Diesel generator Market size in India | Demand & Driver 2025

Q: What is the size and growth rate of India Diesel Generator Market?

The Diesel generator Market in India is growing rapidly at a CAGR of approximately at 5.4%.

Q: What factors drive the overall growth of India diesel generator market?

Rising demand for backup power, increasing industrialization, and infrastructure expansion are key drivers.

Q: What are the major challenges in India diesel generator market?

Stricter environmental regulations, rising fuel costs, and growing competition from renewable energy sources.

Q: Which segments are expected to lead in market share?

The 75–375 kVA range is witnessing strong growth, particularly in the commercial and telecom sectors.

Q: What is the impact of emission norms on the industry?

Compliance with CPCB II and potential CPCB IV+ norms is prompting manufacturers to invest in cleaner, low-emission gensets and hybrid solutions.

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Code: MTA4458

Publication Date: Jun 2025

What is the size and growth rate of India Diesel generator Market?

According to 6Wresearch internal database and industry insights, the Diesel generator Market size in India is expanding rapidly at a CAGR of around 5.4%.

This growth is inspired by the growth of increasing infrastructure, incredible grid connectivity in rural and semi-urban areas and increasing demand for power backup in commercial and industrial areas.

India Diesel generator Market Key Growth Factors

Expansion of infrastructure and construction activities
Rapid industrialization and urbanization in Tier I and Tier II cities
Unstable power supply in various regions, especially during peak summer months
Increasing deployment of diesel gainsets in telecom towers, hospitals, data centers and commercial complexes
Introduction to fuel-skill and emission-transparency model model
Strong presence of organized and unorganized field manufacturers

India Diesel generator Market Trends

The Diesel generator market is India is estimated to increase robustly, attributed by changes in low-capacity medium-capacity gainsets (75–375 kVA), expanding demands in Tier II and Tier III cities, and increasing sectors, healthcare and data infrastructure. Regulators around the emissions are pushing mandate manufacturers to renew the cleaner and cool gennset models. Hybrid solutions connecting diesel with solar or battery backup are also gaining momentum in off-grind and telecom areas.

Emerging Developments in India Diesel Generator Market

The India Diesel generator market is witnessing a technological shift. Manufacturers are launching hybrid genchesets (diesel + solar) to improve fuel efficiency and reduce carbon emissions. Due to CPCB criteria, emission control technologies such as retrofit emission control devices (RECD) are becoming common in metro cities. Additionally, Smart GainSet with remote monitoring, IOT integration and fuel tracking is being adopted in commercial setup and fleet operations. Companies are also focusing on compact and silent generators to meet urban residential needs, while the rise of microgrids is opening new routes for decentralized power solutions.