Independently of Faraday, the Hungarian Ányos Jedlik started experimenting in 1827 with the electromagnetic rotating devices which he called electromagnetic self-rotors. In the prototype of the single-pole electric starter (finished between 1852 and 1854) both the stationary and the revolving parts were electromagnetic. It was also the discovery of the principle of dynamo self-excitation, which replaced permanent magnet designs. He also may have formulated the concept of the dynamo in 1861 (before Siemens and Wheatstone) but didn't patent it as he thought he wasn't the first to realize this.
The modern dynamo, fit for use in industrial applications, was invented independently by Sir Charles Wheatstone, Werner von Siemens and Samuel Alfred Varley. Varley took out a patent on 24 December 1866, while Siemens and Wheatstone both announced their discoveries on 17 January 1867, the latter delivering a paper on his discovery to the Royal Society.
The use of electromagnets rather than permanent magnets greatly increased the power output of a dynamo and enabled high power generation for the first time. This invention led directly to the first major industrial uses of electricity. For example, in the 1870s Siemens used electromagnetic dynamos to power electric arc furnaces for the production of metals and other materials.