Gensets Market in India 2016-2020
About the Genset Market in India
Electricity is one of the major requirements for industrial, commercial, infrastructural, and residential growth of any country. The availability of uninterrupted power supply is necessary to fuel the growth of every industry, be it large-scale or small-scale, education, manufacturing, or healthcare.
Low fuel availability of electricity is one of the major concerns faced by Indian industries. Coal supply by Coal India is restricted to about 65% of the actual coal requirement by coal-based thermal plants. This has led to increased dependence on imported coal, which in turn has resulted in increased power generation costs due to limited fuel availability. Increased operational inefficiencies and outstanding debts have led to poor financial health of state electricity distribution companies in India. According to the Indian Planning Commission, electricity generation has to be increased by five to six times the 2003-2004 levels by 2031-2032 to ensure a sustained 8% growth of the economy. If this requirement is not met, the increasing demand for gensets in the country for uninterrupted power supply will remain.
Technavio’s analysts forecast the genset market in India to grow at a CAGR of 14% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the genset market in India for 2016-2020. To arrive at market size, the study considers revenue generated by sales of the following gensets:
Technavio Announces the Publication of its Research Report – Genset Market in India 2016-2020
Technavio recognizes the following companies as the key players in the genset market in India: Caterpillar, Cummins, Kirloskar, and Mahindra & Mahindra.
Other Prominent Vendors in the market are: Atlas Copco, Ashok Leyland, C & S Electric, The Escorts Group, Eicher Motors, FG Wilson, Generac Power Systems, Greaves Cotton, Honda Siel Power Products, Kohler, International Tractors Ltd. (Sonalika), Sterling Generators, and TATA Motors.
Commenting on the report, an analyst from Technavio’s team said: “A trend boosting market growth for gensets is technological advances. Improved fuel economy continues to be the most significant advancement in diesel engine technology. Though many end-users prefer gasoline-powered equipment, the diesel engine segment has a solid end-user base in data centers as it is an economical option — an important parameter considered for owning power backup equipment.
Over the years, several initiatives and changes have been implemented to improve the overall efficiency of engines in a diesel genset. Most of the modifications involve igniting of power within the engine itself, derived from a combination of oxygen and fuel.”
According to the report, a key growth driver is frequent power outages. Power outages form one of the common problems faced by developing countries such as India. India, being one of the fastest developing nations in the world, depends largely on electricity for its industrial, commercial, infrastructure, transport, and other sectors. India is the third largest electricity producer and consumer in the world after the US and China. However, an estimated 27% of the energy generated in India gets lost during transmission or is stolen. Peak supply falls short of 9%, and frequent power outages last for an average of 10 hours in many regions of the country.
Further, the report states that one challenge that could hamper market growth is the increased adoption of renewable energy sources.
Caterpillar, Cummins, Kirloskar, Mahindra & Mahindra, Atlas Copco, Ashok Leyland, C & S Electric, The Escorts Group, Eicher Motors, FG Wilson, Generac Power Systems, Greaves Cotton, Honda Siel Power Products, Kohler, International Tractors Ltd. (Sonalika), Sterling Generators, TATA Motors.
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