2025 Q1

Growth but Uncertainty

July 2025

For the diesel generator sets industry, so far 2025 bas been a year of uncertainty.

While that uncertainty has impacted some regions, in others, growth has carried on as usual.

Growing Globally

Despite rising economic uncertainty in Q1 of 2025, the global market for diesel generators sets had another record quarter, 24% higher than Q1 of 2024, and slightly above Q4 of 2024, itself a previous record quarter.

Below we'll look at the high-level numbers and headlines.

Global Opportunity for Diesel Generator Sets > 7.5 kVA

(US$ Billions)

Source: Genstat from Parkinson Associates. Values based on OEM ex-works. Includes price inflation.

Growth by Power Bands

Below 1500 kVA

At lower power ratings, there's evidence of a slowdown in some regions, particularly between 7.5 and 250 kVA. In this power range, globally compared with 2024 Q4 we've seen a 4% decline (8% decline if inflation is excluded). Compared with 2024 Q1, it's a 2% increase (but a 2% decline if inflation is excluded).

Diesel generator sets between 250 and 1500 kVA have fared better compared with 2024 Q1, but still softening compared with 2024 Q4.

Above 1,500 kVA

At higher power ratings, data center-driven demand continues, with almost 40% growth globally compared with 2024 Q1 and around 10% growth compared with 2024 Q4 (both including price inflation).

Quarterly Global Opportunity for Diesel Generator Sets by Power Band

(US$ Millions)

Source: Genstat from Parkinson Associates. Values based on OEM ex-works. Includes price inflation.

Regional Growth

Regionally there's a mixed picture around the world.

North America continues to grow strongly at higher power ratings. But we've seen softening at lower ratings, particularly below 250 kVA. This has been after a period of sustained growth and we believe this slowdown is partly driven by buying patterns in industry cycles, and partly by regional economic factors. And for these reasons, we believe this is likely to be a temporary slowdown.

At lower ratings, the sharp decline seen in Europe in 2024 has bottomed out, although the market remains very competitive. At higher power ratings in Europe, there's now evidence of a slowdown, particularly between 2000 and 3000 kVA as the data center sector bumps into issues with utility power, supply chain and regulatory factors.

The Middle East continues to grow strongly across all power ratings particularly in the UAE and Saudi Arabia.

At higher power ratings, especially above 2000 kVA, the Asia Pacific region is the world's fastest growing, driven by a rapidly developing data center sector. Since 2024 Q1, this market has almost doubled with China, India, Malaysia and Indonesia particularly strong.

Quarterly Opportunity for Diesel Generator Sets > 7.5 kVA by Region

(US$ Millions)

Source: Genstat from Parkinson Associates. Values based on OEM ex-works. Includes price inflation.

Optimism amid Uncertainty

Although there remains a high level of uncertainty in 2025, there are several reasons to feel positive for the diesel generator sets industry, both now and for the foreseeable future.

While there remains a risk of disruption to supply chains from potential tariffs, the industry today is very regionalized, with most products assembled in-region for that region and for neighboring regions.
Demand from the data center sector continues unabated. Ironically the greatest risk to growth in this sector in some regions is that it's simply growing too fast for utility power to keep pace. A risk, but solving it could also be an opportunity for some.
Demand from industry for quality power is high. In most regions, there is near zero tolerance for outages of any duration. Combine this with utility infrastructure that is often past its use-by date in many regions and there is strong demand for standby power.

We'll closely monitor market activity as through 2025, with high level updates and commentary each quarter.

Q2 data will be available late September / early October 2025.

Although there is a risk of disruption to supply chains from potential tariffs, the industry today is very regionalized with many products assembled in-region.

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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2025 Q1 July 25.pdf