Gas, diesel, and gasoline (petrol) are the three categories under the fuel segment of the genset market, among which the diesel category held the largest share during the historical period (2014–2019).  Though low-power diesel gensets are more expensive than low-power gas gensets, gas is not easily available everywhere in the Latin American (LATAM) and Middle Eastern and African (MEA) regions.

Similarly, the application segment of the industry is divided into industrial, residential, and commercial. In 2019, commercial was the dominant division, on account of the rising infrastructure development activities in emerging economies, supported by governments’ smart city initiatives. In addition, the retail sector is also booming, with the surging spending by customers. The industrial division will witness the fastest growth during the forecast period, driven by the expansion in the oil & gas and manufacturing sectors.

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Presently, the Asia-Pacific (APAC) region is the largest genset market, because of the expanding manufacturing industry, supported by the Made in China 2025, Make in India, Making Indonesia 4.0, and other such government initiatives. Similarly, the demand for backup power in residential units is increasing, while heavy sums are being poured in for the advancement of the telecommunications infrastructure. During the forecast period, the highest CAGR in the industry will be witnessed by the MEA region, driven by grid uncertainties and the rapid urbanization in Saudi Arabia, the U.A.E., Turkey, and Egypt.

Hence, with the increasing demand for power and need to counteract the grid uncertainties and inadequate electricity production, gensets will see widespread installation around the world.