Diesel Genset Market in India (2025 - 2030)

The diesel genset market in India is poised for substantial growth between 2024 to 2029, driven by increasing demand for reliable power solutions across residential, commercial, and industrial sectors. Factors such as frequent power outages, rapid urbanization, and industrial expansion are propelling the adoption of diesel generators nationwide. This period is expected to witness technological advancements and a shift towards more efficient and environmentally friendly genset solutions.

Market insights:

The diesel genset market in India is expected to reach INR 370.29 Bn by 2029, expanding at a compound annual growth rate (CAGR) of 28.12% during the 2025 - 2029 forecast period.

This growth is attributed to the country's expanding infrastructure, increasing industrial activities, and the need for uninterrupted power supply in various sectors. The implementation of new emission norms, such as the Central Pollution Control Board (CPCB) IV+ standards effective from July 2024, is influencing market dynamics by encouraging the adoption of cleaner and more efficient diesel gensets. Additionally, the government's focus on rural electrification and the development of smart cities is expected to further drive the demand for diesel generators, ensuring a consistent and reliable power supply in emerging urban and rural areas.

Segment insights:

The diesel genset market comprises three segments: residential, commercial and industrial. As of 2024, the commercial segment dominated the market, accounting for 41.39% of the total diesel genset market. It is followed by the industrial segment with 35.81% of the overall diesel genset market. By the end of 2029, the commercial segment is expected to hold a share of around 41.45% of the overall market.

In the residential segment, the demand for diesel gensets is primarily driven by frequent power outages and the need for backup power solutions in urban and semi-urban areas. Homeowners are increasingly investing in small to medium capacity gensets to ensure uninterrupted power for essential appliances and home offices, especially with the rise of remote working trends.

The commercial sector, encompassing offices, retail establishments, hospitals, and educational institutions, requires reliable power to maintain operations and ensure customer satisfaction. Medium to large capacity diesel gensets are favored in this segment to provide backup power during grid failures, supporting critical functions such as data centers, medical equipment, and climate control systems.

In the industrial sector, applications require high-capacity diesel gensets to power heavy machinery and maintain continuous production operations. The ongoing industrialization and establishment of new manufacturing hubs across India are significant contributors to the increasing demand in this segment.

Market trends:

Several key trends are shaping the diesel genset market in India during the forecast period. There is also a growing inclination towards hybrid power solutions that integrate diesel gensets with renewable energy sources, offering enhanced efficiency and sustainability. Additionally, advancements in remote monitoring and control systems are enabling users to manage genset operations more effectively, ensuring optimal performance and maintenance. The increasing demand for uninterrupted power supply in data centers, healthcare facilities, and other critical infrastructure is further propelling market growth.