Market Trends of India Diesel Generator Industry
The Commercial Segment is Expected to Dominate the Market
- The commercial segment is expected to be the largest market during the forecast period due to the rapid growth in the service sector, which is expected to rise even more during the forecast period. Diesel generators are mainly used in the commercial sector to have an uninterrupted power supply during business hours.
- The service sector includes hospitals, hotels, restaurants, IT and telecommunication centers, banking, and insurance. The gross value added from finance, real estate, and professional services had the highest share in India in the fiscal year 2022. With 53 percent overall, the service sectors made up a large chunk of GVA for the country that year. One of the fastest-growing sectors in services is the IT and business services market. According to India Brand Equity Foundation, the Government of India, the IT and business services market is expected to cross USD 19.93 billion by 2025.
- In March 2023, NTT planned to open six data centers in India over the next three months, with three more planned. The corporation will open six new data centers, bringing the total number of data centers in operation in the country to 11. These additional data centers will be built in Mumbai's Airoli and Mahape, as well as Bengaluru and Chennai.
- Diesel generators are heavily deployed in healthcare services, particularly hospitals, to avoid intermittent power supply. The Government of India plans to increase public health spending to 2.5% of the country's GDP by 2025.
- All these developments are expected to foster growth in the diesel generator market of India in the coming years.
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The Growing Trend of Renewable Power Generation is Expected to Hinder the Market
- The increasing renewable installed capacity with supportive government policies towards greener energy is expected to restrain the market's growth in the forecast period.
- The power capacity additions in India were not as per the expectations of the Indian government. Thus, the government is trying to boost the sector by including various thermal and renewable projects. The installed Renewable energy capacity (including large hydro) has increased from 76.37 GW in March 2014 to 167.75 GW in December 2022, i.e., an increase of around 2.20 times.
- According to Central Electricity Authority, in FY 2022-23, the country's total renewable energy generation accounted for 203,552 million units (MU), with an annual growth rate of 19% compared to the previous year.
- Moreover, in February 2022, A subcommittee of the Centre's air quality panel issued an order on the Commission for Air Quality Management's (CAQM) Graded Response Action Plan (GRAP). They have removed the ban on diesel generator sets in Delhi-NCR with immediate effect after examining the state of the air quality.
- Owing to these developments, the growing trend of renewable power generation is expected to restrain the growth of the diesel generator market in India.
