India Diesel Generator Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.27 Billion |
| Market Size (2029) | USD 1.57 Billion |
| CAGR (2024 - 2029) | 5.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Diesel Generator Market Analysis
The India Diesel Generator Market size is estimated at USD 1.27 billion in 2024, and is expected to reach USD 1.57 billion by 2029, at a CAGR of 5.40% during the forecast period (2024-2029).
- Over the medium period, factors such as growing power outages and rapid urbanization are anticipated to drive the market's growth during the forecast period.
- On the other hand, the Indian diesel generator market may face hurdles in the near future due to the growing trend of renewable power generation, particularly in industries that have targeted reducing greenhouse gas emissions.
- Nevertheless, the development of hybrid energy systems and emergence of smart diesel generator sets equipped with digital tools. Such developments are anticipated to create significant opportunities for the market.
India Diesel Generator Market Trends
The Commercial Segment is Expected to Dominate the Market
- Industrial operations mainly depend on electricity generated from diesel generators during power outages (to avoid production risks) and in regions with limited grid access. The industrial sector, which includes crude oil, natural gas, refining, mining and quarrying, construction, automotive, chemicals, transportation and storage, and pharmaceuticals, accounts for the largest share of energy consumption. Therefore, the increasing demand for continuous and reliable power from these industries will escalate the demand for generators.
- In March 2024, the Government of India embarked on an ambitious journey to revolutionize the country's infrastructure landscape, aiming to bolster economic growth, enhance connectivity, and improve the quality of life for its citizens. For instance, India has achieved significant milestones in infrastructure development, including the inauguration of the world's longest highway tunnel, the Atal Tunnel, and the construction of the world's highest railway bridge, the Chenab Bridge. This remote infrastructure construction is likely to surge the demand for diesel generators for power supply.
- One of the primary drivers of the diesel generator market is the country's expanding industrial base. Manufacturing, particularly automotive, pharmaceuticals, and textiles, has grown significantly in recent years. These industries require reliable power to ensure efficient operations and prevent costly disruptions. Diesel generators provide a versatile, dependable solution that delivers power in remote locations or during grid failures.
- According to the India Brand Equity Foundation (IBEF), India's manufacturing sector is poised to reach USD 1 trillion by 2025-2026, led by Gujarat, Maharashtra, and Tamil Nadu, fueled by investments in automobile, electronics, and textile industries. Government initiatives like Make in India and PLI schemes drive growth, attract FDI, and enhance industrial infrastructure.
- As reported by the Ministry of Statistics and Programme Implementation (MOSPI), in fiscal year 2024, finance, real estate, and professional services dominated India's gross value added (GVA) landscape. While these service sectors significantly contributed to the nation's GVA, agriculture, being the country's largest employer, accounted for approximately 18% that year.
- The Indian government's focus on infrastructural development has created a substantial demand for diesel generators. Large-scale projects, such as road construction, railway expansion, and power plant construction, necessitate heavy machinery and equipment that rely on reliable power sources. Diesel generators are ideal for powering these operations, ensuring uninterrupted productivity, and meeting project deadlines.
- In September 2024, India announced an investment value of INR 3 trillion in metro rail projects to improve urban mobility and unlock economic potential. These investments aim to reduce congestion and pollution while fueling the demand for diesel generators during construction work, as well as to have a backup power source.
- Indian diesel generator market will continue its growth trajectory in the coming years. The country's robust economic growth, coupled with the increasing demand for reliable power, presents significant opportunities for manufacturers and suppliers of diesel generators. As the industrial sector expands and infrastructure development continues, diesel generators will remain vital to the Indian power landscape.
Increasing Adoption of Alternative Energy Sources is Expected to Hinder the Market
- Increasing environmental and energy security concerns led to a shift toward cleaner resources in India. At present, the market for cleaner fuels (such as natural gas and renewable energy sources, like biodiesel, ethanol, solar, etc.) is developing. Additionally, technological advancement has led to the innovation of cleaner alternatives to diesel generators.
- Diesel generators emit high levels of air and noise-polluting elements, which has been one of the concerns of environmentalists. As gas generators serve as reliable alternatives for diesel generators, the diesel generator has been losing its market share to gas generators and other alternative fuel generators.
- In recent years, few Indian states have notified directives to limit the utilization of diesel generators. For instance, in September 2023, the Commission for Air Quality Management (CAQM) banned large diesel generator sets considering the increased pollution levels in the Delhi NCR region, exempting the same only for essential services like healthcare, etc. Likewise, the Goa State Pollution Control Board (GSPCB) has also banned the integration of diesel generator sets to limit pollution.
- While the commission and state-level agencies have recommended emission control devices (ECDs) and Dual Fuel Kits for diesel generator sets in India, it comes with an additional cost to the end-consumers. This prompts them to look for alternate energy solutions for temporary or backup power. Such a scenario has restrained the growth of the diesel generator market in India.
- For instance, in March 2024, Samsung India noted the transition from diesel to natural gas generators at its Noida Plant in India, underscoring its commitment to sustainability. This shift not only curtails emissions but also results in significant cost savings. Further, the company noted replacing ten diesel generators with eight natural gas-based alternatives. The initiative involved setting up a 20 MW PNG gas-based genset to cater to the Noida plant's requirements and offer emergency support in critical situations. Such commitment to environmental stewardship by industrial consumers is expected to restrain India’s diesel generator market during the forecast period.
- The diesel Generator market players in India, such as Jakson Group, Kirloskar Oil Engines, Cummins, Greaves Cotton Limited, and Mahindra Powerol, have shifted their focus on manufacturing generator sets that utilize cleaner fuels such as biodiesel and ethanol.
- For instance, in July 2024, the firm Greaves Engineering launched new generation products that are CPCB IV + Compliant Gensets in India. The new gensets are compatible with ethanol and biodiesel, which is feasible for commercial and industrial consumers. Further, the gensets are launched with capacities ranging from 5 kVA to 500 kVA.
- Other renewable energy technologies, such as solar energy integrated with batteries, have also emerged as viable alternatives to diesel generators. For instance, in May 2026, EcoFlow rolled out solar generators in the Indian market to cater to backup power requirements. The company claims that DELTA 2 MAX, a solar generator integrated with a battery, is a pioneer innovation in the portable generator market. With a capacity of approx. 2048 watt-hour, the product intends to deliver emergency power to a household for up to two days. This is likely to emerge as a robust alternative for diesel generators in the Indian market.
- As of February 2024, India's private sector boasted the largest installed renewable energy capacity, totaling around 223 thousand megawatts. The South Asian nation's government has been steadfast in its commitment to amplifying the use of clean energy sources, spearheading both small and large-scale projects. Beyond just generating renewable energy, these initiatives also focus on creating job opportunities, particularly in rural regions.
- Owing to these developments, the growing trend of adoption of alternative energy sources is expected to restrain the growth of the diesel generator market in India.
India Diesel Generator Industry Overview
The Indian diesel generator market is semi-fragmented. Some of the key players in the market (in no particular order) include Honda India Power Products Ltd, Yamaha Motor Co. Ltd., Mitsubishi Heavy Industries Ltd, Mahindra Powerol Ltd., Kirloskar Oil Engines Ltd., and others.
India Diesel Generator Market Leaders
-
Honda India Power Products Ltd.
-
Yamaha Motor Co Ltd.
-
Mitsubishi Heavy Industries Ltd.
-
Kirloskar Oil Engines Ltd.
-
Mahindra Powerol Ltd.
*Disclaimer: Major Players sorted in no particular order
India Diesel Generator Market News
- December 2023: Cummins Inc. unveiled its latest generator models: the C1760D5, C1875D5, and C2000D5B, offering enhanced power capabilities for a broader spectrum of applications.
- February 2023: Caterpillar unveiled the Cat XQ330 mobile diesel generator set that caters to standby and prime power applications, aligning with U.S. EPA Tier 4 Final emission standards. The XQ330, driven by the Cat C9.3B diesel engine, boasts a rating of up to 288 kW for standby and 264 kW for prime operation at 60 Hz. At 50 Hz, it can deliver up to 341 kVA in standby and 310 kVA in prime power applications.
India Diesel Generator Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Growing Power Outages
4.5.1.2 Improvement in Technology of Diesel Generator
4.5.2 Restraints
4.5.2.1 Increasing Adoption Of Alternative Energy Sources
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Rating
5.1.1 Below 75 kVA
5.1.2 75-350 kVA
5.1.3 Above 350 kVA
5.2 End-User
5.2.1 Residential
5.2.2 Commercial
5.2.3 Industrial
5.3 Application
5.3.1 Standby Backup Power
5.3.2 Prime/Continuous Power
5.3.3 Peak Shaving Power
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Honda India Power Products Ltd.
6.3.2 Yamaha Motor Co. Ltd.
6.3.3 Mitsubishi Heavy Industries Ltd.
6.3.4 Mahindra Powerol Ltd.
6.3.5 Kirloskar Oil Engines Ltd.
6.3.6 Cummins India Ltd.
6.3.7 Greaves Cotton Limited
6.3.8 Ashok Leyland Ltd.
6.3.9 Caterpillar Inc.
6.3.10 Cooper Corporation Pvt. Ltd.
6.3.11 Atlas Copco AB
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of Hybrid Energy Systems
India Diesel Generator Industry Segmentation
A diesel generator is a device that combines a diesel engine and an electric generator to generate electricity. This is an example of an engine generator. A diesel compression-ignition engine is typically built to run on diesel fuel, but specific models are also designed to run on other liquid fuels or natural gas.
The India diesel generator market is segmented by power ratings, end user, and application. By power rating, the market is segmented into Below 75 KVA, 75-350 kVA, and Above 350 kVA. By end-user, the market is segmented into residential, commercial, and industrial. By application, the market is segmented into Standby Backup Power, Prime/Continuous Power, and Peak Shaving Power. The market sizing and forecasts are based on revenue (USD) for each segment.
| Power Rating | |
| Below 75 kVA | |
| 75-350 kVA | |
| Above 350 kVA |
| End-User | |
| Residential | |
| Commercial | |
| Industrial |
| Application | |
| Standby Backup Power | |
| Prime/Continuous Power | |
| Peak Shaving Power |
India Diesel Generator Market Research Faqs
How big is the India Diesel Generator Market?
The India Diesel Generator Market size is expected to reach USD 1.27 billion in 2024 and grow at a CAGR of 5.40% to reach USD 1.57 billion by 2029.
What is the current India Diesel Generator Market size?
In 2024, the India Diesel Generator Market size is expected to reach USD 1.27 billion.
Who are the key players in India Diesel Generator Market?
Honda India Power Products Ltd., Yamaha Motor Co Ltd., Mitsubishi Heavy Industries Ltd., Kirloskar Oil Engines Ltd. and Mahindra Powerol Ltd. are the major companies operating in the India Diesel Generator Market.
What years does this India Diesel Generator Market cover, and what was the market size in 2023?
In 2023, the India Diesel Generator Market size was estimated at USD 1.20 billion. The report covers the India Diesel Generator Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Diesel Generator Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which segment dominates the Diesel Generator Market in India based on power rating?
Based on power rating 5 KVA to 75 KVA segment dominates the Diesel Generator Market in India.
India Diesel Generator Industry Report
The India Diesel Generators / Genset Market is experiencing notable growth, primarily driven by rapid urbanization, industrial expansion, and the increasing demand for reliable backup power solutions. This market is segmented by power output, application, end user, and ratings, with significant segments including residential, commercial, healthcare, government and transport, industrial, and equipment rental companies. The commercial segment is expected to lead due to the rising number of infrastructure projects and the necessity for uninterrupted power in establishments such as hospitals, hotels, and IT centers.
The medium KVA range is particularly popular for its balance of capacity and efficiency, catering to a diverse range of applications from small businesses to large industrial operations. Diesel generator manufacturing companies in India are investing heavily in research and development to meet evolving demands and regulatory standards. The industry research indicates that the market size is set to continue its upward trajectory, driven by the essential need for reliable power across various sectors.
Market growth is supported by comprehensive market research, which includes a detailed market share analysis and market size evaluation. Industry analysis provides an in-depth industry overview and industry report, offering insights into market trends and market forecast. The market leaders in this sector are focusing on innovation to maintain their competitive edge.
The industry information and industry outlook highlight the significant opportunities and challenges within the market. Market segmentation further details the various applications and end-user categories, while market value assessments offer a clear picture of the economic impact. Industry statistics and industry trends are crucial for understanding the market dynamics.
Market data and market predictions are essential for strategic planning and investment decisions. The market review and market outlook provide a comprehensive view of the market's current state and future prospects. Research companies play a pivotal role in providing accurate and up-to-date market information.
For a detailed report example, including a report PDF, interested parties can refer to the Mordor Intelligence™ Industry Reports, which offer extensive insights and forecasts. The growth rate of the diesel generator market in India is indicative of the industry's robust potential and the increasing reliance on diesel generators for uninterrupted power supply.
