| Study Period | 2019 - 2032 |
| Market Size in 2024 | USD 1171.3 Million |
| Market Size in 2025 | USD 1266.2 Million |
| Market Size by 2032 | USD 2325.1 Million |
| Projected CAGR | 9.1% |
| Largest Region | Uttar Pradesh |
| Fastest Growing Region | Uttar Pradesh |
| Market Structure | Fragmented |
|
Explore the market potential with our data-driven report
The India DG market size was USD 1171.3 million in 2024, and it will grow by 9.1% during 2025–2032, reaching USD 2325.1 million by 2032.
The development of the industry is attributed to the need for a reliable and continuous power supply and the upgradations in technology. Essentially, the market growth is driven by unreliable grid supply, rapid industrialization and economic growth, infrastructure development, urbanization, increasing power demand, and low initial cost and easy availability of these systems.
The biggest infrastructure projects in the country include the H-CITI Programme, Jewar Airport, Delhi–Mumbai Industrial Corridor, Bharatmala, and Smart Cities Mission. Moreover, in April 2025, industrial production in the country rose by 2.7% from the previous year, driven by the adoption of advanced manufacturing technologies, setup of new factories, R&D centers, and warehouses, and improvement of logistical networks.
The 5–75 kVA category held the largest market share, of 50%, in 2024. This is due to the low maintenance cost and easy availability of the spare parts of these variants across the country. Moreover, the economic growth in the country and the surge in the count of construction projects are expected to result in a high demand for these gensets for meeting prime and auxiliary power requirements.
The 76–375 kVA category will grow at the highest CAGR, of 9.1%, during the forecast period. This is because of the need for reliable and consistent power at mid-sized businesses, such as retail malls, hospitals, educational institutions, and manufacturing units.
The power ratings analyzed here are:
The Industrial category held the larger market share, of 55%, in 2024. This is due the rising demand for backup and prime power in residential facilities. Essentially, the growth of this category is complemented by the rapid construction of residential buildings. Other factors, such as the recovery in the Indian residential and commercial real estate sectors, commissioning of new construction projects, and resurgence in investments in the manufacturing sector, are expected to support the growth of the Indian diesel genset market during the forecast period.
The commercial category will grow at the highest CAGR, of 9.5%, during the forecast period. These systems provide an uninterrupted power supply, to keep operations going and minimize any revenue loss. The rising need for power backup at shopping malls and other public spaces and the rapid expansion of data centers drive the market. Furthermore, generators are critical in the healthcare sector, to avoid an irregular power supply, which could cause the death of people on life support.
The end users analyzed here are:
Drive strategic growth with comprehensive market analysis
Uttar Pradesh held the largest market share, of 15%, in 2024, and it will grow at the highest CAGR, of 10%, during the forecast period. This is because of the development of new industrial zones, manufacturing units, and infrastructure projects, such as highways, expressways, and urban housing. Additionally, Uttar Pradesh has the largest population in India and a highly unreliable power supply, with regular power cuts stretching over hours. This propels the demand for gensets for uninterrupted electricity supply across the residential, commercial, and industrial sectors. As per government sources, Uttar Pradesh has the second-longest duration of power cut in rural areas fifth-longest in urban areas in the country in 2021, till October.
The states analyzed in this report are:
The market is consolidated because it consists of established, players such as Kirloskar Oil Engines Ltd., Cummins Inc., Mahindra Powerol Ltd., Greaves Cotton Limited, Ashok Leyland Ltd., and Caterpillar Inc. They offer solutions ranging widely in power output, fuels, and other advanced features for the varying power requirements of small shops, large industrial facilities, data centers, telecommunication towers, manufacturing plants, and other end-use facilities. These companies have the requisite technical and financial capabilities and economies of scale to manufacture diesel gensets compliant with CPCB rules in large numbers.
Want a report tailored exactly to your business need?
Request CustomizationLeading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws
Customize the Report to Align with Your Business Objectives
Request the Free Sample Pages