Production of Diesel Generator Sets

Trends in where units are produced

April 2025

One of the advantages of developing an industry database over a long period of time is clear visibility of trends in the data. With full year data for 2024 now available, we look at where diesel generator sets are produced and how this has evolved over time.

The Genstat database from Parkinson Associates splits production and market opportunity for diesel generator sets into 12 power bands but for simplicity, in this analysis we'll group production into three bands.

7.5 - 250 kVA

The most striking feature in this data is the rise of production in China, almost tripling its share of global production. This increase has been driven mainly by a shift in production from Europe, from where several global OEMs and European-based manufacturers have relocated production. Most of this relocation was in the aftermath of the downturn from the 2009 financial crisis.

Today almost a third of the world's diesel generator sets at this size are manufactured in China, either by global OEMs relocating production in the country or by local Chinese OEMs, most of them exporting a significant percentage of production. At these lower power ratings, China is the world's largest exporter.

India remains a major producer at these power ratings, accounting for around a quarter of global production. A very strong telecoms sector in India boosted production in the early 2000s and although this demand has passed its peak, there's evidence of growing activity from producers in India, both for the domestic market and for export.

The Middle East and Africa now have some well-established local OEMs producing diesel generator sets with well-known engine brands and this is reflected in the numbers. The Middle East and Africa now account for around 10% of global production, only a few percentage points behind the whole of Europe.

Unit Production of Diesel Generator Sets by Region: 7.5 - 250 kVA

Source: Genstat from Parkinson Associates

251 - 1500 kVA

In the mid-range power bands, again the striking feature is the decline in units produced in Europe and corresponding increase in China.

In 2008, around half of the world's diesel generator sets at this size were produced in Europe: today it's less than 20% and units produced in China account for almost 40%.

Across other regions, there has been relatively little change.

Unit Production of Diesel Generator Sets by Region: 251 - 1500 kVA

Source: Genstat from Parkinson Associates

Above 1500 kVA

Today above 1500 kVA, units produced in North America account for almost 50% of world production. Production in North America is around 3 times greater than a decade ago and a major driver is the data center sector. Most of this production remains in North America with only around 10% exported and the market is supplied almost 100% by North American production.

While European production levels are more or less flat compared with 2014, in real terms this is a decline in a global market that is now double its 2014 volume levels. In 2014, Europe accounted for almost 40% of global production at these ratings; in 2024, it was around 20%. Today, at these higher ratings, most production in Europe is for customers in Europe, Middle East and Africa.

Although many customers, particularly data center operators, have a preference for diesel generator sets produced in North America or Europe, China is now a major producer, surpassing Europe, and accounting for more than 20% of global production. Much of this production in China is by global OEMs and European and Japanese OEMs with facilities in China and is for the domestic Chinese market and South East Asia.

Unit Production of Diesel Generator Sets by Region: Above 1500 kVA

Source: Genstat from Parkinson Associates

The Production Big Picture

Because components, particularly engines and alternators, make up most of the manufacturing costs of diesel generator sets, over the last 10 - 15 years, production of diesel generator sets has, to a great extent, followed major component suppliers. And at the same time, there's also been a trend more towards regional production closer to customers. The days of shipping engines halfway round the world to be packaged into generator sets and then halfway round the world back to a customer are long gone.

Looking Ahead

China is likely to remain a major global production powerhouse for the foreseeable future, although over the next 5 - 10 years, India is more likely to be a growing focus of attention for producers. It has a very sizeable market, especially at lower power ratings, and a data center sector which is likely to see rapid growth. It's dominated by local OEMs, but increasingly, many are looking towards export markets for growth, not just in Asia Pacific but also in Africa and Middle East. Expect to see them develop their presence outside India in the next 5 - 10 years.

Expect more global OEMs to establish a greater manufacturing presence in India, mostly for export. The country has a growing number of global component suppliers, a strong tradition of engineering and a well established industry for diesel generator sets.

Expect to see investment in production capacity in North America at higher power ratings, particularly above 2000 kVA. Most of this will be for North American customers, particularly for the data center sector.

On a smaller scale, and particularly in Africa and Middle East, there's likely to be more in-region production at lower power bands, especially below 250 kVA, from locally established producers working with major component OEMs.

Insights on Opportunity for Producers of Diesel Generator Sets

To find out more about this study, contact us at at enquiries@parkinsonassociates.com

Parkinson Associates publish an opportunity database, Genstat, available quarterly and annually, for diesel generator sets, split by 12 power bands for every country. Click here to find out more.

To find out more about our research in the diesel generator set industry, click here

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Production History Apr 25.pdf