India Diesel Generator Market Report and Forecast 2025-2034

India Diesel Generator Market Outlook

The India diesel generator market size is expected to expand at a CAGR of roughly 4.3% in the forecast period of 2024-2032. The market is likely to be driven by the growing energy needs and the increasing spending power of the people.

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News and Developments in the India Diesel Generator Market

In June 2023, Kirloskar Oil Engine Ltd (KOEL) launched a new variant  of its fuel-efficient power generators. The generator is named iGreen Version 2.0, powered by the R550 series of engines with improved power and fuel efficiency.

The generators are equipped with self-diagnostic and remote monitoring features that make the system capable of reporting any issue to the operating room. The generator has the function to switch on automatically when the power supply breaks off and shut down when the power supply comes back.

In May 2023, Caterpillar Inc. acquired the United States based energy-as-a-service (EaaS) company, Tangent Energy Solutions.

Tangent provides solutions to reduce energy costs, increase energy efficiency, and reduce carbon emissions. This acquisition will enable Caterpillar to expand their services while enhancing the Tangents’ operations and resources.

In March 2021, Mahindra Powerol launched a new manufacturing plant for the manufacture of the Perkins range of diesel generators. The manufacturing will be done through GOEM Perfect Generators Technology Pvt Ltd, Ghaziabad, for the North Region of India.

This expansion will enable Mahindra Powerol to enhance its reach in the northern market and offer its latest services and products.

India Diesel Generator Market Trends

Diesel generators are power supply units, working by utilizing diesel engines and electric generators to generate and supply electric energy. They are also equipped with a fuel tank, control panel, and radiator. They are generally used as a backup power source.

• The rapidly growing telecom industry in India is expected to be a major driving factor as the recent investments for 5G network installations will propel the India diesel generator market development.

• Multiple government schemes for urban and manufacturing infrastructure development will be a key trend in the market.

• With the increasing demand for gensets, companies are releasing new variants and expanding their manufacturing facilities to meet the rising demand.

India Diesel Generator Market Analysis

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Based on power rating, the market can be segmented into low power generators (0-75 kVA), medium power generators (75-375 kVA), and high-power generators (375 kVA and above), among others.

Based on mobility, it can be bifurcated into portable and stationary. Based on the cooling system, the market can be segmented into air-cooled and liquid cooled. Based on application, the market segments include standby backup power and peak shaving.

Based on end-use, the market segments include industrial, commercial, and residential, among others. The regional markets for the Indian diesel generator market can be divided into North India, South India, East India, and West India.

The extensive E.M.R. report provides an in-depth evaluation of the market based on Porter's five forces model and a SWOT analysis.

The India diesel generator market report comprehensively analyses key players in the market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Cummins India Limited

• Kirloskar Oil Engines Limited

• Kohler Power India Pvt Ltd.

• Ashok Leyland Ltd

• Mahindra Powerol

• Greaves Cotton Ltd

• Caterpillar Inc.

• Mitsubishi Heavy Industries, Ltd.

• Perkins Engines Company Limited

• Others

Power Ratings include Low-Power Generator, Medium-Power Generator, and High-Power Generator

The Indian diesel generator market can be segmented according to power ratings into low-power generators, medium-power generators, and high-power generators.

Low-power generators are the most widely used generators in the market, owing to their low cost compared to the higher power-rated generators. The power rating of these generators ranges below 75 kVA. These generators are widely utilised in the commercial and residential sector as a backup power source for air conditioners, refrigerators, and water pumps, among other appliances.

The high-power generators are expected to experience the most growth during the forecast period owing to the housing and infrastructure development projects launched by the government. Their power rating can range from 75-375 kVA.

The high-power generators are mostly used for long continuous operations and large construction sites. High-power generators are installed for power supply in off-grid remote areas, as it is not practicable to provide direct grip power to several remote places.

Medium-power generators are used for smaller constructions like building single houses, low-rise apartments, and offices. This segment is expected to have a steady growth and aid the growth of the Indian diesel generator market.

Mobility includes Portable and Stationary

The stationary generator segment is leading in the Indian diesel generator market as technological advancements have enabled many useful functions. Companies are launching new generators with increased security and automatic start-up functionality during a direct power outage.

The rising industrialisation, growing population, and developing economy have raised the energy demand exponentially. Compared to portable generators, stationary generators are much safer and quieter. The technological developments allow them to operate and shut down properly, minimising human error.

The portable generators are significantly less expensive than stationary generators and can be used as an emergency power backup source. They are generally used as a power source during outdoor activities like camping and others. Although, they are not the most preferred backup source for households as they are less secure and produce more noise compared to stationary generators.

Cooling systems in the India Diesel Generator Market include Air Cooled and Liquid Cooled

The air-cooling system is the most common in-home appliances as they tend to come at affordable prices. They require less maintenance and are used in lower power output generators. Air-cooled generators are not suitable for high power generation as they are less efficient in cooling when compared to liquid cooling.

Liquid-cooled generators are used in higher power-output generators as they are better at reducing the amount of heat produced in large engines. They are priced higher than the air-cooled generators and require frequent maintenance. The market for liquid-cooled generators is expected to show rapid growth, owing to their heat management and consistent power generation.

Diesel Generator find Applications in Standby Backup Power and Peak Shaving

The main applications of diesel generators include standby backup power and peak shaving. The generators are most used as a backup power source. The generators are increasingly getting efficient and advanced, they automatically start within seconds of a power outage to generate and transfer electricity. The market for this application is proliferating due to the rising infrastructural development and spending power among people in India.

Peak shaving in generators is utilised to reduce electrical power consumption during periods of high-power demand. During this period the generators are utilised for a short period of time to reduce the amount of direct power consumption. This method allows consumers to save a significant amount of money.

Diesel Generators Find End-Uses in Industrial, Commercial, and Residential Sectors

Diesel generators are the go-to option for power backup in manufacturing plants. They are widely used for mining operations all around the world, as they can easily be used in remote places and in extreme conditions. Diesel is also less volatile than other alternative fuels like gasoline, making it a much safer option during various heavy-duty activities.

With the increasing digitisation of the commercial industry, power loss can be a major detriment for the business. A diesel generator can enable companies to get instant power backup and keep the business running. The end-users in this segment are offices, food stores, and data centres, among others.

The residential use of generators is generally for power backup, and among other fuels, diesel is the most preferred, owing to its less volatile nature. They are also used for outdoor activities, and recently people have started to use generators on occasions that increase the power demand, to reduce electricity bills. The rising end-uses are likely to bolster the growth of the Indian diesel generator market.

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Competitive Landscape

Cummins India Limited is one of the leading manufacturers and distributors of diesel and alternative fuel power generators, and their related components and technologies. It is a subsidiary of the parent organization Cummins.

They provide engines, generators and power systems, and components for numerous sectors like agriculture, oil and gas, mining, and construction, among many other power services. It is one of the leading players in the Indian diesel generator market.

Kirloskar Oil Engines Ltd is a leading manufacturer of power generators for all residential and commercial applications. It is a part of Kirloskar Group, an Indian conglomerate which is engaged in manufacturing, construction and mining, oil and gas, power, and agriculture, among others.

In power generation, they specialize in the manufacture of diesel engines and gensets with a wide range of power outputs. They have a variety of products available in power generation, electric motors, water solutions, firefighting systems, and industrial and farm machines.

Kohler Power India Pvt Ltd is a part of the global leader Kohler Power, specialising in making engines, generators, and spare parts. Their products include diesel generators categorised into industrial and commercial generators, portable generators, and marine generators.

Their engines, powered by diesel and alternative fuel, include air-cooled engines and water-cooled engine. They also provide repair kits and replacement parts for the engines and generators. Kohler is a well-known brand in the Indian diesel generator market.

Ashok Leyland Ltd is a multinational automotive company based in India. It is one of the largest commercial vehicle manufacturers, providing heavy-sized, medium-sized, and light-sized commercial vehicles, and power solution systems. Their power solutions include agricultural engines, diesel generators, marine engines, and industrial engines.

Mahindra Powerol is under the Mahindra Group’s Automotive and Farm Equipment sector, and a part of the Mahindra Powertrain division. They provide gensets and engines for commercial and industrial purposes. The diesel generators have a power range from 5kVA to 625 kVA. It is likely to make significant contribution to the Indian diesel generator market.

Greaves Cotton Limited is an engineering company and a leading manufacturer of powertrain solutions, generators, E-mobility, farm equipment, and aftermarket services. Their power generators include diesel generators having a wide power range of 5-2500 kVA.

Caterpillar Inc. is the world’s leading mining and construction equipment manufacturer and one of the American Fortune 100 corporations. The Caterpillar corporation has around 20 brands, to offer machines, technologies, engines, components, and services for the needs of a wide variety of industries. Their products range from loaders and excavators to power generators and are among the top companies in the Indian diesel generator market.

Mitsubishi Heavy Industries, Ltd. is a Japanese multinational industrial firm, leading the market for over 100 years, and providing services and solutions for energy, automotive, industrial, engineering, and transportation, among others. Their portfolio ranges from power plant machinery and batteries to naval ships and maritime systems.

Perkins Engines Company Limited is a subsidiary of Caterpillar Inc since 1998. It is primarily engaged in diesel engine manufacturing for different markets like industrial, agriculture, power generation, construction, and material handling. Their engines are categorised in industrial, electric, and marine engines.

Key Highlights of the Report