The increasing number of residential buildings, rising usage of hybrid, bi-fuel, and inverter generators, and high power cut incidence in the country are the major growth drivers for the Indian residential diesel genset market. Due to the aforementioned factors, the industry is projected to generate $184.9 million revenue in 2030, advancing at a CAGR of 7.1% during 2020–2030.
During COVID-19, the disposable income of the country decreased to $2,695,811 million in 2020 from $2,791,156 million in 2019. Since affordability dropped, the demand for residential diesel gensets also reduced massively. Moreover, the levied taxes increased, which resulted in higher fuel prices during the pandemic, which impacted the gross domestic product (GDP) of India. According to LiveMint, the gross domestic product (GDP) reduced to $1.82 trillion in 2020–21 from $1.97 trillion in 2019–20. Further, the government banned diesel generators to control the pollution level. These factors led to a negative impact on the Indian market for residential diesel genset in 2020.
The residential diesel genset market of India is categorized into stationary and portable, on the basis of type. Of these, the stationary category is expected to be the faster-growing category during the forecast period (2021–2030) because these variants ensure a continuous power supply and uninterrupted operations. Additionally, these gensets offer longer run times and feature safer and quieter engines.
Moreover, the market for residential diesel genset in India is categorized into 5 kilovolt-Ampere (kVA)–10kVA and 11 kVA–20 kVA, based on power rating. Of these, the 11 kVA–20 kVA category is expected to be the faster-growing category during the forecast period owing to the rising number of residential buildings in the country in which the installation of these gensets is higher as compared to higher-power-rating ones.
Geographically, Uttar Pradesh held the largest share in the residential diesel genset market in 2020, and it is expected to retain its position during the forecast period. This can be mainly ascribed to the fact that it is the most-populated state in the country, with around 230 million people, as of January 2021. Thus, the demand for electricity and residential projects would increase, thereby leading to a growth in the sale of residential diesel gensets.
Major players in the market are adopting expansions and product launches. For instance, in February 2019, Kirloskar Oil Engines Limited launched a new range of gensets, called i-Green, which come with the remote monitoring feature. They do a self-diagnosis and report if any problems occur electronically to the control room. Moreover, it safeguards against any possible fatal eventuality. Moreover, the product comes with a quick response (QR)-code-based service manual, light-emitting diode (LED) power status indicator, and a boltless canopy design.
Some of the major players in the Indian residential diesel genset industry are Kirloskar Oil Engines Limited, Ashok Leyland Limited, Greaves Cotton Limited, Mahindra Powerol Ltd., Cummins India Ltd., Caterpillar Inc., Cooper Corporation Pvt. Ltd., Kohler Power India Ltd., FG Wilson, and Tractors and Farm Equipment Limited.