U.S. Diesel Genset Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Market Overview

The U.S. diesel genset market generated revenue of USD 2,458.7 million in 2023, which is expected to witness a CAGR of 4.2% during 2024-2030, to reach USD 3,261.8 million by 2030.

The market growth is propelled by the growing need for a reliable and uninterrupted power supply and the frequent cases of power blackouts in the country. Moreover, while the construction of commercial office buildings, hotels, and homes accelerates, the subsequent increase in power backup requirements reinforces the demand for gensets.

Since 2015, the interest in environmentally friendly diesel generators has been on the rise in the U.S. because people are now considering the emission of greenhouse gases and the carcinogenic nature of the exhausts of diesel generators. The U.S. Environmental Protection Agency's (U.S. EPA) Tier 4 exhaust standards for non-road engines, which were fully implemented in 2015, resulted in the emergence of a new generation of diesel backup power generators.

The set standards have significantly reduced NOX (for over 56 kW engines) and PM (for over 19 kW engines) emissions from diesel gensets. These plants adhering to these standards are more powerful and reliable and they generate cleaner power compared to older generators. The requirement for companies and organizations for continuous energy has been pitted against the need to combat global warming by exploiting renewable energy.

Key Insights

During the projection period, the backup power category is projected to advance at 4.5% CAGR and hold the largest industry share.

This development can be credited to rising installations of diesel gensets in many institutions for power backup.

Installations are propelled by old electricity grid infrastructure, natural calamities, and opposing weather conditions.

Generators powered by diesel are preferred for low cost and easy availability.

In 2023, the stationary bifurcation held a 70% market share, growing at 4.6% CAGR from 2024-2030.

Growth through increased productivity by different scenarios like house societies, business buildings, data centers, and so on.

The applications extend to many areas including, but not limited to, manufacturing, refining of oil & gas, transportation, and aviation.

During the projection period, the residential category is projected to grow at 4.7% CAGR.

Boosted by the rising residential industry and augmented use of generators below 80 kW.

Used as power backup solutions for devices such as water pumps, purifiers, and geysers in homes.

The 150-199 kVA category was the revenue leader in the US diesel genset market in 2023.

Expected CAGR of over 5.0% during the forecast period.

Demand is driven by residential societies, telecom towers, small offices, and retail outlets.

Usage in response to aging and inefficient power grid system, countering power cuts.

The diesel genset market is consolidated with a few key players.

Extensive product launches are undertaken by industry players for competitive advantage.

Caterpillar Inc. introduced nine new Cat GC diesel generators in November 2021.

These generators are designed for medium- to large-sized stationary standby applications.

The models range from 800 kW to 1250 kW for 60 Hz applications in North America.