India Diesel Genset Market is Expected to Register a 5.89% CAGR Through 2031
Growing Demand for Reliable Backup Power in Commercial
and Residential Sectors are likely to propel the market during the forecast
period.
According to
TechSci Research report, “India Diesel Genset Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Diesel Genset Market was valued at USD 1.57
Billion in 2025 and is expected to reach USD 2.23 Billion by 2031 with a CAGR
of 5.89% during the forecast period.
Despite significant improvements in
India’s power generation capacity, the country still faces challenges related
to grid reliability and rural electrification. Many remote and underdeveloped
areas experience frequent outages, voltage instability, or limited access to
electricity altogether. Diesel gensets serve as a practical and immediate
solution in these situations, bridging the gap between demand and supply where
the grid falls short.
In rural regions, gensets are used not
just for domestic purposes but also in agricultural operations, small-scale
industries, local health centers, and educational institutions. They provide
power for irrigation pumps, grain mills, cold storage units, and other critical
applications where a lack of electricity could impact livelihoods and essential
services.
Additionally, public sector operations
in remote areas—such as road construction, telecommunications towers, and
government offices—also depend on diesel gensets to maintain functionality. In
such areas, the cost and complexity of deploying renewable systems or extending
the grid often make diesel gensets the most viable option.
Government programs aiming to improve
electrification and rural infrastructure continue to face delays and logistical
barriers. As a result, gensets remain essential in the interim. Even as the
long-term goal is to establish a resilient and green energy network, the
existing limitations of India’s grid make diesel gensets indispensable in many
parts of the country, driving their ongoing market demand.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Diesel Genset Market.”
Based
on Application, Standby generators dominated the India Diesel Genset Market due
to their critical role in ensuring uninterrupted power supply across various
sectors. These generators are designed to automatically activate when there is
a power failure or grid instability, making them essential in regions where
electrical outages are frequent and reliability is a concern. Their ability to
provide immediate backup power without delay is a major advantage, especially
in industrial, commercial, and residential applications.
The
demand for standby gensets is particularly strong in sectors such as telecom,
healthcare, banking, manufacturing, and data centers, where downtime can lead
to significant operational losses, safety hazards, or service disruptions. For
instance, telecom towers and hospitals rely heavily on standby gensets to
maintain continuous operations, even during grid failures. Similarly,
businesses in sectors like retail and hospitality cannot afford interruptions
to their daily operations, making standby gensets indispensable.
In
urban and semi-urban areas, where grid power supply is often unstable or
unreliable, the need for standby gensets is even more pronounced. Areas with
frequent power cuts, especially in Tier II and Tier III cities, witness growing
adoption of standby gensets in residential buildings and small commercial
setups, as these gensets ensure uninterrupted access to essential services such
as lighting, air conditioning, water pumps, and elevators. Moreover, the ease
of installation, low operational cost, and efficiency of standby generators add
to their widespread popularity. They provide a cost-effective and reliable
solution for maintaining operational continuity, especially when combined with
automated transfer switches (ATS) that enable seamless switching between grid
power and generator backup.
Based
on Region, North India is the fastest-growing region in the India Diesel Genset
Market due to a combination of industrial, infrastructural, and regional
factors that drive demand for reliable backup power. Several key reasons
contribute to this rapid growth:
North
India is home to some of the country’s most significant industrial hubs,
including Delhi, Haryana, Punjab, Uttar Pradesh, and Rajasthan. The
manufacturing, automobile, and construction sectors in this region are booming,
with increased demand for diesel gensets to support operations. Industrial
growth requires a stable power supply for machinery, production lines, and
facilities. As grid reliability remains a challenge in certain areas,
industrial generators offer the essential backup power.
The
region is undergoing substantial infrastructure development, including
highways, metro systems, airports, and smart cities. Government initiatives
such as the National Capital Region (NCR) development and projects like PM Gati
Shakti are boosting demand for temporary power solutions at construction sites.
Diesel gensets are crucial for supporting these large-scale projects,
especially in areas lacking a stable power grid.
Power
shortages and grid instability, especially in rural and semi-urban parts of
North India, are common, driving the need for gensets as reliable backup
solutions. Many regions face long-duration power cuts, and diesel generators
serve as an immediate and dependable source of power for essential services
like hospitals, telecom towers, agricultural operations, and small businesses.
Urbanization
in cities like Chandigarh, Jaipur, and Lucknow is leading to increased demand
for backup power solutions for both commercial establishments and residential
complexes. Power cuts and the need for consistent power supply in these areas
further propel the demand for diesel gensets, particularly in the 5-125 kVA
range.
Major companies
operating in the India Diesel Genset Market are:
- Caterpillar
Inc.
- Cummins Inc.
- Kohler Co.
- Wärtsilä
Corporation
- Rolls-Royce
Holdings plc
- Mitsubishi
Heavy Industries, Ltd.
- MAN Energy
Solutions
- Perkins Engines
Company Limited
Download Free Sample Report
Customers can
also request 10% free customization on this report.
“The India diesel genset market presents
significant growth opportunities driven by rising demand for reliable backup
power across commercial, industrial, and residential sectors. Rapid
urbanization, expanding infrastructure projects, and the continued occurrence
of grid outages in Tier II and rural areas are key factors supporting market
expansion. Additionally, growth in sectors such as telecom, healthcare, and
manufacturing further fuels demand. Emerging trends like hybrid systems and
genset rentals also open new revenue streams. Despite regulatory challenges,
the need for dependable and immediate power supply ensures sustained demand,
making the market attractive for manufacturers, service providers, and
technology integrators.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“India Diesel
Genset Market, By Type (Portable Generators, Inverter Generators, Industrial
Generators, Induction Generators), By Power Rating (5 kVA–75 kVA, 76 kVA–375
kVA, 376 kVA–750 kVA, Above 750 kVA), By Application (Standby, Prime Power,
Continuous, Peak Shaving), By End User (Residential, Commercial, Industrial),
By Region, Competition, Forecast & Opportunities, 2021-2031F ”, has evaluated the future growth
potential of India Diesel Genset Market and provides statistics &
information on Market size, structure and future Market growth. The report
intends to provide cutting-edge Market intelligence and help decision-makers make
sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
India Diesel Genset Market.
Contact
TechSci Research LLC
420 Lexington Avenue,
Suite 300, New York,
United States-
10170
Tel: +13322586602
Email: sales@techsciresearch.com
Website: www.techsciresearch.com