Diesel Generator Market Report 2025

The diesel generator market size has grown strongly in recent years. It will grow from $20.52 billion in 2024 to $21.82 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to strong economic growth in emerging markets, rapid industrialization, an increase in energy demand and consumption, and a rise in focus on electricity generation using fossil fuel energy sources.

The diesel generator market size is expected to see strong growth in the next few years. It will grow to $28.28 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to the expanding construction industry, thriving growth of the manufacturing industry, and remote work revolution. Major trends in the forecast period include improving the efficiency of diesel generators, developing rental generators, hybridization of diesel generators, designing compact and mobile solutions, and integration of advanced technologies such as remote monitoring, predictive maintenance, and data analytics.

The growth of the diesel generator market is anticipated to be driven significantly by the expansion of the construction industry in the forecast period. With construction projects on the rise, the need for reliable power sources becomes paramount to sustain operations at various stages of development. Diesel generators play a crucial role as backup power solutions, ensuring uninterrupted functionality in construction sites where grid power may be unreliable or unavailable. As of August 2023, the U.S. Census Bureau reported a construction expenditure of $1.93 trillion, marking a 3.5% increase from the estimated $1.87 trillion in June 2022. Moreover, Oxford Economics projects global construction output to grow from $9.7 trillion in 2022 to $13.9 trillion by 2037. Hence, the expanding construction industry is poised to be a key factor propelling the diesel generator market's growth.

The ongoing remote work revolution is expected to be a significant driver for the diesel generator market in the forecast period. The surge in remote working, accelerated by the COVID-19 pandemic, has led businesses to seek reliable backup power solutions to ensure continuous operations, especially in regions with unreliable grid power. This increased reliance on backup power sources, such as diesel generators, aims to maintain productivity during power outages, contributing to heightened market demand. As of June 2023, Forbes reported that 12.7% of full-time employees were engaged in remote work, with an additional 28.2% adopting a hybrid work approach. Projections for 2025 suggest that approximately 32.6 million American professionals, constituting around 22% of the workforce, will be involved in remote work. Consequently, the remote work revolution is expected to drive the growth of the diesel generator market in the coming years.

Major players in the diesel generator market are focusing on delivering technologically advanced solutions, such as ultra-silent generators, to enhance their market position. These ultra-silent generators are engineered to operate with minimal noise, making them suitable for noise-sensitive environments while ensuring reliable power output. For example, in May 2024, Trime, an Italy-based company known for designing and manufacturing innovative and eco-friendly lighting solutions, introduced a new range of diesel-powered generators with power capacities ranging from 6 kVA to 670 kVA. These generators feature advanced engines from Kohler Stage V, Yanmar, FPT Iveco, and Perkins. Tailored for the hire markets in the UK and Ireland, these ultra-silent generators offer versatile single and three-phase outputs for various applications, built to the same high standards of reliability and durability as Trime's previous lighting tower products.

Digital technologies have significantly enhanced the diesel generator market, prompting manufacturers to invest in research and development to create advanced diesel generators that incorporate features like remote monitoring, predictive maintenance, and data analytics for improved fuel efficiency optimization. For example, in August 2022, Caterpillar Inc., a US-based manufacturer of construction and mining equipment, engines, and industrial turbines, introduced three new standby diesel generator sets. These generators provide reliable backup power for commercial, industrial, and residential applications. Engineered for high capacity and fuel efficiency, they come equipped with automatic start capabilities and a robust construction, ensuring a continuous electricity supply during outages. Furthermore, these new generator sets include Cat Connect hardware and a Remote Asset Monitoring subscription, allowing users to monitor performance, receive alerts, troubleshoot remotely, and analyze data for operational enhancements through a web interface or mobile app.

In March 2022, UK-based DTGen, specializing in diesel and gas generators, disclosed its acquisition of Power Electrics Generators (PEG) for an undisclosed sum. This acquisition involves DTGen obtaining PEG's sales and projects division, intending to bolster its capacity and proficiency while achieving nationwide coverage across the UK. The deal includes locations in the Midlands, Scotland, and southern regions. Power Electrics Generators, also UK-based, offers a variety of diesel generators, fuel and control systems, along with services encompassing diesel generator sales, hire, parts, and service provisions.

Major companies operating in the diesel generator market include Mitsubishi Heavy Industries Ltd, Caterpillar Inc, Cummins Inc, Rolls-Royce Holdings plc, Generac Holdings Inc, Aggreko, Atlas Copco AB, Yanmar Co. Ltd., Wartsila Corporation, Doosan Portable Power, Wuxi Huayou Power Equipment Co. Ltd, GIANT Power OEM Co. Ltd, Detra (HK) International, Jiangsu Dohigh Generator Trading Co. Ltd, Shangyu Diesel Engine Co. Ltd, Yanmar Holdings Co. Ltd, Kubota Corporation, Honda India Power Products Limited, Enrogen, Excel Power Ltd, JS Power, German Generator GmbH, Fischer Panda GmbH, Energy XPRT, Andoria-Mot Ltd, Dfme Sp. Z O. O, Poland Generators Manufacturers, Kohler Co, Powerhouse Diesel Generators Inc, Smith's Diesel and Power Systems, BC Diesel Generators, GAL Power Systems, MWM Motors Diesel Inc, Tupy S.A, Soenergy Sistemas Int De Energia, Geraforte Grupos Geradores LTDA, Jubaili Bros, Ultimate Power Solution Fzc, AQT Generators, Ade Power, Algen Power Generation, Mikano International Limited.

Asia-Pacific was the largest region in the diesel generator market in 2024. The regions covered in the diesel generator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the diesel generator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

A diesel generator functions by utilizing a diesel engine to generate electrical energy through an electric generator. Primarily, it serves as a backup power source during electric shutdowns or emergencies. Diesel generators commonly use liquid fuel or natural gas as their primary fuel sources.

The key types of diesel generators include small, medium, and large variants. Small diesel generators, ranging from 0 to 75 kVA, are typically portable and often air-cooled. They serve as backup power solutions for mobile applications such as mining sites, farming operations, and professional contractor needs. Diesel generators come in both stationary and portable forms, offering power ratings below 75kVA, between 75-375kVA, 375-750kVA, and above 750kVA. They are extensively utilized for standby backup power, peak shaving, and continuous load applications across industrial, commercial, and residential sectors.

The diesel generator market research report is one of a series of new reports that provides diesel generator market statistics, including diesel generator industry global market size, regional shares, competitors with a diesel generator market share, detailed diesel generator market segments, market trends and opportunities, and any further data you may need to thrive in the diesel generator industry. This diesel generator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The diesel generator market consists of sales of portable generators, inverter generators, and standby generators. 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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