Diesel Generator Market to Hit $31.8 Billion by 2030

"The report delivers a deep dive into the diesel generator market, analyzing key segments such as power rating, application, and end user, while exploring regional trends, emerging technologies, patent activity, and strategies from leading companies amid shifting global economic conditions."

Boston, Jan. 15, 2026 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research, the “Global Diesel Generator Market" is expected to grow from $22.2 billion in 2025 to reach $31.8 billion by the end of 2030, at a compound annual growth rate (CAGR) of 7.5% during the forecast period of 2025 to 2030.

This report offers an overview of the global diesel generator market, highlighting its current size, projected growth, and major trends. It breaks down the market by power ratings, applications, and end users, and provides regional analysis for the Americas, Europe, Asia-Pacific, and the Middle East and Africa. The analysis includes technological advances, companies’ ESG initiatives, and macroeconomic influences like U.S. tariffs and raw material costs. Additionally, it evaluates competitive strategies and market shares of leading companies, making it a valuable resource for understanding the industry's direction and dynamics.

This report is especially relevant now due to the increasing global demand for cleaner, more sustainable, and reliable energy solutions. Technological advances in diesel engines and generator sets are addressing environmental concerns by offering improved power output, quieter operation, and reduced emissions. Additionally, the rise of hybrid power systems, valued for their cost effectiveness and efficient resource use, reflects a shift in energy strategies. These trends make the report timely and valuable for stakeholders looking to navigate the evolving energy landscape.

The factors driving the market’s growth include:

Technological Advances in Diesel Generator Components: Innovations in engine design, fuel efficiency, emission control, and digital monitoring systems have improved the performance and environmental impact of diesel generators. These advancements make gensets more reliable, efficient, and compliant with stricter regulations.

Increasing Number of Data Centers and Hyperscale Data Centers: The rapid growth of cloud computing, digital services, and AI applications has led to a surge in the number of data centers worldwide. These facilities require uninterrupted power to maintain operations, making diesel generators a critical backup solution to ensure reliability and prevent data loss during outages.

Demand for Continuous Power Supply Due to Increasing Frequency of Power Outages: With rising instances of grid instability and extreme weather events, businesses and communities are seeking dependable power sources. Diesel generators provide a solution for continuous power supply, especially in regions with unreliable electricity infrastructure.

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Report Synopsis

Interesting facts:

• There is continuous research on increasing the range of possible generator acoustics, such as active noise reduction techniques, similar to those used in high-end headphones. Other researchers are examining different fuel sources that could lower emissions and noise levels. The integration of IoT components allows remote monitoring and control, with certain systems automatically adjusting performance based on energy needs and environmental conditions. These advances indicate that future diesel generators will be more efficient and quieter than today’s models.

• The Asia Pacific region accounted for 35% of the global diesel generator market in 2024, with China accounting for the majority of the region’s market. China is both a major manufacturer and consumer of diesel generators. Together, India and China are the two most populous countries, leading to increased demand for power sources due to frequent power outages. To meet this growing demand, diesel generators play an important role as backup solutions for manufacturing plants, commercial applications, data centers, mining operations, and other industries.

Emerging startups:

• Kapture: The company has developed low-cost, user-friendly technology that captures CO2 emissions from diesel generators before they are released into the atmosphere.

• Chakr Innovation: Headquartered in India, the startup offers retrofit solutions to reduce emissions from diesel generators.

The report addresses the following questions:

1. What are the projected size and growth rate of the market?

• The market is projected to reach $31.8 million by 2030, growing at a CAGR of 7.5%.

2. What factors are driving the growth of the market?

• These factors include advances in diesel generator components and the growing demand for a continuous power supply amid increasing power outages.

3. What are the challenges and opportunities of the market?

• The opportunities include an increasing number of datacenters and hyperscale datacenters, and integration of Internet of Things (IoT) based diesel generator monitoring systems.
• The major challenges include the lack of availability of alternative power backup solutions and stringent government regulations. 

4. What market segments are covered in the report?

• The market is segmented by power rating, portability, application, end user, and region.

5. Which power rating segment will be dominant through 2030?

• By power rating, the 51 kW to 280 kW segment is expected to dominate the market through 2030.

6. Which region has the largest market share in the market?

• Asia-Pacific holds the largest share of the market.

Market leaders include:

• AGGREKO
• ATLAS COPCO GROUP
• BRIGGS & STRATTON
• CATERPILLAR
• CUMMINS INC.
• DISCOVERY ENERGY LLC. DBA REHLKO
• DOOSAN BOBCAT
• GENERAC POWER SYSTEMS INC.
• HIMOINSA
• INTERNATIONAL SOCIETY OF BAUDOUIN MOTORS
• KIRLOSKAR OIL ENGINES LTD.
• MITSUBISHI HEAVY INDUSTRIES ENGINE SYSTEM ASIA PTE. LTD.
• ROLLS-ROYCE PLC
• WESTQUIP DIESEL SALES
• YAMAHA MOTOR CO. LTD.

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