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

The Diesel Generator Market is expected to register a CAGR of 5.37% during the forecast period.

Key Highlights

• Over the medium period, the increasing demand for uninterrupted and reliable power supply and increased demand from the commercial sector, including the healthcare industry, is expected to drive the diesel generator market.
• On the other hand, the growing demand for generators based on alternative fuels, such as natural gas and biofuels, is expected to restrain the diesel generator market growth.
• Nevertheless, the commercial and industrial sectors in emerging economies, the residential sector in developed economies, and the increasing need for power in defence operations are expected to create significant opportunities for market participants in the near future.
• Asia-Pacific is the fastest-growing market during the forecast period due to the rising energy demand, with a majority of the demand coming from countries such as China and India.

Diesel Generator Market Trends

The Industrial Sector to Dominate the Market

• The industrial sector accounted for the largest share of the diesel generator market. Industrial operations mainly depend on electricity generated from diesel generators during power outages (to avoid production risks) and in regions with limited grid access.
• The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for any end user's largest share of energy consumption. Therefore, the increasing demand for continuous and reliable power supply from these industries, especially healthcare facilities, pharmaceutical industries, and manufacturing facilities, is expected to escalate the demand for diesel generators.
• Many different industries, like the construction industry, require a reliable source of electricity. Such industries make up a large user base for backup generators. With the growth of such sectors globally, the demand for backup generators is expected to increase further during the forecast period.
• China and India are expected to witness robust industrial growth in the coming years because of the sharp increase in the manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.
• According to global steel production, China is the world leader in crude steel production, with 77.9 million metric tonnes produced in December 2022, a 10% decrease from the previous year. India, Japan, the United States, and Russia trail far behind, which makes it a massive market for diesel generators, as the steel industry is extremely energy-intensive, and its operations are highly dependent on power generated from diesel generators during power outages.
• Furthermore, government initiatives to expand the industrial sector, especially in China and India, are expected to propel the demand for diesel generators over the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific dominated the global diesel generator market in 2022 and is expected to continue its dominance during the forecast period.
• China is the leading diesel generator market in the Asia-Pacific region, owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the country, and rising commercial office spaces. The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power backup devices.
• Moreover, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) and IT-enabled services, existing manufacturing units across the country, and the dedicated 'Made in China' initiative launched by the Chinese central government, are expected to drive the diesel generator market in the country.
• The Indian government focuses on improving the economy through increased infrastructure spending, mainly on roads, railways, and metro rail. With a new metro rail policy on the anvil and every large city in India looking to construct a metro rail network, diesel generators have immense growth opportunities in metro rail projects.
• On the other hand, in February 2022, A subcommittee of the government's air quality council removed the ban on diesel generator sets in Delhi-NCR today, effective immediately. The panel reported that air quality has improved recently and is anticipated to improve further in the coming days.
• Also, in Indonesia, the increasing power blackouts have significantly hampered the manufacturing sectors, which has increased the adoption of diesel generators in the country to ensure a continuous and reliable power supply. Due to frequent blackouts in these areas, South Sumatra and Jakarta are the key contributing areas for the growth of the diesel generator market in Indonesia.
• Therefore, based on the above-mentioned factors, Asia-Pacific is expected to dominate the global diesel generator market during the forecast period.

Diesel Generator Industry Overview

The diesel generator market is moderately fragmented. Some of the major players in the market (in no particular order) include Caterpillar Inc., Generac Holdings Inc., Kohler Co., Cummins Inc., and Atlas Copco AB, among others.

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