5.6.4.2Vertical

Generators & Gensets

Producers of diesel, gas, and bi-fuel generator sets for standby and prime power.

Market snapshot

These figures describe Engines & Power Equipment (5.6.4), the segment that Generators & Gensets sits within. They are not figures for Generators & Gensets on its own.

Market size
~$35B
Growth
~1.9%CAGR (2017–22, nominal)
Companies
~423 firms
Firms by employee count

39.2% of firms have fewer than 20 employees: 166 micro-businesses, below most mandates.

The investable universe257 firms with 20+ employees
20–99
12047%
100–499
5923%
500+
7830%

Near-flat over five years, which understates the disruption underneath: standby and prime power demand is growing on grid fragility and data-center load, while the traditional industrial engine base erodes. Mix matters more than the aggregate here.

NAICS 332410, 333618. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Engine/power-equipment sales plus aftermarket service

Key economics

Revenue per firm
$83,151,645
Revenue per employee
$588,308
Employees per firm
151.0
Recurring revenue
Moderate–High

recurring aftermarket and service

EBITDA margin
Mature industrial economics; strong aftermarket
Capex intensity
High

Characteristics

  • Scale-driven: payroll is only 13% of revenue, so the cost base is assets, not headcount
  • Moderate strategic-buyer pool: 78 firms exceed 500 employees, so a scaled asset has buyers, but not many
  • Led by Cummins, Caterpillar, GE, Generac.
  • Backup/distributed power and energy transition driving change.
  • Electrification and alternative fuels reshaping engines.

NAICS 332410, 333618. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Engine & power-equipment majors
  • Energy-transition & electrification acquirers
  • PE-backed component platforms

What’s driving deals

  • Electrification and alternative-fuel powertrains.
  • Distributed and backup power demand.
  • Aftermarket and service acquisition.

Find Generators & Gensets acquisition targets

Search Acquisera’s index for companies classified under Generators & Gensets (5.6.4.2) and build a targeted deal pipeline.

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