India Prime Power Diesel Genset Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India Prime Power Diesel Genset Market Trends and Growth Drivers

Rising Production of Twin-Power Generators Is Key Trend in Market

• The consumption of diesel was the highest amongst all fuels even during the pandemic.
• According to the Petroleum Planning and Analysis Cell (PPAC), the country’s diesel consumption stood at 72.72 metric tons in Fiscal Year 2020–2021, while petrol consumption stood at around 27.95 metric tons.
• Further, these numbers are expected to reach 92 million metric tons and 39 million metric tons, respectively, in 2024–2025.
• To reduce the consumption of diesel, the production of twin-power generators is increasing in India. For instance, the QAC 1350 twin-power genset by Atlas Copco for large prime power or backup applications makes use of two smaller engines housed inside a containerized unit, thus leading to lower fuel consumption.
• An inbuilt centralized control panel with an integrated power manager system automatically switches on/off the two power racks, which leads to up to 40% lower CO₂ emissions on variable-load applications.
• Moreover, the twin-power generator is powerful, easy to transport, and quieter in comparison to other generators.

Large-Scale Infrastructure Development Is Biggest Driver

• The rising infrastructure investment in India is set to drive the uptake of such power production systems in the upcoming period.
• As per the India Brand Equity Foundation (IBEF), India is set to become the world’s third-largest construction market by 2025.
• Additionally, the Indian government allocated INR 10 lakh crore for infrastructure development in the 2023 budget.
• These investments are expected to lead to the high adoption of prime power in commercial, industrial, and residential areas as backup sources of electric power.
• Moreover, in March 2021, Mahindra Powerol Ltd. inaugurated a plant to manufacture the Perkins range of diesel generators through Perfect Generators Technology Pvt. Ltd., Ghaziabad.

High Lifetime Costs Could Restrain Market Growth

• The high capital, installation, and maintenance costs of prime power gensets are one of the primary factors limiting the growth of the Indian prime power diesel genset market.
• Diesel prime power gensets are expensive, making them unaffordable for housing societies, private homes, manufacturing plants, , telecom towers, and retail stores, and also these gensets have high recurring fuel expenditures.
• Moreover, the price of diesel is rising all the time, which raises the overall expenditure in the long run by increasing overhead costs.
• Further, the installation of a prime power diesel genset is costly since it necessitates a high level of ability and knowledge of all components.
• This genset needs to be thoroughly inspected to maintain its lifespan, and oil changes, filter replacements, and other moving parts must all be checked on a regular basis.
• Additionally, it is subject to humidity salinity and extreme temperature, therefore, needs to be serviced more regularly.

India Prime Power Diesel Genset Market Analysis

Commercial Category Dominates Application Segment

The commercial category holds the largest share, of 55%, in 2024, and it is also expected to witness the highest CAGR, of 8.6%, during the forecast period. This is because of the strong need for a continuous power supply in commercial buildings, such as hotels, railway stations, telephone exchanges, and shops.

Further, in the commercial sector, power outages can be costly. Prime power diesel generators act as a backup power source and serve as a form of insurance, which can save the revenue lost due to the inadequacy of electrical power for operations.

We have studied the following applications

• Commercial (Largest and Fastest-Growing Category)
• Industrial
• Residential

5–75 kVA Power Rating Category to Witness Fastest Growth

The 5–75kVA category dominates the market in 2024 with 35% share, and it is expected to witness the fastest growth during this decade, at a CAGR of 8.7%.

This is due to the wide adoption of 5–75-kVA prime power diesel gensets in the commercial sector to suffice power requirements. These gensets are rather important in the telecom sector; therefore, the increasing installation of telecom towers is driving their sales.

Moreover, a large number of companies produce such types of diesels gensets for both the domestic and export markets. Furthermore, these companies have diversified and comprehensive product portfolios, including diesel gensets of various nodes/power ratings.

The following power ratings have been analyzed:

• 5 kVA–75 kVA (Largest and Fastest-Growing Category)
• 76 kVA–375 kVA
• 376 kVA–750 kVA
• Above 750 kVA

Regional Analysis

Uttar Pradesh Generates Highest Revenue

• Uttar Pradesh holds 30% share in the market, and it will grow at the highest rate, of 8.7%.
• This is due to the increasing investments in the telecom sector, surging development of commercial infrastructure, and rising prime power requirements in the residential facilities in the state.
• Further, the recovery in the Indian residential and commercial real estate sectors, commissioning of new construction projects, and resurgence in investments in the manufacturing sector will offer players lucrative opportunities in the coming years.
• For Instance, telecom operators, such as Bharti Airtel Limited and Reliance Jio Infocomm Limited, have announced plans to augment their telecom infrastructure and install telecom towers in the state, in a bid to enhance connectivity and acquire a larger customer base.

The following states have been covered in the report:

• Uttar Pradesh (Largest and Fastest-Growing State)
• Andhra Pradesh
• Madhya Pradesh
• Bihar
• Karnataka
• Gujarat
• Tamil Nadu
• Rajasthan
• West Bengal
• Jharkhand
• Chhattisgarh
• Rest of India

India Prime Power Diesel Genset Market Share

The market is consolidated in nature as the major share is held by the few large players. This is itself because these companies have achieved economies of scale, and the manufacturing of such systems demands a high investment in factory setup, equipment procurement, and R&D. Moreover, these gensets are subject to stringent regulatory standards for carbon and noise emissions, which only established players with technical prowess can comply with. Similarly, large-scale end users often have long-standing procurement and MRO contracts with specific players.

India Prime Power Diesel Generator Market News

• In September 2023, Kirloskar Oil Engines Limited launched a range of gensets compliant with CPCB IV+ emission standards.
• In July 2023, Kirloskar Oil Engines Limited launched retrofit emission control devices for its generators in the 125–1,000-kVA range.
• In March 2024, Recon Technologies, an authorized OEM of Mahindra Powerol Ltd. launched the latter’s range of up to 625-kVA CPCB IV+-compliant gensets in Andhra Pradesh and Telangana.