Malaysia Generator Market To Hit Valuation Of US$ 701.02 Million By 2035 Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) Malaysia's generator market is currently in a high-growth phase, propelled by unprecedented investment in data centers and public infrastructure. A critical focus on ensuring energy security for the burgeoning digital economy dominates the landscape.

Chicago, Aug. 29, 2025 (GLOBE NEWSWIRE) -- The Malaysia generator market was valued at US$ 314.58 million in 2024 and is expected to reach US$ 701.02 million by 2035, growing at a CAGR of 7.61% during the forecast period 2025–2035.

The digital transformation sweeping across Malaysia is a primary catalyst fueling the Malaysia generator market. The insatiable power requirements of data centers (DCs) are creating a demand surge for high-capacity generators. As of 2024, the national utility provider, Tenaga Nasional Berhad (TNB), has received a staggering number of supply applications from 74 data center customers. These applications represent a total maximum demand exceeding 11,000MW, signaling a massive need for both primary and backup power. In 2024 alone, the completion of 9 new data center projects added a significant total maximum demand of 1.3 GW.

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The momentum is set to continue. For the remainder of 2024, TNB anticipates connecting an additional nine DC projects, which will introduce another 700MW of total energy demand to the grid. The actual load utilization for these power-hungry facilities had already reached 485MW by March 2025. Looking ahead, the potential maximum demand from the data center sector is forecast to surpass 5,000MW by 2035. The immediate pipeline is robust, with 43 DC projects currently in various stages, representing a combined maximum demand of 6.4GW. Of these, 17 projects with a combined demand of 2.9GW are already under construction in 2025. Furthermore, another five projects, totaling 0.7GW, have already solidified their energy needs by signing supply agreements, cementing future generator demand.

Key Findings in Malaysia Generator Market

Market Forecast (2035)	US$ 701.02 million
CAGR	7.61%
By Power Band	750–1000 kVA (23.22%)
By Type	Diesel Generator (73.75%)
By Application	Standby (60%)
By Power Rating	800-1600 kW (26.66%)
Top Drivers	Massive Infrastructure Spending: Government investment in transport, healthcare, and digital projects. Critical Industrial & Data Centre Growth: Uninterrupted power needs for manufacturing and digital services. Grid Instability & Power Outages: The fundamental need for reliable backup power solutions.
Top Trends	Shift to AI and Digital Economy: Fueling construction of power-intensive data centers. Growth in Medical Tourism: Increasing demand for power reliability in healthcare facilities. Expansion of Telecommunications Network: 5G rollout and rural broadband initiatives require more towers.
Top Challenges	Meeting Sustainability Demands: Pressure to adopt greener power generation alternatives. Intensifying Regional Competition: Neighboring countries also vying for data center investments. Regulatory Framework for Power Usage: New guidelines on power and water usage effectiveness for facilities.

Resurgent Construction Sector Activity Directly Fuels On-Site Generator Requirements

The construction sector's vigorous rebound in 2024 provides another powerful growth engine for the Malaysia generator market. On-site power is a non-negotiable requirement for machinery and operations, making generators an essential asset for any project. In the first nine months of 2024, an impressive 11,980 construction projects were given the green light. The total value of these awarded projects between January and September 2024 reached a substantial RM150.2 billion. The private sector was the primary driver of this activity, accounting for RM108.8 billion across 7,982 of these projects. Government-led initiatives also made a significant contribution, comprising 3,998 projects valued at RM41.4 billion.

A closer look reveals that non-residential projects, including commercial buildings and industrial facilities that often require significant backup power, accounted for 9,440 of the projects awarded. In addition, infrastructure projects numbered 1,390 during this period, each requiring reliable power sources from start to finish.

National Infrastructure Goals and Energy Transition Mandate Reliable Power Solutions

Strategic government-led programs are creating a structured and long-term demand for generator market. The government has established a long-term goal to facilitate the construction of 1 million housing units by 2029, a major initiative discussed in 2024 reports that will drive future power infrastructure needs. The forthcoming Budget 2025 is widely expected to introduce initiatives designed to accelerate the nation's shift toward renewable energy sources. This transition, paradoxically, increases the need for generator backup to ensure grid stability and reliability. To support this energy transition and meet rising overall demand, Malaysia plans to add between 6 to 8 gigawatts of new gas-fired power generation capacity by the year 2030. Furthermore, the fifth round of the Large-Scale Solar (LSS5) program will see the award of 2GW in capacity, with contracts anticipated to be finalized from the second half of 2025, creating further need for backup systems.

Robust Manufacturing Output and Employment Bolster Industrial Generator Demand

A thriving manufacturing sector is directly correlated with higher energy consumption and a critical need for uninterrupted power, thereby bolstering the Malaysia generator market. For the cumulative period of January to May 2024, the sales value of the manufacturing sector achieved an impressive RM765.5 billion. A total of 2.38 million employees were engaged in this vital sector as of May 2024, highlighting its scale. During this five-month window, the total salaries and wages paid amounted to RM41.1 billion. The productivity metric, sales value per employee, stood at RM321,927 for this period in 2024. Zooming in on the month of May 2024 specifically, the average monthly salary per employee was RM3,445, and the sales value per employee was recorded at RM65,146. Projections for the full year 2024 anticipate the number of enterprises operating in the manufacturing market to reach 246,500, indicating a broad base for generator sales.

Grid Vulnerabilities and Regional Power Instability Underscore Backup Needs in Generator Market

While Malaysia's national grid is generally stable, specific incidents of power outages serve as a stark reminder of the critical importance of backup generators for commercial and industrial continuity. A recent significant power failure was traced back to a fault at the Yong Peng North Main Entry Substation. This single point of failure resulted in a substantial loss of 2.2GW of electrical supply across Peninsular Malaysia, impacting countless businesses. The situation is more acute in certain regions. Reports from 2024 indicate that the state of Sabah experiences over 300 power outage incidents annually. A key metric, the System Average Interruption Duration Index (SAIDI), illustrates the challenge. As of June 2024, the SAIDI for the district of Ranau was 853 minutes, translating to more than 14 hours of power disruption per year for the average customer. In stark contrast, the industrial park in Kota Kinabalu (KKIP) recorded a SAIDI of less than 10 minutes during the same period, highlighting the value of localized and reliable backup power infrastructure.

Thriving Rental Market and Energy Sector Point to Diverse Opportunities

The generator rental market in the Malaysia generator market offers a flexible and crucial power solution for temporary requirements, such as construction projects, events, and emergency backup, reflecting a dynamic segment of the overall industry. Leading rental services provider Express Powerr Solutions operates a formidable fleet of 115 generator units as of 2025. A significant 70 percent of this fleet consists of mobile truck-mounted sets, indicating strong demand for portable and rapidly deployable power solutions. The company has ambitious growth plans, intending to expand its fleet by at least 36 units over the next three years to meet rising demand.

Separately, growth in extractive industries also signals future needs. In the first nine months of 2024, a total of 27 oil and gas projects were approved. The combined value of these approved projects stands at RM4.46 billion, signaling a healthy pipeline of future demand for robust gensets in exploration, drilling, and operational activities.

Competitive Arena Intensifies With New High-Capacity Diesel Generator Launches

Key international players are actively targeting the high-demand industrial segment of the Malaysia generator market by introducing new, powerful models. In a significant move in April 2024, Cummins launched two new models in its advanced CentumTM Series to cater to applications like data centers and large industrial facilities. The C2750D6E model offers a formidable power output of 2,750kW, while the even more powerful C3000D6EB model provides a massive 3,000kW of output. Both of these new generator sets are powered by the robust and reliable QSK78 engine. The product pipeline from Cummins remains active, with the C1500D6E diesel generator slated for release by April 1, 2025. Additionally, the Cummins DQKAN diesel generator model is planned to be available in the market before February 1, 2025, further intensifying competition.

Diverse Small-to-Mid Range Generator Specifications Meet Varied Market Needs

Beyond the high-capacity segment, a wide array of small to medium-sized generators are available, catering to residential, commercial, and smaller industrial applications. The specifications for Launtop models, available in the Malaysian generator market in 2024-2025, illustrate the diversity. The LDG3600CLE model has a rated output of 2700W, a 306cc engine displacement, and a 12.5L fuel tank. Stepping up, the LDG6500CLE provides a 4500W rated output from a 10HP engine, with a 12.5L fuel tank and a weight of 100kg. The similar LDG7500CLE model offers a higher 5500W rated output with the same 10HP engine and 12.5L tank, weighing 105kg. For silent operation, the LDG7500S model provides 5500W from a 10HP engine with a larger 16L fuel tank and a weight of 160kg.

For more significant needs, the LDG12 delivers 10kW of rated output from an 18.7HP engine, featuring a 25L fuel tank and weighing 190kg. Its silent counterpart, the LDG12S, offers the same 10kW output with a larger 50L fuel tank and a weight of 295kg. At the top of this range, the three-phase LDG15-3 model provides a rated output of 15kW, powered by an engine with a displacement of 954cc and a 25L fuel tank.

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Strong Economic Indicators and Trade Performance Signal Sustained Growth

The broader economic environment in 2024 provides a fertile ground for the continued expansion of the Malaysia generator market. In the first seven months of 2024, Malaysia's total trade improved significantly to approximately RM1.652 trillion. A substantial portion of this, around RM735 billion, was accounted for by the export of manufactured goods. The nation's Gross Domestic Product (GDP) growth in 2024 was a robust 5.1%, a positive indicator supported by a notable increase in private investments. Projections for 2025 suggest this economic momentum will be sustained. Malaysia's trade in January 2025 registered a value of RM241.95 billion, with exports at RM122.79 billion and imports at RM119.16 billion.

Trade for March 2025 rose to RM249.89 billion, as exports increased to RM137.31 billion, resulting in a trade surplus of RM24.72 billion. For May 2025, total trade was recorded at RM252.48 billion, with exports at RM126.62 billion and imports at RM125.86 billion. A trade surplus of RM766.3 million for May 2025 marked the 61st consecutive month of surplus in the generator market. Finally, projected exports for July 2025 are valued at a strong RM140.45 billion, signaling continued industrial and commercial activity.

Malaysia Generator Market Major Players:

• Cummins Inc.
• Denyo Co. Ltd.
• Yanmar Holdings Co. Ltd.
• Atlas Copco
• Kohler Co.
• Hong Tak Engineering
• Airman Generators
• Other Prominent Players

List of Distributors/Suppliers

• FG Generator Sdn Bhd
• LT Generator Sdn Bhd
• AHE Power Engineering Sdn Bhd
• Powertrade Energy Sdn Bhd
• JHC I & P Sdn Bhd
• Other Prominent Players

Key Market Segmentation:

By Power Band

• <75 kVA
• 75-375 kVA
• 375-750 kVA
• 750~1000 kVA
• 1000~2000 kVA
• 2000~3000 kVA
• 3000~4000 kVA
• 4000+ kVA

By Type

• Diesel Generator
• Gas Generator
• Hybrid Generator
• Battery Generator
• Others (e.g., Biofuel, Solar Backup)

By Application

• Standby
• Prime/Continuous
• Peak Shaving

By Emission

• High-Emission Generators (CO2, NOx, SO2, CO)
• Moderate-Emission Generators (CO2, NOx, CH4, CO)
• Low to Zero-Emission Generators (H2O, negligible CO2)

By Prime Power Rating

• < 600 kW
• 600-800 kW
• 800-1600 kW
• >1600 kW

By Mobility

• Stationary
• Portable

By Phase

• Single Phase
• Three Phase

By Cooling System

• Air-Cooled Generator
• Liquid-Cooled Generator

By Power Generation Technology

• Conventional Generators
• Inverter Generators

By End User

• Residential
• Commercial
  • Retail & Shopping Centers
  • Hospitality (Hotels & Restaurants)
  • Office Buildings & Business Parks
  • Education Institutions
  • Others
• Industrial
  • Mining
  • Manufacturing
  • Others
• Infrastructure
• Healthcare
• Data Centers
• Others

By Distribution Channel

• Direct Sales
• Distributors/Dealers
• Online Retail
• Rental Companies

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