Telecom Generator Market Outlook:
Telecom Generator Market size was USD 3.3 billion in 2024 and is estimated to reach USD 7.1 billion by the end of 2037, expanding at a CAGR of 6.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of telecom generators is assessed at USD 3.5 billion.
The telecom generator trade is characterized by a stable supply chain of raw materials and specialized components. The International Trade Commission (ITC) reveals that the telecom-related power generation equipment, classified under HS codes 8502 and 8501, registered a 14.5% rise in U.S. imports between 2022 and 2024. This was mainly driven by the high infrastructure investments and climate resilience mandates. China, India, and Mexico dominate the core component supply, such as alternators and diesel generator engines. According to the U.S. Bureau of Economic Analysis (BEA), capital goods imports, including generator systems used in telecom applications, reported a 9.6% year-over-year rise in 2024.
Trade tensions and shifting tariffs are estimated to influence the sales of telecom generators in the years ahead. Furthermore, the U.S. Bureau of Labor Statistics (BLS) states that the producer price index for engine and power transmission equipment manufacturing increased by 4.5% in 2024, due to the increasing input material costs and global freight surcharges. During the same period, the consumer price index for electricity-related commodities grew by 3.4%. This indirectly influences the downstream pricing for telecom operators relying on backup power systems.
Telecom Generator Market - Growth Drivers and Challenges
Growth Drivers
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Electrification and renewable energy integration in telecom sites: The increasing implementation of net-zero goals and climate commitments is expected to propel the sales of green telecom generators in the years ahead. The telecom operators are focusing on the integration of renewable technologies to align with net-zero goals. For instance, in sub-Saharan Africa, telecom operators, including MTN and Airtel, are deploying solar-diesel hybrid systems to cut fuel use by nearly 40.4%. Furthermore, the International Renewable Energy Agency (IRENA) states that nearly 34.5% of off-grid telecom towers globally are expected to be powered by hybrid systems by 2030. To align with this trend, many telecom generator manufacturers are set to introduce innovative solar PV inverters and intelligent battery storage solutions.
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Increasing off-grid telecom infrastructure expansion: The increasing expansion of mobile networks into remote or underserved regions is creating profitable opportunities for telecom generator manufacturers. The autonomous, off-grid energy solutions are set to gain high traction in Africa and Southeast Asia. As per the World Bank’s Digital Economy for Africa initiative, the new rural users are expected to increase by 51 million by 2030. This trend is set to boost the deployment of mobile tower sites powered by diesel generators or hybrid solutions in these areas. Several companies are estimated to capitalize on this trend by launching ruggedized, low-maintenance gensets for rural telecom. New companies are also expected to earn lucrative gains by targeting telecom infrastructure providers with off-grid-ready solutions.
Technological Innovations in the Telecom Generator Market
The technological advancements are set to double the revenues of telecom generator manufacturers during the projected period. The swift integration of digital technologies in large enterprises is estimated to propel the demand for advanced telecom generators in the coming years. Edge computing, predictive analytics, 5G, and AI enhance the operational efficiency of the telecom generator solutions. The table below reveals the current technological trends and their outcomes.
|
Trend |
Sector |
Statistic / Example |
Company Example |
Impact |
|
AI-Based Predictive Maintenance |
Telecom |
Downtime decreased by 22.4% at Nokia’s APAC tower sites (2024) |
Nokia |
Enhanced generator uptime and OPEX savings |
|
Remote Monitoring & IoT Integration |
Manufacturing |
68.3% of OEMs employed IoT-enabled gensets for real-time diagnostics (U.S. DOE, 2024) |
Caterpillar |
Decreased maintenance costs and failure rates |
|
Hybrid Solar-Diesel Systems |
Telecom, Energy |
Fall in fuel usage by 45.4% in off-grid telecom towers (IRENA, 2024) |
Bharti Airtel |
Reduced fuel dependency in remote deployments |
Sustainability Trends in the Telecom Generator Market
The strict regulatory mandates are set to boost the adoption of telecom generator systems. The sustainable initiatives, including renewable energy and circular economy, are also projected to fuel the demand for telecom generator technologies. In addition to this, the EU Green Deal and the U.S. EPA Clean Power Plan are accelerating the sales of smart telecom generators. The table below underscores the current sustainability strategies and their business impacts.
|
Company |
Sustainability Initiatives |
Goals & Vision (2030) |
Impact on Business |
|
Caterpillar |
13.4% CO₂ fall via low-emission engines (2023) |
30.5% mitigation in absolute emissions by 2030 |
Enhanced efficiency; enhanced ESG ratings (2024 Annual Report) |
|
Cummins |
50.2% of energy from renewables (2022) |
Carbon neutrality by 2050; 100% renewable by 2030 |
Lower OPEX; favorable government procurement eligibility |
|
Atlas Copco |
28.6% industrial waste reduction via component reuse (2023) |
Zero landfill waste by 2030 |
Cost savings, expanded service lifecycle portfolio |
Challenges
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Infrastructure and logistics readiness: The lack of advanced infrastructure in rural and off-grid areas challenges the deployment of telecom generators. Some areas of Africa and Southeast Asia still lack proper roads and stable power networks, which directly affects the sales of advanced telecom generators. Furthermore, the report by ABB Ltd. reveals that the generator deployment times in Nigeria were 35% longer than global averages. The prime factors for this were logistics constraints and inadequate warehousing support. Thus, sales of telecom generators are expected to remain moderate in some developing regions.
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Pricing pressures and thin margins: The high costs of advanced telecom generators are expected to limit their sales in price-sensitive markets. The emerging economies are driving high demand for low-cost telecom infrastructure, which is creating pricing pressures for generator suppliers. The study by the World Trade Organization (WTO) reveals that more than 70.4% of public telecom tenders in Africa awarded contracts to the lowest bidder. This highly hampered the sales of premium, high-efficiency generator models. The adoption of cost-effective solutions is limiting opportunities for advanced telecom generator manufacturers.
Telecom Generator Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.3% |
|
Base Year Market Size (2024) |
USD 3.3 billion |
|
Forecast Year Market Size (2037) |
USD 7.1 billion |
|
Regional Scope |
|
Telecom Generator Market Segmentation:
Application Segment Analysis
The telecom towers segment is estimated to hold 58.2% of the global market share through 2037. The rapid rural network expansion and 5G rollout in developing regions are accelerating the sales of telecom generators. The International Telecommunication Union (ITU) and GSMA projects that more than 391,000 new towers are expected to be installed across Africa and the Asia Pacific by 2035. The need for continuous and reliable backup power is estimated to drive the adoption of telecom generators in these regions. The supportive government policies are also poised to propel the trade of telecom generators in the coming years.
Fuel Type Segment Analysis
The diesel generators segment is projected to capture 50.5% of the global market share throughout the forecast period. The long-term cost benefits and ease of maintenance are fueling the adoption of diesel generators. The established supply chains in remote geographies are also playing a vital role in expanding the sales of diesel generators. As per the analysis by the U.S. Department of Energy (DOE), diesel-based power is the most used backup source by telecom companies, particularly in areas lacking resilient grids. Such recommendations attract end users to invest in diesel generators. Additionally, the next-gen Tier 4-compliant diesel gensets are exhibiting high adoption in North America and Europe due to their NOx/PM emissions reduction capabilities.
Our in-depth analysis of the global market includes the following segments:
|
Segment |
Subsegment |
|
Power Rating |
|
|
Fuel Type |
|
|
Application |
|
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Telecom Generator Market - Regional Analysis
North America Market Insights
The North America telecom generator market is anticipated to account for 35.5% of the global revenue share through 2037. The increasing investments in the wireless connectivity infrastructure development projects are poised to open lucrative doors for telecom generator companies. The rise in ICT budget is expected to propel the sales of telecom generators during the study period. The clean energy goals are driving a high demand for hybrid or solar-powered telecom generators in the region. Technological innovations such as fuel cell technology are also estimated to drive the overall market growth in the years ahead.
The sales of telecom generators in the U.S. are expected to increase at a CAGR of 5.9% due to swift digital transformation and infrastructure resiliency mandates. The increasing 5G deployment is set to accelerate the trade of telecom generators in the coming years. The Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA) reveal that more than 15.7% of the federal ICT budget is allocated for infrastructure continuity, which directly boosts the demand for advanced telecom generators.
The Canada market is projected to reach a valuation of USD 866.2 million by the end of 2037. Innovation, Science and Economic Development (ISED) and the Canadian Radio-television and Telecommunications Commission (CRTC) are channeling funding to support telecom infrastructure. The supportive government policies and funding initiatives are likely to attract international investors in the years ahead. Furthermore, the Universal Broadband Fund’s allocation of CAD 3.3 billion to enhance last-mile connectivity and energy security is likely to drive the adoption of telecom generators.
Europe Market Insights
The Europe telecom generator market is poised to hold 22.6% of the global revenue share by 2037 as the grid reliability concerns and digital infrastructure investments are set to propel the sales of telecom generators. In 2023, the EU allocated more than €1.8 billion to digital infrastructure resilience, including fuel-cell and hybrid generators for telecom sites. The digital shift is estimated to drive high demand for advanced telecom generators. Germany is expected to lead the trade of telecom generators, followed by the U.K. and France in the coming years. Furthermore, the EU’s Digital Decade targets and European Digital Innovation Hubs (EDIHs) program are set to accelerate telecom infrastructure development and subsequently boost the revenues of key players.
|
Country |
2037 Revenue Share (%) |
2024 Market Demand (USD Billion) |
% of ICT Budget Allocated (2023) |
|
Germany |
19.6% |
4.3 |
7.3% |
|
France |
15.9% |
3.5 |
6.6% |
|
United Kingdom |
13.4% |
2.9 |
7.0% |
The U.K. is expected to emerge as the most opportunistic market for telecom generator producers, owing to favorable public spending and policies. In 2023, the country invested 7.0% of its digital infrastructure budget in telecom generator solutions. The swift digital expansion is likely to boost the profit margins of telecom generator manufacturers. The telecom operators deployed more than 1,220 new hybrid diesel-solar generators in 2023 across 5G sites. The subsidy schemes are set to lead to the overall shipments of telecom generators by 2037.
Telecom generator demand in Germany reached €4.3 billion in 2024, reflecting a high rate of installation of these advanced solutions. The country allocated 7.4% of its ICT budget for power infrastructure upgrades during the same period. The digital expansion and telecom infrastructure modernization projects are expected to double the revenues of telecom generator manufacturers. Also, the country’s 5G reliability framework is expected to boost the sales of advanced telecom generators in the years ahead.
APAC Market Insights
The Asia Pacific telecom generator market is foreseen to increase at a CAGR of 6.5% from 2025 to 2037, owing to the rapidly expanding telecommunication sector. The digital transformation and increasing ICT investments are likely to accelerate the production and commercialization of telecom generators in the region. China, India, Japan, Malaysia, and South Korea are expected to lead the sales of telecom generators owing to the swift expansion of wireless connectivity solutions.
China is expected to dominate the demand for telecom generators owing to the energy resiliency targets and increasing need for robust connectivity networks. The Ministry of Industry and Information Technology (MIIT) and China Academy of Information and Communications Technology (CAICT) allocated more than ¥11.5 billion toward rural telecom infrastructure in 2023. The favorable funding initiatives are poised to accelerate the shipments of telecom generators.
The India market is anticipated to expand at a CAGR of 9.4% throughout the anticipated period. The rapid rollout of BharatNet Phase III is likely to drive the sales of advanced telecom generators. The increasing data usage in semi-urban zones is also fueling a high demand for telecom generators. The energy reliability programs and clean energy goals are expected to promote the installation of solar or hybrid generators. The study by the Department of Telecommunications (DoT) and the Ministry of Electronics and Information Technology (MeitY) reveals that more than 861,000 MSMEs integrated telecom generator systems in 2023. The country is a win-win market for telecom generator manufacturers.
Country Specific Trends
|
Country |
2024 Market Demand (USD Bn) |
ICT Budget % Allocated to Generators |
2015-2023 Gov. Spending Growth % |
Notable Organizations Adopting |
|
Japan |
1.69 |
6.5% |
42.3% |
410,000+ sites |
|
Malaysia |
0.74 |
5.4% |
66.5% |
97,500+ ICT sites |
|
South Korea |
1.15 |
6.0% |
51.7% |
214,500+ telecom units |
Key Telecom Generator Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The telecom generator market is driven by the presence of gigantic companies and the increasing emergence of start-ups. Leading companies are focused on the production of advanced telecom generators to attract a wider consumer base. They are engaging in strategic partnerships & collaborations, mergers & acquisitions, and regional expansion tactics to increase their revenue shares. The partnerships with public entities are creating a profitable environment for telecom generator manufacturers. Investments in hydrogen-powered units are also set to double the revenues of key market players in the coming years.
Here is a list of key players operating in the global market:
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Cummins Inc. |
USA |
12.8% |
|
Caterpillar Inc. |
USA |
10.5% |
|
Kohler Co. |
USA |
6.9% |
|
Generac Power Systems |
USA |
6.6% |
|
Siemens AG |
Germany |
6.1% |
|
Rolls-Royce Power Systems (MTU) |
UK |
xx% |
|
ABB Ltd. |
Switzerland |
xx% |
|
Atlas Copco AB |
Sweden |
xx% |
|
FG Wilson (A Caterpillar Brand) |
UK |
xx% |
|
Doosan Corporation |
South Korea |
xx% |
|
Hyundai Power Systems |
South Korea |
xx% |
|
Wartsila Corporation |
Finland |
xx% |
|
Sterling Generators Pvt. Ltd. |
India |
xx% |
|
Mahindra Powerol |
India |
xx% |
|
GenSet Malaysia Sdn. Bhd. |
Malaysia |
xx% |
Below are the areas covered for each company in the telecom generator market:
Recent Developments
- In May 2024, Siemens AG rolled out its AI-Optimized Smart Grid-Compatible Generators. These solutions are exhibiting high adoption in Germany’s 5G network expansion projects.
- In March 2024, Cummins Inc. announced the launch of its QST30 G-Series telecom generator. These solutions are estimated to enhance uptime by 18.4% and contributed to a 7.8% rise in telecom sector revenue in Q1’24.
Author Credits: Dhruv Bhatia
- Report ID: 7825
- Published Date: Jun 26, 2025
- Report Format: PDF, PPT
