Market Trends of India Portable Generator Industry
This section covers the major market trends shaping the India Portable Generator Market according to our research experts:
Industrial Sector Expected to Witness Significant Growth
- The industrial sector, which includes small & medium scale manufacturing units, agriculture, and construction, accounts for the most energy consumption of any end-user industry. Thus, it is an important end-user segment for generators in India.
- According to the United Nations Department of Economic and Social Affairs, by 2022, India will be one of the fastest-growing economies. The global economy was projected to incline by only 3.1% in 2022. At the same time, India was expected to grow by 6.4%.
- Due to the recent Covid-19 crisis, the annual growth rate of industrial production in India declined by 8.4%. However, in the year 2022, industrial production witnessed significant growth. This is expected to impact the growth in the usage of generators across small & medium-sized industries, as they ensure efficient fuel supply.
- Similarly, portable gas generators are becoming the preferred solution in many small-scale industrial applications. They provide much longer runtimes, permitting is more accessible, and units with natural gas have 90% fewer emissions than diesel generators.
- In February 2022, the Central Pollution Control Board (CPCB) proposed a strategy to reduce pollution from old diesel gensets via a 3-pronged approach: scrapping diesel gen-sets older than 15 years, mandating the retrofitting of gensets with emission control devices, and imposing tighter emission standards for newer gensets. Such measures will aid the growth in the usage of portable gas generators to reduce pollution across the country.
- Also, in December 2021, Government E-Marketplace (GEM) floated a tender for the installation project of diesel generator sets at the Ministry of Commerce & Industry office in New Delhi. The tender required at least five portable DG sets for the backup power supply.
- Owing to the above points, the industrial sector is expected to witness significant growth in the Indian portable generator market during the forecast period.
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Favorable Government Regulations to Drive the Market
- Diesel generators are India's most used generators in commercial, residential, and industrial applications. Disadvantages, such as pollution, noise, and maintenance costs, are making consumers look for alternatives for backup power supply, such as gas generators.
- In February 2022, The Ministry of Environment, Forest and Climate Change revised the emission norms in India, effective from July 2023, with which all generators must comply. The India Genset Emission Standards- IV+ will apply for generators running on all fuels, including hydrogen.
- Also, increasing awareness regarding the use of natural gas in power generation, as it is a clean and reliable fuel, coupled with increased concerns over diesel generator maintenance and its negative impact on the environment, is expected to drive portable gas generators across the country.
- Moreover, in April 2022, in order to dissuade diesel generation in five years, the government amended rules mandating power distribution companies to supply 24x7 electricity in metros and large cities. This may, in turn, result in the utilization of portable generators across the country shortly.
- Owing to the above points, strong government regulations are expected to dominate the Indian portable generator market during the forecast period.
