The growing industrial, telecom, and construction sectors and increasing number of power outages are the major factors responsible for the growth of the Indonesian diesel genset market. Due to the aforementioned factors, the industry is projected to generate $504.5 million revenue by 2030, advancing at a CAGR of 4.5% during 2021–2030.
COVID-19 negatively impacted the market due to the government mandates for lockdowns and closing of the industrial and commercial sectors. These measures resulted in the temporary suspension of office activities, shuttering of manufacturing facilities, and closure of retail stores, offices, hotels, and airports, which account for a major share in the Indonesian diesel genset market.
The market is categorized into 5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA, on the basis of power rating. Among these, the 5 kVA–75 kVA category dominated the market during the historical period (2017–2021), in terms of volume. Further, it is expected to retain its dominance during the forecast period (2022–2030). This can be mainly attributed to the low price of these gensets and their high demand in residential facilities, small industries, telecom towers, restaurants, commercial complexes, and hotels. Furthermore, telecom towers account for a significant share in the net volume demand for these gensets in Indonesia. Diesel gensets are widely deployed in telecom towers to serve prime and auxiliary power requirements.
The market is categorized into commercial, industrial, and residential, on the basis of application. Among these, the industrial category is expected to be the fastest-growing category during the forecast period, both in terms of volume and value. This will majorly be due to the rising number of government initiatives for the growth of the industrial sector. For instance, Indonesia’s Ministry of Industry has designed the ‘Making Indonesia 4.0’ initiative as an integrated roadmap to advance manufacturing practices and make the country a global industrial hub attracting overseas companies to set up their factories here.
Players in the industry have been involved in product launches to remain competitive. For instance, in December 2021, Cummins Inc. announced the approval to its entire line of diesel generator sets for use with paraffinic fuels (EN15940), including hydrotreated vegetable oil (HVO), for standby applications. These generator sets enable decarbonization and advance the company’s current technology.
Similarly, in March 2021, Mitsubishi Heavy Industries Engine & Turbocharger Ltd. (MHIET), a part of Mitsubishi Heavy Industries Ltd., developed a 2,000kVA diesel generator for factories, hospitals, office buildings, and data centers.
The major players operating in the diesel genset industry in Indonesia 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., and Aksa Power Generation.