2001 - 4000 kVA

Global Market 2001 - 4000 kVA

For most of the decade following the last global financial crisis in 2009, the diesel generator sets market at ratings between 2001 and 4000 kVA was a picture of relative stability.  Many interesting projects but mature, quite predictable.  A slower moving part of the market.

During this time, diesel generator sets sold to the data center sector were growing but there was some debate over how long this would last.  A few people were predicting the end of hyperscale data centers and that the next big thing would be edge computing.  A lot of people thought generator sets sold to the data center sector might peak by the mid 2020s.

Well, this was half right.  Today, edge computing remains a strong emerging opportunity for standby power products.  But what few people foresaw was the phenomenal rise of hyperscale data centers, driven by AI, and the huge impact this would have on the diesel generator sets industry, particularly at ratings from 2001 - 4000 kVA.

Although they are rarely needed, diesel generator sets are a major component in the infrastructure around a data center.  The data center business model is built around uptime and a generator set is a core component guarding against loss of power.  Diesel generator sets are ideal because they start when needed, accept load quickly and fuel is relatively easy and safe to store.  

So while the costs of generator sets may be only a very small part of the investment at a data center, in operating terms they are critical.  So critical that redundancy is factored in:  there's usually at least one other unit to back up any individual generator set in case it fails.  

And as demand for diesel generator sets has increased, we have seen evidence of data center operators pre-ordering or stockpiling them to buy up supply, further adding to market growth.  

Our calculated estimate is that the data center sector now accounts for around 70% of the diesel generator sets market between 2001 and 4000 kVA.  

Between 2001 and 4000 kVA, the market for diesel generator sets closely mirrors where the world's data centers are located.  Around 55% of the market is located in North America, 12% in Europe and 24% in Asia Pacific.  

In the last 2 - 3 years, Asia Pacific has been the fastest growing region, with particularly strong growth in 2024. 

When data centers go offline, it makes the news and data center operators take few risks with standby power products.  And this means they often work with large global OEMs, well known brands that are able to offer global support and can cope with both engineering and financial risks.  

Below, we'll analyze how the market looks across North America, Europe and Asia Pacific.  

North America Market 2001 - 4000 kVA

North America, principally the US, has by far the world's largest concentration of data centers, especially hyperscale sites. 

The market has grown at a CAGR of 26% since 2019 and accounts for 60% of 2019 - 24 global market growth in the 2001 - 4000 kVA bands.

Around 60% of the market is in the 3001 - 4000 kVA band, 40% in the 2001 - 3000 kVA band.

The market in these power bands is dominated completely by premium OEMs, mainly US-based.  Generator sets sold in North America are produced almost entirely in-region (fewer than 1% are imported).

Europe Market 2001 - 4000 kVA

In 2024, the Europe market was worth almost $700 million and five countries, UK, Irish Republic, Germany, Netherlands and Italy accounted for around 55% of the opportunity.  The top 10 countries accounted for just over 80% of the market.

Market CAGR was 22% from 2019 - 24, and there's evidence that 2024 was a strong year with almost 50% growth.  

The market is almost evenly split between 2001 - 3000 and 3001 - 4000 kVA power bands, a characteristic that has been seen over a long period of time.  

Although premium OEMs have a strong presence in Europe in these power bands, accounting for around three quarters of the market, independent packagers play a part.  Most of these are located in Spain, Italy, Germany and the UK.  

Asia Pacific Market 2001 - 4000 kVA

In 2024, the Asia Pacific market was worth almost $1.4 billion, growing at a CAGR of 15% since 2019.  Like Europe, growth has been accelerating more recently, with 2024 growing almost 50%.

In 2024, the top 5 markets, China, Malaysia, South Korea, Australia and India together accounted for almost 80% of the market in this region.  While China dominates the regional market, with about 40% of the opportunity, we've seen strongest growth in Malaysia, Australia, India and Indonesia.  

Like Europe, global OEMs have a very strong presence, while there is also room for local players.  Most of these are based in China and India, mainly supplying their local market.  

Looking Ahead

Ironically, although most forecasters probably got this part of the market wrong 5 or 10 years ago, in an uncertain 2025, forecasting the opportunity at these higher power ratings is probably an easier call.  Demand for diesel generator sets between 2001 and 4000 kVA, particularly from data centers, is probably not going away soon. 

Order books are full, 18 - 24 months into the future and the large premium OEMs are all investing heavily in growing capacity and launching new products.  At the same time, midmarket independent producers are all eyeing the opportunity to supply at shorter lead times than the premium OEMs.  

One question that we've often been asked is whether the market is growing for ratings above 4000 kVA.  While some OEMs have launched diesel generator sets that are just above this rating, we haven't seen the industry growing at 4000+ kVA.  If anything it's been flat to a slight decline.   

Looking ahead, we see another decade of continuing growth for diesel generator sets at these higher ratings.  

At the same time, expect to see advances in fuel technology, with more clean fuel options.  And diesel generator sets will also start to feature as part of wider, more balanced power systems, alongside renewable generation and energy storage.