Europe Diesel Generator - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Europe Diesel Generator Market size is estimated at USD 693.68 million in 2025, and is expected to reach USD 843.97 million by 2030, at a CAGR of greater than 4% during the forecast period (2025-2030).

Key Highlights

• In the medium period, the market is expected to be driven by the need for diesel generators in standby applications. These generators are needed in many fields, including industrial, construction, medical, and off-grid applications.
• The growing use of renewables as an alternative power source, both on-grid and off-grid, is likely to slow the market's growth over the next few years.
• Nevertheless, with the increasing shift toward renewable energy sources, European consumers are looking for efficient and environmentally safe options, such as hybrid diesel generators that incorporate renewable sources like solar. This, in turn, is expected to create significant opportunities for the market players in the near future.

Europe Diesel Generator Market Trends

The Industrial Segment is Expected to Dominate the Market

• The industrial segment, which includes mining, manufacturing, agriculture, and construction, uses more than half of the energy that will be used over the next few years.
• The largest amount of energy is used by the industrial sector, which includes mining, manufacturing, agriculture, and construction. Because of this, the demand for diesel generators is likely to go up as these industries, especially healthcare, pharmaceutical, and manufacturing facilities, need more and more power that is always on and reliable.
• Therefore, the increasing demand for continuous and reliable power supply in industries like pharmaceuticals and manufacturing facilities is expected to escalate the demand for diesel generators. Industrial operations mainly depend on electricity generated from diesel generators during power outages (to avoid operation downtime) and in regions with limited grid access.
• As of 2023, Europe was the second-largest producer of steel in the world after Asia-Pacific. According to the World Steel Association, in 2023, the European Union produced 126.3 million tonnes of steel. The steel industry is a major consumer of power and requires a large amount of reliable energy for steel manufacturing. Many countries like Germany still use diesel generators for the steel industry, which are the backbone of the country's development work.
• In the next few years, both the United Kingdom and Russia are likely to see growth in their industrial sectors. This is because the manufacturing sectors in both countries are growing quickly, which is likely to increase the demand for diesel generators in the industrial sector.
• Furthermore, government initiatives to expand the industrial sector, especially in the United Kingdom and Turkey, are expected to propel the demand for diesel generators during the forecast period.

The United Kingdom is Expected to Dominate the Market

• The United Kingdom is one of the most developed countries in the world and one of the most industrialized countries in Europe. With an ever-increasing demand for energy, various sectors of the economy also need an uninterrupted power supply.
• The United Kingdom's national grid requires a backup power source when there is a peak demand. The National Grid Electricity Transmission (NGET) has been using diesel generators (DG) sets to accommodate this peak demand and provide backup power to substations for key activities such as cooling fans, pumps, and lighting, enabling it to continue to perform its crucial role in the electricity transmission system.
• Backup generators are used at over 250 NGET sites across England and Wales, the majority of which are diesel-powered. These systems provide NGET with the resilience to recover from a loss of power supply event.
• The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power backup devices. Various sectors, such as agriculture, telecommunication, and construction, within the United Kingdom regularly utilize generators.
• Construction activity around the country has been increasing in the past few months. According to the government of the United Kingdom, in 2023, 175.5 orders were placed for new housing public, which has been continuously increasing since 2018. The rise in construction activities is expected to create demand for diesel generators during the forecast period.
• The UK agriculture sector is large and covers more than 60% of the country's total land area. Although the country's power grid is increasingly dependent on renewable sources, the agriculture industry is more interested in the power backup system. It is becoming more dependent on diesel generator systems, which is driving the market.
• More than 40% of the data centers in Europe are present in the United Kingdom and consume a significant amount of power. The data center uses a diesel generator to meet the demand for electricity during a power cut. As of 2023, there were 513 data centers active in the United Kingdom.
• The country is expected to witness more data centers in the coming years, increasing the demand for diesel generators.

Europe Diesel Generator Industry Overview

The European diesel generator market is moderately fragmented. Some of the major players in the market are Caterpillar Inc., Mitsubishi Heavy Industries Engine & Turbocharger Ltd, FG Wilson Engineering (Dublin) Ltd, Cummins Inc., and Yanmar Holdings Co. Ltd.

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