Commercial Gensets Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Fuel (Diesel, Natural Gas and CNG), By Portability (Stationary and Portable), By Power Rating (Up to 100KVA, 100-350KVA, 350-1000KVA, and Above 1000KVA), By Application (Agricultural, Construction, Forestry, Industrial, Pumps & Power Generation), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 17.09 Billion
CAGR (2026-2031)	7.81%
Fastest Growing Segment	Forestry
Largest Market	North America
Market Size (2031)	USD 26.83 Billion

Market Overview

The Global Commercial Gensets Market is projected to grow from USD 17.09 Billion in 2025 to USD 26.83 Billion by 2031 at a 7.81% CAGR. Commercial generator sets are integrated power systems combining an internal combustion engine with an electrical alternator to provide reliable energy for non-residential sectors such as healthcare, data centers, and retail complexes. The primary drivers fueling market expansion include the critical necessity for uninterrupted business operations amidst increasingly unstable utility grids and the rapid digitization of global industries requiring constant energy availability. These fundamental necessities ensure sustained demand for backup power solutions independent of broader technological shifts.

However, the industry faces significant impediments arising from stringent environmental regulations aimed at decarbonization that necessitate costly engineering modifications to reduce exhaust emissions. Despite these regulatory hurdles, the demand for conventional power generation remains substantial in major markets. According to the China Internal Combustion Engine Industry Association, in 2025, the sales volume of diesel engines specifically for power generation applications reached 476,500 units. This volume underscores the enduring reliance on combustion-based backup power even as the sector navigates the transition toward cleaner energy standards.

Key Market Drivers

The rapid expansion of hyperscale and edge data centers constitutes a paramount driver for the global commercial gensets market. As industries increasingly rely on artificial intelligence and cloud computing, the requirement for absolute uptime in data processing facilities has necessitated the installation of robust backup power systems. These facilities demand high-capacity generator sets to bridge utility gaps and ensure continuous operations, as even momentary power losses can result in substantial financial and data integrity losses. The scale of this infrastructure build-out is creating an unprecedented pull for commercial power generation equipment. According to JLL, March 2025, in the 'North America Data Center Year-End 2024 Report', data center absorption totaled 4.4 GW in 2024, representing a quadruple increase in capacity demand since 2020. This massive growth in digital infrastructure directly correlates with the rising procurement of large-scale diesel and gas generators.

Escalating grid instability and weather-related power outages further solidify the dependence on commercial backup power solutions. Aging utility infrastructure, compounded by the increasing frequency of extreme weather events, has exposed significant vulnerabilities in public power grids, compelling businesses to seek independent energy security. Commercial entities, ranging from retail chains to telecommunication providers, are aggressively investing in on-site generation to mitigate the operational risks posed by prolonged blackouts. The financial impact of this trend is evident in the performance of key industry players. According to Generac Holdings Inc., February 2025, in the 'Fourth Quarter and Full-Year 2024 Results', domestic segment sales increased 20% year-over-year, driven primarily by shipments resulting from elevated power outage activity. Reflecting the broader strength of the sector, according to Cummins Inc., in 2025, Power Systems segment sales reached $1.7 billion in the fourth quarter of 2024 alone, fueled by sustained demand for power generation applications.

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Key Market Challenges

The stringent environmental regulations aimed at decarbonization present a formidable obstacle to the growth of the global commercial gensets market. Manufacturers are compelled to invest heavily in research and development to engineer compliant propulsion systems, such as integrating complex exhaust after-treatment hardware. These necessary technical modifications significantly inflate production costs, which are subsequently passed on to the end-user. Consequently, the higher acquisition price for compliant units often leads to deferred capital expenditure by businesses, directly dampening the rate of new equipment uptake.

This economic strain creates observable volatility in sales performance as the industry struggles to adjust to stricter standards while maintaining affordability. The market's fragility in the face of these pressures is evident in recent fluctuations within major manufacturing hubs. According to the China Internal Combustion Engine Industry Association, in May 2025, the sales volume of the diesel engine market recorded a month-on-month decline of 16.2%. Such instability highlights the difficulties the sector faces in sustaining consistent momentum while navigating the financial and operational hurdles imposed by evolving global emission protocols.

Key Market Trends

The Transition to Hydrotreated Vegetable Oil (HVO) and Biodiesel Compatible Engines is reshaping the market as enterprises seek immediate decarbonization solutions without discarding existing infrastructure. Unlike complex hydrogen retrofits, HVO serves as a drop-in replacement for fossil diesel, allowing commercial operators to drastically lower net carbon emissions while maintaining the reliability of combustion-based backup power. This shift is particularly evident in critical sectors like data centers, where sustainability targets are becoming as prioritized as uptime availability. According to Rolls-Royce Power Systems, December 2024, in the press release 'Rolls-Royce, AVK Hit Generator Milestone', the company sold and supplied over 500 HVO-powered mtu generator sets to the data center market in 2024, providing nearly 1.3 GW of standby power capacity.

Simultaneously, the Emergence of Hydrogen-Ready and Multi-Fuel Engine Technologies is gaining momentum as a strategy to future-proof long-term capital investments against evolving regulatory standards. Manufacturers are increasingly designing natural gas generators that can operate on blended fuels today and convert to 100% hydrogen in the future, thereby preventing asset stranding during the global energy transition. This capability allows facility owners to secure reliable thermal and electrical power using abundant natural gas while establishing a clear pathway to net-zero operations. According to INNIO Group, August 2024, in the press release 'INNIO Group Ready for H2 engines selected to modernize Romania's CHP plants', the company secured a project to revamp two power plants delivering 85 MW of electrical energy using engines capable of converting to 100% hydrogen operation.

Segmental Insights

The Forestry segment is currently recognized as the fastest-growing vertical within the Global Commercial Gensets Market, primarily driven by the intensifying mechanization of logging operations in remote, off-grid regions. As the industry adopts advanced harvesting machinery and on-site processing equipment, the necessity for robust prime power solutions to sustain isolated base camps and maintenance workshops has surged. Furthermore, the emerging transition toward electric forestry equipment is creating a critical new demand for mobile charging generators, ensuring operational continuity in environments where utility infrastructure is unavailable.

Regional Insights

North America maintains a dominant position in the Global Commercial Gensets Market, driven by the critical need for uninterrupted power supply across the commercial and industrial sectors. The region faces challenges with aging utility grid infrastructure and frequent weather-related disruptions, necessitating robust backup power solutions to ensure business continuity. Additionally, stringent emission regulations enforced by the Environmental Protection Agency mandate the use of compliant technologies, directly influencing procurement strategies. This strong regulatory environment, coupled with substantial investments in data centers and healthcare infrastructure, secures the region's prominence in the global landscape.

Recent Developments

• In October 2025, Atlas Copco introduced the EPH series of modular hybrid power generators, positioning the product as a cost-effective and sustainable alternative to traditional diesel-only units for off-grid commercial operations. These hybrid systems integrated a diesel engine with a battery energy storage system, allowing the generator to operate on silent battery power during periods of low load. The company reported that this intelligent configuration could reduce fuel consumption by up to 90 percent and significantly lower carbon dioxide emissions. The launch targeted sectors requiring reliable temporary power, such as construction and events, by optimizing engine runtime and extending maintenance intervals.
• In June 2025, Cummins Inc. expanded its Centum Series product line with the launch of the S17, a new 17-liter engine generator set capable of producing up to 1 megawatt of power. The company designed this model to offer high power density within a compact footprint, addressing the space constraints often faced by urban commercial properties and healthcare facilities. The S17 generator set was engineered to support fuel flexibility, including the use of hydrotreated vegetable oil (HVO), and underwent extensive testing to ensure reliability for critical power needs. This development aimed to reduce the total cost of ownership for commercial clients while meeting stringent emission standards.
• In December 2024, Caterpillar Inc. introduced the Cat G3500K series of gas generator sets, aimed at providing high-efficiency power solutions for commercial and industrial facilities. The first model in this series, the G3520K HR, was released with a power rating of 2.5 MW and was engineered to deliver a quick response time, capable of synchronizing with the grid in approximately 4.5 minutes. This performance improvement was designed to assist customers in minimizing downtime and effectively managing peak energy demands. The series also emphasized fuel flexibility and reduced operating costs, making it suitable for combined heat and power (CHP) applications in demanding environments.
• In October 2024, Himoinsa launched the HGY Series, a new line of generator sets designed specifically for mission-critical applications such as data centers, hospitals, and mining operations. Developed in collaboration with its parent company, the new series features engines that deliver power outputs ranging from 1250 kVA to 3500 kVA, with future plans to reach 4000 kVA. The generators were engineered to meet the rising demand in the global data center market and include exhaust after-treatment systems to comply with European emissions regulations. The units are also prepared for alternative fuels, including hydrotreated vegetable oil (HVO), gas, and hydrogen, supporting sustainability goals in the commercial power sector.

Key Market Players

• Aggreko Ltd
• Ashok Leyland Limited
• Caterpillar Inc.
• Cummins Inc.
• Generac Holdings Inc.,
• Atlas Copco Group
• Briggs & Stratton, LLC
• Deere & Company
• HIMOINSA SL
• Honda Motor Co., Ltd.

By Fuel	By Portability	By Power Rating	By Application	By Region
Diesel Natural Gas CNG	Stationary Portable	Up to 100KVA 100-350KVA 350-1000KVA Above 1000KVA	Agricultural Construction Forestry Industrial Pumps & Power Generation	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Commercial Gensets Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Commercial Gensets Market, By Fuel:

• Diesel
• Natural Gas
• CNG

• Commercial Gensets Market, By Portability:

• Stationary
• Portable

• Commercial Gensets Market, By Power Rating:

• Up to 100KVA
• 100-350KVA
• 350-1000KVA
• Above 1000KVA

• Commercial Gensets Market, By Application:

• Agricultural
• Construction
• Forestry
• Industrial
• Pumps & Power Generation

• Commercial Gensets Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE