According to Prescient & Strategic (P&S) Intelligence Market report, the Indian diesel genset market is projected to reach USD 1,518.1 million by 2024, registering a CAGR of 6.5 per cent during the forecast period.
The market growth is expected to be driven by high-volume demand for these gensets in manufacturing, construction, and commercial projects. Furthermore, growth in the construction industry is likely to translate into increasing demand for gensets to cater the compounded auxiliary and prime power requirements, thereby ascribing the growth of the market in the forthcoming period.
On the basis of power rating, the market is categorized into 5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA. Among these, 5 kVA–75 kVA category accounted for the largest volume share during the historical period, owing to widespread demand for telecom towers, residential installations, small commercial complexes, hotels, and other low power requirement areas.
Based on end user, the Indian diesel genset market is classified into commercial, industrial, and residential. Of these, commercial category is estimated to account for the largest revenue share of over 60 per cent in the market in 2018. Furthermore, growth in the healthcare, telecommunications, hospitality, and retail industries is expected to boost the demand for these gensets in construction projects in the coming years. As diesel gensets are widely used at construction sites as a prime and backup power source, they are expected to remain in high demand in the near future, especially, those falling under the medium- and high-power categories.
On the basis of state, the Indian diesel genset market is categorised into Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, West Bengal, Gujarat, and Rest of India. In 2018, the major demand for these gensets is estimated to be generated from Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh, and Gujarat. The high-volume demand for diesel gensets in these states is attributable to the growth in commercial and residential real estate, installation and commissioning of telecom towers, and demand for gensets from commercial offices to serve power requirements.
Telecom towers are expected to generate the highest demand for diesel gensets in the market
The demand for diesel gensets by telecom towers is estimated for a volume share of over 51 per cent in the Indian commercial diesel genset industry in 2018. This is attributable to high-volume demand for gensets to serve prime and auxiliary power requirements in telecom towers. Furthermore, the demand is likely to be driven by investments in the telecom sector, and growing installation of telecom towers to cater data and voice coverage requirements in remote locations across the country.
India Diesel Genset Market: Competitive Landscape
Some of the major players operating in the Indian diesel genset market are Kirloskar Oil Engines Limited, Ashok Leyland Limited, Greaves Cotton Limited, VE Commercial Vehicles Limited, Mahindra Powerol, Cummins India, and Caterpillar Inc.