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The Indian gensets market size stood at $1,385.6 million in 2019, projecting a CAGR of 13.3% during the forecast period. This is mainly attributed to the rising demand for medium- and high-power gensets from the commercial sector and growing construction & manufacturing industries.
Furthermore, Covid 19 pandemic has created a negative impact on the Indian gensets market, owing to 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 gensets on hold.
In 2019, the above 15 kVA category held the largest revenue share in the India gensets industry, on the basis of power rating. Gensets with a power rating above 15 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 gensets market.
During the forecast period, the backup power category is expected to hold largest share in the power requirement segmentation. This is mainly attributed to rising installations of gensets in residential homes, retail shops, commercial buildings, clinics, hospitality units, manufacturing facilities, and other facilities, as a backup electricity source. In order to avoid power outages, due to aging electricity grid infrastructure and natural calamities along with adverse weather conditions, people in the country have started installing power generators, powered by various fuels such as diesel gasoline, and LPG among others.
The commercial category is expected to hold the largest market share in the India gensets market during the forecast period, based on application. This is majorly attributed to the high adoption of 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.
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 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.
The gensets engine with a capacity above 400 cc is projected to witness the highest growth in the India gensets market, during the forecast period. The growing demand for higher engine capacity is due to the requirement of gensets with robust and stable performance in heavier load application areas including industrial and commercial sectors. In addition, the higher engine capacity also enables the genset to respond quickly and positively to sudden load additions.
Gensets with fuel type diesel held the largest market in 2019. The category is further expected to hold the largest revenue share in the India gensets market during the forecast period. This can be ascribed to the growing requirement of diesel gensets in commercial, residential, and industrial applications, owing to ease of availability and low cost. In addition, fast pace industrialization across the country happens to be one of the chief factors inducing the growth of diesel gensets in India.
In 2019, Uttar Pradesh, Maharashtra, Andhra Pradesh, and Tamil Nadu were the highest-revenue-generating states in the India gensets 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. For instance, telecom operators, such as Bharti Airtel Limited and Reliance Jio Infocomm Limited, also plan to augment their telecom infrastructure and install telecom towers in these states in a bid to enhance connectivity and acquire larger customer base, thereby generating a high demand for gensets along the process.
Other factors such as 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 gensets market during the forecast period.
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.
The usage of 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 gensets market.
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 gensets market is expected to witness growth in the coming years.
|Base Year (2019) Market Size||$1,385.6 million|
|Forecast Period (2020-2030) CAGR||13.3%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||By Power Rating; By Power Requirement; By Application; By Engine Capacity; By Fuel Type; By State|
|Market Size of Geographies||Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, West Bengal, Gujarat, Rest of India|
|Secondary Sources and References (Partial List)||Automotive Research Association of India, Bureau of Energy Efficiency, Bureau of Indian Standards, Central Pollution Control Board, Centre for Science and Environment, Environment Protection Agency, European Union, Fluid Control Research Institute, Genset Manufacturers’ Association, India Diesel Engine Manufacturers’ Association|
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 gensets market growth during the forecast period.
The India gensets market is consolidated in nature, with the presence of major players such as Cummins India Ltd., Kirloskar Oil Engines Limited, Mahindra Powerol Ltd., FG Wilson, 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 gensets market. For instance:
The India gensets market offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Power Rating
Based on Power Requirement
Based on Application
Based on Engine Capacity
Based on Fuel Type