Market Forecast By kVA Rating (5 kVA-75 kVA, 75.1 kVA-375 kVA, 375.1 kVA-750 kVA, 750.1 kVA-1000 kVA & Above 1000 kVA), By Applications (Residential, Commercial, Industrial, Transportation & Public Infrastructure), By Countries (Brazil, Mexico, Argentina & Rest of Latin America) and Competitive Landscape.
Product Code: ETC001305 | Publication Date: Jan 2024 | Updated Date: Oct 2025 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 28 | |
Report Name | Latin America Diesel Genset Market |
Forecast Period | 2025-2031 |
CAGR | 12.8% |
Market Size | USD 13.3 billion by 2031 |
Growing Sector | Industrial |
According to 6Wresearch internal database and industry insights, the Latin America Diesel Genset Market was valued at USD 5.9 billion in 2024 and is projected to reach USD 13.3 billion by 2031, indicating a compound annual growth rate (CAGR) of 12.8% during the forecast period (2025–2031).
The Latin America Diesel Genset Market report thoroughly covers the market by By kVA Rating, By Applications, and By Countries. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
Latin America Diesel Genset Market is likely to grow in the forecast period as Diesel gensets, also known as diesel generators, are widely utilized in Latin America as a source of onsite electricity. The region's Diesel Genset Market has grown in recent years, driven by factors such as an increase in power demand, aging power infrastructure, and the need for reliable electricity in remote areas.
Below mentioned are some prominent drivers and their influence to the market dynamics:
Driver | Primary Segments Affected | Why it matters (evidence) |
Infrastructure Development | ≥750 kVA & >1000 kVA; Industrial, Public Infrastructure | Large-scale infrastructure projects like urbanization, smart cities, and transportation systems in Brazil and Mexico boost demand for high-capacity backup solutions. |
Industrialization | 375–750 kVA; Industrial | Expanding industries such as manufacturing, petrochemicals, and mining in Latin America require backup gensets for continuous power supply. |
Power Reliability and Natural Disaster Preparedness | 75–750 kVA; Residential, Commercial | Frequent power disruptions and natural disasters such as hurricanes in countries like Mexico increase the need for reliable genset solutions. |
Government Electrification Initiatives | ≥750 kVA & >1000 kVA; Industrial, Public Infrastructure | Latin American countries' electrification programs, like Brazil's "Light for All," aim to expand electricity access to underserved areas, driving diesel genset demand. |
Data Center and IT Expansion | 375–750 kVA; Commercial (IT & ITES) | Growing demand for data centers in the region drives the need for uninterrupted power supply, which diesel gensets can provide. |
The Latin America Diesel Genset Market size is projected to grow at a CAGR of 12.8% during the forecast period (2025–2031). One of the significant drivers of the Diesel Genset Market in Latin America is an increase in power demand, especially in developing countries like Brazil, Mexico, and Argentina. The rise in industrialization and urbanization has resulted in a surge in energy consumption. The growth of data centres and the demand for backup power systems in remote areas have also contributed to market growth. Additionally, investment in infrastructure projects, especially in the energy and telecom sectors, is also driving the Latin America Diesel Genset Market growth.
Below mentioned are some major restraints and their influence to the market dynamics:
Restraint | Primary Segments Affected | What this means (evidence) |
Strict Emission Regulations | New installs; all kVA | The strict emission norms in countries like Brazil and Mexico may raise compliance costs for diesel gensets and limit the use of older, less efficient models. |
High Operational Costs | Prime-power Industrial | High fuel costs, particularly in countries where diesel prices are volatile, increase the operational cost of gensets, limiting their affordability for large-scale industrial operations. |
Renewable Energy Transition | Public Infrastructure & Utilities | With increased focus on renewable energy solutions, like solar and wind, governments are reducing reliance on fossil-fueled power sources, impacting genset demand. |
Regulatory Noise Restrictions | Residential & Commercial | Noise restrictions in urban and residential areas may limit genset installation, particularly in densely populated regions. |
Supply Chain Vulnerabilities | Industrial & Commercial | Dependence on imported gensets and their components makes the market vulnerable to supply chain disruptions and price fluctuations. |
Latin America Diesel Genset Market Challenges
On the other hand, some challenges exist in the market, such as the high initial cost of diesel gensets and the transition to renewable energy, posing a hurdle for the diesel genset market, as solar and wind power are gaining popularity owing to their lower operational costs and environmentally friendly characteristics. Additionally, the complex supply chain and reliance on imported gensets also create potential challenges for market growth.
Several prominent trends reshaping the market growth include:
Some prominent investment opportunities in the market include:
Some leading players operating in the market include:
Company Name | Cummins Inc. |
Established Year | 1919 |
Headquarters | Columbus, Indiana, USA |
Official Website | Click Here |
Cummins has been a prominent leader globally in diesel power solutions, which provides gensets for various applications across Latin America, including sectors residential, industrial, and commercial.
Company Name | Caterpillar Inc. |
Established Year | 1925 |
Headquarters | Deerfield, Illinois, USA |
Official Website | Click Here |
Caterpillar is a prominent player across the region that offers high-performance diesel gensets for various applications, such as construction, and public infrastructure.
Company Name | Kohler Co. |
Established Year | 1873 |
Headquarters | Kohler, Wisconsin, USA |
Official Website | Click Here |
Kohler is a renowned manufacturer of diesel gensets across the region, which provide solutions for various commercial and residential applications with advanced technology.
Company Name | Atlas Copco AB |
Established Year | 1873 |
Headquarters | Nacka, Sweden |
Official Website | Click Here |
Atlas Copco is renowned for their efficiency and low emissions, widely used across the construction, manufacturing, and mining industries in Latin America.
Company Name | Mitsubishi Heavy Industries, Ltd. |
Established Year | 1884 |
Headquarters | Tokyo, Japan |
Official Website | Click Here |
Mitsubishi is a significant domestic player in Latin America, offering both large-scale industrial gensets and smaller commercial units for various applications.
Latin American governments have been promoting renewable energy to minimize reliance on fossil fuels. One of the prominent programs is present, bolstering the demand for diesel gensets, including Brazil's "Light for All" program, which aims to provide electricity to underserved rural areas. Additionally, the use of energy-efficient solutions and the integrating of backup power systems like diesel gensets as part of their energy transition strategy. Furthermore, the development of cleaner technologies is on the rise, as the rules have mandated compliance with stricter emission standards for new gensets.
The Latin America Diesel Genset Market share is estimated to increase in the coming years owing to various factors. Such as, the need for reliable backup power and increasing government support for infrastructure projects. In addition to this, industrial expansion is another major factor for the industry expansion. The growing demand for hybrid solutions and low-emission technologies across the region is estimated to surge the diesel gensets demand in Latin America. Moreover, government electrification initiatives and ongoing investments in energy infrastructure are expected to drive further growth in the market.
The report offers a comprehensive study of the following market segments and their leading categories.
According to Mansi Ahuja, Senior Research Analyst at 6Wresearch, the Above 1000 kVA category holds the largest market share in the Latin American Diesel Genset Market. This is driven by substantial demand for high-capacity gensets in energy-intensive industries such as oil & gas, large-scale construction, and public infrastructure projects, including smart city developments.
The Industrial segment dominates the market, primarily driven by the need for continuous and backup power in sectors like manufacturing, petrochemicals, mining, and energy production. The growth of infrastructure projects across Latin America is a key factor in expanding the industrial genset market.
The report offers a comprehensive study of the subsequent market segments:
1. Executive Summary |
2. Introduction |
2.1 Report Description |
2.2 Key Highlights of The Report |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3. Latin America Diesel Genset Market Overview |
3.1 Latin America Diesel Genset Market Revenues & Volume (2021-2031F) |
3.2 Latin America Diesel Genset Market Revenue & Volume Share, By Countries, 2024 |
3.3 Latin America Diesel Genset Market ? Industry Life Cycle |
3.4 Latin America Diesel Genset Market - Porter?s Five Forces |
4. Latin America Diesel Genset Market Dynamics |
?4.1 Impact Analysis |
?4.2 Market Drivers |
?4.2.1 Increasing demand for reliable backup power solutions in Latin America |
?4.2.2 Growth in construction and infrastructure development projects in the region |
?4.2.3 Rising focus on industrialization and commercial activities in Latin America |
?4.3 Market Restraints |
?4.3.1 Stringent emission regulations impacting the adoption of diesel gensets |
?4.3.2 Fluctuating fuel prices affecting operational costs for diesel gensets |
?4.3.3 Increasing shift towards renewable energy sources impacting the diesel genset market |
5. Latin America Diesel Genset Market Trends |
6. Mexico Diesel Genset Market Overview |
6.1 Mexico Country Indicators |
6.2 Mexico Diesel Genset Market Revenues & Volume (2021-2031F) |
6.3 Mexico Diesel Genset Market Revenue & Volume Share, By KVA Rating (2024 & 2031F) |
6.3.1 Mexico 5-75 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
6.3.2 Mexico 75.1-375 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
6.3.3 Mexico 375.1-750 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
6.3.4 Mexico 750.1-1000 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
6.3.5 Mexico Above 1000 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
6.4 Mexico Diesel Genset Market Revenue Share, By Applications (2024 & 2031F) |
6.4.1 Mexico Commercial Diesel Genset Market Revenues (2021-2031F) |
6.4.2 Mexico Industrial Diesel Genset Market Revenues (2021-2031F) |
6.4.3 Mexico Residential Diesel Genset Market Revenues (2021-2031F) |
6.4.4 Mexico Transportation and Public Infrastructure Diesel Genset Market Revenues (2021-2031F) |
6.5 Mexico Diesel Genset Market Key Performance Indicators |
65.1 Average utilization rate of diesel gensets in Latin America |
65.2 Number of new construction and infrastructure projects using diesel gensets |
65.3 Adoption rate of diesel gensets in key industries in Latin America |
6.6 Mexico Diesel Genset Import Statistics |
6.6.1 Mexico Import of Less than 75 kVA Diesel Gensets, By Country, 2024 |
6.6.2 Mexico Import of 75 - 375 kVA Diesel Gensets, By Country, 2024 |
6.6.3 Mexico Import of Above 375 kVA Diesel Gensets, By Country, 2024 |
7. Brazil Diesel Genset Market Overview |
7.1 Brazil Country Indicators |
7.2 Brazil Diesel Genset Market Revenues & Volume (2021-2031F) |
7.3 Brazil Diesel Genset Market Revenue & Volume Share, By KVA Rating (2024 & 2031F) |
7.3.1 Brazil 5-75 kVA Diesel Genset Market Revenue & Volume (2021-2031F) |
7.3.2 Brazil 75.1-375 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
7.3.3 Brazil 375.1-750 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
7.3.4 Brazil 750.1-1000 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
7.3.5 Brazil Above 1000 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
7.4 Brazil Diesel Genset Market Revenue Share, By Applications (2024 & 2031F) |
7.4.1 Brazil Commercial Diesel Genset Market Revenues (2021-2031F) |
7.4.2 Brazil Industrial Diesel Genset Market Revenues (2021-2031F) |
7.4.3 Brazil Residential Diesel Genset Market Revenues (2021-2031F) |
7.4.4 Brazil Transportation and Public Infrastructure Diesel Genset Market Revenues (2021-2031F) |
7.5 Brazil Diesel Genset Market Key Performance Indicators |
7.6 Brazil Diesel Genset Import Statistics |
7.6.1 Brazil Import of Less than 75 kVA Diesel Gensets, By Country, 2024 |
7.6.2 Brazil Import of 75 - 375 kVA Diesel Gensets, By Country, 2024 |
7.6.3 Brazil Import of Above 375 kVA Diesel Gensets, By Country, 2024 |
8. Argentina Diesel Genset Market Overview |
8.1 Argentina Country Indicators |
8.2 Argentina Diesel Genset Market Revenues & Volume (2021-2031F) |
8.3 Argentina Diesel Genset Market Revenue & Volume Share, By KVA Rating (2024 & 2031F) |
8.3.1 Argentina 5-75 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
8.3.2 Argentina 75.1-375 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
8.3.3 Argentina 375.1-750 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
8.3.4 Argentina 750.1-1000 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
8.3.5 Argentina Above 1000 kVA Diesel Genset Market Revenues & Volume (2021-2031F) |
8.4 Argentina Diesel Genset Market Revenue Share, By Applications (2024 & 2031F) |
8.4.1 Argentina Commercial Diesel Genset Market Revenues (2021-2031F) |
8.4.2 Argentina Industrial Diesel Genset Market Revenues (2021-2031F) |
8.4.3 Argentina Residential Diesel Genset Market Revenues (2021-2031F) |
8.4.4 Argentina Transportation and Public Infrastructure Diesel Genset Market Revenues (2021-2031F) |
8.5 Argentina Diesel Genset Market Key Performance Indicators |
8.6 Argentina Diesel Genset Import Statistics |
8.6.1 Argentina Import of Less than 75 kVA Diesel Gensets, By Country, 2024 |
8.6.2 Argentina Import of 75 - 375 kVA Diesel Gensets, By Country, 2024 |
8.6.3 Argentina Import of Above 375 kVA Diesel Gensets, By Country, 2024 |
9. Rest of Latin America Diesel Genset Market Overview |
9.1 Rest of Latin America Diesel Genset Market Revenues & Volume (2021 & 2031F) |
10. Latin America Diesel Genset Market Opportunity Assessment |
10.1 Latin America Diesel Genset Market Opportunity Assessment, By Countries, 2031F |
11. Latin America Diesel Genset Market Competitive Landscape? |
11.1 Latin America Diesel Genset Market Competitive Benchmarking, By Technical and Operating Parameters |
11.2 Mexico Diesel Genset Market Revenue Share, By Companies, 2024 |
11.3 Brazil Diesel Genset Market Revenue Share, By Companies, 2024 |
11.4 Argentina Diesel Genset Market Revenue Share, By Companies, 2024 |
12. Company Profiles |
13. Strategic Recommendations |
14. Disclaimer |
Market Forecast By kVA Rating (5 kVA-75 kVA, 75.1 kVA-375 kVA, 375.1 kVA-750 kVA, 750.1 kVA-1000 kVA & Above 1000 kVA), By Applications (Residential, Commercial, Industrial, Transportation & Public Infrastructure), By Countries (Brazil, Mexico, Argentina & Rest of Latin America) and Competitive Landscape.
Product Code: ETC001305 | Publication Date: Oct 2019 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 30 |
Latin America Diesel Genset market is anticipated to demonstrate healthy growth on account of the extensive use of diesel gen-sets in the region, as a solution for the low efficiency of power grid infrastructure. Further, strengthening oil and gas industries, manufacturing industries and rising demand for housing in the region would lead to the substantial growth of the diesel Genset market over the coming years.
According to 6Wresearch, the Latin America Diesel Genset Market size is projected to grow at a CAGR of 3.1% during 2019–2025. Amongst all the Latin American countries, Brazil is anticipated to dominate the market during the forecast period on account of the increasing number of oil sector projects in the country. However, Argentina would witness faster growth over the coming years on the back of surging demand for Diesel Gensets in improving the power industry and increasing investment to develop airports and other transportation hubs.
The commercial application has captured the highest revenue share in the region owing to a surge in demand for office spaces and rising hospitality sector projects in the area. Moreover, the application is anticipated to maintain its dominance during the forecast period, on the back of an increasing number of data centers and IT hubs in the region. Additionally, rising investment in the industrial sector and flourishing mining industry would support the industrial sector to capture sound revenues in the overall diesel Genset market.
The Latin America Diesel Generator market report thoroughly covers the market by kVA rating, applications, and countries. Latin America Diesel Genset market outlook report provides an unbiased and detailed analysis of the ongoing Latin America diesel Genset market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
Key Highlights of the Report
Latin America Diesel Genset Market Report Segmentation
The reports offer a detailed analysis of the following market segments:
Other Key Reports Available: