Global Gensets Market Insights of Size and Share by Type, by Application, by Region and Player and Forecast from 2024 to 2029

1. Gensets Market Trends and Forecast

The market size of the global gensets market will be $39.99 billion in 2024 with a CAGR of 3.29% from 2024 to 2029.

The development of digitization and the exponential expansion of data center infrastructure will promote the growth of the genset market. The rapid deployment of gensets as a financial service company, and the backup power supply between insurance companies and IT services will have a positive impact on business scenarios. The ability to effectively back up power interruptions (including power outages or voltage fluctuations) will accelerate the deployment of gensets. The increasing reliance on digitization and the continuous increase in the cost of data center downtime will greatly promote the popularity of gensets. The rapid development of the data center industry is always accompanied by significant growth in the global market.

In terms of multi-functions, there are precise positioning of angular stop, coolant through the hollow, and air seal at the shaft end. In terms of intelligence, it is mainly manifested in various safety protection and fault monitoring and diagnosis measures, such as temperature monitoring, generator overload and overheating protection, vibration signal monitoring and fault abnormal diagnosis, automatic compensation for axial position changes, automatic control, and damage signal monitoring Wait. At present, many gensets are equipped with diagnostic modules, and maintenance personnel can read data through infrared interfaces, identify overloads, and count the working life. Therefore, the genset will develop in the direction of multi-function and be more intelligent.

Global Gensets Market Size (B USD)

2. Market Driving Forces

Electricity demand in emerging economies

The power demand of emerging economies usually exceeds the maximum power generation, leading to power shortages. This situation opens up markets for other sources of power generation (such as gensets). Economic conditions are representative of market sentiment. A positive economy means that the market is booming, while the industrial sector etc. is booming. Generating sets usually requires additional power to support and sustain this growth, which is ideal for meeting power demand quickly. Therefore, positive economic conditions have promoted the development of the genset business.

3. Market Challenges

Constraints on certification requirements

Many countries have relevant policy restrictions on the import of gensets, which limits the free sales of the genset industry to a certain extent. For example, products exported to EU countries must pass CE safety certification; diesel gensets exported to the United States must pass U.S. EPA emission certification, some American importers also require products to obtain UL safety certification; India has also implemented emissions and safety for imported diesel gensets Vietnam has regulations restricting the import of single-cylinder diesel gensets; Nigeria requires SONCAP conformity assessment.

Technical requirements

The genset market has continuously improved product requirements. In addition to increasing requirements for economy and power, the requirements for product life and reliability are also increasing. For example, developed countries in Europe and the United States have higher requirements for vibration and noise; Africa and the Middle East have put forward anti-aging and moisture-proof requirements for the cooling system of single-cylinder diesel gensets; while low-temperature areas have higher requirements for starting performance. In addition, due to rising oil prices, low fuel consumption has also been mentioned by most customers.

4. Market Segment

By type, the Diesel segment accounts for the largest share in 2024.

Diesel: Diesel genset is a kind of power equipment that drives a synchronous generator to generate electricity with a diesel engine as the prime mover. This is a power-generating device with quick start-up, convenient operation and maintenance, low investment, and strong environmental adaptability. The market value in 2024 is $22.6 billion, with the market share declining to 56.74%, due to growth including increased demand for reliable power supply and expansion in the industrial sector.

Natural Gas: Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, hydrogen sulfide, or helium. It is formed when layers of decomposing plant and animal matter are exposed to intense heat and pressure under the surface of the Earth over millions of years. The energy that the plants originally obtained from the sun is stored in the form of chemical bonds in the gas. The market value is expected to be $6167.5 million in 2024, with a slight increase in market share to 15.31%, due to growth including increased demand for clean energy.

Wind: Wind gensets include wind wheels and generators; the wind wheels contain blades, hubs, reinforcements, etc.; they have the functions of rotating blades to generate electricity and rotate the head of the generator. The market value is expected to be $9466.4 million in 2024, increasing the market share to 23.69%, mainly due to the promotion and application of renewable energy.

By application, the Industrial segment occupied the biggest share from 2018 to 2022.

Residential: Generally, the genset used in households does not exceed 10kw. The general requirements are low fuel consumption, low noise, and environmental protection. Residential gensets are mainly air-cooled integrated diesel gensets.

Commercial: Commercial gensets are used to provide on-site power generation in the event of a power failure grid power is unavailable or the cost is too high. They are manufactured by combining industrial-size diesel or Wind engines or “prime movers” with alternators. The alternator converts the mechanical energy generated by the engine into electrical energy, which then powers the application.

Industrial: Industrial gensets are very different from residential models. These gensets must withstand extreme use for long periods under non-ideal conditions. From 150 hp to 4000 hp gensets, the output power ranges from 20 kW to 2500 kW, and the types of industrial gensets are also different. The market value is expected to be $18.7 billion in 2024, increasing the market share to 46.59%, due to the strict requirements of industrial production for the stability of power supply.

Market Value by Segment

5. Regional Market

North America will dominate the Gensets market in 2024.

With the acceleration of industrialization, urbanization, and population growth, the demand for energy and electricity in North America continues to rise. North America has an aging grid infrastructure, which has led to an increased need for emergency backup power solutions. Due to the frequent occurrence of natural disasters, such as hurricanes, floods, earthquakes, etc., as well as the instability of power supply, the demand for generator sets in the North American market has increased significantly. The United States has rich natural gas resources, which provides a raw material guarantee for natural gas energy projects, especially in the field of distributed gas turbine power generation, the United States has a leading advantage in the world.

North America has a first-mover advantage in generating set technology, and the government’s policy support for new energy, nuclear power, and other generating sets, such as power generation subsidies under the framework of the Inflation Reduction Act, has also promoted the development of the market. Rising environmental concerns in North America are driving the demand for clean energy solutions, including the use of hybrid generators, variable frequency generators, and dual-fuel generators. The market value of this region will be $13.6 billion in 2024.

China gensets industry has made remarkable achievements in technological innovation and product research and development, especially in the field of new energy generator sets, such as wind power and solar power generation, Chinese enterprises have increased investment in research and development and promoted the technological progress and industrial upgrading of the industry. With the rapid development of the economy and the acceleration of the industrialization process, the demand for power supply in various industries is increasing, especially the demand for efficient, stable, and reliable power supply equipment is growing. China’s inverter generator has a certain competitiveness in the international market, and domestic enterprises have gradually won the recognition of the international market through technological innovation and quality improvement.

Global Gensets Market Size  by Region in 2024

6. Market Competition

Gensets sale companies are mainly from North America and Europe; the industry concentrate rate is not high. The top three companies are Caterpillar, VESTAS, and Siemens with a revenue market share of 23.26% in 2024.

Caterpillar: Caterpillar is a heavy industrial equipment manufacturing company headquartered in Deerfield, Illinois, USA. Its main products include agricultural, construction, and mining engineering machinery and diesel engines, natural gas engines, and gas turbine engines. Caterpillar is one of the major players operating in the Gensets market, holding a share of 8.51% in 2024.

VESTAS: Vestas is the energy industry’s global partner in sustainable energy solutions. They design, manufacture, install, and service wind turbines across the globe, and with more than 108 GW of wind turbines in 80 countries, they have installed more wind power than anyone else.

Siemens: Siemens is a global powerhouse focusing on the areas of electrification, automation, and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis.

GOLDWIND: GOLDWIND is a renewable energy company focused on the design and manufacture of wind turbine systems and is engaged in wind power plant investment, development, and wind power-related services.

Cummins: Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust after treatment, fuel systems, controls, and air handling systems.

7. Recent Development

In May 2024, Siemens announced the sale of its motor and large drive business, Innomotics, to KPS Capital Partners (KPS) for 3.5 billion euros.

In November 2024, ABB announced that it had signed an agreement to acquire Aurora Motors, which will significantly enhance NEMA’s product line and strengthen its industrial motor product portfolio in the global market, and the transaction is expected to close by the end of fiscal 2024.

Major Players