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Diesel Gensets Market Segment Forecasts up to 2020 A diesel generator is a combination of a diesel engine along with an electric generator thus forming a distributed generation unit. The basic function is power generation via an internal combustion engine to produce energy from gaseous fuels. The chief advantage of distributed generation is the quick ramp up of electricity as opposed to traditional generation in power plants. Especially suitable for remote areas, diesel generators are an effective solution for tackling power shortages and growing energy demand. Heavy industries, commercial zones, Information Technology (I.T.) parks, and residential areas are some of the major markets for this industry. Some of the most critical infrastructure of any city which includes hospitals, telecom stations, power plants, and airports among others is also heavily dependent on the diesel genset industry.