Unreliable Electric Grid Driving Caribbean Generator Set Market at 8.11% CAGR During 2026-32

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The Caribbean Generator Set Market size was valued at around USD 144.04million in 2025 and is projected to reach USD 230 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 8.11% during the forecast period, i.e., 2026-32, cites Markntel Advisors in the recent research report.

Caribbean is a group of small island countries in the Caribbean Sea and the Atlantic Ocean. Their geographical location makes them isolated from the mainland of the Americas; thus, the establishment of a reliable and efficient connected power grid is still lacking. This causes disturbances in the electricity supply. In March 2025, the Commonwealth and Development Office (FCDO) released the news of a power outage that struck the whole of Cuba. While the Puerto Ricans experienced daylong power outages in January, as well as in April 2025, impacting over 1.4 million people. Such frequent blackouts foster demand for generator sets to achieve a continuous power supply even in times of grid-based electricity outage.

Additionally, the region is struck by frequent hurricanes, floods, and earthquakes. Generator sets help the Caribbean population with a reliable and continuous power supply.  This leads to an expansion of the Genset industry in the Caribbean region.

The region is also experiencing numerous infrastructure projects that were recently planned and implemented in various provinces. For instance, in 2024, the Caribbean Development Bank (CDB) and the UK Government collaborated to commence the Loubiere to Grand Bay Road by injecting around USD49.2 million. Such construction activities require a continuous supply of electricity for the uninterrupted functioning of machines. Moreover, the construction will be taking place in remote areas and hence, will seek a robust dependence on reliable and efficient diesel gensets. Its demand will, in turn, contribute to the growth of the market in the forecasted period, further states the research report, “Caribbean Generator Set Caribbean Generator Set Market Analysis, 2026.”

Caribbean Generator Set Market Segmentation Analysis

Diesel-based Generators Generating Maximum Market Revenue  

Based on fuel type, the market is further bifurcated into Diesel, Natural Gas, Gasoline, hybrid, and others. Among all these, the diesel generator sets held the largest share of over 73.41% in 2025. Diesel generators are common in most sectors of the region owing to their durability, longevity, and sturdiness. Gensets powered by diesel require minimal maintenance and are cost-effective as well. They are highly demanded at construction and mining sites to power large machines. This is because diesel is cost-effective and can easily be transported and stored in such isolated areas, unlike LNG, natural gas, or other fuels that are either difficult to transport or have limited availability in the region. According to ECCB, the average price of gasoline in 2024 was USD5.80 per imperial gallon, while diesel was considerably cheaper, that is, USD5.68 per imperial gallon. Similarly, the price of diesel is also cheaper than other fuel prices.

These benefits of the diesel generators are encouraging the healthcare industry as well to increase the adoption of diesel gensets. For instance, in 2025, Savanna-la-mar Public General Hospital received a USD 0.37 million CesGen Diesel Generator through the WRHA to serve as a backup power source. The healthcare industry mandatorily requires an uninterrupted power supply to power numerous healthcare devices that are crucial for saving the lives of patients. Thus, this segment is anticipated to carry on its dominance in the forecast period as well.

Commercial Sector is the Primary End-User

Based on end users, the market is further bifurcated into Residential, Commercial, Healthcare, Government & Transport, Industrial, Equipment Rental Companies, Construction, Mining, Oil & Gas, and others. Among all these, commercial held the dominating market share of more than 26.94% in 2025. In the Caribbean commercial sector, the majority of the landscape consists of hospitality, which requires continuous power. The spurred tourism in various islands of the region, owing to the islands' natural beauty, is enhancing the hospitality services in such nations. The CTO stated that there was an increase in tourist arrivals by 6.1% from 2023 to 2024. The region is building an increasing number of hotels, resorts, cruise lines, etc., for its economic sustenance. For instance, in 2025, the world’s largest cruise ship terminal in Miami, for MSC Cruises, was inaugurated.

Frequent power outages in such settings put a halt to activities, causing a reduction in business productivity, malfunctioning security systems, and an increased risk of accidents. Similarly, malls, offices, and other commercial buildings highly require a continuous electricity supply. For the continuous supply of power, the Caribbean commercial sector cannot be dependent on the nation's electric grid, as it is unreliable and inconsistent. Therefore, the continuous supply of power is crucial for the proper functionality in the commercial sector. Such significant demand for the growing commercial sector will drive the market in the foreseeable future.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Caterpillar Inc., Cummins Inc., Generac, Discovery Energy, LLC (Rehlko), AGG Power Group, INGCO, PowerLink, Mitsubishi Heavy Industries, Genesel Energy, Forest City Generators, Atlas Copco, and Others are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across various countries?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2022-32?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?