he global generator sets market (which includes gensets + engines) was valued at around US$ 34.17 billion in 2024. Grand View Research+1
It’s projected to grow to about US$57.93 billion by 2030 at a CAGR of ~ 9.3% (2025-2030). Grand View Research+2Grand View Research+2
Another source (Global Market Insights) places the market at US$ 44.6 billion in 2024, with forecasts to reach about US$ 91.1 billion by 2034. Global Market Insights Inc.
For the engine-for-genset sub-segment: valued at ~ US$ 15.8 billion in 2024; projected to reach ~ US$ 24.2 billion by 2033 (CAGR ~4.8%) in that slice. DataHorizzon Research
Market Segmentation & Regions
•By fuel type, diesel gensets currently hold the largest share, mainly due to reliability, mature tech, lower initial cost, and wide availability of diesel fuel. Grand View Research+2Precedence Research+2
•Gas / natural gas gensets are expected to grow faster (higher CAGR) due to environmental regulations and increasing demand for cleaner energy/fuel sources. Grand View Research+1
•By power rating, there are “low power”, “medium power”, “high power” segments. Low-power gensets tend to have large volume due to residential/commercial applications; medium and high power grow strongly in industrial, infrastructure, data centres etc. Grand View Research+2TechSci Research+2
•By region, Asia-Pacific is leading in terms of revenue and demand growth. Rapid industrialization, infrastructure development, electrification in rural/remote areas are big drivers. Grand View Research+2DataHorizzon Research+2
•Other regions growing: Middle East, Africa, Latin America, especially where grid reliability is weak or electrification is expanding. DataHorizzon Research+2Grand View Research+2
Key Drivers
•Need for reliable electricity supply: power outages, unstable grids, remote areas, increasing demand from data centres, telecom towers, hospitals. Grand View Research+2Grand View Research+2
•Industrialization & infrastructure builds, especially in developing countries. Grand View Research+2DataHorizzon Research+2
•Environmental / emission regulations pushing toward cleaner fuels and more efficient engines. Grand View Research+1
•Technological improvements: better fuel efficiency, digital / remote monitoring, hybrid systems (genset + battery or alternative fuels) are becoming more important. TechSci Research+3Grand View Research+3Global Market Insights Inc.+3
Challenges & Risks
•Emissions / regulatory compliance: Stricter norms make diesel gensets more expensive (after-treatment, etc.), pushing up cost.
•Fuel cost volatility: Diesel, natural gas costs fluctuate.
•Competition from renewable energy + storage (solar + battery) for backup and off-grid power. As batteries get cheaper, gensets might lose ground in some applications.
•Noise, maintenance, reliability issues. In many markets, after-sales, spares, technical support are big concerns.
Key Players
Some of the major companies in the genset / genset engine market include:
•Caterpillar Inc. PMarket Research+2Global Growth Insights+2
•Cummins Inc. PMarket Research+2Global Growth Insights+2
•Generac Power Systems TechSci Research+2Global Growth Insights+2
•Wartsila Corporation TechSci Research+1
•Atlas Copco AB Global Growth Insights+1
•Kohler Co., Mitsubishi Heavy Industries, Kirloskar, Himoinsa, FG Wilson, etc. TechSci Research+2Global Growth Insights+2
Trends & Opportunities
•Growth of hybrid gensets combining traditional gensets with battery storage or renewables (e.g. solar). Good for peak shaving, smoother operation, reducing fuel consumption.
•Increasing demand from data centres, telecom infrastructure, healthcare, especially where uptime is critical.
•Electrification & rural/remote power: off-grid, microgrid, distributed generation require gensets or genset engines.
•More stringent emissions / noise regulations mean cleaner engines, sound-proof enclosures, after-treatment systems will be in demand.
•Predictive maintenance, IoT integration, digital controls to reduce downtime and operational costs.
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