Gensets Market in India 2016-2020
The genset market in India will record an impressive CAGR of close to 14% over the forecast period (2016-2020). The developing country such as India has been reeling under the problem of frequent power outages, triggering the demand for genets…
According to Technavio market research analysts, the genset market in India will record an impressive CAGR of close to 14% over the forecast period (2016-2020). The developing country such as India has been reeling under the problem of frequent power outages triggering the demand for genets. Apart from this, India, being the fastest development country, requires power for its industrial, commercial, transportation, infrastructural development consumption. Although the country is the third-largest producer and consumer of electricity in the world after the US and China, 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 such as Meghalaya, Andhra Pradesh, Uttar Pradesh, Jammu and Kashmir, Andaman and Nicobar, Bihar, and Tamil Nadu. This has led to the augmented adoption of gensets, which are used to solve power outage issues in the country.
Hybrid genset that run on gas, diesel, solar and batteries is the new trend in the genset market. Soaring demand for these genset leads to several manufactures to introduce hybrid gensets and offer better cost and fuel efficiency than the conventional gensets. As compared to the conventional gensets, these gensets have less carbon footprint on the environment, emitting fewer harmful substances like NOx, CO, hydrocarbons, and particulates. They are cost-effective solutions for applications where the average running of the load is much below the size of installed gensets. A diesel genset paired with solar panels and dual fuel is another hybrid option that is expected to gain traction in the market over the next four years.
Competitive landscape and key vendors
The gensets market in India is characterized by the presence of well-diversified international and regional vendors. With international players increasing their footprint in the market, regional vendors are finding it difficult to compete with them in terms of quality, technology, and pricing. Competition among these vendors is leading to the introduction of many innovative and advanced products. These vendors also provide innovative solutions as a part of their product portfolio. The competitive environment in this market will intensify further with the increase in technological innovations, M&A, and product or service extensions. International players will grow inorganically by acquiring regional or local players.
Key vendors in this market are Caterpillar, Cummins, Kirloskar, and Mahindra & Mahindra. Other prominent vendors in the market include Atlas Copco, Ashok Leyland, C&S Electric, Escorts Group, Eicher Motors, FG Wilson, Generac Power Systems, Greaves Cotton, Honda Siel Power, Kohler, International Tractors Ltd. (Sonalika), Sterling Generators, and TATA Motors.
Segmentation by fuel type and analysis of the gensets market in India is Diesel genset, Gas genset.
Being one of the fastest growing segments in India, the gas genset segment is anticipated to post a growth at a CAGR of close to 20% over the forecast period. Natural gas is being increasingly used as a fuel source for gensets in many industries as it is an affordable option in terms of operations and maintenance. However, limited availability of high-power output capacity gas gensets and the difficulties in procuring a natural gas supply, especially, in emergency situations such as floods and earthquakes, are major challenges to the growth of this segment. However, the demand for natural gas gensets will increase during the forecast period owing to the increasing use of eco-friendly fuels and the increased production and expansion of gas distribution network in the country.
Segmentation by end user and analysis of the gensets market in India:
• Industrial sector
• Commercial sector
• Infrastructure sector
• Residential sector
During 2015, the industrial sector was one of the highest revenue generating segments in the market and is likely to grow at a CAGR of more 14% over the forecast period. Rapid industrialization in the country will boost the demand for electricity and because of the deficit in the power supply; it will lead to the increased adoption of gensets in the industrial sector in India.
According to MarketsandMarkets report, the generator sales market is expected to grow from an estimated USD 18.57 billion in 2016 to USD 24.45 Billion in 2021, at a CAGR of 5.7%. The market is set to witness growth, due to growing demand for uninterrupted and reliable power supply from all major end–users, such as industrial and commercial end-users.
The diesel generator sales segment is expected to hold the largest share of the generator sales market, by type, during the forecast period
The diesel generator sales segment led the generator sales market in 2015 and is expected to grow at a decent pace during the forecast period. A long running life, easy parts and fuel availability, and quick response have helped the diesel generator market grow worldwide.
This segment is primarily driven by increasing demand from data centres, IT facilities, and healthcare infrastructure in developing regions and is expected to create new revenue pockets for the generator sales market during the forecast period.
The generator sales market, in this report, has been analyzed with respect to five regions, namely, North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. The Asia-Pacific market is expected to dominate the global generator sales market with the growth of the manufacturing sector in China, India, Indonesia, and Taiwan. Also, the growth of the IT industry and healthcare infrastructure in China, India, Australia, and Singapore has played a significant role in the growth of the generator sales market in the Asia-Pacific region.
To enable an in-depth understanding of the competitive landscape, the report includes profiles of some of the top players in the generator sales market. These players include Caterpillar, Inc. (US), Cummins, Inc. (US), Generac Holdings, Inc. (US), Kohler Co (US), and Mitsubishi Heavy Industries Ltd. (Japan). The leading players are trying to penetrate the markets in developing economies, and are adopting various strategies to increase their market share.