2025 Q2

Looking Ahead

Although there remains risk of volatility in the short to medium term, opportunity data for the diesel generator sets industry has been strong in Q2. 

The European market has recovered almost back to 2023 levels.  And growth has been strong in Africa, Middle East and Latin America.  

And of course, the data center sector continues to loom large over the entire generator sets industry.  

Despite talk of an AI investment bubble, the data center sector has continued on its upward trend, with an almost insatiable appetite for diesel generator sets.  And for now, the biggest growth constraint for producers of generator sets is probably industry capacity.  

Longer term, a major risk to growth in this sector is that it's simply growing too fast for utility power to keep pace.  And in some regions, data center operators have turned attention to generator sets powered by natural gas to provide prime power for some of their operations.  

At ratings above 2,000 kVA, the data center sector now accounts for around 80% of the industry for diesel generator sets in North America, 70% in Asia Pacific and 60% in Europe.  

Demand from data centers is unprecedented.  But it has also been magnified by speculative orders placed far in advance to buy capacity.  And there’s evidence of stockpiling by data center operators, with large numbers of generators in storage waiting for new-builds.  

At some point, the industry will need to pause and catch its breath.  The only questions are by how much and the timing.  

Through 2026 and beyond we will be closely monitoring industry activity each quarter for any evidence of changes in market demand, with analysis at country level across 12 power bands.