US Diesel Genset Market (2025-2031) | Revenue, Share, Industry, Trends, Growth, Companies, Size, Value, Outlook, Analysis & Forecast
Market Forecast By KVA Rating (5 KVA-75 KVA, 75.1 KVA-375 KVA, 375.1 KVA-750 KVA, 750.1 KVA-1000 KVA And Above 1000 KVA), By Applications (Residential, Commercial, Industrial, Transportation & Public Infrastructure), And Competitive Landscape
| Product Code: ETC001302 | Publication Date: Dec 2023 | Updated Date: Sep 2025 | Product Type: Report | |
| Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
US Diesel Genset Market Growth Rate
According to 6Wresearch internal database and industry insights, the US Diesel Genset Market is projected to grow at a compound annual growth rate (CAGR) of 5.5% during the forecast period (2025–2031).
US Diesel Genset Market Highlights
| Report Name | US Diesel Genset Market |
| Forecast Period | 2025-2031 |
| CAGR | 5.5% |
| Growing Sector | Commercial & Data Centers |
Topics Covered in the US Diesel Genset Market Report
The US Diesel Genset Market report thoroughly covers the market by kVA ratings and applications. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders to devise and align their market strategies according to the current and future market dynamics.
US Diesel Genset Market Synopsis
US Diesel Genset Market is forecast to expand at rapid pace. This industry is positively influenced by the increasing demand for backup power in various industries, such as healthcare, data centres, and others. In general, diesel gensets are reliable and cost-effective solutions for providing backup power in situations like natural calamities, grid failures, or other emergency situations. In addition, government initiatives, such as tax incentives and subsidies, are encouraging the use of diesel gensets.
Evaluation of Growth Drivers in the US Diesel Genset Market
Below mentioned are some prominent drivers and their influence to the market dynamics:
| Driver | Primary Segments Affected | Why it matters (evidence) |
| Data Center Boom | 375–1000 kVA; Commercial (IT & Telecom) | Rapid growth of hyperscale data centers in Virginia, Texas, and California fuels the demand for high-capacity gensets to ensure 24/7 uptime. |
| Extreme Weather Events | 75–750 kVA; Residential, Commercial | Hurricanes, wildfires, and snowstorms increase reliance on backup power solutions across urban and suburban households. |
| Industrial Growth | ≥750 kVA & >1000 kVA; Industrial | Expansion of oil & gas exploration in Texas and Louisiana and manufacturing hubs in the Midwest push demand for large-scale gensets. |
| Healthcare Modernization | 375–750 kVA; Healthcare | Growing investments in hospitals and clinics require reliable gensets to power life-saving equipment. |
| Military & Defense Projects | ≥1000 kVA; Public Infrastructure | Large defense bases and government facilities require gensets for secure backup operations. |
US Diesel Genset Market is expected to gain traction, exponentially growing at a CAGR of 5.5% during the forecast period of 2025-2031. The expansion of this industry is being proliferated as data centers, healthcare facilities, and other critical infrastructure require reliable power backup to ensure uninterrupted operations. Besides, the growth of the construction industry is driving the demand for diesel gensets. Apart from this, the increasing demand for backup power in critical infrastructure sectors, thus bolstering market development. The increasing frequency and intensity of natural disasters, such as hurricanes, floods, and storms, have necessitated the need for reliable and uninterrupted power supply in these sectors.
Evaluation of Restraints in the US Diesel Genset Market
Below mentioned are some major restraints and their influence to the market dynamics:
| Restraint | Primary Segments Affected | What this means (evidence) |
| Stringent EPA Emission Standards | New installs; all kVA | US Environmental Protection Agency (EPA) Tier 4 regulations impose high compliance costs, limiting adoption of traditional diesel gensets. |
| High Fuel Costs | Industrial & Prime Power | Increasing diesel fuel prices reduce affordability for continuous operation in large industrial projects. |
| Competition from Natural Gas Gensets | Industrial & Utilities | Abundant natural gas supply in the US leads to rising adoption of gas-based gensets over diesel. |
| Noise Restrictions | Residential & Commercial | Noise ordinances in cities like New York and Los Angeles restrict diesel genset installation in densely populated areas. |
| Supply Chain Disruptions | Industrial | Global supply chain volatility for engines and spare parts leads to procurement delays. |
US Diesel Genset Market Challenges
Despite of growth factors, the high cost of maintenance and operation of these generators might pose threats to market development. They often require specialized parts and regular maintenance to operate efficiently, costs which can affect their affordability. Additionally, the industry is confronting stringent government regulations aimed at reducing emissions given that diesel gensets produce greenhouse gases that contribute to environmental pollution. Some States have implemented regulations that incentivize cleaner generation options such as natural gas-fired generators at the cost of diesel gensets.
US Diesel Genset Market Trends
Several notable trends reshaping the US Diesel Genset Market Growth are mentioned below:
- Hybrid Energy Solutions: Widespread integration of diesel gensets with solar and battery storage systems to support sustainability goals.
- Diesel Genset Rentals: There has been a rapid surge in demand for short-term power requirements at events, construction sites, and emergency operations boosting the rental market.
- Remote Monitoring with IoT: Smart gensets equipped with predictive maintenance and real-time monitoring systems gaining traction.
- Focus on Fuel-Efficient Models: There has been increasing emphasis on advanced fuel-efficient gensets to reduce operational costs and emissions.
- Solid Residential Gensets: The growing popularity of small-capacity gensets for residential and small business backup needs.
Investment Opportunities in the US Diesel Genset Industry
Some prominent investment opportunities in the market include:
- Data Center-Centric Gensets – Invest in high-capacity gensets specifically designed for hyperscale data centers to cater to surging IT demand.
- Rental Genset Fleets – Establish rental-as-a-service (RaaS) models to serve events, disaster recovery, and infrastructure projects.
- Eco-Friendly Diesel Generators – Develop Tier 4-compliant and hybrid-ready gensets to align with strict environmental regulations.
- Customized Healthcare Gensets – Supply specialized gensets to hospitals and medical centers with advanced control systems for emergency operations.
Top 5 Leading Players in the US Diesel Genset Market
Some leading players operating in the US Diesel Genset Industry are :
1. Caterpillar Inc.
| Company Name | Caterpillar Inc. |
| Established | 1925 |
| Headquarters | Deerfield, Illinois, USA |
| Offical Website | Click Here |
Caterpillar is a global leader in diesel generator manufacturing, offering a wide portfolio of gensets for industries ranging from construction to data centers.
2. Cummins Inc.
| Company Name | Cummins Inc. |
| Established | 1919 |
| Headquarters | Columbus, Indiana, USA |
| Offical Website | Click Here |
Cummins provides advanced diesel power solutions and is widely adopted across industrial and commercial sectors in the US.
3. Generac Power Systems
| Company Name | Generac Power Systems |
| Established | 1959 |
| Headquarters | Waukesha, Wisconsin, USA |
| Offical Website | Click Here |
Generac is a leading US-based manufacturer specializing in residential, commercial, and portable diesel gensets.
4. Kohler Power Systems
| Company Name | Kohler Power Systems |
| Established | 1873 |
| Headquarters | Kohler, Wisconsin, USA |
| Offical Website | Click Here |
Kohler provides fuel-efficient diesel gensets, well known in the US for premium residential and commercial applications.
5. MTU Onsite Energy (Rolls-Royce Power Systems)
| Company Name | MTU Onsite Energy (Rolls-Royce Power Systems) |
| Established | 1909 |
| Headquarters | Friedrichshafen, Germany |
| Offical Website | Click Here |
MTU Onsite Energy is one of leading companies who delivers high-performance gensets for critical infrastructure projects across United States.
Government Regulations Introduced in the US Diesel Genset Market
According US Government Data, the US federal and state governments have implemented several initiatives aimed at promoting sustainable and reliable power supply in the country. For instance, the Environmental Protection Agency (EPA) in partnership with manufacturers have established more stringent emissions regulations targeted towards gensets. Most States have enacted tax credits, rebates, and other incentives to encourage cleaner energy-as-a-service offerings makeup by natural gas, solar and wind-powered generation. Additionally, the Department of Energy provides funding to businesses to promote renewable, hydro, and biomass energy.
Future Insights of the US Diesel Genset Market
US Diesel Genset Market share is estimated to increase in the coming years due to rapid growth in IT infrastructure, rising demand from healthcare facilities, and frequent extreme weather events necessitating backup power. Additionally, the expansion of manufacturing and oil & gas exploration across states like Texas and Louisiana is expected to further fuel industry revenue. Advanced gensets with hybrid capabilities and improved efficiency will also attract higher adoption despite stringent environmental restrictions.
Market Segmentation Analysis
The report offers a comprehensive study of the subsequent market segments and their leading categories.
75.1 kVA – 375 kVA to dominate the market- By KVA Ratings
According to Ravi Bhandari, Research Head, 6Wresearch, Diesel gensets are categorized by kVA rating. The most common categories in the US market are 5 kVA - 75 kVA, 75.1 kVA – 375 kVA, 375.1 kVA - 750 kVA, 750.1 KVA-1000 KVA, and above 1000 KVA. Among all these categories, the 75.1 kVA – 375 kVA segment is expected to experience the highest growth by 2025. This range is most used in commercial and industrial applications, such as data centers, hospitals, and retail centers. The demand for diesel gensets in these segments is driven by the need for uninterrupted power supply as well as the increasing frequency of extreme weather events.
Commercial segment to dominate the market- By Applications
The main applications of US Diesel Genset Market are residential, commercial, industrial, and transportation and public infrastructure. Among these, the commercial segment is expected to experience the highest growth and it has remarkably contributed towards upsurge in US Diesel Genset Market Share. The rise of e-commerce and the increasing need for data centers and server farms to support online business is the main driver of diesel genset demand in this segment.
Key attractiveness of the report
- 10 Years Market Numbers.
- Historical Data Starting from 2021 to 2024.
- Base Year: 2024.
- Forecast Data until 2031.
- Key Performance Indicators Impacting the Market.
- Major Upcoming Developments and Projects.
Key Highlights of the Report:
- US Diesel Genset Market Outlook
- Market Size of US Diesel Genset Market, 2024
- Forecast of US Diesel Genset Market, 2031
- Historical Data and Forecast of US Diesel Genset Market Revenues & Volume for the Period 2021 - 2031
- US Diesel Genset Market Trend Evolution
- US Diesel Genset Market Drivers and Challenges
- US Diesel Genset Market Price Trends
- US Diesel Genset Market Porter's Five Forces
- US Diesel Genset Market Industry Life Cycle
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by KVA ratings for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and Volume by 5 - 75 KVA for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by 75.1 - 375 KVA for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by 375.1 - 750 KVA for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by 750.1 - 1000 KVA for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by Above 1000 KVA for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by Application for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by Residential for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by Commercial for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by Industrial for the Period 2021-2031
- Historical Data and Forecast of US Diesel Genset Market Revenues and volume by Transportation and public Infrastructure for the Period 2021-2031
- US Diesel Genset Market Import Export Trade Statistics
- Market Opportunity Assessment by KVA ratings
- Market Opportunity Assessment by Application
- US Diesel Genset Market Top Companies Market Share
- US Diesel Genset Market Competitive Benchmarking by Technical and Operational Parameters
- US Diesel Genset Market Company Profiles
- US Diesel Genset Market Key Strategic Recommendation
Market Covered
The report offers a comprehensive study of the subsequent market segments:
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
US Diesel Genset Market (2025-2031): FAQs
The US Diesel Genset Market is projected to grow at a CAGR of approximately 5.5% during the forecast period.
The Commercial segment dominates the market, supported by growing demand from IT, healthcare, and financial institutions for uninterrupted power supply.
Government programs such as FEMA disaster preparedness subsidies and Department of Defense investments in gensets are supporting adoption across commercial and public infrastructure.
Challenges include high fuel costs, strict EPA Tier 4 emission standards, competition from natural gas gensets, and rising operational costs.
6Wresearch actively monitors the US Diesel Genset Market and publishes its comprehensive annual report, highlighting emerging trends, growth drivers, revenue analysis, and forecast outlook. Our insights help businesses to make data-backed strategic decisions with ongoing market dynamics. Our analysts track relevent industries related to the US Diesel Genset Market, allowing our clients with actionable intelligence and reliable forecasts tailored to emerging regional needs.
Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 US Diesel Genset Market Overview |
| 3.1 US Country Macro Economic Indicators |
| 3.2 US Diesel Genset Market Revenues & Volume, 2021 & 2031F |
| 3.3 US Diesel Genset Market- Industry Life Cycle |
| 3.4 US Diesel Genset Market- Porter's Five Forces |
| 3.5 US Diesel Genset Market Revenues & Volume Share, By KVA rating , 2023 & 2031F |
| 3.6 US Diesel Genset Market Revenues & Volume Share, By Application 2023 & 2031F |
| 4 US Diesel Genset Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.2.1 Increasing demand for reliable backup power solutions in critical infrastructure sectors such as healthcare, data centers, and telecommunications. |
| 4.2.2 Growing adoption of diesel gensets in off-grid locations and remote areas with unreliable grid power. |
| 4.2.3 Stringent environmental regulations driving the demand for more fuel-efficient and low-emission diesel gensets. |
| 4.3 Market Restraints |
| 4.3.1 High initial investment costs associated with purchasing and installing diesel gensets. |
| 4.3.2 Competition from alternative power generation technologies such as natural gas gensets, solar power, and battery storage systems. |
| 4.3.3 Volatility in diesel fuel prices impacting the operational costs of diesel gensets. |
| 5 US Diesel Genset Market Trends |
| 6. US Diesel Genset Market, By KVA Ratings |
| 6.1 US Diesel Genset Market Revenues & Volume, By 5 KVA-75 KVA 2021 & 2031F |
| 6.2 US Diesel Genset Market Revenues & Volume, By 75.1 KVA-375 KVA, 2021 & 2031F |
| 6.3 US Diesel Genset Market Revenues & Volume, By 375.1 KVA-750 KVA, 2021 & 2031F |
| 6.3 US Diesel Genset Market Revenues & Volume, By 750.1 KVA-1000 KVA , 2021 & 2031F |
| 6.3 US Diesel Genset Market Revenues & Volume, By Above 1000 KVA, 2021 & 2031F |
| 7 US Diesel Genset Market, By Application |
| 7.1 US Diesel Genset Market Revenues & Volume, By Residential, 2021 & 2031F |
| 7.2 US Diesel Genset Market Revenues & Volume, By Commercial, 2021 & 2031F |
| 7.3 US Diesel Genset Market Revenues & Volume, By Industrial, 2021 & 2031F |
| 7.3 US Diesel Genset Market Revenues & Volume, By Transportation & public Infrastructure 2021 & 2031F |
| 8 US Diesel Genset Market Import-Export Trade Statistics |
| 8.1 US Diesel Genset Market Export to Major Countries |
| 8.2 US Diesel Genset Market Imports from Major Countries |
| 9 US Diesel Genset Market Key Performance Indicators |
| 9.1 Average fuel efficiency of diesel gensets in the market. |
| 9.2 Percentage of diesel gensets equipped with advanced emission control technologies. |
| 9.3 Adoption rate of diesel gensets in new construction projects and infrastructure developments. |
| 9.4 Frequency of power outages and downtime reduction achieved by diesel gensets in critical applications. |
| 10 US Diesel Genset Market- Opportunity Assessment |
| 10.1 US Diesel Genset Market Opportunity Assessment, By KVA rating , 2031 |
| 10.2 US Diesel Genset Market Opportunity Assessment, By Application, 2031 |
| 11 US Diesel Genset Market- Competitive Landscape |
| 11.1 US Diesel Genset Market Revenue Share, By Companies, 2024 |
| 11.2 US Diesel Genset Market Competitive Benchmarking, By Operating and Technical Parameters |
| 12 Company Profiles |
| 13 Recommendations |
| 14 Disclaimer |
Market Forecast By kVA Ratings (5.1- 75 kVA, 75.1- 375 kVA, 375.1- 750 kVA, 750.1- 1000 kVA & Above 1000 kVA), By Applications (Commercial, Residential, Industrial, Transportation, and Public Infrastructure) and Competitive Landscape.
| Product Code: ETC001302 | Publication Date: Jun 2022 | Product Type: Report | |
| Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 |
United States (US) Diesel Genset (Generator) Market report thoroughly covers the market by kVA ratings and applications. The US diesel Genset market outlook report provides an unbiased and detailed analysis of the ongoing US 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.
United States (US) Diesel Genset (Generator) Market Synopsis
United States (US) Diesel Genset Market is anticipated to witness moderate growth during the upcoming years on account of the growing demand for power backup solutions due to the increasing construction of office spaces, hotels, and residential projects across the country. Furthermore, an increasing number of data centers across the country would augment the demand for continuous energy solutions, especially diesel gensets, leading to growth in the US diesel Genset market revenues over the coming years.
According to 6Wresearch, the US Diesel Genset Market size is projected to grow at a CAGR of 2.6% during 2019-2025. Increasing power outages, especially in remote areas are driving the growth of the market. The surging population coupled with increasing disposable income triggers the potential growth of the market. The US diesel Genset market is anticipated to register growth in the upcoming six years owing to the steady growth of the commercial sector in the country. However, with the low carbon emissions in the country, the demand for gas gensets is expected to witness potential growth and would overtake the demand numbers for diesel gensets which would, further, decline the growth of the US Diesel Generator Market in the near future. However, the maintenance and need for technical upgradations of the existing diesel gensets systems in the commercial sector would assist in US Diesel Genset Market Growth in the upcoming six years and benefit the market to maintain a sound revenue position.
Market Analysis by kVA Rating
Diesel gensets with 375 kVA-750 kVA ratings accounted for a significant revenue share in the overall US diesel Generator market in 2018, owing to the high-power requirements for wide-scale projects in the country. Moreover, increasing instances of power outages, due to aging power transmission networks, has led to the growing adoption of secondary power sources. Amongst these, diesel gensets offer a more viable solution on the back of low installation cost and high efficiency, hence, escalating the demand for 5 to 75 kVA rated diesel gensets over the coming years.
Market Analysis by Application
Based on applications, the commercial application acquired the majority of the revenue share in the overall US diesel Genset Market Share, as diesel gensets are favored by commercial site operators in remote areas in central parts of the US, owing to low electric efficiency and frequent power outage.
Key Highlights of the Report:
- US Diesel Genset Market Overview
- US Diesel Genset Market Outlook
- US Diesel Genset Market Forecast
- US Diesel Genset Market Size
- US Diesel Genset Market Share, by kVA ratings
- US Diesel Genset Market Forecast of revenues until 2025
- Historical Data of US Diesel Genset Market Revenues and Volume for the Period 2015-2018
- Market Size & Forecast of US Diesel Genset Market Revenues and Volume until 2025
- Historical Data of US Diesel Genset Market Revenues & Volume, by kVA Rating for the Period 2015-2018
- Market Size & Forecast of US Diesel Genset Market Revenues & Volume, by kVA Rating until 2025
- Historical Data of US Diesel Genset Market Revenues, By Applications for the Period 2015-2018
- Market Size & Forecast of US Diesel Genset Market Revenues, By Applications until 2025
- US Diesel Genset Market Price Trends
- US Diesel Gensets Market Drivers and Restraints
- US Diesel Genset Market Trends
- US Diesel Genset Market Share, By Companies
- US Diesel Genset Market Overview on Competitive Benchmarking
- Company Profiles
- Strategic Recommendations
Market Covered:
The report provides a detailed analysis of the following market segments:
By kVA Ratings:
- 5.1- 75 kVA
- 75.1- 375 kVA
- 375.1- 750 kVA
- 750.1- 1000 kVA
- Above 1000 kVA
By Applications:
- Commercial
- Residential
- Industrial
- Transportation and Public Infrastructure
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