India Generators Market Assessment, By Type, By Fuel Type, By Voltage, By End-user, By Region, Opportunities and Forecast, FY2018-FY2032F

India generators market is projected to witness a CAGR of 7.07% during the forecast period FY2025-FY2032, growing from USD 1.45 billion in FY2024 to USD 2.50 billion in FY2032. Development in industrial, infrastructural, and economic sectors boost the demand for generators in India. Generators are considered as primary power backup solutions for an inconsistency in the power grid and frequent power cuts. The demand for generators is growing at a fast pace due to industrialization, urbanization, and the requirement for efficient power backup in major industries such as infrastructural, IT, and healthcare sectors. Moreover, economic growth and expanding infrastructure projects in the country are expected to continuously expand the generators market size in the forecast years.

In India, the urbanization of the population creates a high demand for residential complexes, shopping malls, hospitals, and commercial centers, resulting in a high demand for consistent power supply. Moreover, the Indian government is involved in investment related to power supply disruptions for the improvement, development, and revamping of power grids. In the current situation, India continues to face frequent power supply disruptions, particularly in rural and semi-urban areas. Regions face unplanned load shedding and outages which drive the country's demand for generators.

For instance, in March 2024, the demand for generators rose as prices went up by 20-40% due to technological shifts. Players indicated that the demand is fairly strong across key end-users, including residential and commercial.

Urbanization, Industrialization, and Commercial Sector to Expedite Market Growth

Urbanization has led to the growth of high-rise buildings and residential complexes. The rising population and increased energy consumption in metro cities create pressure on the power grid. The contractors of residential buildings are investing in generators to ensure a permanent source of power in case of outages. The rapid development of urban infrastructure, including transportation networks, smart city initiatives, and new commercial hubs, drives the demand for high-voltage generators.

Furthermore, the growing number of SMEs in India contributes to demand for generators in the market. Several manufacturing units, which often operate in rural regions with unreliable power supply, require generators to avoid disruptions in production and service delivery. Moreover, with rise in investment in the expansion of shopping malls, office spaces, hotels, restaurants, healthcare sector expansion, data centers, and IT Hubs will drive the demand for generators in India's market.

For instance, in November 2022, the Indian government decided to invest USD 55 billion per annum in urban infrastructure to meet the needs of the growing population, which helps to boost the demand for generators in various applications.

Frequent Power Supply Disruptions in Semi-urban and Rural Areas to Expand Market Size

In India, semi-urban and rural areas have outdated grid infrastructure, which is unable to meet the demand for growing electricity. Frequent power outages and voltage fluctuations are disrupting daily activities and business operations. As a result, generators are highly used as a reliable alternative to ensure a stable power supply during outages.

In several regions, power cuts are a regular occurrence, which often last for long hours. Long hours of power cuts prompted households to invest in small to medium-sized generators. Generators are the best-fit solution and ensure the continuous power supply for essential needs like lighting, cooling, and running household appliances.

Moreover, rural areas heavily rely on electricity for agricultural activities, particularly for irrigation, cold storage, and farm equipment operation. Power outages during critical farming seasons may lead to crop losses and inefficiencies. Farmers and agricultural businesses are investing in diesel or gas-powered generators to combat the situation and ensure uninterrupted power supply, which boosts the demand for generators in the country.

Thus, frequent power supply disruptions in semi-urban and rural areas have made generators a vital resource of energy in households, businesses, agriculture, and public infrastructure.

For instance, in July 2024, the rural areas in Rajasthan experienced up to 12 hours of power cuts on average per day, while urban residents witnessed shorter power supply cuts. People are looking for reliable power supply solutions, which drive the demand for generators in India.

Ongoing Investment in Hybrid Generators to Drive Market Growth

Hybrid generators can operate on a combination of traditional fuel with renewable energy sources. These generators offer several advantages which align with India energy needs and sustainability goals.

Moreover, the Indian government is heavily promoting the adoption of renewable energy through various policies and initiatives, such as the National Solar Mission. Hybrid generator systems align with new policies, offering a solution that incorporates renewable sources while ensuring reliable power backup. Also, financial and tax benefits to businesses for renewable energy adoption boost the generator market growth.

Ongoing investments in research and development (R&D) for the improvement of hybrid generator design make generators more efficient, compact, and cost-effective. Improvements in battery storage technology, automation, and smart grid compatibility further enhance the performance of hybrid generators.

The innovation enables the seamless integration of hybrid generators with the current power system. The hybrid generator is a flexible and scalable solution for different power needs, providing opportunities for manufacturers to offer customized solutions for a range of applications, from small homes to large industrial complexes.

Thus, the ability to combine sustainability with cost-efficiency and reliability of hybrid generators will cater to a wide range of industries, creating opportunities for the generators market.

For instance, in November 2023, Hitachi Energy Ltd. (Hitachi Ltd.) decided to unveil new emission-free generators under the trademark name HyFlex, which is an alternative to diesel-powered generators.

Standby Generators to Dominate Market Share in India

The standby generators have a high adoption rate, which leads the segment to dominate India generators market. Standby generators ensure sufficient power supply to lower the downtime during frequent power outages. India's industrial sector is growing rapidly, pushing manufacturing and production activities to increase. Industrial players are highly investing in standby generators to ensure business continuity during outages. Moreover, the newly developed standby generators are being designed as per new laws to meet stricter environmental regulations, including lower emissions and better fuel efficiency, driving the growth of the market for generators in India. Furthermore, the rapid growth of telecommunication towers and data centers in India has led to increased demand for standby generators.

For instance, in 2023, Cummins India Limited saw a rise in consolidated profits of around 31% in the first quarter from the power generator segment. The development shows the rise in the revenue from the sale of generators in India.

West and Central Region to Dominate the India Generators Market Share

The west and central regions dominated the generator market with the highest market share. The region comprises states engaged in the production of goods and services. The region experiences frequent power outages, especially during summer, as the consumption of power is high during this period. Generators are crucial for maintaining power in homes, businesses, and facilities such as hospitals and malls. The government is focusing on electrification of rural areas, which will foster the demand for generators. Additionally, the rise in interest in hybrid generators is expected to be a major factor for market growth during the forecast period. With growing infrastructure and industrialization in the region, the demand for generators is anticipated to boost in the forecast years. For instance, in July 2023, Tata Motors Limited decided to launch a new-generation and cutting-edge range of gensets in India. These gensets can be used in small enterprises, residential, healthcare, hospitality, and telecom industries.

Future Market Scenario (FY2025 - FY2032F)

The rise in industrialization across sectors such as manufacturing, construction, healthcare, and telecom will drive the demand for standby generators in the forecast period.

Environmental concerns and regulatory pressure to curb emissions are pushing generator manufacturers toward developing cleaner technologies.

The demand for hybrid systems generators is becoming more popular in commercial applications.

The upcoming government initiatives are focused on improving power infrastructure, rural electrification, and disaster management, which will continue to influence the growth of the generator market in the forecast period.

Key Players Landscape and Outlook

India generators market is characterized by several key players, Mahindra Powerol Limited, and Supernova Engineers Pvt. Ltd., known for their diverse product offerings, including diesel, gas, and portable generators. These players in the India generator market are continually developing innovative technologies and working on improvements to meet evolving consumer demands, environmental regulations, and technological advancements. Product launches, acquisitions, agreements, collaborations, and developing technologies are projected to increase competition in this fast-paced market.

For instance, in August 2022, Kirloskar Oil Engines announced the formal launch of gas-powered generators in the market. The company launched a dual-fit kit, which will be retrofitted on the existing and future diesel generators to run on a combination of gas and diesel.