Surging Construction Activities Fueling Indian Diesel Generator Set Industry Growth

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.

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How is Expanding Manufacturing Industry Driving Indian Diesel Genset Market?

The Indian diesel genset market had a valuation of $1,105.7 million in 2019 and is predicted to generate a revenue of $2,365.2 million by 2030. Furthermore, the market will progress at a CAGR of 12.5% between 2020 and 2030, as per the estimates of P&S Intelligence, a market research company based in India. The rapid expansion in the manufacturing sector and the growing requirement for power for various commercial applications in the country are the main market growth drivers.

The launch of several government programs such as ‘Make in India’ and the implementation of favorable government policies with respect to the progress of the micro, small, and medium enterprises (MSMEs) are fueling the boom in the country’s manufacturing sector. Moreover, the surging investments being made in the development of industrial corridors are positively impacting the sales of diesel gensets in India. This is because of the burgeoning requirement for backup power supply among manufacturing facilities across the country.

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The commercial category is further subdivided into telecom towers, retail establishments, hospitals, restaurants, offices, and hotels. Out of these, the telecom tower category registered the highest growth in the Indian diesel genset market during the past few years. Moreover, this trend is predicted to continue in the upcoming years as well. This will be because of the high requirement for backup power in telecom facilities and organizations around the country. 

Furthermore, it is predicted that by 2022, the enactment of government policies such as the National Digital Communications Policy will raise investments of around $100 billion in the telecom sector. It will also fuel the development of an additional 100,000 mobile towers for catering to the demands of the mushrooming subscriber base. This will, in turn, push up the requirement for diesel generators in the country. The market will demonstrate the fastest growth in Tamil Nadu in the upcoming years. 

Hence, it can be safely said that the market will grow substantially in the coming years, primarily on account of the rapid expansion of the construction and manufacturing industries in the country.

Read More: https://www.psmarketresearch.com/market-analysis/india-diesel-genset-market

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