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

Europe Diesel Gensets Market Size

The Europe diesel gensets market was valued at USD 4 billion in 2024 and is estimated to grow at a CAGR of 6.6% from 2025 to 2034. Significant investments in the real estate sector along with a thriving residential market are set to drive the business growth. For instance, Europe allocated over USD 350 billion to commercial real estate development in 2023. The frequency and intensity of natural disasters lead to extended power outages particularly in which in turn will fuel the growth of the industry.
 

Diesel gensets are power generation systems that combine a diesel engine with an electrical generator to produce electricity. They are essential in areas lacking a reliable power grid or during power outages, serving as backup power sources. These gensets are commonly used in critical applications where a consistent power supply is essential including hospitals, data centers, manufacturing facilities, construction sites and as backup power sources for homes and businesses.
 

Europe Diesel Gensets Market Trends

The expansion of data center infrastructure is set to have a positive impact on the industry outlook. The increasing importance of the Internet of Things, mobile technology, and cloud computing will fuel product penetration. The growing need for continuous communication and information sharing along with the rising costs of unplanned outages is significantly boosting the demand for these generator sets. Additionally, the rapid pace of industrialization and insufficient power supply have shifted the focus toward the widespread adoption of DG sets as either backup or primary power sources. Furthermore, large-scale government-backed infrastructure expansion plans in emerging economies will enhance business potential.
 

Europe Diesel Gensets Market Analysis

The ≤ 50 kVA rated diesel gensets industry will exceed USD 1.2 billion by 2034. These gensets are poised for substantial growth owing to the rising consumer preference for affordable and compact power supply solutions. The ongoing work-from-home policies coupled with the growing demand for uninterrupted power will further shape the industry landscape. The growing deployment of these units across various sectors to meet emergency power needs during blackouts will have a positive effect on the business landscape. Rising electricity failures in line with the increasing demand on the main grid will foster industry growth.
 

The prime power diesel gensets market is anticipated to grow at a CAGR of over 6% through 2034. Rapid industrialization along with the strong development of manufacturing facilities will positively impact business dynamics. These gensets offer high efficiency, durability, and the ability to operate for extended periods, making them ideal for environments with unreliable grid access. The growing need for commercial establishments growth coupled with increasing concerns about energy security will propel the industry dynamic.
 

The residential diesel gensets market is experiencing notable growth driven by the increasing demand for reliable power solutions in homes with frequent power outages or unstable grid infrastructure. The affordability, portability, and ease of maintenance offered by diesel gensets make them an attractive option for residential use. Moreover, the growing trend of remote and off-grid living, along with the increasing disposable income will escalate product adoption.
 

Germany diesel gensets market is set to surpass USD 1 billion by 2034. Concerns over power reliability in residential applications have significantly contributed to the growth of these gensets. Additionally, the increasing demand for data centers, which require dependable backup power to safeguard critical data and IT infrastructure, will further boost the industry outlook. In addition, flourishing real estate in line with the strong expansion of the data center sector will favor the industry scenario.
 

Europe Diesel Gensets Market Share

The manufacturers operating in the diesel gensets industry are adopting several key strategies to enhance their competitive edge and meet the growing demand for reliable power solutions. One of the primary strategies is product innovation, where companies focus on improving the efficiency, durability, and fuel economy of their generators to meet the evolving needs of various industries. Additionally, manufacturers are investing in the development of more environmentally friendly gensets by incorporating advanced emissions control technologies to comply with stringent regulatory standards.
 

Europe Diesel Gensets Market Companies

Major players operating in the Europe diesel gensets industry are:

• Ashok Leyland
• Atlas Copco AB
• Caterpillar
• Cummins
• FG Wilson
• Generac Power Systems
• HIMOINSA
• J C Bamford Excavators
• Rehlko
• MAN Energy Solutions
• Mikano International
• Mitsubishi Heavy Industries
• Mitsui E&S Holdings
• Prakash 
• Rolls-Royce
• Siemens
• Wärtsilä
• Yamaha Motor
   

Europe Diesel Gensets Industry News

• In April 2024, Cummins introduced its 15L diesel engine for the Off Highway at Intermat. The Next Generation X15 engine showcased alongside a range of Cummins off-highway technologies at Booth 5a D063, enhances reliability, reduces operating costs, and delivers improved fuel efficiency while lowering emissions. The part of the Cummins HELM platform, the engine offers flexibility with a common base design, allowing customers to choose from advanced natural gas, diesel or hydrogen fuels, tailored to their business needs.
   
• In January 2024, Rolls-Royce extended its MTU Series 1600, boosting power output by up to 49% for energy supply applications. The 12V1600 model is capable of delivering up to 996 kWm, offers the highest power density in its class. This is fueled by renewable diesel (HVO) and it can reduce CO2 emissions by up to 90%. This enhanced Series 1600 is tailored for power generation in critical settings, including data centers, hospitals, and airports, and serves as an ideal solution for remote power plants without access to the public grid.
   

This Europe diesel 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 End Use

• Residential
• Commercial
• Industrial

Market, By Application

• Standby
• Peak Shaving
• Prime/Continuous

The above information has been provided for the following countries:

• Russia
• UK
• Germany
• France
• Spain
• Austria
• Italy