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Unreliable Power Grid, Rising Commercial and Industrial Sectors to Spur Indonesia's Diesel Gensets Market

February 12, 2016

Growing energy demand due to rising population, expanding infrastructure, commercialization, industrialization and urbanization are the key factors spurring diesel genset market in Indonesia. Lack of investments in power sector has led to power shortages and lower electrification ratio in the country. Further, need to provide uninterrupted power supply on account of increasing electricity demand-supply gap have boosted diesel genset market in Indonesia.

According to 6Wresearch's report, Indonesia Diesel Genset Market (2016-2022), the country's Diesel Genset market will grow at a CAGR of 6.7 percent during 2016-22. In Indonesia, telecommunication sector is the key demand driver for diesel gensets, where these are used to provide continuous and backup power to telecom towers. Additionally, industrial and residential consumers in remote areas are dependent on diesel gensets due to inadequate electricity transmission network. Diesel gensets dominate the overall Indonesia's genset market; however, adoption of alternative fuel-powered and gas-based gensets are expected to surge in the country.

Avishrant Mani, Senior Research Analyst, Research and Consulting, 6Wresearch said: "Diesel gensets with ratings 5-75 KVA have captured majority of share in Indonesia's diesel genset market owing to their usage in wide range of applications from residential to large industries".

"However, medium rating diesel gensets are anticipated to exhibit highest growth rate owing to increasing demand from manufacturing facilities, small businesses, hospitality, hotels, commercial centers and IT/ITeS industry" Avishrant further added.

Ravi Bhandari, Research Associate, Research and Consulting, 6Wresearch said: "Commercial vertical holds the majority of share in Indonesia diesel genset market and is anticipated to remain the highest revenue generating segment in the forecast period, owing to growing telecommunication, small businesses and data center market in Indonesia".

"Moreover, government emphasis to attract foreign investments and encourage more private players in infrastructure sector would further boost the demand for diesel gensets for construction activities", Ravi further added.

The major companies in Indonesia diesel genset market include-Caterpillar, Deutz, Perkins, Yanmar, MTU, Cummins, PT. Dein Prima and others.

Media Source: Ceasiamag

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