in distributed energy systems, rising demand for low-emission power solutions, expansion of data centers and critical facilities, growing adoption of smart power management systems, integration with renewable energy sources. Major trends in the forecast period include growing deployment of gas generator sets for backup power, increasing adoption of biogas-based generators, rising demand for continuous power applications, expansion of smart generator monitoring systems, enhanced fuel efficiency optimization.

The surge in crude oil and natural gas production is expected to drive the growth of the gas generator sets market. Crude oil and natural gas production involves extracting oil and gas from underground reservoirs for energy supply, industrial use, and fuel applications. Rising global energy demand is encouraging producers to expand extraction activities, which in turn increases the need for reliable on-site power solutions to support exploration and drilling operations in remote locations. For example, in June 2025, the US Energy Information Administration reported that U.S. crude oil production averaged 13.2 million barrels per day in 2024, up 2% from 2023, while natural gas accounted for about 38% of total U.S. energy production, making it the largest domestic energy source. Consequently, the surge in crude oil and natural gas production is boosting demand for gas generator sets.

Companies in the gas generator sets market are prioritizing technological advancements to enhance their market position and improve performance, reliability, and efficiency. For example, in February 2023, Cummins Inc., a US-based company that designs, manufactures, and distributes engines, filtration, and power generation products, announced the addition of two new natural gas generator sets, the C175N6B and C200N6B, to its North American lineup. These models are specifically designed for standby applications. The C175N6B offers 175 kW, while the C200N6B provides 200 kW, making them suitable for various applications, including commercial buildings, healthcare facilities, and public infrastructure.

In August 2024, DEUTZ AG, a Germany-based manufacturer of drive systems for construction, agriculture, commercial machinery, rail, and material-handling equipment, acquired Blue Star Power Systems Inc. for an undisclosed amount. This acquisition provides DEUTZ AG with access to Blue Star’s portfolio of diesel and gaseous generator sets, manufacturing operations, distribution network, and customer relationships, enhancing its decentralized power-generation capabilities and strengthening its market presence in North America. Blue Star Power Systems Inc., based in the U.S., specializes in custom generator sets, delivering reliable standby and prime power solutions for commercial and industrial applications.

Major companies operating in the gas generator sets market are Cummins Inc., Kohler Co., Generac Power Systems Inc., Caterpillar Inc., Siemens AG, Rolls-Royce Power Systems AG, Wärtsilä Corporation, Mitsubishi Heavy Industries Ltd., Yanmar Co. Ltd., Himoinsa S.L., MAN Energy Solutions SE, INNIO Group, Baudouin, JCB Power Products Ltd., Atlas Copco AB, Volvo Penta, John Deere Power Systems, Scania AB, WhisperPower B.V., Mase Generators, FG Wilson (Engineering) Ltd., SDMO Industries SAS, Hitzinger GmbH.

North America was the largest region in the gas generator sets market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the gas generator sets market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the gas generator sets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The gas generator sets market consists of revenues earned by entities by providing services such as powering RVs, boats and workshops without electrical wiring. The market value includes the value of related goods sold by the service provider or included within the service offering. The gas generator sets market also includes sales of fossil-fuel energy source generators such as gasoline, diesel fuel, biodiesel, emulsified diesel, and natural energy source generators such as propane gas, and solar generators, hydrogen. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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