The global diesel generator market size was estimated at USD 17.74 billion in 2024 and is projected to reach USD 30.75 billion by 2030, growing at a CAGR of 9.7% from 2025 to 2030. The growing imbalance between global energy demand and supply is a key factor driving the market growth. Rising population, rapid industrialization, and large-scale infrastructure development, particularly in emerging economies, are significantly contributing to the escalating power demand.

Diesel generators continue to be a preferred choice across various industries due to their numerous advantages, such as low operating costs, high durability, and excellent fuel efficiency. These features make them especially popular in developing regions, with the Asia Pacific emerging as a major market for diesel generator installations.

However, despite these benefits, diesel generators also present several environmental challenges. They are associated with noise pollution and the emission of harmful gases, which can adversely affect both human health and the environment. According to the World Nuclear Association, global electricity demand is expected to double from current levels, underscoring the growing need for reliable power sources. Additionally, the U.S. Department of Energy anticipates that solar energy will soon become the most abundant energy source worldwide, highlighting the shift toward cleaner and more sustainable power generation alternatives.

Key Market Trends & Insights:

• The Asia Pacific region dominated the global diesel generator market, accounting for a revenue share of 30.00% in 2024. This strong regional performance can be attributed to the rapid pace of industrialization, expanding construction activities, and increasing demand for reliable backup power solutions across developing economies such as China, India, and Southeast Asian countries.

• Within the Asia Pacific region, China emerged as the leading market for diesel generators in 2024 and is projected to maintain its dominance throughout the forecast period. The country's large manufacturing base, continuous infrastructure expansion, and growing energy consumption across commercial and industrial sectors are major factors supporting its leading position.

• Based on power rating, the medium power gensets segment is expected to witness robust growth, registering a CAGR of 12.8% over the forecast period. The rising deployment of these generators in various applications—including small industries, construction sites, and large commercial establishments—drives this segment’s growth. Medium power gensets are favored for their balance between power output and operational efficiency, making them suitable for both standby and prime power needs.

• By application, the commercial segment held the largest revenue share of over 45% in 2024. This dominance is primarily due to the increasing use of diesel generators in commercial buildings, data centers, retail complexes, and healthcare facilities to ensure uninterrupted power supply. The growing need for backup power in critical operations and the expansion of service-based industries continue to fuel demand within this segment.

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Market Size & Forecast:

• 2024 Market Size: USD 17.74 Billion

• 2030 Projected Market Size: USD 30.75 Billion

• CAGR (2025-2030): 9.7%

• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

Key market players are actively adopting a combination of organic and inorganic growth strategies, including mergers and acquisitions, new product launches, capacity expansions, and joint ventures, to strengthen their competitive position and expand their market presence. These strategic initiatives are aimed at enhancing product portfolios, meeting the evolving energy demands of various industries, and gaining a larger share of the global diesel generator market.

In October 2024, French power company Baudouin introduced a new series of diesel generator sets specifically designed for data centers. These advanced generator sets deliver integrated power solutions with outputs ranging from 2000 kVA to 5250 kVA, powered by Baudouin’s M33 and M55 engine series. The launch demonstrates the company’s focus on catering to the growing demand for high-capacity and reliable power systems in critical infrastructure sectors.

In April 2025, Lakshya Powertech received an order worth ₹11.17 crore from Powerica to supply and install eight 2250 KVA diesel generator sets within a period of six to eight months. This contract highlights the company’s strong execution capabilities and its growing role in meeting large-scale industrial and commercial power requirements.

In May 2023, Cummins, a leading manufacturer of engines and power generation equipment, launched a new diesel generator set powered by its B45 engine, a 4.5-liter, four-cylinder diesel engine optimized for power generation applications. This newly developed generator set is designed to deliver dependable and efficient power solutions for diverse sectors, including construction, rental, and prime power operations.

Similarly, in August 2022, Caterpillar introduced three new standby diesel generators for the North American market, with power capacities ranging from 20 to 30 kilowatts (kW). These generator sets, driven by the Cat C2.2 engine, are intended for small industrial, telecommunications, and commercial uses. They comply with U.S. EPA emergency emission standards and meet all major industry safety certifications. In addition, these models are recognized for their compact design, superior performance, easy maintenance, and availability of optional enclosures, underscoring Caterpillar’s commitment to innovation and customer-focused product development.

Key Players

• AKSA Power Generation Company

• Atlas Copco AB

• Caterpillar

• Cummins Inc.

• Doosan Portable Power

• Generac Power System Inc.

• Honda India Power Products Ltd.

• Kohler Co.

• Rolls-Royce plc

• Wartsila Corporation

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Conclusion:

The global diesel generator market is expected to witness steady growth driven by increasing demand for reliable backup and continuous power supply across residential, commercial, and industrial sectors. Rapid industrialization, infrastructure expansion, and frequent power outages in emerging economies further support market growth. The commercial sector remains the largest application area, while medium-power gensets are projected to experience strong demand. However, environmental regulations and emission concerns pose challenges, prompting manufacturers to develop cleaner and more efficient technologies. Overall, the market is evolving toward innovation and sustainability while maintaining its critical role in global power reliability.