The Indian prime power diesel generators market is being driven by the increasing infrastructure expenditures and a substantial power deficit. Because of these factors, the market is projected to reach $356.3 million in 2030 from $143.6 million in 2021, at a CAGR of 10.6% from 2021 to 2030. The commercial sector has a strong need for medium- and high-power diesel gensets. Similarly, the substantial expansion in the manufacturing and construction industries is likely to fuel market growth.
Furthermore, India's burgeoning telecommunications industry is a major driver for the Indian prime power diesel generators market. This industry is concentrating on overcoming one of the most-significant challenges of unpredictable power supplies from the grid. As a result, prime power diesel generators are commonly used by telecom tower operators. The number of telephone users in India rose by 0.71% from January 2021 to the end of February 2021, as per the Telecom Regulatory Authority of India (TRAI). This increases the strain on telecommunications businesses to maintain the operationality of the towers despite the inconsistent grid supplies.
By 2030, the commercial application category is set to account for over 70% of the Indian prime power diesel generators market revenue. This will be due to the high need for a constant electrical supply in commercial facilities, such as hotels, train stations, phone exchanges, and retail stores. Prime power diesel generators serve as a backup power source and a type of insurance, allowing businesses to avoid losing money due to a lack of adequate power for operations. As a result, in 2021, firms selling these devices in the country made over 60% of their income from commercial sales.
Uttar Pradesh has the highest demand for diesel gensets for prime power applications, and it is projected to continue to do so in the future. In 2021, the state had an Indian prime power diesel generators market share of over 10% and produced over $20 million revenue from genset sales. This was owing to the increasing expenditures in the telecom industry, rising power demand in the state's residential facilities, and rapid commercial infrastructure expansion. In addition, the rebound in the Indian commercial and residential real estate industries, commissioning of new construction projects, and a comeback in industrial investment would provide attractive prospects for participants in the future years.
Hence, the growth of the commercial sector is expected to drive the demand for gensets to offer prime power in India.
