Peak Shaving Generator Sets Market Size – By Fuel, By Power Rating, By End Use, Analysis, Share, Growth Forecast, 2024 – 2032

Peak Shaving Generator Sets Market Size

The global peak shaving generator sets market was valued at USD 10.6 billion in 2023 and is estimated to grow at a CAGR of 7.4% from 2024 to 2032, driven by the increasing demand for efficient energy management solutions particularly in commercial sector where energy consumption often experiences significant fluctuations. Furthermore, growing emphasis on sustainability along with flourishing construction sector will drive the business potential.
 

Peak shaving generator sets are used to reduce electrical demand charges by generating power on-site during peak usage periods, rather than drawing from the grid. When facilities experience spikes in energy demand, these generators activate to manage the excess load, preventing a surge in utility costs. By using these systems, companies can significantly reduce their overall energy expenses, improve energy reliability, and decrease strain on the local power grid, especially during high-demand times.
 

Peak Shaving Generator Sets Market Trends

The peak shaving generator sets industry will gain an appreciable momentum in account of increasing demand for reliable backup power sources and cost savings in energy management. Increasing energy prices coupled with growing awareness around demand-side energy management will fuel demand for these solutions. Additionally, technological advancements in generator efficiency and automation are helping companies manage energy loads with greater precision aligning with global trends toward more sustainable & cost-effective power solutions, accelerating the industry landscape.
 

Peak Shaving Generator Sets Market Analysis

The diesel peak shaving generator sets industry will exceed USD 12 billion by 2032. These generators can serve as emergency power sources during outages, enhancing product adoption. Additionally, industries are showing interest in hybrid models that combine diesel with renewable energy systems to optimize fuel use and reduce carbon footprints. The rise of digitization and IoT integration within generator sets is also contributing to smarter monitoring, remote operation, and enhanced maintenance capabilities, further stimulating the business scenario.
 

The > 75 kVA - 375 kVA peak shaving generator sets market size will witness about 7% growth rate from 2024 to 2032. These generator sets play a crucial role in managing electricity demand, allowing businesses to reduce their peak load during high-demand periods and avoid costly utility fees. The rising awareness of energy efficiency, coupled with stringent regulatory mandates on carbon emissions, is further propelling the adoption of these systems.
 

U.S. peak shaving generator sets market is set to reach over USD 4 billion by 2032. Ongoing technological advancements in generator technology including improved efficiency and lower emissions is set to energize the business landscape. The rise of distributed energy resources and regulatory incentives for energy storage solutions are set to further propel the adoption of peak shaving generator sets across a wide tandem of applications. Increasing energy demand, rising electricity prices and the growing requirements for grid reliability will positively impact the industry landscape.
 

Government initiatives promoting sustainable energy practices coupled with investments in infrastructure development will propel the Asia Pacific peak shaving generator sets market. Increasing urbanization rate in line with robust investment across the commercial & industrial sectors will escalate the industry potential. The growing emphasis on sustainable energy practices is pushing organizations to integrate hybrid systems, combining traditional generator sets with renewable energy sources. Government initiatives promoting energy efficiency, and the reduction of carbon footprints further support business expansion.
 

Peak Shaving Generator Sets Market Share

The manufacturers in the peak shaving gensets industry are adopting several key strategies to enhance efficiency and competitiveness. The companies are continuously focusing on expanding their product portfolios by developing hybrid gensets that combine traditional fossil fuel engines with renewable energy sources, thus catering to the growing demand for sustainable energy solutions. Strategic partnerships and collaborations with energy service companies are being pursued to provide comprehensive energy management solutions, further driving business growth.
 

Peak Shaving Generator Sets Market Companies

Major players operating in the peak shaving generator sets industry are:

• Ashok Leyland
• Atlas Copco Group
• Caterpillar
• Cummins
• Generac Power Systems
• Greaves Cotton
• Himoinsa
• Kirloskar
• Kohler
• Mahindra Powerol
• Mitsubishi Turbocharger and Engine Europe
• Rolls-Royce
• Sterling Generators
• Supernova Genset
• Wartsila
   

Peak Shaving Generator Sets Industry News

• In April 2024, Cummins introduced two new gensets models, the C2750D6E and C3000D6EB, as part of their acclaimed centum series. Featuring the powerful QSK78 engine, these generators deliver outputs of 2,750 kW and 3,000 kW, respectively. Engineered for critical applications such as data centers and healthcare facilities, they provide fast start performance, robust load handling, and can operate in high ambient conditions. Their compact design ensures space efficiency and maximum power output. Approved for use with paraffinic fuels, including HVO, these models exemplify Cummins' dedication to innovation, reliability, sustainability, and low emissions in power solutions.
   
• In May 2023, Cummins unveiled the Marine Diesel Cummins Turbo (MDCT) genset. This genset offers two options for auxiliary engines, the low kW Cummins B4.5 engine for ratings of 40 kWe – 80 kWe, and the other high kW version for ratings of 80 kWe – 110 kWe. The MDCT genset is equipped with the Onan Digital Display, providing user-friendly diagnostics that include comprehensive engine and alternator information, ensuring a smooth experience for customers on the water. The versatility of the MDCT genset makes it suitable for marine applications, catering to various recreational needs.
   

This peak shaving generator sets 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 2032, for the following segments:

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Market, By Power Rating

• ≤ 75 kVA
• > 75 kVA - 375 kVA
• > 375 KVA - 750 kVA
• > 750 kVA

Market, By End Use

• Commercial
• Industrial

Market, By Fuel

• Diesel
• Gas
• Others

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
• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Türkiye
  • Iran
  • Oman
• Africa
  • Egypt
  • Nigeria
  • Algeria
  • South Africa
  • Angola
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile