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

Market Overview

The Indian diesel genset market is estimated to generate $816.0 million revenue in 2021 and grow at a CAGR of 9.4% during 2021–2030. The key factors responsible for the growth of the market include the advance of the manufacturing industry and rising demand for power for construction projects.

The pandemic had a negative impact on the market for DG set in India, owing to the shutting down of manufacturing plants in order to curtail the spread of the disease. Furthermore, the production of diesel gensets was temporarily put on hold, and the demand for diesel gensets in 2020 also decreased due to the lockdown of various commercial establishments, including retail stores, offices, hotels, and airports. The reduction in the demand resulted in a price drop for diesel gensets, which further hampered the market progress.

5 kVA–75 kVA Category and Residential Category Held Largest Shares

The 5 kilovolt-Ampere (kVA)–75 kVA category estimated to hold the largest share in the Indian diesel genset market, both in terms of volume and value, in 2021, under segmentation by power rating. This is attributed to the high-volume demand for these gensets from residential facilities, commercial complexes, small industries, restaurants, and telecom towers. Furthermore, macroeconomic growth in the country and surge in the number of construction and infrastructure projects are expected to result in a high demand for these gensets for meeting prime and auxiliary power requirements.

Moreover, the residential category is estimated to account for the larger share in the market in 2021, based on application. This is mainly ascribed to the rising demand for backup and prime power in residential facilities. Additionally, the growth of this category is complemented by the rapid construction of residential buildings.

Telecom Towers and Manufacturing Category To Witness Fastest Growth

Telecom towers are expected to be the fastest-growing category in the market for diesel genset, during the forecast period (2022–2030), based on commercial application. This can be ascribed to the recent investments in the telecom sector to improve urban and rural connectivity and meet the requirements of a growing subscriber base. This is driving the installation of telecom towers across India, which, in turn, is resulting in the increasing demand for diesel gensets in the country.

The manufacturing category is expected to be the fastest-growing category in the market during the forecast period, based on industrial application. This will mainly be due to the high demand for medium- and high-power diesel gensets among small and large manufacturing companies in India. In the near future, fiscal initiatives, coupled with the foreign investments and improvements in the transportation and logistics network, are expected to drive the growth of the Indian manufacturing sector and, in the process, offer impetus to the demand for diesel gensets in the country.

Karnataka To Witness Fastest Growth

Geographically, Karnataka is expected to witness the fastest growth in the Indian diesel genset market during the forecast period. This can be mainly ascribed to the swift development of the commercial infrastructure and rising number of residential facilities. For instance, according to news published in Business Today in December 2020, the Center would undertake infrastructure projects worth $15.68 billion (INR 1.16 lakh crore) in Karnataka in the coming years. Moreover, according to the Economic Times in July 2021, the Karnataka government has decided to construct 900,000 houses over two years under different housing projects in the state.

Implementation of Stringent Regulations to Curb Emissions Is Key Market Trend

On account of the significant outcry over the high pollution level in India, the government has adopted stringent laws for regulating the emissions caused by equipment and vehicles powered by diesel and other fossil fuels, including gensets. In 2016, the country proposed the rollout of Bharat Stage VI (BS-VI) emission standards, which were implemented nationwide on April 1, 2020. They are primarily aimed at reducing vehicular pollution, especially from diesel-propelled automobiles. The standards also cover emissions from diesel generators and other internal combustion engines.

Growing Manufacturing Industry and Demand for Power for Construction Projects Are Key Drivers

According to the India Brand Equity Foundation (IBEF), the foreign direct investment (FDI) in India’s manufacturing industry amounted to $89.2 billion during April 2000–December 2019. India witnessed a major increment in the FDI during this period as a result of the easing of tax laws, provision of incentives, and rapid advancements in infrastructure in the country. Moreover, several mobile phone and automobile manufacturers have either commissioned or are in the process of establishing their manufacturing bases in India. Thus, with the growing manufacturing industry, the diesel genset market of India is expected to advance at a significant rate.

Diesel generators are an indispensable part of the construction industry as they ensure a secure and constant supply of power at construction sites. Moreover, in recent years, India has witnessed strong economic growth, in addition to the initiation of several construction projects, including highways, roads, buildings, ports, and refineries, by both public and private players. Furthermore, the government support for infrastructure projects has amplified in terms of budgetary allocations and regulatory reforms, which are opening new sectors to private involvement and investments.

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Market Players Involved in Product Launches to Gain Significant Position

The Indian diesel genset industry is fragmented in nature with the presence of several key players, who are primarily engaging in product launches. For instance:

• In February 2021, Kirloskar Oil Engines Limited launched new high-horsepower gensets for the Indian market. With these additions, the company offers a wide range of diesel gensets of 2 kVA to 1,010 kVA power in India.
• In June 2020, Greaves Cotton Limited announced the launch of its technologically advanced smart gensets, Greaves Genius, which are available across a power range of 5 kVA–1,250 kVA. They have a smart device, which transmits data at a high speed, thereby allow for the real-time tracking their operations on mobile phones.

Key Players in India Diesel Genset Market Include:

• Kirloskar Oil Engines Limited
• Ashok Leyland Limited
• Greaves Cotton Limited
• VE Commercial Vehicles Limited
• Mahindra Powerol Ltd.
• Cummins India Ltd.
• Caterpillar Inc.
• Cooper Corporation Pvt. Ltd.
• Kohler Power India Ltd.
• Tractors and Farm Equipment Limited

Market Size Breakdown by Segments

The India diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Power Rating

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

Based on Application

• Commercial
• By user
  • Retail establishments
  • Offices
  • Telecom towers
  • Hospitals
  • Hotels
• By power rating
  • 5 kVA–75 kVA
  • 76 kVA–375 kVA
  • 376 kVA–750 kVA
  • Above 750 kVA
• Industrial
• By user
  • Manufacturing
  • Energy & power
• By power rating
  • 5 kVA–75 kVA
  • 76 kVA–375 kVA
  • 376 kVA–750 kVA
  • Above 750 kVA
• Residential

Geographical Analysis

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