India Diesel Genset Market Research Report: By Power Rating (5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, Above 750 kVA), Application ( Commercial, Industrial, Residential) - Industry Share Analysis and Demand Forecast to 2030

India Diesel Genset Market Overview

The India diesel genset market size stood at $1,105.7 million in 2019, and it is projected to demonstrate a CAGR of 12.5% during the forecast period (2020–2030). The growth in the manufacturing sector of India, along with the rising demand for power for commercial applications, are the major factors driving the growth of the India diesel genset industry.

Segmentation Analysis

5 kVA–75 kVA Diesel Gensets Witness Highest Demand

In 2019, the 5 kVA–75 kVA category held the largest volumetric share in the India diesel genset industry, on the basis of power rating. Gensets with a power rating between 5 kVA and 75 kVA are highly suitable for applications in residential facilities, commercial complexes, small industries, restaurants, and telecom towers, wherein, these gensets help in meeting the auxiliary power requirements in such facilities. With the increasing investments in the construction of commercial complexes and residential societies, the demand for such generators is likely to increase, thereby propelling the India diesel genset market.

Commercial Application To Demonstrate Highest Demand throughout Forecast Period

The commercial category is expected to hold the largest market share in the India diesel genset market during the forecast period, based on application. This is majorly attributed to the high adoption of diesel gensets in the commercial sector, for power supply in telecom towers, restaurants, malls, hotels, and other retail establishments. Additionally, with the growth of these end-use industries in India, the demand for these gensets in the commercial sector is projected to increase in the coming times.

Telecom Towers To Witness Strong Demand for Diesel Generators within Commercial Applications

Commercial applications are further subcategorized into retail establishments, telecom towers, hospitals, hotels, and others. Among these, telecom towers are likely to witness the highest demand for diesel generators during the forecast period, on account of the constant requirement for prime power and backup power in the telecom sector. In addition, government initiatives, including the National Digital Communications Policy, are expected to draw investments of nearly $100 billion in the telecom sector by 2022 and facilitate the installation of an additional 100,000 mobile towers, to cater to the requirements of a compounding subscriber base.

Geographical Outlook

5 kVA–75 kVA Variants To Showcase Strong Demand from Commercial Applications

The high-volume adoption of 5 kVA–75 kVA gensets in commercial applications, including telecom towers, retail outlets, offices, malls, and hotels, is projected to drive their usage. Domestic and cross-border investments, along with the digitization projects undertaken by the government and revival in the commercial real estate sector, are expected to result in the establishment of single- and multi-tenant data centers, thereby propelling the installation of 5 kVA–75 kVA diesel generator (DG) sets.

The market in the country is projected to witness a negative impact of the COVID-19 pandemic, on account of the shutting down of commercial and industrial establishments, in order to curtail the spread of the disease. Furthermore, this has temporarily put the production of diesel gensets on hold. There has been a slump in the demand for diesel gensets from the first quarter of 2020, due to the locking down of various commercial establishments, including retail stores, offices, telecom towers, hotels, and airports, which account for a major share in the India diesel genset market. However, with the lifting of the government-imposed lockdown and allowance of air and rail travel, the industry is likely to witness slow recovery in the near future.

In 2019, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, and Uttar Pradesh were the highest-revenue-generating states in the India diesel genset market. This can be ascribed to the rise in the investments in the telecom sector and development of commercial infrastructure, along with an increase in the prime and backup power requirements in the residential facilities in these states.

Tamil Nadu To Demonstrate Fastest-Growing Demand

One of the major factors responsible for driving the industry growth in Tamil Nadu is the presence of numerous market players in the state. In addition, the market holds a strong potential for growth, with manufacturers pursuing capacity expansions in the southern part of the country. For instance, in January 2018, Perkins commenced the production of 500 kVA 2506D and 625 kVA 2806D engines at its production facility in Hosur, Tamil Nadu.

Trends & Drivers

Implementation of Stringent Regulations to Curb Toxic Emissions Is Significant Trend

The usage of diesel gensets in India is monitored under a government regulatory framework, owing to the toxic chemical emissions generated during operations. In recent times, there has been a rise in the concerns regarding the alarming pollution levels in metropolitan cities, such as Delhi, Mumbai, Chennai, and Kolkata. With this, the government has implemented stringent laws regarding particulate matter (PM) emissions from diesel generators.

In 2016, the country proposed the rollout of the Bharat Stage VI (BS-VI) emission standards, which were implemented nationwide on April 1, 2020. These standards cover emissions from diesel generators and other internal combustion engines. Therefore, such stringent regulations are likely to create a negative impact on the India diesel genset market.

Growth in Manufacturing Industry

The Indian manufacturing industry is poised to grow on account of government initiatives such as Make in India; support and outreach programs for micro, small, and medium enterprises (MSMEs), and investments in industrial corridors. This, in turn, is likely to generate a high demand for backup power supply from the manufacturing industry, for meeting centralized, captive, and uninterrupted power supply needs.

With the setting up of new facilities, the sale of generators is likely to rise, in order to meet the demand for continuous power supply. Owing to such factors, the India diesel genset market is expected to witness growth in the coming years.

Demand for Power for Commercial Applications To Propel Uptake of DG Sets

The Indian construction industry is witnessing notable growth on account of the investments by private and public players, expansion of urban housing infrastructure, and development of commercial installations (such as telecom towers and logistics centers). This, in turn, is propelling the installation of DG sets, in order to provide power at construction sites, wherein the work is conducted round the clock.

In addition, the country is also expected to witness the construction and localization of data centers, owing to the supportive government policies and data protection laws. This is further expected to generate a significant demand for power, in turn, augmenting the India diesel genset market growth during the forecast period.

Key Players Launching New Products to Gain Competitive Edge in India Diesel Genset Market

The India diesel genset market is consolidated in nature, with the presence of major players such as Cummins India Ltd., Kirloskar Oil Engines Limited, Mahindra Powerol Ltd., Caterpillar Inc., Ashok Leyland Limited, and Greaves Cotton Limited.

Lately, players in the industry have developed and launched new products, in order to gain a competitive edge in the India diesel genset market. For instance:

• In February 2019, Kirloskar Oil Engines Limited launched a new range of gensets, called i-Green. The new gensets come with numerous features such as remote monitoring, which does a self-diagnosis and reports problems electronically to the control room and safeguards the equipment against any possible fatal eventualities. Moreover, the products also come with a QR code-based service manual, LED-based power status indicator, and boltless canopy design.
• In September 2018, Perkins, a subsidiary of Caterpillar Inc., announced the launch of its six-cylinder, 23-liter 4006 electronic engine. The genset is electronically controlled, is compatible with Perkins EST diagnostic tool, and generates 750 kVA of prime power. The product, manufactured at the company’s Aurangabad facility in Maharashtra, India, is expected to serve a vast customer base in the coming years. 

Some of the Key Players in the India Diesel Genset Market include:

India Diesel Genset Market Size Breakdown by Segment

The India diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Power Rating

• 5 kVA–75 kVA
• 76 kVA–375 kVA
• 376 kVA–750 kVA
• Above 750 kVA

Based on Application

• Commercial 
• Industrial
• Residential

Geographical Analysis

• Tamil Nadu
• Andhra Pradesh
• Karnataka
• Maharashtra
• Uttar Pradesh
• Madhya Pradesh
• Rajasthan
• West Bengal
• Gujarat