Global Standby Generators Market Outlook 2025–2035
The global standby generators market is witnessing substantial growth, fueled by the critical demand for reliable backup power across residential, commercial, and industrial sectors. Increasing frequency of power outages, rapid digitization, and infrastructural development drive market adoption. Advanced technologies and innovations, such as smart generators and hybrid systems, further expand market opportunities. By 2025, the market size is expected to reach USD 18,300 Million, propelled by heightened needs across healthcare, data centers, and other applications. The rise of environmental concerns is also encouraging adoption of cleaner and hybrid generator solutions.
Latest Market Dynamics
Key Drivers
Growing frequency of power outages worldwide is increasing demand for backup power solutions. For instance, Generac Holdings Inc.
reported a surge in orders across the US post-2023 severe weather events, highlighting this trend.
Expansion of critical infrastructure such as data centers and healthcare facilities is boosting the need for consistent, reliable power. Caterpillar Inc. has secured multiple contracts to supply standby generators for hospitals and tech campuses in 2024.
Key Trends
Shift towards hybrid and bi-fuel generators to address both cost and environmental concerns. Kohler Co. launched a new hybrid generator in 2024 combining diesel and battery backup for industrial clients.
Integration of IoT-enabled smart generators is on the rise, offering real-time monitoring and improved energy efficiency. Cummins Inc. expanded its smart generator portfolio in early 2024 to meet this demand.
Key Opportunities
Emergence of sustainable fuel-based generators, such as natural gas and hydrogen-ready models, is opening new market segments. Mitsubishi Heavy Industries Ltd. unveiled a hydrogen-capable standby generator platform in June 2024.
Developing economies in APAC and Africa present significant growth potential due to infrastructural expansion and unreliable grid conditions. Atlas Copco AB increased its regional presence by opening new distribution hubs in Vietnam and Nigeria in July 2024.
Key Challenges
Fluctuations in raw material prices, notably steel and semiconductor components, impact manufacturing costs and margins. Briggs & Stratton Corporation reported delayed order fulfillment in Q2 2024 due to supply chain disruptions.
Stringent emissions regulations in Europe and North America require ongoing investment in compliance and technology upgrade. Cummins Inc. accelerated R&D investments to address toughening EU emission norms effective from 2025.
Key Restraints
High initial capital expenditure for advanced and hybrid generators limits adoption among smaller organizations. Kirloskar Electric Company cited price sensitivity as a hurdle in penetrating small-scale industrial units in 2024.
Rising adoption of solar and renewable energy backup in select regions hampers the traditional standby generator market. Yamaha Motor Co., Ltd. experienced stagnating sales in residential generators in Japan as consumer solar uptake increased.
Global Standby Generators Market Share by Type, 2025
In 2025, diesel generators continue to dominate the global standby generators market due to their proven reliability and widespread industrial use, comprising 42% of the total market share. Gas generators follow with 28%, reflecting a shift towards cleaner energy solutions amidst rising environmental sustainability concerns. Hybrid and bi-fuel generator types are steadily gaining ground, collectively capturing 18%, as businesses seek flexible and cost-effective backup power. Portable and stationary generators collectively account for 12%, mainly driven by the need for mobile solutions and fixed installations for residential and small business use. The diversification of generator types illustrates growing emphasis on efficiency, sustainability, and user-specific requirements. Technological advancements and regulatory pressures are expected to further boost the share of hybrid and alternative fuel generators in the coming years as end-users prioritize both performance and compliance.
Global Standby Generators Market Share by Applications, 2025
In 2025, the industrial segment leads standby generators applications, holding 34% market share, driven by manufacturing expansion and critical infrastructure investments. The commercial segment follows at 28%, with demand boosted by the proliferation of data centers, retail, and office spaces requiring uninterrupted power. Healthcare accounts for 17%, reflecting stringent reliability needs for medical facilities. Residential use stands at 12%, seeing steady adoption in regions prone to outages or natural disasters. Data centers capture 7%, with rapid growth forecast as organizations expand digital operations. The 'Others' segment (2%) includes telecom, education, and hospitality sectors. This application breakdown illustrates a transition towards backup power as an operational necessity in business continuity planning. Rising digitalization and stricter regulatory demands in industrial and healthcare settings strongly reinforce market growth.
Global Standby Generators Market Revenue (USD Million), 2020–2035
The global standby generators market is poised for robust growth between 2020 and 2035. In 2020, the market revenue was recorded at USD 11,480 Million, increasing steadily to reach an estimated USD 18,300 Million by 2025. Continued expansion is forecast through 2035, with revenues surpassing USD 34,500 Million as organizations globally prioritize power reliability amidst urbanization, infrastructural investments, and digital transformation. This growth trajectory reflects not only heightened end-user awareness, but also increased investments in advanced generator technologies such as IoT-enabled and hybrid systems, addressing evolving market and regulatory requirements. Overall, the revenue outlook highlights the market's fundamental role in future-proofing energy security across diverse applications and geographies.
Global Standby Generators Market YOY (%), 2020–2035
Year-on-year (YOY) growth in the global standby generators market demonstrates a compelling upward trend from 2020 to 2035. Initial YOY growth (2020–2021) was 7%, increasing to 8–10% through the mid-2020s as demand accelerated across industrial and commercial sectors. The growth rate is projected to peak at 12% in 2026 due to rapid urbanization and digital infrastructure investments. Subsequently, YOY growth gradually moderates to a sustainable 5–7% towards 2030 as penetration rates stabilize in developed markets and technology adoption matures. The data underscores the influence of both economic cycles and advancing technology on market performance, supporting vendor investments in innovation to sustain above-average growth.
Global Standby Generators Market Share by Regions, 2025
North America holds the dominant regional share of the global standby generators market in 2025 at 38%, attributed to frequent weather-related outages, mature infrastructure, and high adoption across critical industries. APAC follows with 29%, benefiting from rapid industrialization and infrastructure development in China, India, and Southeast Asia. Europe secures a 19% share, driven by regulatory shifts towards grid stability and energy security. South America, the Middle East, and Africa collectively account for 14% as ongoing electrification projects and unreliable grid conditions spur localized backup solutions. The regional landscape highlights robust market activity where reliable power is a central operational concern, with fastest growth anticipated in emerging APAC and African countries.
Global Standby Generators Market Players Share, 2025
In 2025, leading global standby generators market players maintain a competitive landscape characterized by innovation, diverse portfolios, and broad distribution networks. Caterpillar Inc. leads with 17% share, thanks to extensive offerings and contracts in critical infrastructure. Generac Holdings Inc. holds 13%, supported by its robust presence in North America and recent product expansions. Cummins Inc. and Kohler Co. follow at 12% and 10% respectively, both leveraging technology innovations and global reach. Other major players comprise 48% collectively, revealing a fragmented market with strong presence from regional and niche manufacturers. This environment drives ongoing investments in R&D and partnerships, as brands contend for differentiation and expanded market access.
Global Standby Generators Market Buyers Share, 2025
Industrial buyers represent the largest segment in the standby generators market in 2025 at 36%, reflective of ongoing manufacturing expansion and automation trends. Commercial buyers constitute 28% as enterprises across retail, office, and hospitality sectors prioritize business continuity. Healthcare buyers represent 14%, critical for life-saving applications. Residential buyers account for 12%, largely in regions susceptible to frequent power outages. Data centers are a fast-growing buyer group at 8%, amid surging digital infrastructure investments. The varied buyer landscape underlines how backup power requirements have become a strategic consideration across all segments, with growing digitalization and automation reinforcing the importance of standby generator adoption.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
North America, APAC, Europe, South America, Middle East, Africa
Segments
By Type (Diesel Generators, Gas Generators, Hybrid Generators, Bi-Fuel Generators, Portable Generators, Stationary Generators), By Application (Residential, Commercial, Industrial, Healthcare, Data Centers, Others), By Distribution Channels (Direct Sales, Distributors/Wholesalers, Online, Retail, EPC Contractors, Others), By Technology (Conventional Generators, Inverter Generators, Smart Generators, Automatic Transfer Switch Generators, Parallel Systems, Others), By Organization Size (Small, Medium, Large)
June 2024: Mitsubishi Heavy Industries Ltd. announced the launch of a hydrogen-capable standby generator platform, targeting eco-conscious industrial clients.
July 2024: Atlas Copco AB expanded its distribution network in Southeast Asia and Africa with new hubs in Vietnam and Nigeria to support rapid infrastructure development.
August 2024: Cummins Inc. secured major supply contracts for smart generators to leading data center providers in the US and Europe.
September 2024: Generac Holdings Inc. introduced a cloud-connected portable generator series with mobile monitoring features for residential customers.
October 2024: Kohler Co. announced the deployment of hybrid generator fleets for disaster recovery operations across North America, demonstrating fast deployment capabilities.
Frequently Asked Questions
About the Author
Mike
Lead Industry Analyst
Mike is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Machinery and Equipments. Mike brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Mike has helped organizations translate data into actionable growth strategies.
Machinery and EquipmentsMarket ResearchIndustry AnalysisStrategic Consulting
Key Questions Answered
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