Standby Generator Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Power Rating (≤ 50 kVA, > 50 kVA - 150 kVA, > 150 kVA - 300 kVA, > 300 kVA - 500 kVA, > 500 kVA), By Fuel (Diesel, Gas), By Application (Residential, Commercial, Industrial), By Region, By Competition Forecast 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 8.89 Billion
CAGR (2026-2031)	6.89%
Fastest Growing Segment	Commercial
Largest Market	North America
Market Size (2031)	USD 13.26 Billion

Market Overview

The Global Standby Generator Market will grow from USD 8.89 Billion in 2025 to USD 13.26 Billion by 2031 at a 6.89% CAGR. The Global Standby Generator Market consists of stationary power systems that automatically engage to restore electricity during utility interruptions. Market growth is fundamentally driven by the deterioration of aging grid infrastructure and an increase in severe weather events that compromise energy reliability. Furthermore, the expanding operational necessities of data centers and healthcare facilities for continuous power significantly bolster global demand. According to Eurelectric, in 2025, fossil fuel generation decreased by 89 TWh within the European Union during the prior year, creating a heavier reliance on intermittent renewable sources that necessitates robust backup capabilities.

However, the market confronts a substantial challenge regarding stringent environmental compliance. Authorities are enforcing rigorous emission standards that directly affect the installation of conventional diesel and gas generators. This regulatory landscape forces manufacturers to allocate resources toward expensive compliant technologies, thereby raising initial costs and potentially hindering adoption in cost-sensitive markets. Consequently, adhering to evolving sustainability mandates represents a complex obstacle that could impede broader market expansion.

Key Market Drivers

Rapid expansion of the data center and telecommunications sectors represents a primary catalyst for the Global Standby Generator Market, fueled by the exponential growth of artificial intelligence and cloud computing. These facilities require absolute energy security to maintain uptime guarantees, as even momentary interruptions can result in significant financial losses and operational failures. Consequently, operators are investing heavily in robust backup power systems to bridge gaps during utility failures and manage peak load requirements. According to the International Energy Agency (IEA), January 2024, in the 'Electricity 2024' report, global electricity consumption from data centers, artificial intelligence, and the cryptocurrency sector is projected to double, potentially reaching 1,000 TWh by 2026. This surge in energy intensity necessitates a parallel increase in standby generator procurement to ensure operational resilience against grid limitations.

Rising frequency of severe weather events and natural disasters further accelerates the adoption of standby power solutions across residential and commercial verticals. As climate change intensifies storm severity, utility infrastructures face unprecedented stress, leading to prolonged blackouts that compel consumers to seek independent power reliability. This trend is particularly evident in regions susceptible to hurricanes and extreme temperature variances, where the cost of downtime outweighs the investment in emergency generation. According to Generac Holdings Inc., October 2024, in the 'Third Quarter 2024 Earnings Release', residential product sales increased 28% to $723 million compared to the prior year, driven largely by significant power outage activity from Hurricane Beryl and Hurricane Helene. Reflecting this broader industrial demand for reliable energy, according to Cummins Inc., in 2024, Power Systems segment sales rose 17% to $1.7 billion during the third quarter, highlighting the critical role of backup generation in maintaining continuity.

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Key Market Challenges

Stringent environmental compliance and rigorous emission standards represent a formidable barrier to the growth of the Global Standby Generator Market. Manufacturers are compelled to invest heavily in advanced exhaust aftertreatment technologies to meet increasingly aggressive air quality mandates. These necessary engineering upgrades significantly increase the upfront capital expenditure required for conventional diesel and gas generators, making them less financially viable for small to medium-sized enterprises and budget-constrained facilities. As compliance costs rise, potential end-users in price-sensitive regions often delay or scale back their procurement of backup power systems, directly reducing market penetration rates.

The magnitude of this regulatory pressure is quantifiable within the broader power generation sector, reflecting the scrutiny faced by fossil-fuel systems. According to the North American Electric Reliability Corporation, in its 2024 Long-Term Reliability Assessment, stringent environmental rules and policy pressures are catalyzing the retirement of approximately 115 GW of dispatchable generation capacity over the coming ten years. This significant contraction in fossil-fuel-based infrastructure signals a regulatory environment that is increasingly hostile toward the conventional fuel sources that standby generators rely upon, thereby creating a long-term strategic impediment to market expansion.

Key Market Trends

The Emergence of Virtual Power Plant (VPP) Compatibility is fundamentally transforming standby generators from passive emergency assets into active grid participants. By integrating advanced software and bi-directional connectivity, facility operators can now aggregate their backup power systems to provide ancillary services, such as frequency regulation and peak shaving, back to the utility grid during non-emergency periods. This capabilities-driven shift creates a new revenue stream that offsets the total cost of ownership while enhancing overall grid stability. According to the U.S. Department of Energy, January 2025, in the 'Pathways to Commercial Liftoff: Virtual Power Plants' report, the existing virtual power plant capacity in the United States is estimated to be between 30 GW and 60 GW, highlighting the substantial scale of distributed energy resources now available for intelligent grid orchestration.

Integration of IoT-Enabled Remote Monitoring and Control is simultaneously reshaping the market by establishing intelligent energy ecosystems that prioritize user visibility and system reliability. Manufacturers are embedding Wi-Fi and cellular telemetry directly into generator control panels, allowing homeowners and industrial facility managers to track performance metrics, fuel levels, and maintenance alerts in real-time via mobile applications. This connectivity not only reduces service response times but also drives consumer adoption by positioning the generator as a core component of a smart energy management strategy. According to Generac Holdings Inc., February 2025, in the 'Fourth Quarter and Full-Year 2024 Results' report, the company’s residential product sales increased 18% to $2.43 billion for the full year, a growth trajectory significantly supported by the expanding deployment of connected home standby units and energy management solutions.

Segmental Insights

The Commercial segment currently represents the fastest-growing category within the Global Standby Generator Market, driven by the critical necessity for uninterrupted operations in high-stakes sectors. This expansion is primarily fueled by the booming data center industry, which requires absolute power reliability to support cloud computing and artificial intelligence workloads. Additionally, the healthcare sector is increasing its investment in backup solutions to safeguard life-saving equipment, complying with rigorous safety standards from institutions such as the National Fire Protection Association. The ongoing rollout of 5G telecommunications infrastructure further accelerates demand, as businesses prioritize resilience against grid instability to prevent financial loss.

Regional Insights

North America maintains a leading position in the global standby generator market, driven largely by the instability of aging electrical infrastructure and frequent weather-related outages. This dominance is reinforced by rigorous safety codes from institutions such as the National Fire Protection Association, which establish essential backup power requirements for critical infrastructure including hospitals and data centers. These standards necessitate substantial investment in emergency power systems by commercial and industrial facilities to ensure operational continuity. Consequently, the region demonstrates high adoption rates across multiple sectors, confirming its status as the principal market for standby power solutions.

Recent Developments

• In January 2025, Generac Holdings Inc. announced the launch of a new 28kW home standby generator, positioning it as the most powerful air-cooled unit available on the global market. This new model was engineered to integrate seamlessly with the company’s broader energy ecosystem, including smart thermostats and battery storage systems. The product featured built-in cellular connectivity for real-time status monitoring and an upgraded aluminum cabinet designed for superior corrosion resistance. The company stated that this innovation was a strategic response to the increasing frequency of power outages and the growing demand for reliable residential energy resilience.
• In October 2024, Himoinsa unveiled its new HGY Series of generators, developed through a strategic collaboration with Yanmar Power Technology to address the needs of mission-critical sectors such as data centers and healthcare. The new range featured engines delivering power outputs between 1250 kVA and 3500 kVA, with future plans to expand capacity. The company emphasized the sustainability aspect of this launch, noting that the generators were engineered to operate on alternative fuels, including hydrotreated vegetable oil (HVO), natural gas, and hydrogen. This development aimed to provide high-efficiency power solutions while supporting global efforts to reduce carbon emissions in the standby power market.
• In September 2024, Kohler Energy officially rebranded as Rehlko, marking a significant milestone following its transition into an independent business entity earlier in the year. The company, previously a division of Kohler Co., adopted the new name to reflect its focused strategy on delivering resilient energy solutions to industrial, commercial, and residential markets worldwide. Rehlko announced that it would continue to operate its broad portfolio of power systems and engines while pursuing growth as a standalone enterprise. The rebranding initiative was described as a move to enhance the company's agility and ability to address complex distributed energy challenges in the global marketplace.
• In April 2024, Cummins Power Generation expanded its Centum Series with the launch of two new generator set models, the C2750D6E and C3000D6EB, designed specifically for critical applications like data centers and healthcare facilities. These new units, powered by the QSK78 engine, offered substantial power outputs of 2750kW and 3000kW, respectively, while maintaining a compact footprint. The company highlighted that the generators were approved for use with renewable paraffinic fuels, such as HVO, enabling operators to lower carbon emissions without engine modifications. This product release underscored the company’s commitment to providing high-density, reliable power solutions that meet stringent sustainability and performance standards.

Key Market Players

• Generac Power Systems
• Cummins Inc.
• Kohler Co.
• Caterpillar Inc.
• Rolls-Royce Power Systems
• Atlas Copco
• Mitsubishi Heavy Industries
• Briggs & Stratton Corporation
• Yanmar Co., Ltd.
• Doosan Portable Power

By Power Rating	By Fuel	By Application	By Region
≤ 50 kVA > 50 kVA - 150 kVA > 150 kVA - 300 kVA > 300 kVA - 500 kVA > 500 kVA	Diesel Gas	Residential Commercial Industrial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Standby Generator Market, By Power Rating:

• ≤ 50 kVA
• > 50 kVA - 150 kVA
• > 150 kVA - 300 kVA
• > 300 kVA - 500 kVA
• > 500 kVA

• Standby Generator Market, By Fuel:

• Diesel
• Gas

• Standby Generator Market, By Application:

• Residential
• Commercial
• Industrial

• Standby Generator 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