Generator Market to Exceed $74.1 Billion by 2032, Driven by Rising Power Reliability Needs

Increasing Power Outages and Infrastructure Growth Fuel Generator Market Expansion

WILMINGTON, DE, UNITED STATES, November 4, 2025 /EINPresswire.com/ --

According to a new report published by Allied Market Research, the global generator market size was valued at $45.9 billion in 2022 and is projected to reach $74.1 billion by 2032, growing at a CAGR of 4.8% from 2023 to 2032. The increasing frequency of power outages, industrial expansion, and the growing need for energy reliability across residential and commercial sectors are driving significant growth in the global generator industry.

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📈 Key Findings of the Study

Diesel generators are projected to grow at a CAGR of 5.2%.

350 kVA–1000 kVA voltage range leads and is expected to grow fastest.

Continuous power applications dominate global demand.

Industrial end-users remain the largest consumer group.

Asia-Pacific continues to be the largest and fastest-growing regional market.

🔋 The Role of Generators in Modern Power Systems

Generators play a vital role in ensuring uninterrupted power supply during outages, supporting both critical infrastructure and household applications. From residential homes to large industrial facilities, generators offer dependable backup power, helping to minimize downtime and prevent operational losses.

Modern generators are highly versatile and scalable, available in a wide range of sizes and power outputs to suit different energy requirements. In off-grid and remote locations, generators remain the most practical solution for maintaining power continuity where grid connectivity is limited or unavailable.

Many generators feature automatic start systems that activate immediately when power disruptions occur, ensuring seamless transitions and improved energy resilience.

🌱 Market Drivers: Reliability, Industrialization & Renewable Integration

The generator market growth is largely fueled by increasing concerns over power reliability amid rising global energy demand. Frequent blackouts, aging grid infrastructure, and natural disasters have heightened the need for backup power systems.

Additionally, as industries and businesses expand, the requirement for continuous and stable energy has intensified. Generators also complement renewable energy systems, serving as a backup power source during periods of low solar or wind energy production.

The growing adoption of hybrid and cleaner fuel technologies is transforming the market, reducing emissions while improving operational efficiency. Moreover, the need to electrify rural and remote regions is creating new growth opportunities for generator manufacturers.

⚠️ Challenges: Cost, Maintenance, and Environmental Concerns

While the generator market continues to expand, certain challenges persist. High-quality generators require significant capital investment, and installation and maintenance costs can further increase the total expenditure.

Generators rely on fuels such as diesel, gasoline, or natural gas, which contribute to emissions and require consistent refueling. In environmentally sensitive or residential areas, noise and exhaust emissions are major concerns.

Regular maintenance is also essential to ensure reliable performance, which adds to the long-term operational costs. Despite these challenges, innovations in hybrid systems, noise reduction technologies, and clean fuel alternatives are helping mitigate these issues.

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🔧 Market Segmentation Insights

The global generator market is segmented based on type, voltage rating, application, end-use industry, and region, offering a detailed view of market opportunities:

By Type

Diesel, gas, propane, dual fuel, and hybrid generators.

The diesel segment accounted for the largest share in 2022 and is projected to grow at a CAGR of 5.2% during the forecast period, owing to its efficiency and widespread industrial adoption.

By Voltage Rating

Below 100 kVA, 100 kVA–350 kVA, 350 kVA–1000 kVA, and above 1,000 kVA.

The 350 kVA–1000 kVA range dominated the market in 2022 and is expected to expand rapidly, catering to large-scale industrial and commercial projects.

By Application

Backup power, continuous power, and peak shaving power.

The continuous power segment led the market in 2022 and is anticipated to maintain its dominance, driven by manufacturing and process industries that require uninterrupted energy flow.

By End-Use Industry

Residential, commercial, and industrial.

The industrial segment held the largest market share in 2022 and is expected to continue its leadership, with a CAGR of 5.0% through 2032, supported by robust industrialization and infrastructure expansion.

By Region

North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa).The Asia-Pacific region dominated the global market in 2022 and is forecast to grow at the highest CAGR during the projection period. Rapid urbanization, infrastructure projects, and rising energy consumption in countries like China, India, and Indonesia are fueling regional demand.

🏢 Key Market Players

Prominent companies operating in the generator industry include: Caterpillar, General Electric, Kirloskar Oil Engines Ltd., Generac Holdings Inc., Kohler Co., Aksa Power Generation, Su-kam, Cummins Inc., ABB Ltd., and Mitsubishi Electric.

These key players are focusing on collaborations, technology development, and regional expansion to strengthen their market position and meet the growing global demand for reliable power solutions.

🧾 International Standards Shaping the Generator Market

The generator market adheres to several international standards to ensure quality, efficiency, and safety:

IEC 60034 Series – Covers rotating electrical machines and sets performance benchmarks.

ISO 8528 Series – Specifies testing and performance requirements for reciprocating internal combustion engine generator sets.

ISO 8528-1 to ISO 8528-10 outline performance criteria, testing procedures, and classifications for various generator configurations, including diesel, gas turbine, and steam-powered systems.

Compliance with these standards ensures global uniformity and reliability, encouraging international trade and adoption.

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🌟 Conclusion

The generator market is set to witness robust growth driven by energy reliability demands, rapid industrialization, and rural electrification efforts. As countries modernize their infrastructure and adopt cleaner technologies, generators will continue to play a pivotal role in ensuring uninterrupted power supply and operational efficiency.

With ongoing innovations in hybrid power systems and fuel-efficient technologies, the global generator industry is well-positioned to support the world’s transition toward a more reliable and sustainable energy future.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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