The Indian diesel generator set market value stood at $816.0 million in 2021, and it is predicted to surge to $1,831.2 million by 2030. According to the estimates of the market research company, P&S Intelligence, the market will progress at a CAGR of 9.4% from 2021 to 2030 (forecast period). The major factors driving the expansion of the market are the booming manufacturing industry and burgeoning need for power for construction activities in the country.
With the implementation of various supportive government regulations, the manufacturing industry in India is predicted to expand massively in the coming years. As per the India Brand Equity Foundation (IBEF), in India, foreign direct investments (FDI) in the manufacturing industry amounted to $89.2 billion between April 2000 and December 2019. The country witnessed a sharp rise in FDI during this period, owing to the provision of various incentives, relaxation of tax laws, and advancements and innovations in the infrastructure.
Additionally, many automobile and mobile phone manufacturers are either setting up their production facilities or commissioning these plants in India, which once completed will push up the requirement for diesel gensets. Besides, the increasing construction activities in the country, on account of rapid urbanization and industrialization, are also fueling the demand for diesel gensets. In recent years, the country has witnessed the launch of several massive construction projects, such as those pertaining to the development of refineries, ports, buildings, roads, and highways.
Karnataka is predicted to be the fastest-growing state in the Indian diesel genset market throughout the forecast period. This is attributed to the development of commercial infrastructure and growing number of residential facilities in the state. For example, as per an article published in Business Today in December 2020, the Central government would launch infrastructure development projects worth $15.68 billion in Karnataka in the near future. Additionally, as per the Economic Times, the Karnataka government decided to build 900,000 houses over a duration of two years in the state under various housing projects, in July 2021.
Hence, it is safe to say that the sales of diesel gensets will soar in India in the coming years, mainly because of the surging construction and infrastructure development activities in the country.
