Malaysia’s diesel generator set market is poised for steady growth, with projections indicating an increase from USD 93.0 million in 2024 to USD 111.5 million by 2030. This reflects a compound annual growth rate (CAGR) of 3.0%, driven by surging infrastructure development, construction activity, and the need for reliable backup power.
A key factor fueling the market is the Malaysian government’s commitment to building one million housing units by 2029, primarily for low-income groups. These large-scale residential developments are expected to require stable and consistent power sources, positioning diesel generators as a critical solution.
The construction sector’s momentum further underscores demand, having grown by 14.6% in 2021. Given the sector’s reliance on uninterrupted electricity for machinery and site operations, diesel generators remain an essential fixture on construction sites nationwide.
Frequent natural disasters such as floods and storms—leading to widespread power outages and the shutdown of over 300 substations in recent years—also emphasize the importance of resilient energy infrastructure. Diesel generators play a crucial role in powering emergency services and evacuation centers during such crises.
From a market segmentation standpoint, the above 750 kVA power rating segment holds the dominant share, particularly due to its suitability for industrial and large commercial applications. Meanwhile, the commercial segment is expected to experience the fastest growth, as businesses increasingly prioritize operational continuity through dependable power solutions.
The market landscape is consolidated, with major players focusing on innovation, product expansion, and strategic partnerships to strengthen their foothold in Malaysia. As the nation continues to invest in infrastructure and industrial growth, the diesel generator set market is set to remain on a positive trajectory, buoyed by the growing emphasis on energy reliability and disaster resilience.