India Gensets Market To Generate Revenue Worth $855.1 Million in 2030

The India gensets market is largely being driven by the increasing demand for such equipment from the manufacturing and commercial facilities in the country. Gensets are required in almost every commercial and industrial facility in order to provide continuous power, to deal with power cuts, particularly in vital applications, such as telecom towers and essential-goods-manufacturing facilities. With the increase in foreign direct investments, as well as government initiatives, the manufacturing sector in India is witnessing strong growth, which, in turn promotes the growth of gensets in India, which is projected to generate $855.1 million by 2030, advancing at a CAGR of 6.8% between 2020 and 2030.

The COVID-19 pandemic has negatively affected the market for gensets in India, by temporarily leading to the closing down of offices and factories, which has reduced the sales of this product. Additionally, to curtail the spread of the coronavirus disease, a temporary halt has been implemented on commercial and industrial construction, which will certainly lead to the late completion of projects and affect the Indian gensets market.

Commercial Application To Showcase Highest Demand

The Indian gensets market is categorized on the basis of application into commercial, industrial, and residential. Among these, commercial applications held the largest revenue share in 2019, and the trend is likely to continue in the coming years. This can be ascribed to the high-volume adoption of generators in retail outlets, hospitals, restaurants, malls, telecom towers, and several other commercial establishments.

On the basis of power rating, the market is categorized into below 6 kVA, 6 kVA–10 kVA, and 11 kVA–15 kVA gensets, among which the below 6 kVA category will be the fastest-growing category during the forecast period. Such generators are suitable for residential societies, small-scale industries, and several other applications, for serving the requirement for auxiliary power.

Further, on the basis of commercial user, the market is categorized into retail establishments, offices, telecom towers, hospitals, hotels, and others. The telecom towers category held the largest volume share in 2019, and the trend is likely to continue during the forecast period, as the demand for backup power in the telecom sector is quite high. For instance, Government of India, through its National Digital Communications Policy, has panned investment worth $100 billion in the telecommunications sector, in order to erect 100,000 mobile towers for subscribers, which would ultimately lead to a high demand for generators.

Geographically, Uttar Pradesh, Maharashtra, Tamil Nadu, and Andhra Pradesh witnessed high demand for gensets in the country in 2019. This can be ascribed to telecom giants, such as Reliance Jio Infocomm Limited and Bharti Airtel, rapidly creating telecom infrastructure in these states.

Product Launch Is Key Strategy Being Adopted by Players in Market

Players involved in the India gensets market are making hefty investments for product development, in order to serve a wider range of industries, in turn, gain a competitive edge in the market. For instance, in April 2018, Caterpillar Inc. announced the introduction of its “Dynamic Gas Blending” dual-fuel technology, as a factory-installed option for diesel generator sets. This system allows the company’s diesel engines to burn a mixture of diesel and natural gas, and, in many cases, decrease the fuel costs by up to $100/ Megawatt (MW) for each hour of generator set operation, while maintaining optimum diesel engine performance.

Players operating in the India gensets market include Ashok Leyland Ltd., Atlas Copco (India) Ltd., FG Wilson, Cummins India Ltd., Escorts Ltd., Greaves Cotton Ltd., Kirlosker Oil Engines Ltd., Kohler Power India Pvt. Ltd., Mahindra Powerol Ltd., and Perfect Gas Generators.