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Commercial Gensets Market Research Report – Segmentation By Fuel (Diesel Gensets, Natural Gas Gensets, Propane Gensets, Others) By Power Rating (<75 kVA, 75-375 kVA, 375-750 kVA, >750kVA ) By Application (Healthcare, Data Centers, Telecom, Commercial Buildings, Manufacturing, Construction, Others ) By End-User (Hospitals, Offices, Factories, Retail Stores, Infrastructure, Others ), and By Region (North America, Europe, Asia Pacific, Latin America, & Middle East - Africa) – Industry Forecast 2023-2028.

Published: September, 2023
ID: 14411
Pages: 150
Formats: report pdf report excel report power bi report ppt

Commercial Gensets Market Size (2023-2028):

The Global Commercial Gensets Market was worth US$ 13.47 billion in 2022 and is anticipated to reach a valuation of US$ 19.34 billion by 2028 and is predicted to register a CAGR of 6.2% during 2023-2028.

Market Overview:

Commercial gensets, short for commercial generator sets, are specialized power generation systems designed for use in commercial and industrial settings. These units consist of an internal combustion engine, often powered by diesel, natural gas, or propane, connected to an electrical generator. The primary purpose of commercial gensets is to provide a dependable and often instantaneous source of electrical power in situations where the primary grid supply may fail or be unreliable. Commercial gensets are utilized for various critical applications, including backup power for hospitals, data centers, and manufacturing facilities, ensuring uninterrupted operations during grid outages. They also serve as prime power sources in regions with inconsistent or no access to utility grids. These generators come in diverse sizes and configurations to meet the specific power needs of different industries, offering reliability, efficiency, and essential support to keep essential systems and processes running smoothly.

Market Drivers:

The Commercial Gensets Market is driven due to increasing power demand. As the global population grows, more electricity is needed to support homes, businesses, and industries. Commercial gensets play a vital role by providing backup power during outages and helping meet peak electricity needs. It also ensures that essential services, such as hospitals, data centers, and factories, can operate smoothly even when the main power supply falters. As a result, it drives market growth and maintains power reliability in our increasingly electrified world.

Commercial gensets Market finds a significant market demand in remote locations and construction sites where access to the electrical grid is limited. These gensets serve as primary power sources, which ensures that essential operations can continue even in isolated areas. As a result, the market demand for reliable off-grid power solutions drives the Commercial Gensets market growth.

Market Restraints:

The commercial gensets market faces challenges due to the fluctuation of fuel prices. Gensets often run on fuels like diesel or natural gas, and these fuel prices can be unpredictable. When fuel costs rise, it increases the operational expenses for these companies. This cost variability can make it challenging to budget for power generation, which impacts the financial stability of businesses relying on gensets for backup or primary power supply.

Market Opportunities:

The commercial gensets market creates a significant opportunity due to hybrid power systems. Combining commercial gensets with renewable energy sources like solar panels and wind turbines can create hybrid power systems. This approach allows businesses to reduce their dependence on fossil fuels, cut operating expenses, and minimize their environmental impact. As a result, developing and promoting such hybrid power solutions offers opportunities for market growth and increases market demand for sustainable and cost-effective energy options in the commercial sector.




Market Size Available

2022 – 2028

Base Year


Forecast Period

2023 - 2028



Segments Covered

By Fuel, Power Rating, Application, End-user, and Region.


Various Analyses Covered

Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa




Market Leaders Profiled

Caterpillar Inc., Cummins Inc., Generac Holdings Inc., Kohler Co., MTU Onsite Energy (Rolls-Royce Power Systems AG), Atlas Copco AB, Mitsubishi Heavy Industries, Ltd., Wärtsilä Corporation, Yanmar Holdings Co., Ltd., Doosan Corporation, Kirloskar Oil Engines Limited, Himoinsa S.L., Aggreko plc, FG Wilson (Engineering) Ltd., Briggs & Stratton Corporation, Inmesol, Dresser-Rand (part of Siemens AG), JCB Power Products Ltd., and Others.


Market Segmentation:

Commercial Gensets Market - By Fuel:

  • Diesel Gensets
  • Natural Gas Gensets
  • Propane Gensets
  • Others

Diesel gensets are dominating the Commercial Gensets Market share due to their widespread use, reliability, high efficiency, and versatility. They cater to various commercial applications, ensuring uninterrupted power supply, making them well-established and preferred for both backup and continuous power generation.

Commercial Gensets Market - By Power Rating:

  • <75 kVA
  • 75-375 kVA
  • 375-750 kVA
  • >750kVA

The <75 kVA power rating category is dominating the Commercial Gensets Market size due to its versatility, energy efficiency, and cost-effectiveness. These smaller gensets serve various commercial applications, offering efficient and affordable power solutions for businesses and residential needs.

Commercial Gensets Market - By Application:

  • Healthcare

  • Data Centers
  • Telecom
  • Commercial Buildings
  • Manufacturing
  • Construction
  • Others

Data Centers are ruling with the highest shares of the Commercial Gensets Market due to their critical operations. They store and process vast amounts of data, and a continuous power supply is crucial to prevent data loss and disruptions. Gensets in data centres provide high reliability, ensuring uninterrupted operations and data integrity.

Commercial Gensets Market - By End-User:

  • Hospitals
  • Offices
  • Factories
  • Retail Stores
  • Infrastructure
  • Others

Hospitals are a dominant segment in the Commercial Gensets Market due to their critical role in providing life-saving medical services. These facilities rely on gensets for uninterrupted power, ensuring the safety and well-being of patients and the functionality of vital medical equipment.

Market Regional Analysis:

  • North America
  • Europe
  • Asia-pacific
  • Middle-east and Africa
  • Latin America

North America is dominating the Commercial Gensets Market value owing to a strong focus on infrastructure modernization, especially in healthcare facilities, data centers, and commercial buildings. The region's emphasis on environmental sustainability aligns with the use of cleaner and more efficient gensets, complying with stringent emissions standards, contributing to market dominance.

Europe Commercial Gensets Market is next in dominating the prominent shares with experiencing infrastructure modernization efforts, especially in healthcare facilities, data centers, and commercial buildings, which necessitate reliable backup power solutions to ensure uninterrupted services. 

The Asia-Pacific commercial gensets market growth rate is expected to grow at higher rate during the forecast period.

In the Middle East and Africa, the market is driven by growing energy demand and harsh climate conditions. The Middle East's expanding need for backup power in critical facilities further propel the market demand.

Latin America commercial gensets market demand is likely to have a significant growth rate due to increasing economic growth and rising construction and commercial activities.

Impact of COVID-19 on the Commercial Gensets Market:

The COVID-19 pandemic had a notable impact on the commercial gensets market. Initially, the market faced disruptions in the supply chain due to lockdowns and restrictions. Many businesses postponed or scaled-down projects, impact the market demand for commercial gensets. However, as the pandemic highlighted the importance of uninterrupted power supply, there was a surge in genset demand for essential services like healthcare facilities and data centres. The need for reliable power boosted the market for smaller, portable gensets. Also, the pandemic accelerated the adoption of hybrid and sustainable power solutions. As businesses seek resilient and eco-friendly energy options, the commercial gensets market is expected to rebound and evolve with a greater focus on efficiency, sustainability, and remote monitoring capabilities.

Market Key Players:

  1. Caterpillar Inc.
  2. Cummins Inc.
  3. Generac Holdings Inc.
  4. Kohler Co.
  5. MTU Onsite Energy (Rolls-Royce Power Systems AG)
  6. Atlas Copco AB
  7. Mitsubishi Heavy Industries, Ltd.
  8. Wärtsilä Corporation
  9. Yanmar Holdings Co., Ltd.
  10. Doosan Corporation
  11. Kirloskar Oil Engines Limited
  12. Himoinsa S.L.
  13. Aggreko plc
  14. FG Wilson (Engineering) Ltd.
  15. Briggs & Stratton Corporation
  16. Inmesol
  17. Dresser-Rand (part of Siemens AG)
  18. JCB Power Products Ltd.

Market Key Developments:

  • In 2021, Atlas Copco expanded its rental fleets to meet the increasing demand for temporary power solutions in various industries, including construction, events, and emergency situations.
  • In 2021, Generac focused on the development of cleaner and more efficient gensets. This included the use of natural gas, biogas, and hybrid systems to reduce emissions and environmental impact.
  • In 2021, MTU Onsite Energy expanded its presence in emerging markets, where the demand for reliable power generation solutions was growing, driven by industrialization and infrastructure development.

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1. What is the CAGR of the Commercial Gensets Market from 2023-2028?

The Commercial Gensets Market is expected to grow with a CAGR of 6.2% during the forecast period.

2. Which is the dominating region for the Commercial Gensets Market share?

North America is currently dominating the Commercial Gensets Market share by region.

3. Which Application type is dominating the market for the Commercial Gensets Market?

Data Centers dominate the Commercial Gensets Market by Application Type.

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