U.S. Generator Sales Market Size, Share, Growth and Forecast, 2025-2035

Outages and data centers drive backup power purchases

The U.S. generator sales market was valued at USD 6.74 billion in 2025 and is projected to increase from USD 7.12 billion in 2026 to USD 12.51 billion by 2035, registering a CAGR of 6.47% during 2026–2035. Demand comes from households, data centers, hospitals, telecom networks and industrial sites that buy standby, prime and portable sets to keep operating when the grid fails. The South held the largest regional share, 37.5% in 2025, and is also the fastest-growing region at 6.84% a year, because hurricanes cause long outages there while population and data center capacity keep rising. Outages lasted 11 hours on average for each U.S. electricity customer in 2024, nearly twice the level of a decade earlier. A regulatory change also matters, because a federal clarification in May 2025 allowed certain emergency engines to run up to 50 hours a year to support the grid under paid programs.

What does the U.S. generator sales estimate cover?

The estimate measures the value of new generator sets sold to buyers in the United States, including portable units, home standby systems, commercial standby sets and industrial sets that run as prime or continuous power. It counts diesel, natural gas, dual-fuel and hybrid units sold through dealers, direct OEM accounts, retail and e-commerce, and electrical contractors. Sales are assigned to the Census region where the equipment is installed or delivered.

The estimate excludes used and rental units, service contracts, fuel and utility-scale power plants built to sell electricity. It also excludes stand-alone battery systems that are sold without an engine-driven set. The value chain runs from engine and alternator makers through packagers, enclosure builders and dealers to installers and end users.

Commercial standby sets and households lead 2025 value

Which product earns the most revenue?

Based on product type, the market is categorized into portable generator sets, home standby generator sets, commercial standby generator sets, and industrial prime and continuous sets. Commercial Standby Generator Sets led with 36.0% of 2025 value, because data centers and hospitals buy large units with high prices per set. Industrial Prime and Continuous Sets grow fastest at 7.66% a year, as some data center campuses run gas-fired sets as their main power source.

Which end users buy the most backup power?

Based on end-use industry, the market is categorized into residential, data centers and telecom, healthcare and public infrastructure, and industrial and construction. Residential led with 41.0% of 2025 value, because millions of households buy portable and home standby units after storms. Data Centers and Telecom grow fastest at 8.26% a year, as new campuses need several megawatts of backup capacity before they open.

How do buyers use the sets they purchase?

Based on application, the market is categorized into emergency standby, prime power, peak shaving and demand response, and mobile and temporary power. Emergency Standby led with 68.5% of 2025 value, because most sets run only during grid failures and tests. Prime Power grows fastest at 8.07% a year, as some sites build behind-the-meter supply while grid connections take years.

Which engine technologies gain ground?

Based on technology, the market is categorized into conventional engine-driven, low-emission natural gas, dual-fuel and bi-fuel, and hybrid generator-battery units. Conventional Engine-Driven units led with 58.0% of 2025 value, because diesel sets start fast and store fuel on site. Hybrid Generator-Battery units grow fastest at 9.12% a year, as buyers pair engines with battery energy storage to cut fuel use and emissions.

Weather outages, data centers and facility rules lift demand

Why do storms push households toward backup units?

Longer weather-related outages are the main driver, because each major storm leaves millions of homes and businesses without power for days. U.S. electricity customers averaged 11 hours without power in 2024, and major events caused 80% of those hours, according to the U.S. Energy Information Administration. Major-event interruptions averaged nearly nine hours in 2024, compared with nearly four hours a year from 2014 to 2023. Hurricane Helene cut power to 5.9 million customers across 10 states in September 2024, including at least 1.2 million in South Carolina. As a result, residential buyers held 41.0% of 2025 value as households buy portable and home standby units.

How much new computing load needs on-site backup?

Data center expansion raises orders for large sets, because every new hall needs on-site backup sized to its full load. Data centers used about 4.4% of U.S. electricity in 2023 and could use 6.7% to 12% by 2028, according to the Department of Energy. Their consumption rose from 58 TWh in 2014 to 176 TWh in 2023, so backup needs have grown with them. Generac introduced five data center units from 2.25 MW to 3.25 MW in April 2025, while Rolls-Royce said in June 2025 that its Mankato output of mtu Series 4000 sets would rise more than 120% by 2026. Therefore, data centers and telecom grow fastest among end users at 8.26% a year.

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Which federal mandates protect patient power supply?

Critical-facility resilience rules support steady demand, because hospitals and care homes must keep power on for patients during outages. Federal emergency preparedness rules require hospitals, critical access hospitals and long-term care facilities to maintain emergency and standby power systems, and the rule covers 17 provider types in total. The rule took effect on Nov. 15, 2016, so compliant sets installed then now enter replacement cycles. South Carolina customers averaged nearly 53 hours without power in 2024, which shows how long hospitals and care homes may need to run on backup. Cummins launched an evolved Centum Series product line at its Fridley, Minnesota, power systems headquarters in July 2024. Therefore, emergency standby holds 68.5% of 2025 value across hospitals, water systems and public buildings.

Why are utilities paying backup engines to run?

Grid capacity strain turns some backup sets into grid assets, because utilities need fast reserves when peak demand rises. The North American Electric Reliability Corporation forecast in January 2026 that summer peak demand will rise by 224 GW over ten years, with data centers the main driver in many areas. The Environmental Protection Agency clarified in May 2025 that certain emergency engines may run up to 50 hours a year to support the grid under a financial arrangement. That interpretation answered a January 2025 request from Duke Energy about its PowerShare Mandatory 50 program. As a result, prime power grows fastest among applications at 8.07% a year, while grid programs lift peak shaving.

Gas-fired prime power and new plant capacity reshape supply

Why is on-site gas generation rising for campuses?

Gas-fired prime power is rising, because some data center developers cannot wait years for grid connections. Joule Capital Partners, Caterpillar and dealer Wheeler Machinery announced in August 2025 a 4 GW campus in Utah that will use Caterpillar G3520K sets with heat recovery for cooling. Cummins agreed in June 2026 to supply natural gas sets on its HSK78 and QSK60 platforms for a behind-the-meter microgrid at Circe Energy's West Texas campus. Deliveries for that project run from 2026 through 2030, with phased energization starting in 2027. Therefore, industrial prime and continuous sets grow fastest among product types at 7.66% a year as campuses run engines every day.

How is the shift toward domestic plant capacity playing out?

Suppliers are shifting more production into U.S. plants, because order books for large sets have outgrown existing lines. Caterpillar announced a $725 million expansion of its large engine plant in Lafayette, Indiana, in October 2025 to meet power demand from data centers and critical infrastructure. Rolls-Royce is adding a 250,000-square-foot logistics center in Mankato, Minnesota, while Rehlko said in June 2026 that a Kenosha, Wisconsin, expansion will lift data center capacity more than 400% over the decade. Generac also bought another Wisconsin plant in late 2025 for large megawatt units. As a result, commercial standby sets keep 36.0% of 2025 value as domestic supply catches up with demand.

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Can storage paired with engines open a new revenue pool?

Hybrid generator-battery systems are an opening, because storage lets engines run less often while keeping power quality high. The Utah campus that Caterpillar supplies includes 1.1 GWh of grid-forming battery storage alongside its gas-fired sets. Generac has added storage and controls businesses, including Ageto and the commercial battery business of SunGrid in 2024. Pairing batteries with engines also lets data centers meet grid-forming and ride-through needs without running every set during short disturbances. Because certain emergency engines may run only up to 50 hours a year for grid support under the May 2025 federal clarification, storage can cover the remaining events. Therefore, hybrid generator-battery units grow fastest among technologies at 9.12% a year, as data centers, microgrids and remote sites combine both assets.

Can towable units capture rental and storm work?

Mobile and temporary power offers room to grow, because construction sites, events and storm recovery crews need units that move between jobs. Generac completed its acquisition of Allmand, a Holdrege, Nebraska, maker of mobile power equipment for commercial, industrial and rental markets, in January 2026. It then bought Enercon Engineering of East Peoria, Illinois, in April 2026 and generator distributor Wolter Power Systems of Brookfield, Wisconsin, in May 2026. These deals widen dealer and service coverage across the Midwest, where many power rental fleets are based. As a result, suppliers with towable units and service networks can win fleet orders after storms and on large building projects through 2035.

Lead times, emission permits and safety risks persist

Why must developers order sets so early?

Long lead times delay large projects, because engines, alternators and switchgear for megawatt sets are in short supply. Data Center Frontier reported in April 2025 that industry lead times for large data center sets ran 70 to 90 weeks, although Generac quoted 50 to 60 weeks for its new units. As a result, developers order sets more than a year before a hall opens. Suppliers respond with new plant capacity and standard designs that shorten build time.

What caps the hours an emergency engine may operate?

Emission permits limit how sets can run, because federal engine rules cap non-emergency hours for units classed as emergency engines. The 50-hour allowance clarified in May 2025 covers only certain grid support arrangements, so sites that want daily operation need stricter permits. This raises costs for prime power projects and for older diesel fleets. Buyers manage the risk with natural gas engines, aftertreatment and hybrid storage that reduces runtime.

Why does carbon monoxide weigh on small units?

Safety risks affect portable set buyers and sellers, because exhaust from units run indoors kills people after storms. About 100 consumers die each year in the United States from carbon monoxide poisoning linked to portable sets, according to the Consumer Product Safety Commission. This keeps pressure on makers to add automatic shut-off features and certified designs. Retailers and dealers also spend more on safety guidance at the point of sale.

How does storm timing affect household orders?

Demand swings with outage seasons, because many households buy only after a storm leaves them without power. Generac described the second half of 2025 as the lowest outage environment in a decade, which cut residential orders that year. This volatility makes dealer stocking and factory planning harder for portable and home standby lines. Suppliers smooth demand through financing offers, dealer training and marketing in regions with long outage records.

The South leads as hurricanes and data centers add demand

Why does the South lead backup power buying?

The South held 37.5% of 2025 value and grows fastest at 6.84% a year, because hurricanes cause the longest outages there. Hurricane Beryl left 2.6 million Texas customers without power in July 2024, and Hurricane Milton cut power to 3.4 million Florida customers that October. The South's population also grew 6.0% from 2020 to 2025, about twice the national rate of 3.1%, according to the U.S. Census Bureau. These forces keep both home standby and large commercial demand high.

How is Utah reshaping orders in the West?

The West held 25.0% of 2025 value and grows at 6.74% a year, because large data center campuses are rising in states such as Utah. A campus announced there in August 2025 will run on Caterpillar G3520K sets, which shows the scale of new orders. Generac also offers cooling packages rated for 50°C for hot sites such as Phoenix. Population grew 1.9% from 2020 to 2025, so data centers drive more of the growth than households.

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What role does the Midwest play as a supply base?

The Midwest held 19.5% of 2025 value and grows at 6.04% a year, because it combines steady demand with much of the national production base. Cummins runs its power systems headquarters in Fridley, Minnesota, Rolls-Royce assembles mtu sets in Mankato, and Rehlko and Generac are expanding in Wisconsin. Caterpillar is investing $725 million in Lafayette, Indiana, for large engines. However, Illinois and South Dakota had fewer than one interruption per customer in 2024, which tempers household demand.

Why does the Northeast grow more slowly?

The Northeast held 18.0% of 2025 value and grows at 5.74% a year, because its population grew only 0.7% from 2020 to 2025. Even so, Maine and Vermont had frequent outages in 2024, often from storm-damaged trees, which keeps rural households buying standby units. Hospitals, transit systems and financial data centers in dense cities also buy large sets. Massachusetts averaged under two hours without power in 2024, which limits demand in some urban markets.

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Capacity expansions and acquisitions marked 2025 to 2026

Gas engines, paralleling controls and hybrid storage

• Natural gas engines such as the Caterpillar G3520K and Cummins HSK78 let campuses run sets as prime power without storing diesel on site.
• Paralleling controls such as Generac's Modular Power Systems let several units share load and scale as a site adds capacity.
• Automatic transfer equipment built into transfer switches moves loads to the set automatically when grid power fails.
• Hybrid storage packages pair engines with batteries, so sites can cover short disturbances without starting every set.

Engine makers and standby specialists compete on capacity

Competition is led by a few engine makers and standby specialists that compete on capacity, lead time, emissions and dealer coverage. Generac holds a leading position in home standby and has moved into large data center units, while expanding through acquisitions of mobile power, custom enclosure and distribution businesses in 2026. Caterpillar and Cummins supply diesel and gas sets from small commercial units to multi-megawatt systems, backed by national dealer and service networks. Rolls-Royce Power Systems builds mtu sets in Minnesota with engines from South Carolina, and Rehlko, the former Kohler Energy, sells home and industrial sets from its Wisconsin base. Rivals also compete on factory testing, paralleling controls and service contracts. Plant capacity and short delivery times increasingly decide which suppliers win large data center orders.

Companies profiled and their roles in this market

Credence Research view on domestic backup power demand

Credence Research's view is that U.S. generator demand will keep growing because the grid faces longer storm outages and faster load growth at the same time. Data centers turn backup power into a planned capital purchase rather than a storm reaction, which smooths demand for large sets. Household buying will stay cyclical and tied to hurricane seasons. Gas-fired prime power and hybrid storage are the main upside factors, while tighter emission permits or faster grid connections could slow large-set growth through 2035.

How the U.S. backup power estimate was built

The report uses 2025 as the base year for every value, share and growth rate. Market values come from the Credence Research model, and regional, product type, end use, application and technology splits are Credence Research estimates. Inputs include Energy Information Administration outage data, Department of Energy data center studies, Census Bureau population estimates, federal rules, company filings and company announcements. Regional shares and growth tilts are Credence Research estimates that reflect outage exposure, population trends and data center construction in each Census region. No interviews or surveys were used in preparing these estimates.

Data centers and grid stress shape demand through 2035

The market is expected to reach USD 12.51 billion by 2035, a 6.47% CAGR during 2026–2035, as storm outages, data center construction and grid strain keep backup power on buyers' budgets. Large commercial and prime power sets should gain share as campuses add capacity and some run engines every day. The South should keep the largest share because of hurricane exposure and population growth. Faster plant expansions would lift this outlook, while a run of mild storm seasons would slow household purchases.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.