Diesel Generator Market Overview
The Diesel Generator Market size accounted for USD 19.41 Billion in 2023 and is estimated to account for 20.33 Billion in 2024. The Market is expected to reach USD 37.45 Billion by 2034 growing at a compound annual growth rate (CAGR) of 10.14% from 2024 to 2034. The Diesel Generator Market refers to the global industry focused on the production, sale, and distribution of diesel generators, which are used to generate electricity by converting the chemical energy of diesel fuel into mechanical energy and then into electrical energy.
The key components of the market include different sizes and power ratings of generators, such as small, medium, and large capacity units, catering to different end-users. Factors driving the market include growing energy demands, frequent power outages in certain regions, and the need for reliable and off-grid energy sources.
Global Diesel Generator Market Synopsis
Diesel Generator Market Dynamics
The major factors that have impacted the growth of Diesel Generator Market are as follows:
Drivers:
Ø Increasing Demand for Backup Power
Hospitals, data centers, telecommunications infrastructure, and commercial establishments require backup power to ensure uninterrupted operations during blackouts, further boosting the market. The growing global energy demand, combined with inadequate power generation capacity in many regions, creates a need for alternative power solutions like diesel generators. Diesel generators are preferred for their relatively lower operating costs, high fuel efficiency, and reliability, making them an attractive option compared to other types of generators.
Restraint:
- Perception of Rising Fuel Costs and High Maintenance Costs
Diesel fuel prices can fluctuate due to geopolitical factors and supply-demand imbalances, impacting the operating costs of diesel generators and discouraging their use in favor of more cost-effective alternatives. Diesel generators require regular maintenance to ensure reliability, including frequent fuel refills, filter changes, and servicing of engine parts, leading to higher long-term operating costs compared to some alternative energy solutions.
Opportunity:
⮚     Backup Power for Data Centers and Critical Infrastructure
As the demand for cloud computing, internet services, and data storage grows, the need for uninterrupted power in data centers is increasing. Diesel generators serve as reliable backup solutions in case of power outages, creating a strong demand in this sector. The healthcare sector, particularly hospitals, requires backup power for critical equipment during outages. The growing demand for healthcare infrastructure, especially in response to emergencies or pandemics, creates an opportunity for diesel generators to play a key role in ensuring uninterrupted power.
Diesel Generator Market Segment Overview
By Type
Based on Type, the market is segmented based on Small (0–75 KVA), Medium (75–375 KVA) and High (Above 375 KVA). The Small segment dominant the market. Small diesel generators have a rated capacity of up to 75 kVA and are portable in nature. These generators are used in various applications such as shops, showrooms, households, apartments, and small hospitals. These types of generators tend to be air-cooled. An increase in demand for electricity from residential and small commercial applications boosts the growth of the small diesel generator market globally.
By Mobility
Based on Mobility, the market segment has been divided into Stationary, Portable and Others. The Stationary segment dominant the market. Stationary diesel generators are used in residential and commercial applications as a power backup if the conventional power supply fails. They are the most commonly used diesel generators, owing to the one-time and permanent installation of the generator in large industries and commercial & residential applications.
By Cooling System
Based on Cooling System, the market segment has been divided into Air Cooled, Liquid Cooled, Standby Backup Power, Peak Shaving and Others. The Standby Backup Power segment dominant the market. Diesel generators provide backup power when a power source fails during high energy demand or natural disasters. In case of emergencies, the need for overpowering the grid to increase production in manufacturing sites is met by standby backup power, which serves as an ideal option to continue operations. An increase in demand for uninterruptible power supply and the development of the construction & building sector is expected to boost the demand for diesel generators in standby backup power applications.
Global Diesel Generator Market Regional Analysis
Based on region, the global Diesel Generator Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Diesel Generator Market followed by the Asia-Pacific and Europe regions.
Diesel Generator North America Market
North America holds a dominant position in the Diesel Generator Market. The U.S. dominates the diesel generator market in North America, with strong demand from data centers, healthcare, commercial real estate, and industrial sectors and Canada’s demand for diesel generators is driven by its extensive mining, oil & gas, and construction industries. Remote industrial sites, especially in northern regions, rely heavily on diesel power due to the lack of grid connectivity.
Diesel Generator Asia-Pacific Market
The Asia-Pacific region has indeed emerged as the fastest-growing market for the Diesel Generator Market industry. Countries like China, India, and Southeast Asian nations are witnessing rapid industrial growth and urban development. Diesel generators are essential for providing reliable power in construction, manufacturing, and infrastructure projects and India is another major market, driven by frequent power outages, especially in rural and semi-urban areas. The construction industry, telecommunications, and commercial sectors rely heavily on diesel generators for backup power.
Competitive Landscape
The global Diesel Generator Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.
Prominent Players:
- Caterpillar Inc.
- Cummins, Inc.
- Rolls Royce plc
- Kohler Co.
- Generac Power Systems Inc.
- Southwest Products
- Atlas Copco AB
- FG Wilson
- Denyo Co. Ltd.
- Kirloskar Electric Company
Key Development
In September 2023 – The new model in the Mitsubishi Generator Series (MGS-R) family, intended for 50Hz markets, was proudly presented by Mitsubishi Heavy Industries Engine System Asia (MHIES-A). The most potent 16-cylinder industrial diesel generator available is the recently released MGS3100R. fitted with the original Mitsubishi common rail system, which reduces emissions and fuel consumption.
Scope of the Report
Global Diesel Generator Market, by Type
- Small (0–75 KVA)
- Medium (75–375 KVA)
- High (Above 375 KVA)
Global Diesel Generator Market, by Mobility
- Stationary
- Portable
- Others
Global Diesel Generator Market, by Cooling System
- Air Cooled
- Liquid Cooled
- Standby Backup Power
- Peak Shaving
- Others
Global Diesel Generator Market, by Region
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Benelux
- Nordic
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- Indonesia
- Austalia
- Malaysia
- India
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of Middle East & Africa
| Parameters | Indicators |
|---|---|
| Market Size | 2033: $37.45 Billion |
| CAGR | 10.14% CAGR (2023-2033) |
| Base year | 2022 |
| Forecast Period | 2023-2033 |
| Historical Data | 2021 |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Key Segmentations | Type, Mobility, Cooling System |
| Geographies Covered | North America, Europe, Asia-Pacific, Latin America, Middle East, Africa |
| Key Vendors | Caterpillar, Inc., Cummins, Inc., Rolls Royce plc, Kohler Co., Generac Power Systems, Inc., Southwest Products, Atlas Copco AB, FG Wilson, Denyo Co., Ltd. and Kirloskar Electric Company |
| Key Market Opportunities | • Backup Power for Data Centers and Critical Infrastructure • Growing Demand in Healthcare and Emergency Services |
| Key Market Drivers | • Increasing Demand for Backup Power • Cost-Effectiveness and Efficiency |
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Diesel Generator Market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Diesel Generator Market historical market size for the year 2021, and forecast from 2023 to 2033
- Diesel Generator Market share analysis at each product level
- Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Diesel Generator Market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
