India Diesel Genset Market Size Set to Touch USD 1.65 Billion by 2029
India diesel genset market is flourishing because of the growing deployment of DG (diesel generator) sets, advancements in diesel generator technology, and a high demand for uninterrupted power supply.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India diesel genset market size at USD 1.04 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the India diesel genset market size to grow at a significant 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. However, growing trend of renewable power generation and fluctuating diesel prices are anticipated to restrain the overall market growth.
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.
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 – 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 market during the forecast period by verticals, driven by rapid growth in the service 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 FY2022, comprising 53% of the total GVA. The IT and business services market is among the fastest-growing within the service 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.
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.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Diesel Genset Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Diesel Genset Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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