Commercial Diesel Gensets Market

Commercial Diesel Gensets Market Size

The global commercial diesel gensets market was valued at USD 11.5 billion in 2024 and is expected to reach USD 25.6 billion in 2034, growing at a CAGR of 8.3% from 2025 to 2034. Increasing stringency of environmental compliances, cost reduction, energy efficiency and focus on cleaner sources are amongst the most instrumental trends shaping industry growth.

Flourishing real sector along with ongoing expansion of commercial establishments will continue to drive the diesel gensets demand. Increasing severity & frequency of weather-related disasters have significantly necessitated the adoption of these units. For instance, the International Energy Agency reported that diesel generators contribute to approximately 6% of global electricity generation during power outages.

The potential use of these units has experienced a significant transition from merely being a supplementary power source to an indispensable necessity across a multitude of applications. The growing demand for continuous and reliable power supply from various end-users including healthcare facilities, data centers and others will stimulate the product adoption.

The occurrence and severity of these natural calamities have spiked dramatically over the past decade, causing prolonged blackouts, which in turn will institute a favorable business scenario. For instance, the frequency of weather-related disasters has increased fivefold over the past 50 years, resulting in prolonged power outages and creating favorable conditions for commercial diesel gensets market growth.

Rising incidences of power outages and the need for backup power in critical applications are key factors fueling the adoption of these units. The diesel gensets industry has exhibited incremental technology advances, most notably in terms of emission compliances, engine modifications, and noise reduction.

Ongoing technological advancements have improved the efficiency and emission standards of these generators, making them more environmentally friendly and appealing to businesses looking to ensure operational continuity. For reference, Aggreko unveiled its latest innovation, the POWERMX range, featuring Stage V multi-engine generators designed for flexible, reliable, and clean power delivery in May 2024.

Commercial Diesel Gensets Market Trends

Ongoing expansion of mobile towers to cater to the requirements of a compounding subscriber base will further propel the business scenario. The proliferation of commercial complexes and retail stores has significantly corresponded to an increased demand for a consistent power supply across the globe. For instance, in 2024, the value of commercial real estate market was valued at USD 1,914.1 in Europe.

The generator sets market is experiencing steady growth driven by increasing demand for reliable backup power in sectors including healthcare, data centers, retail, hospitality and construction. The industry is witnessing a surge in demand due to frequent power outages caused by aging grid infrastructure, extreme weather events, and the rising need for uninterrupted business operations.

The construction sector is a major end-user of these gensets as to meet power requirements for the uninterrupted operation of jobsite tools and equipment. These units are vital for supplying power to work sites where electricity is not available and are essential for restoring services, following storms & other disasters. For instance, in 2023, the construction industry accounted for about 6.8 percent of China's gross domestic product (GDP).

The resurgent demand from the healthcare sector along with the rising demand from data centers on account of increased data usage from commercial establishments will significantly favor the infiltration of these units. The industry growth is further ascribed to the growing dependency of businesses on digitization and IT, which require continuous & uninterrupted power supply, which in turn will offer the significant opportunities for commercial diesel gensets market expansion.

Surging demand from data centers on account of increasing data usage through social networking and smartphones, government projects and e-commerce platforms will significantly favor the adoption of these capacities across the industry landscape. For instance, the data center power demand accounted for up to 60% of total load growth across the U.S.

Commercial Diesel Gensets Market Analysis

• The commercial diesel gensets industry was valued at USD 9.6, 10.5 and 11.5 billion in 2022, 2023 and 2024 respectively. Based on power rating, the market is segmented into  ≤ 50 kVA, > 50 kVA - 125 kVA, > 125 kVA- 200 kVA, > 200 kVA - 330 kVA, > 330 kVA - 750 kVA and > 750 kVA. These units are gaining momentum on account of increasing power failures, intensifying natural disasters, and aging grid infrastructure.
  
• The ≤ 50 kVA commercial diesel gensets market will grow at a CAGR of over 8% till 2034. The strengthening of the consumer propensity and awareness toward reliable and & affordable backup power solutions are largely instrumental in accelerating the expansive deployment of these gensets to a wider spectrum of application areas.
  
• For instance, according to the International Energy Agency, global electricity demand is set to grow by 3% annually through 2030. This rising demand, coupled with increasing power outages, is driving the adoption of gensets as reliable backup power solutions across various sectors, including residential, commercial, and industrial applications.
  
• The market for > 50 kVA - 125 kVA commercial diesel gensets was valued at over USD 2 billion in 2024, on account of high applicability driven by the requirement for backup and prime power across commercial complexes, telecom towers, hotels, and educational institutions.
  
• For instance, the Asia Pacific region saw USD 131 billion in commercial real estate investments in 2024. The region experienced a 10% year-on-year growth, with investment volumes reaching USD 34.9 billion in Q4 2024, marking the fifth consecutive quarter of annual expansion.
  
• The infrastructure development & and ongoing construction boom is the emerging as one of the catalysts of the > 125 kVA - 200 kVA commercial diesel gensets market. These form an integral part of the construction industry for the day-to-day operations and the overall completion of a project.
  
• The Middle East has witnessed significant infrastructure development, with investments exceeding USD 1 trillion in the past decade. The key projects include Saudi Arabia's NEOM city, valued at USD 500 billion, and the UAE's ongoing expansion of its transportation network. These initiatives aim to boost economic diversification and enhance regional connectivity by 2030.
  
• The > 200 kVA - 330 kVA power rated diesel gensets industry continues to expand as the demand intensifies from large scale healthcare buildings and data centers with high-power requirements and remote areas where grid supply is inaccessible. Strengthening need for power solutions with quick and automatic start-up and optimum reliability will further expand the use of these units.
  
• The ongoing recovery of the construction industry, improved business, and a favorable economic environment with low-interest rates will stimulate investments in the sector, accelerating the > 330 kVA - 750 kVA rated gensets market. Subsequently, the trend of new housing construction will continue to boost the demand for these generator sets across the region.
  
• The > 750 kVA commercial diesel gensets market is poised to gain an appreciable growth on account of the surging demand from data centers. Moreover, rising costs of data center outages & downtimes have imparted a guiding force for the wide scale commercialization and adoption of gensets.
  
• For instance, the Middle East see over 70% of enterprises adopting cloud computing, fueling the demand for data centers in 2024. Governments are heavily investing in digital infrastructure, with Saudi Arabia allocating USD 1.2 billion for tech initiatives under Vision 2030 and the UAE advancing its Smart Dubai strategy to enhance digital connectivity.
  

• Based on application, the market is segmented into standby, peak shaving and prime/continuous. The standby commercial diesel gensets market was accounted for 47.5% share in 2024, on account of grid damage from increasing weather-related disasters or inefficacy of electrical infrastructure to endure an increased demand load.
  
• For citation, the UAE has been making significant strides in infrastructure development with investments reaching a staggering USD 100 billion in 2023 alone. This surge in spending is part of the nation's broader vision to bolster its infrastructure, aiming for a 30% increase in capacity by 2030.
  
• Peak shaving commercial diesel gensets market will grow at a CAGR of over 8% through 2034. It is defined as the process of reducing the amount of energy purchased from the utility company during the hours of peak demand. The utility firms have demand-based variable pricing, and the pricing is highest during peak hours.
  
• For reference, Germany's power sector is undergoing a significant revolution, with renewable energy sources playing an increasingly dominant role. In 2023, renewables accounted for over 45% of the country's electricity consumption, a notable rise from 42% in 2022. 
  
• Prime commercial diesel gensets market was valued at over USD 3 billion in 2024. These gensets are primarily employed across remote locations that lack or have limited access to the grid. These are also deployed when there is a limitation on the amount of electric power that can be drawn from the grid.
  
• Prime generators typically represent an expensive price index than backup units of similar capacities on account of their advanced machinery to handle friction and heat generation for longer-time usage. According to the International Energy Agency, over 600 million people in Sub-Saharan Africa lack access to electricity.
  

• U.S. commercial diesel gensets market size surpassed USD 1.11 billion in 2024. The introduction of rigorous and stringent emission tiers will divert the industry focus on sustainable development. For reference, the nation’s electrical infrastructure is susceptible to frequent and unpredictable power failures as it dates to the 1950s.
  
• The inability of electrical grids to sustain an amplified demand load along with recent occurrences of severe hurricane events, notably the Hurricane Irma and Hurricane Harvey, has contributed to significant industry expansion across North America. Moreover, the dire need to facilitate continuous power supply to across data centers and ongoing development of colleges and universities will drive the commercial diesel gensets market outlook.
  
• The continued low economic growth across the European region is being simultaneously countered with several key factors sustaining the market potential for gensets in the region. These include an expansive growth of data centers infrastructure, low diesel prices on account of declining oil prices, and rising infrastructure investments.
  
• Flourishing real estate sector coupled with increasing infrastructural investments will positively impact the business landscape. For instance, in 2024, Germany, the UK, and France accounted for nearly half of Europe's commercial real estate market, making them the largest markets in the region.
  
• The Asia Pacific commercial diesel gensets market is set to reach over USD 8.2 billion by 2034. The expansion of commercial and retail complexes has significantly corresponded to an increased demand for consistent power supply. For instance, India is poised to witness an extensive deployment of these gensets on account of the dynamic expansion of telecom infrastructure and frequent power failures in the country.
  
• Ongoing expansion in the regional infrastructures and growing focus toward economic diversification will proliferate the Middle East commercial diesel gensets market. The upcoming megaprojects will necessitate the wide scale deployment of these gensets to support the robust construction activities.
  
• The inadequacy of utility grids to cater to the burgeoning population has firmly gripped the African countries, thereby entailing the extensive usage of gensets. The region’s grid-based power supply is insufficient to cater to the electricity demand in sub-Saharan Africa.
  
• The Latin America commercial diesel gensets market dominated 21% revenue share in 2024. Increasing electricity demand accompanied by elevating economic development and expanding urbanization will continue to escalate over the years, resulting into additional opportunities for the regional gensets market. For citation, the industry is witnessing a surge in urbanization, with over 80% of its population now residing in urban areas.
  

Commercial Diesel Gensets Market Share

• The top 5 players including Ashok Leyland, Caterpillar, Cummins, Rolls-Royce and Wärtsilä together holds share of about 45% in the commercial diesel gensets industry. Caterpillar is considered a worldwide frontrunner in the design and manufacturing of diesel generator sets. Caterpillar gensets are rigorously tested in terms of productivity, efficiency, and deliverable power. Caterpillar diesel generators are applicable in industrial and commercial sectors and serve as primary or standby diesel power plants.
  
• Wärtsilä focuses on power solutions providing innovative diesel generator sets for industrial, marine and power plant utilizations. The company offers cutting-edge engineering diesel gensets which are well known for their reliability while remaining fuel efficient and eco-friendly. Such gensets are ideal for continuous and standby operations which makes them suited for data centres, remote sites, and industrial installations.
  
• Ashok Leyland has made a name for itself within the virtual frameworks of diesel generator sets, providing economic power solutions for a plethora of purposes. In the same way, Ashok Leyland’s genset products are used in construction, healthcare, telecommunication, and in other commercial industries due to reliable engineering and durability of the product.
  

Commercial Diesel Gensets Market Companies

• Atlas Copco, reported USD 16.9 billion in revenue in 2024. The company boosts their generator (genset) strategies by giving priority to sustainability, efficiency, and conformance to the new environmental policies. The firm is modernizing its diesel generators to these new emissions standards to ensure less emission and impact on the environment.
  
• Cummins aims to improve its generator strategies by concentrating on sustainability and efficiency while adhering to changing environmental regulations. The demand for power generators has surged due to unprecedented electricity generation during the peak summer months. This spike in demand has led to a 31% increase in the company’s quarterly profit as of August 2024.
  
• Generac Power Systems reported revenues of USD 3.1 billion in third quarter of 2024. The firm launched remarkable technologies as the Gemini twin genset, which incorporates two 375-kilowatt generators into one shell, and therefore provides 750 kilowatts of energy.
  

Major players operating in the commercial diesel gensets market are:

• Aggreko
• Ashok Leyland
• Atlas Copco
• Caterpillar
• Cummins
• Deere & Company
• FG Wilson
• Generac Power Systems
• HIMOINSA
• Huu Toan
• J C Bamford Excavators
• Kirloskar Oil Engines
• Kohler Co.
• Mahindra Powerol
• Mitsubishi Heavy Industries
• Powerica
• Rolls-Royce
• SUDHIR POWER
• SUPERNOVA GENSET
• Wartsila  
  

Commercial Diesel Gensets Industry News

• In June 2024, Atlas Copco added new features to its QES diesel generator series by incorporating power nodes from 20 0kVA to 500 kVA. The QES range now offers dependable solutions. Extensive testing improved their resistance to harsh weather while the canopy ensured durability in extreme conditions. The Canopy is waterproof and corrosion resistant. The generators were also designed for ease of use, featuring plug-and-power capability, with models above 250 kVA supporting synchronization for parallel and load sharing.
  
• In June 2024, Rolls-Royce upgraded the MTU Series 1600, increasing power output by up to 49% to enhance performance, operational flexibility, and life-cycle efficiency for energy supply. The advanced 12-cylinder MTU Series 1600 Gx1 diesel engine delivered dependable power solutions for critical infrastructure, including airports, data centers, hospitals, and remote off-grid operations.
  
• In May 2024, Aggreko introduced what is said to be the newest addition, a Stage V MULTI power modular generator new model series. Said innovation the company uses a flexible, multi-engine POWERMX range and multi-level POWERMX3 generator components. The crown jewel of home range includes a 1.35MVA tri engine POWERMX3 generator located in ISO container which houses two 20 foot pods. Its chassis also supports a dual power 1.25MVA enclosure stage V POWERMX2 generator. These generators were crafted for high demand industrial sectors and operate under stringent fuel, emission, and resilience parameters by use of a load-on-demand system.
  
• In April 2024, Wärtsilä relocated their Indian Expertise Center with the intention of giving remote service to their Middle Eastern and Asian energy and marine clients. This Expertise Centre will function as an operational focal point, synthesizing all types of available information to improve service delivery. Wärtsilä’s pledge to undergo digital transformation enables the company to utilize advanced tools to improve asset utilization and client engagement.
  

The commercial diesel gensets market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (Units) from 2021 to 2034, for the following segments:

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Market, By Power Rating

• ≤ 50 kVA
• > 50 kVA - 125 kVA
• > 125 kVA - 200 kVA
• > 200 kVA - 330 kVA
• > 330 kVA - 750 kVA
• > 750 kVA

Market, By End Use

• Telecom
• Healthcare
• Data Centers
• Educational Institutions
• Government Centers
• Hospitality
• Retail Sales
• Real Estate
• Commercial Complex
• Infrastructure
• Others

Market, By Application

• Standby
• Peak Shaving
• Prime/Continuous

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Russia
  • UK
  • Germany
  • France
  • Spain
  • Austria
  • Italy
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Vietnam
  • Philippines
  • Myanmar
  • Bangladesh
• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Turkey
  • Iran
  • Oman
• Africa
  • Egypt
  • Nigeria
  • Algeria
  • South Africa
  • Angola
  • Kenya
  • Mozambique
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile