23 Jul, 2026
According to Straits Research the global genset market was valued at $25.79 billion in 2025 and is anticipated to grow from $27.14 billion in 2026 to $40.87 billion by 2034, registering a CAGR of 5.25% during the forecast period 2026–2034.
Gensets are engines or machines that convert mechanical energy into electrical energy. Generators can power critical appliances including heaters, air conditioners, water pumps, home medical devices, as well as other household items that require power during an interruption, such as cellular telephones, televisions, and office equipment, among others. UPS backups have started to pose tough competition to generators.
Gensets finds a multitude of applications in areas such as housing units and apartments as power backups for essential building services, including elevators, water pumps, and lobby and stairwell lighting in the residential sector. According to the Electrical Generating Systems Association (EGSA), 87% of generators sold are used for residential and recreational applications, while the remaining 13% are used in commercial and industrial applications.
In this study on the gensets market, we have classified the global market into up to 100kVA, 100–350kVA, 350–1000kVA, and above 1000KVA on the basis of power rating. 350–1000kVA gensets are likely to hold the highest market share, owing to their widespread utility in a number of applications. Generators with higher power ratings find use in heavy-duty applications such as cement mixing, borewell digging, and other construction activities.
Broadly, gensets are powered by diesel, natural gas, and propane. Diesel generators lead the market in terms of volume, owing to their extensive use in the commercial sector. In the hospitality sector, gensets – specifically diesel gensets – are widely used in hotels and resorts. According to ministry of New and Renewable Energy Government of India, Diesel based captive power generation accounts for 40% for captive load in India.
With voracious demand for generators from both residential and commercial sectors, Asia-Pacific is projected to dominate the global gensets market during the forecast period. New residential buildings in the region are equipped with backup generators for the uninterrupted operation of elevators, water pumps, and others equipment. Population growth and subsequent rise in electricity consumption are augmenting the growth of the residential application segment in Asia-Pacific.
The Middle East and Africa region is witnessing considerable growth, backed by the abundant availability of fuel. Additionally, leading construction players in the region are focusing on acquiring new, green building projects, which is further providing impetus to market growth.
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