India DG Set Market To Generate $1,839.5 Million Revenue by 2030

The Indian DG set market size is expected to advance at a CAGR of 8.8% during 2022–2030, to reach $1,839.5 million by 2030. This is ascribed to the rapid urbanization and industrialization. The government of India is taking various initiatives for the advancement of various sectors, such as urban construction, railways, highways, manufacturing, and seaports, which will require a consistent power supply.

DG sets are utilized in places where there is no electricity or an alternative power source. Backup power, prime power, and peak shaving are the three major applications of DG sets. Prime power generators are built for long-term use, such as for infrastructure projects, metro stations, highways, and trains, to provide a proper electricity supply for uninterrupted operations.

Uttar Pradesh Accounted for Largest Share in Market

In the country, Uttar Pradesh accounts for the largest share because of the wide adoption of these gensets in the commercial and residential sectors, growth in the count of construction projects, and high demand for low-power diesel gensets at the telecom towers in the state. Moreover, in 2022, the Uttar Pradesh government has cleared 12 industrial projects in Ayodhya with an investment of $14.7 million. These projects will require a regular power supply, hence propelling the market for DG sets in India. Moreover, the resurgence in investments in the manufacturing sector and recovery in the residential and commercial real estate sectors are expected to support the growth of the Indian diesel genset market in the state during the forecast period.

Growth in Manufacturing Industry

The Indian manufacturing industry is growing with the government’s Make in India initiative, outreach and support programs for the (MSME sector, establishment of special manufacturing and economic zones, and investments in industrial, railway, and highway corridors. This, in turn, is likely to augment the manufacturing industry’s demand for high-power gensets to meet its captive, centralized, and uninterrupted electricity supply requirements.

According to a report by the India Brand Equity Foundation, the cumulative foreign direct investment (FDI) in India’s manufacturing industry amounted to $104.18 billion between April 2000 and December 2021. India witnessed a major increment in FDI during this period as a result of the easing of tax laws and provision of incentives, which are leading to rapid advancements in the infrastructure in the country.

Diesel gensets are widely employed in manufacturing facilities owing to the erratic power supply, grid uncertainty, power-intensive production lines, and need for a backup power source. Therefore, with the growth in the manufacturing industry, the demand for high-power diesel gensets is expected to increase in the country.

The most-significant Indian DG set market players are Kirloskar Oil Engines Limited, Ashok Leyland, Greaves Cotton Limited, VE Commercial Vehicles Limited, Mahindra Powerol, Cummins Inc., Caterpillar Inc., Kohler Co., and Tractors and Farm Equipment Limited.