Indonesia Diesel Genset Market Report: By Power Rating (5 KVA–75 KVA, 76 KVA–375 KVA, 376 KVA–750 KVA, Above 750 KVA), Application (Commercial, Industrial, Residential) – Latest Trends, Competition Analysis and Demand Forecast to 2030

Market Overview

The Indonesian diesel genset market generated an estimated revenue of $339.9 million in 2021, and it is expected to grow at a CAGR of 4.5% during 2021–2030, primarily due to the growth in the industrial and construction sectors, high incidence of power outages, and boom of the telecom sector.

The industrial and commercial sectors were closed in 2020, and the export and import of goods were halted for a few months during the pandemic, which, in turn, affected the sale of diesel gensets in the country. Further, through the second wave of the pandemic, many SMEs continued to experience economic and operational uncertainty. Moreover, the tourism industry was shut down from 2020 till September 2021, which has strongly affected the demand for gensets in the country.

However, the country’s economy continued to recover in 2021, despite moderating due to COVID-19’s Delta variant. This was majorly due to the lifting of the restrictions on the commercial and industrial sectors of the country. This has resulted in the resumption of operations, which will now lead to the growing sales of diesel gensets in the country.

Residential Sector Witnesses Highest Installations of Diesel Gensets

In terms of value, the residential sector held more than 40% share in the market in 2021. This was majorly due to the high incidence of power outages and growing number of housing complexes in the country. Frequent earthquakes, volcanic eruptions, and widespread flooding lead to power outages countrywide, which, in turn, drives the demand for diesel generator sets in the residential sector. Thus, in order to cope with power outages, people living in Indonesia strongly depend on diesel gensets.

Major Opportunity Areas

• The Government of Indonesia is investing approximately $412 billion in infrastructure. For the Jakarta Propertindo project, 10 hectares of land will be acquired, and residential units will be constructed in 68% of this area, under the National Medium-Term Development Plan (2020–2024).
• Moreover, due to the growing industrial sector, the market for diesel gensets in Indonesia would show promising growth during the forecast period (2022–2030). For instance, steel exports from the country to India escalated substantially from 20,000 tonnes in August 2018 to 143,000 tonnes in August 2019. The government’s infrastructure drive and Making Indonesia 4.0 plan are having a positive influence on the industry in terms of the input demand for steel projects. Further, according to the Indonesian Iron and Steel Industry Association, domestic steel consumption is projected to reach 22.7 million tons in 2024, which marks an increase of more than 50% over 2018. This indicates that the installation of diesel gensets at iron and steel plants will elevate to meet the rising domestic and international demand for steel in the coming years.

Diesel Gensets of above-750kVA Power Rating To Witness Fastest Growth in Sales

The market for above-750kVA diesel gensets is expected to progress with more than 5% CAGR during the forecast period, in terms of revenue. This will be majorly due to the increasing demand for them for heavy-duty applications across different industries, such as oil & gas, mining, manufacturing, and construction. Therefore, KOHLER Co. has introduced the KOHLER eFRAME industrial generator enclosures for data centers. The eFRAME walk-in enclosure, which houses the KOHLER KD series of industrial generators rated at 2,000 kW and above, is available in three configurations: V12 (2,000 kW–2,500 kW), V16 (2,800 kW–3,250 kW), and V20 (3,500 kW–4,000 kW).

Growth in Telecom Sector another Major Driving Force for Market

• The Government of Indonesia has taken significant steps to speed up the 5G rollout, including 5G infrastructure development and open-partnership opportunities with the private sector. Under the strategic plan for 2022–2024, the Ministry of Communication and Informatics’ (MCI) is focusing on 5G infrastructure development in six provincial capitals on Java Island, five tourist destinations (in Nusa Tenggara, North Sumatera, North Sulawesi, and Central Java provinces), the new capital city of Indonesia, and the manufacturing industry. Such projects aim at eliminating the issues experienced with 4G networks. The project would eventually provide flexible technology to develop more radiofrequency spectrums, to facilitate faster connectivity.
• Moreover, according to the World Bank, 319.43 million people in the country had mobile cellular subscriptions in 2018, and this number increased to 355.74 million in 2020. By 2025, Indonesia is projected to be the largest digital economy in Southeast Asia, with a transaction value of $130 billion. E-commerce transactions in Indonesia amounted to $29.6 billion (IDR 429 trillion) in 2020, a hike of 62% year on year (YoY). Further, due to the growing number of SMEs with an online presence, the telecom industry of the country is poised for rapid growth.

Moreover, telecom companies are focusing on penetrating the rural areas of the country. Telecom tower operators widely use diesel generators to deal with power outages, the frequency of which is rather high in the country, due to which the diesel generator market is expected to witness considerable progress in the forthcoming years.

Market Players Are Involved in Product Launches

Players in the Indonesian diesel genset market are actively involved in launching advanced gensets. For instance,

• In January 2022, Cummins Inc. announced the launch of C550D5 (50 Hz) and C500D6 (60 Hz) series diesel generator sets for prime and standby power applications. This series is engineered to deliver a higher power density over 15- and 16-liter competitors with 42 kVA per liter of displacement, with the help of the Cummins QSZ13 engine with a 13-liter displacement. The QSZ13 engine, featuring XPI fuel injection with three-stage fuel filtration, protects the genset from poor-quality fuel.
• In September 2021, Cummins Inc. unveiled the NEW EC-AGS+ wireless control system for Onan diesel and gas generator sets at the 52nd Annual America’s Largest RV Show in Hershey, Pennsylvania. This system allows users to control their generator utilizing a mobile app. The wireless control enables automatic, manual, and voice activation to start the generator set, offers maintenance reminders via Bluetooth, and allows for climate monitoring.

Key Players in Indonesia Diesel Genset Market Are:

• Cummins Inc.
• Caterpillar Inc.
• DEUTZ AG
• Doosan Heavy Industries & Construction Co. Ltd.
• KOHLER Co.
• Mitsubishi Heavy Industries Ltd.
• Rolls-Royce plc
• Yanmar Holdings Co. Ltd.
• Aksa Power Generation

Market Size Breakdown by Segments

The Indonesia diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Power Rating

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

Based on Application

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