The India diesel generator market is expected to grow at a CAGR of more than 3% over the period of 2020-2025. Factors such as an increase in demand for uninterrupted and reliable power supply and increasing growth in the health care industry. However, increasing environmental and energy security concerns across the world has been leading to a shift toward cleaner resources and technologies, which may act as a restraint to the market.

  • The commercial segment is expected to be the largest market end-user as diesel generators are used to provide most of the electricity from these segments. It is mostly due to their flexible methods like delivering energy on demand that has helped their growth.
  • The increasing popularity of hybrid generators and rising reliability of the hybrid system is expected to create an opportunity for the industry due to its usage of various resources, driving down the cost, and reducing dependence on a single fuel.
  • Increasing the demand for uninterrupted and reliable power supply is expected to drive the market. A large proportion of the country does not enjoy 24-hour electricity with sporadic electric cuts, which may use diesel generators for powering their houses and businesses.



Key Market Trends

Commercial Sector to Dominate the Market

  • A commercial power producer is not a public utility, but which owns facilities to generate electric power for sale to services and end-users. Numerous companies in India provide electricity in such manner, including companies such as Jakson Group.
  • The governmental regulations to reduce the environmental impacts of diesel generators have been pushing large companies for other methods of producing electricity, thereby leaving the ground for smaller companies to provide for minor requirements.
  • The cost of the diesel-generated electricity is much higher and can vary with the maintenance of the diesel generator. On average, the electricity generated through diesel generators may cost 3- 4 times the electricity provided by the state authority and private players. Higher costs act as a deterrent for growth in the market.
  • In Apr 2019 – Apr 2020 period, the monitored producing capacity of commercial power producer of diesel generators was approximately 10667 MW. The segment accounted for the highest usage among all of the other sectors. It is expected to remain the most significant power generation provider in the forecast period.
  • Therefore, the commercial segment is expected to continue to dominate the market due to its large capacity and increase in electricity demand in the country.



Growing Demand for Uninterrupted and Reliable Power Supply to Drive the Market

  • One of the most critical drivers in the market is the increasing demand for uninterrupted and reliable power supply by the populace of the country. Growing prosperity in the country has increased the purchasing power of its citizens, which can be spent on diesel generators for a reliable source of power supply.
  • The country’s primary energy consumption increased from 750 million tons of oil equivalent (mtoe) in 2017 to 809.2 mtoe in 2018. Marking a substantial increase of 7.9% in the period. A high rate of consumption is expected to remain in the forecast period, thereby providing growth to the industry.
  • High demand is likely to come from the building construction and healthcare industry due to their high growth and features like the requirement of immediate electricity, high voltage for electrical equipment, which prefers methods akin to diesel generators.
  • Hence, the growing demand for uninterrupted and reliable power supply with an increase in consumption of primary energy in India is expected to drive the India diesel market with significant demand from the private sector.



Competitive Landscape

The India diesel generator market is partially consolidated. Some of the key players in this market are Cummins India Ltd., Kirloskar Oil Engines Limited, Greaves Cotton Limited, Caterpillar Inc., Ashok Leyland Ltd., and Atlas Copco AB

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support