Commercial Gensets Market Size – By Power Rating, By Fuel, By End Use, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Commercial Gensets Market Size

The global commercial gensets market was valued at USD 15 billion in 2024 and is expected to reach USD 30.8 billion by 2034, growing at a CAGR of 7.5% from 2025 to 2034. Rising demand for efficient backup power systems in line with increasing infrastructure development projects primarily across the developing nations will augment the industry landscape.
 

Robust expansion of data centers requiring uninterrupted electricity supply along with rising adoption of energy efficient power backup solutions in commercial spaces will energize the business scenario. Supportive governmental policies, funds, and regulatory compliance towards disaster alleviation, energy security and environmental sustainability will boost commercial gensets market penetration.
 

Ongoing development of healthcare facilities requiring reliable emergency power and innovations in fuel efficiency improving genset performance in association with increasing need for compliance with noise regulations in commercial areas will escalate the product demand. The growing adoption of smart systems in conjunction with emerging technologies used in product design will proliferate the business momentum.
 

Implementation of energy efficiency standards and growing mandates for backup power in critical infrastructure facilities in line with AI-based predictive maintenance technology will escalate commercial gensets market growth. Increasing frequency of grid failures and blackouts coupled with rising demand for cost-effective power solutions in emerging economies will fortify the demand for generator sets.
 

The increase in the installation of telecommunications towers that require off-grid power combined with the rising demand for gensets in government and municipal buildings will enhance the business outlook in the region. Moreover, these units will be adopted due to the increasing power outages experienced from hurricanes and storms.
 

Commercial Gensets Market Trends

The global fuel and energy production and supply activities shall continue to grow on the backdrop of increased concern towards energy security and challenge in the reliability of the grids, making it more diversified. Commercial real estate, telecom, and hospitality sectors are adopting these technologies for better fuel management, maintenance scheduling, and performance monitoring, all of which will accelerate the deployment of the product.
 

Rising adoption of hybrid power solutions in commercial spaces coupled with growing research and development investment to advance technological development of gensets will amplify the business potential. The construction of smart cities, mega commercial hubs, and mixed-use developments along with rising government incentives for low-emission fuel is increasing the demand for gensets.
 

The continued growth of the regional infrastructure and increasing attention to economic diversification will boost the need for these gensets. The slow pace of electrical grids carrying an increased demand load in conjunction with rising demand for emergency preparedness solutions has greatly boosted the commercial gensets market growth.
 

Increasing joint ventures between genset manufacturers and energy providers along with growing investment in genset-as-a-service models will augment the business landscape. Increasing awareness of genset lifecycle sustainability in association with growing demand for net-zero power solutions in commercial buildings will enhance the business outlook.
 

Commercial Gensets Market Analysis

• The commercial gensets industry was estimated at USD 12.7, 13.9 and 15 billion in 2022, 2023 and 2024 respectively. Based on fuel, the diesel segment is projected to grow at a CAGR of over 6.5% till 2034. Its ability to provide high power output, longer operational hours, and better load handling capabilities will elevate product demand.
   
• The gas commercial gensets market is projected to reach over USD 8 billion by 2034. stricter environmental regulations and rising consumer demand for greener solutions in conjunction with the growing availability of liquefied and compressed natural gas infrastructure will proliferate the industry growth.
   
• For instance, the current value of the liquefied natural gas exportation capacity of North America is estimated to more than double from 11.4 Bcf in 2023 to 24.4 Bcf in 2028 owing to 10 projects under development in the U.S., Canada, and Mexico. The U.S. leads the expansion with 9.7 Bcf, while Canada and Mexico follow with 2.5 Bcf and 0.8 Bcf respectively. These advancements will further promote the region’s status in the global LNG market and improve its energy security as well as export competitiveness.
   
• The hybrid commercial gensets market is projected to grow at a CAGR of over 10% till 2034, driven by the global transition toward renewable energy integration and the need for fuel efficiency optimization. The increasing adoption of digital twin technology in hybrid genset systems will further elevate the business potential.
   
• For instance, in 2023, IEA estimated that the total spending in energy would have risen to USD 2.8 trillion, USD 1.7 trillion of which was spent on modern energy technologies such as renewables, nuclear power, renewable energy super grids, and low emission fuels.
   

• Based on end use, the industry is segmented into telecom, healthcare, data centers, educational institutions, government centers, hospitality, retail sales, real estate, commercial complex, infrastructure and others. The data centers commercial gensets market has dominated a market share of 34.9% in 2024.
   
• The rising volume of data creation along with the adoption of cloud computing and digital transformation initiatives, has amplified the demand for these gensets. Moreover, rising demand for gensets with regenerative braking features will enhance the business landscape.
   
• For instance, in 2025, U.S. announced USD 20 billion foreign investment to construct new data centers. This investment will initially cover the U.S. states including Arizona, Texas, and Ohio. The investment carried by DAMAC properties to amplify the digital infrastructure across the country.
   
• The telecom commercial gensets market is projected to reach over 1.5 billion by 2034. The increasing need for reliable and uninterrupted power supply in the telecommunications sector along with the development of more fuel-efficient and eco-friendly models will enhance the business outlook.
   
• The healthcare commercial gensets industry will showcase about 8% growth rate up to 2034. The hospitals, clinics, and other healthcare facilities depend on these systems to maintain the functionality of critical medical equipment during power disruptions, ensuring patient safety and the quality of care. The escalating investments in healthcare infrastructure, particularly in developing nations, will contribute to the expansion of industry.
   
• For instance, in 2024, Canada allocated over USD 40 million to a project spearheaded by CENGN to strengthen the telecommunications sector. The investment will fund a living lab program and 5G testbed focused on developing AI-powered network technologies and 5G applications. Those projects are aimed at improving efficiency, enabling digital transformation, and fostering eco-friendliness mainly in manufacturing and infrastructure areas.
   
• The educational institution application of commercial gensets market was valued at over USD 650 million in 2024. The government funding and initiatives to upgrade educational infrastructure, particularly in locations where power reliability is a serious issue will spur industry growth.
   
• The government centers commercial gensets is projected to grow at a CAGR of over 7% through 2034. Government buildings such as administrative offices, emergency centers, and public service offices depend greatly on uninterrupted power to ensure smooth operations, maintain security protocols, and provide public safety.
   
• The hospitality commercial gensets market is projected to hit USD 5 billion by 2034. Advanced genset technologies offer efficiency, reduced emissions, and noise control are especially attractive to hospitality businesses seeking to improve guest comfort and sustainability efforts.
   
• For instance, in December 2024, the U.S. construction spending stood at a seasonally adjusted annual rate of around USD 2,000 billion, up 0.5% from November and 4.3% compared to December 2023. Moreover, the public construction spending increased 9.3% year on year to USD 492.7 billion, while educational construction was up 8.5% to USD 105.2 billion.
   
• The retail sales commercial gensets market will witness an upsurge owing to surging expansion of retail establishments comprising of stores, shopping malls, and supermarkets. Additionally, innovations in generator technology, characterized by improved fuel efficiency, reduced emissions, and quieter operation, are propelling this business growth.
   
• The real estate commercial gensets market is set to grow at a CAGR of over 8% through 2034. Developers are spending on high capacity gensets with intelligent load management to provide uninterrupted power supply to elevators, HVAC systems, security infrastructure, and core business operations, thereby boosting the product demand.
   
• For instance, in 2024, the Australian government has declared the investment of more than USD 15 billion towards new and ongoing infrastructural developments considering the growth of the country’s cities.
   
• The commercial complex gensets market will gain an appreciable momentum on account of surging development of AI-based failure prediction and integration of demand-side response technologies. Ongoing expansion of insurance-backed genset protection plans will further proliferate the business growth.
   
• The infrastructure commercial gensets market is predicted to showcase about 9% CAGR between 2025 and 2034, driven by increasing urbanization rate and the increasing incidence of power grid failures, underscoring the essential role of gensets in maintaining the reliability and functionality of critical infrastructure.
   

• U.S. commercial gensets market was assessed at USD 1.3, 1.4 & 1.5 billion in 2022, 2023 and 2024 respectively. Surge in smart city projects and development of gensets with adaptive load-sharing features in line with rising investment in energy resilience programs will augment the business momentum.
   
• The North America commercial gensets industry will witness a CAGR of over 6% up to 2034. The increasing expenses from data loss center outages and downtimes is expanding the use and commercialization of these gen sets. In addition, growing demand for power solutions requiring quick automatic start up and extreme reliability are bound to propel the industry growth.
   
• For instance, in 2025, the President of U.S. revealed a USD 20 Billion investment plan to put up data centers across the country. This is purported to improve the data infrastructure development needed for the increasing demand of generative AI applications. This investment is further aligned with trends in the sector such as Microsoft’s USD 80 billion investment in AI, strengthening its competition as a premier technology investment region. The data center industry is expected to benefit as well.
   
• The Europe commercial gensets market was evaluated at over USD 1 billion in 2024. The robust development of commercial complexes and retail stores globally has boosted the demand for these units. Furthermore, increasing circular economic initiatives will elevate the business scenario.
   
• For instance, in 2023, the European Commission updated the circular economy monitoring framework by adding new sustainability tracking indicators. The revised version includes the new measures of material efficiency defined through a resource productivity metric, material footprint, and a consumption footprint metric evaluating if EU consumption respects the planetary boundaries.
   
• The Asia Pacific commercial gensets market is set to reach over USD 18 billion by 2034. The resurgence in demand from the healthcare sector combined with the growing demand for carbon-neutral genset solutions, will notably boost the adoption of these units. Increasing innovations in gensets technology comprising of improved engine designs, better cooling systems, and enhanced control mechanisms, thereby propelling the business outlook.
   
• For instance, India's Union Budget 2023-24 reinforced the healthcare sector with substantial funding for the Ayushman Bharat scheme, the world’s largest government-funded healthcare initiative, targeting coverage for over 500 million people. Additionally, India's healthcare innovation market witnessed significant expansion, reached USD 7 billion in FY 2023. This growth is driven by increasing investments in digital health, AI-powered diagnostics, and advanced medical technologies.
   
• The Middle East market for commercial gensets is poised to grow at a CAGR of over 8% from 2025 to 2034. The growing consumer demand and the increasing awareness of dependable and budget-friendly backup power services have greatly assisted in the rapid expansion of the use of these generators to a broad range of users.
   
• The Africa commercial gensets market is set to grow owing to rising chronic power shortages in commercial areas and increasing foreign direct investment in energy-intensive sectors. Additionally, the growing need for uninterrupted power in medical laboratories and research centers will escalate the industry potential.
   
• For instance, according to IEA, energy investment in the Middle East is projected to reach about USD 175 billion in 2024, with clean energy comprising around 15% of the total outlay. Under the Announced Pledges Scenario (APS), clean energy investment is expected to more than triple by 2030 compared to 2024, reflecting the region’s accelerating shift towards sustainable energy solutions.
   
• The Latin America commercial gensets industry is anticipated to witness significant growth on account of rising demand for power backup in high-density commercial hubs and increasing trade activities requiring energy resilience. Furthermore, growing demand of these gensets in decentralized data storage centers will amplify the business scenario.
   

Commercial Gensets Market Share

• The top 5 players including Ashok Leyland, Caterpillar, Atlas Copco, Deere & Company, Honda Motor together holds share of about 40% in the commercial gensets industry. Atlas Copco has introduced fuel-efficient, quiet diesel gensets to its portfolio. For example, in June 2024, Atlas Copco expanded its offering of QES diesel generators by adding reliable power nodes in increments of 20 0kVA all the way to 500 kVA. The all-weather canopy which is corrosion resistant and impact resistant assured protection during harsh conditions, and rigorous testing helped improve durability against tough weather conditions.
   
• Honda generators are well known for their exceptional fuel consumption, low emissions, and noise levels. This makes them ideal for standby power support and portable power use. Many of its generators are fitted with sophisticated inverter technology which offers stable and clean power that is ideal for sensitive electronics and precision instruments.
   
• Deere & Company specializes in the production of top quality generator sets that can be used for different purposes. The diesel engines used in the gensets are dependable because of their great stamina, fuel economy, and powerful energy generation. These generators are expertly constructed to perform exceptionally well in harsh conditions while also serving as reliable prime and standby power sources.
   

Commercial Gensets Market Companies

• Caterpillar has reported USD 64.8 billion in revenue in 2024. The company invested USD 2.1 billion in research and development sector in 2024. Moreover, its profit before tax reached USD 13.4 billion in 2024, a 2.3% increase as compared to 13.1 billion in the previous year.
   
• Deere & Company has reported USD 51.7 billion in net sales in 2024. The company operated in production & precision agriculture, small agriculture & turf, construction & forestry, and financial services segment. Among the segments, its construction and forestry segment generated USD 13 billion in net sales in 2024.
   
• Cummins has reported USD 34.1 billion in net sales in 2024. The operating income of the company reached USD 3.8 billion in 2024, a surge of 113% as compared to 1.8 billion last year. Furthermore, the EBITDA of the company reached USD 6.3 billion in the year 2024.
   

Major players operating in the commercial gensets market are:

• Aggreko
• Ashok Leyland
• Atlas Copco
• Briggs & Stratton
• Caterpillar
• Cummins
• Deere & Company
• FG Wilson
• Generac Power Systems
• HIMOINSA
• Honda Motor
• Huu Toan
• Kirloskar
• MAHINDRA POWEROL
• MITSUBISHI HEAVY INDUSTRIES
• Rolls-Royce
• Sudhir Group
• Wartsila
• Yamaha
• Yanmar
   

Commercial Gensets Industry News

• In September 2024, Cummins launched the Retrofit Aftertreatment System (RAS), which allowed customers to retrofit their current CPCBII and CPCBI gensets to comply with new emission standards. The indigenously developed system effectively cut particulate matter, carbon monoxide, and hydrocarbon emissions by as much as 90%.
   
• In April 2024, Atlas Copco introduced a fresh line of compact nitrogen membrane generators with four variants—NM 2000-25, NM 500-25, NM 1000-25, and NM 3000-25—to cover various needs in nitrogen production for small, medium, or high-volume applications. The NM range features innovative membrane technology, ensures maximum energy efficiency, and has nitrogen purity output levels up to 99%, providing personalized solutions to industry specifications.
   
• In April 2024, Cummins has introduced additionally two newer set generators, the C2750D6E and C3000D6EB within its Centum series featuring the mighty QSK78 engine. These units fulfilled a market gap by supplying up to 2750 kW and 3000 kW, respectively, for demanding load applications such as data centers and hospitals. They characterized fast start capabilities with strong load acceptance and dependable operation in harsh ambient conditions while featuring compact designs to save space.
   
• In January 2024, Caterpillar has launched the DG450 compact natural gas genset. This is a 450-kW, low NOx power solution designed for non-emergency operations in EPA designated non-attainment zones across the US. It has been developed to meet tough environmental directives, and this generator exceeds expectations with regard to efficiency and dependable power supply while addressing the growing needs for green energy in regions with weak air quality standards.
   

The commercial gensets market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (‘000 Units) & revenue (USD Million) 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 Fuel

• Diesel
• Gas
• Hybrid

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