Report Overview

India Diesel Genset Market - Industry Trends & Forecast Report, 2029

India diesel genset market size was estimated at USD 1.04 billion in 2022. During the forecast period between 2023 and 2029, the size of India diesel genset market is projected to grow at a CAGR of 6.8% reaching a value of USD 1.65 billion by 2029. Major growth drivers for the India diesel genset market include an increasing demand for reliable and uninterrupted power supply. With rapid industrialization, urbanization, and the growth of commercial establishments, the need for backup power solutions has become vital. Diesel gensets offer a dependable source of electricity during grid failures, load shedding, and emergencies, ensuring smooth operations for various industries and businesses. Also, the lack of reliable power infrastructure in certain regions and the need for continuous power in critical sectors, such as healthcare, data centers, and telecommunications further boost the demand for diesel gensets in India. As a result, the market continues to experience significant growth driven by the crucial role these gensets play in ensuring uninterrupted power supply across various applications.

India Diesel Genset Market – Overview

India diesel genset market plays a vital role in supporting various sectors across the country with uninterrupted and reliable power supply. Diesel generators are extensively utilized in manufacturing, serving as both primary and standby power sources. As India is poised to become the global manufacturing hub by 2030, thanks to the Make in India initiative by the Government of India, significant opportunities are anticipated for the diesel genset market. These gensets, which convert mechanical energy into electrical energy through diesel engines, are essential for providing backup power during electricity outages and grid failures. With their wide range of capacities and applications, diesel gensets cater to diverse sectors, including commercial establishments, healthcare facilities, data centers, telecommunications, and residential buildings.

India Diesel Genset Market

Growth Drivers

High Demand for Uninterrupted and Reliable Power Supply and Heavy Deployment of Diesel Gensets

India diesel genset market witnesses a significant boost from the increasing demand for uninterrupted and reliable power supply, driving the heavy deployment of DG (diesel generator) sets. With frequent electricity outages and grid failures, diesel gensets serve as essential backup power sources in various sectors like industries, commercial establishments, healthcare facilities, data centers, and residential buildings, ensuring continuous operations during disruptions. Moreover, the Government of India's emphasis on improving electricity access in remote and rural areas further contributes to the market's growth. India, a rapidly growing economy with diverse energy requirements, experiences a significant transformation in its electricity sector, with diesel gensets widely used as backup power sources in homes and businesses. The fiercely competitive Indian diesel generator industry attracts both domestic and foreign companies offering diverse goods and services to cater to the growing market demand.

Restraints

Growing Trend of Renewable Power Generation

The market's growth in the forecast period is expected to be restrained by the increasing renewable installed capacity and supportive government policies promoting greener energy. However, the power capacity additions in India did not meet the government's expectations, leading them to take measures to boost the sector by incorporating various thermal and renewable projects. The installed renewable energy capacity, including large hydro, witnessed a significant increase from 76.37 GW in March 2014 to 167.75 GW in December 2022, showing a growth of approximately 2.20 times. In FY 2022-23, the country's total renewable energy generation reached 203,552 million units (MU) with a notable annual growth rate of 19% compared to the previous year, according to the Central Electricity Authority. Also, in February 2022, the ban on diesel generator sets in Delhi-NCR was lifted by a subcommittee of the Centre's air quality panel, following a thorough assessment of the air quality situation.

Impact of COVID-19 on India Diesel Genset Market

COVID-19 pandemic adversely affected the India diesel genset market. The nationwide lockdowns and restrictions disrupted manufacturing, distribution, and supply chain activities, leading to project delays and cancellations. The economic downturn and financial uncertainties resulted in reduced investment and deferred purchase decisions, affecting market growth. The closure of businesses and industries during the pandemic decreased the immediate demand for diesel gensets. However, the pandemic also highlighted the importance of reliable power backup in critical sectors, fostering interest in genset installations. As the economy gradually recovered, the market experienced a rebound, driven by the need for uninterrupted power supply and preparedness for future disruptions.

India Diesel Genset Market

Segmental Coverage

India Diesel Genset Market – By KVA Ratings

By KVA ratings, the India diesel genset market is divided into 5–75 KVA, 75.1–375 KVA, 375.1–750 KVA, 750.1–1,000 KVA, 1,000.1–2,000 KVA, and Above 2,000 KVA segments. The 75.1–375 KVA segment holds the highest share in the India diesel genset market by KVA ratings during the forecast period. The segment finds frequent application in commercial buildings, shopping malls, hotels, large-scale enterprises, and data centers, serving as a reliable backup power solution. These gensets are preferred over low KVA diesel gensets due to their higher capacity and capability to handle larger power demands. The growing adoption of diesel generators in India, particularly in the medium KVA capacity range, is driven by the country's increasing energy demand and unstable power infrastructure. Meanwhile, the 5–75 KVA segment is expected to witness fastest growth rate during the forecast period. These generators serve a wide range of purposes, including providing backup power for households, small businesses, rural electrification, and agricultural needs. They are cost-effective, easy to install, and offer a reliable power source in areas with intermittent electricity supply. Low KVA diesel gensets are favored as backup power options due to their affordability, user-friendly operation, and portability. They play a crucial role in supplying power to rural areas and small businesses while meeting the country's increasing energy demand in the coming years.

India Diesel Genset Market – By Vertical

Based on vertical, the India diesel genset market is divided into Commercial, Industrial, and Residential segments. The commercial segment is expected to dominate the India diesel genset market by vertical during the forecast period, driven by rapid growth in the services sector. Diesel generators are vital in ensuring uninterrupted power supply for various commercial establishments, including hospitals, hotels, restaurants, IT and telecommunication centers, banking, and insurance. Finance, real estate, and professional services contributed significantly to India's gross value added (GVA) in fiscal year 2022, comprising 53% of the total GVA. The IT and business services market is among the fastest growing within the services sector, projected to exceed USD 19.93 billion by 2025. Diesel generators find extensive use in healthcare services, especially hospitals, to avoid intermittent power disruptions. The Government of India plans to increase public health spending to 2.5% of the country's GDP by 2025.

India Diesel Genset Market – By Region

Regionally, the India diesel genset market is divided into North India, South India, East India, and West India. South India dominates the India diesel genset market during the forecast period. Southern India, comprising Karnataka, Andhra Pradesh, Kerala, Tamil Nadu, and Telangana, faces expanding energy consumption and inconsistent power supply, leading to widespread use of diesel generator sets. The region relies on diesel generators to address power outages, support industrial expansion, commercial applications, and rural electrification. Consequently, the demand for diesel gensets is on the rise in Southern India due to the growing energy consumption, unstable power infrastructure, and the need for reliable backup power solutions. In Northern and Central India, including states like Delhi, Haryana, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand, diesel generator sets (gensets) are extensively employed. The region faces rising energy demand and an unstable power supply, prompting the widespread use of diesel generators for backup power during outages and to support the growing industrial and commercial sectors. Moreover, diesel gensets play a vital role in providing a consistent electricity source for rural electrification. The increasing energy consumption, unstable power system, and demand for reliable backup power solutions drive the heightened adoption of diesel gensets in Northern and Central India.

Competitive Landscape

Major players operating in the India diesel genset market include Kirloskar Oil Engine, Mahindra & Mahindra Ltd, Ashok Leyland, Cummins India Ltd, Greaves Cotton Ltd, Caterpillar Inc., Escorts Limited, Powerica Ltd, Honda India Power Products Ltd, and Perkins Engines Company Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 - Authorities in Delhi and National Capital Region (NCR) for air quality management issued revised guidelines for the usage of Diesel Generator (DG) sets and warned that failing to comply with the revised guidelines in the regions would entail strict measure wherein ‘use of DG set shall not be permitted under any circumstances’.

Scope of the Report

By KVA Ratings

• 5–75 KVA

• 75.1–375 KVA

• 375.1–750 KVA

• 750.1–1,000 KVA

• 1,000.1–2,000 KVA

• Above 2,000 KVA

By Verticals

• Commercial

• Industrial

• Residential

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Diesel Genset Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Uninterrupted and reliable power supply and heavy deployment of DG (diesel generator) set
         2. Improvement in technology of diesel generator
      2.  Restraints
         1. Growing trend of renewable power generation
         2. Fluctuating diesel prices
      3. Opportunities
         1. Rapidly growing telecom and IT sector
         2. Increasing integration of diesel gensets with renewable energy sources
      4. Challenges
         1. Stringent emission norms
         2. Rise of battery-based energy storage solutions
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Diesel Genset Market Overview
   1. Market Size and Forecast by Value and Volume, 2019–2029
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By KVA Ratings
         1. 5–75 KVA
         2.  75.1–375 KVA
         3.  375.1–750 KVA
         4. 750.1–1,000 KVA
         5. 1,000.1–2,000 KVA
         6.  Above 2,000 KVA
      2. By Verticals
         1. Commercial
         2. Industrial
         3. Residential
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Diesel Genset Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By KVA Ratings
      2. By Verticals
6. South India Diesel Genset Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By KVA Ratings
      2. By Verticals
7. East India Diesel Genset Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By KVA Ratings
      2. By Verticals
8. West India Diesel Genset Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By KVA Ratings
      2. By Verticals
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Diesel Genset Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Diesel Genset Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Kirloskar Oil Engine
    2. Mahindra & Mahindra Ltd
    3. Ashok Leyland
    4. Cummins India Ltd
    5. Greaves Cotton Ltd
    6. Caterpillar Inc.
    7. Escorts Limited
    8. Powerica Ltd
    9. Honda India Power Products Ltd
    10. Perkins Engines Company Ltd
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary and Secondary Research
    2. Quantitative Research
    3. Market Breakdown and Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption and Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Diesel Genset Market Segmentation              

Figure 2       India Diesel Genset Market Value Chain Analysis    

Figure 3       Company Market Share Analysis, 2022                                               

Figure 4       India Diesel Genset Market Size, By Value (USD Billion), 2019–2029                                                   

Figure 5       India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029                                                     

Figure 6       India Diesel Genset Market Share, By Verticals, By Value, 2019–2029                                                 

Figure 7       India Diesel Genset Market Share, By Region, By Value, 2019–2029                                                   

Figure 8       North India Diesel Genset Market Size, By Value (USD Billion), 2019–2029                                                   

Figure 9       North India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029                                                         

Figure 10     North India Diesel Genset Market Share, By Verticals, By Value, 2019–2029                                                 

Figure 11     South India Diesel Genset Market Size, By Value (USD Billion), 2019–2029                                                   

Figure 12     South India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029                                                         

Figure 13     South India Diesel Genset Market Share, By Verticals, By Value, 2019–2029                                                 

Figure 14     East India Diesel Genset Market Size, By Value (USD Billion), 2019–2029                                                     

Figure 15     East India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029                                                         

Figure 16     East India Diesel Genset Market Share, By Verticals, By Value, 2019–2029                                                   

Figure 17     West India Diesel Genset Market Size, By Value (USD Billion), 2019–2029                                                    

Figure 18     West India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029                                                         

Figure 19     West India Diesel Genset Market Share, By Verticals, By Value, 2019–2029

List of Tables      

Table 1        India Diesel Genset Market Size, By Value (USD Billion), 2019–2029

Table 2        India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029

Table 3        India Diesel Genset Market Share, By Verticals, By Value, 2019–2029

Table 4        India Diesel Genset Market Share, By Region, By Value, 2019–2029

Table 5        North India Diesel Genset Market Size, By Value (USD Billion), 2019–2029

Table 6        North India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029

Table 7        North India Diesel Genset Market Share, By Verticals, By Value, 2019–2029

Table 8        South India Diesel Genset Market Size, By Value (USD Billion), 2019–2029

Table 9        South India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029

Table 10      South India Diesel Genset Market Share, By Verticals, By Value, 2019–2029

Table 11      East India Diesel Genset Market Size, By Value (USD Billion), 2019–2029

Table 12      East India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029

Table 13      East India Diesel Genset Market Share, By Verticals, By Value, 2019–2029

Table 14      West India Diesel Genset Market Size, By Value (USD Billion), 2019–2029

Table 15      West India Diesel Genset Market Share, By KVA Ratings, By Value, 2019–2029

Table 16      West India Diesel Genset Market Share, By Verticals, By Value, 2019–2029                                        

Table 17      Kirloskar Oil Engine Company Overview

Table 18      Kirloskar Oil Engine Financial Overview

Table 19      Mahindra & Mahindra Ltd Company Overview

Table 20      Mahindra & Mahindra Ltd Financial Overview

Table 21      Ashok Leyland Company Overview

Table 22      Ashok Leyland Financial Overview

Table 23      Cummins India Ltd Company Overview

Table 24      Cummins India Ltd Financial Overview

Table 25      Greaves Cotton Ltd Company Overview

Table 26      Greaves Cotton Ltd Financial Overview

Table 27      Caterpillar Inc. Company Overview

Table 28      Caterpillar Inc. Financial Overview

Table 29      Escorts Limited Company Overview

Table 30      Escorts Limited Financial Overview

Table 31      Powerica Ltd Company Overview

Table 32      Powerica Ltd Financial Overview

Table 33      Honda India Power Products Ltd Company Overview

Table 34      Honda India Power Products Ltd Financial Overview

Table 35      Perkins Engines Company Ltd Company Overview

Table 36      Perkins Engines Company Ltd Financial Overview