Diesel genset market in India is at a crossroads

According to a report by Mordor Intelligence, the diesel genset market is projected to reach $1.74 billion by 2030 with a 5.4% CAGR, despite challenges from rising demand, regulatory pressures and a shift toward sustainable energy.

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The Indian diesel generator (DG) market stands at a crucial juncture driven by the dual currents of rising power demands from industrial and infrastructure sectors and the intensifying push toward clean energy alternatives. Valued at an estimated $1.34 billion in 2025, the market is expected to grow to $1.74 billion by 2030 at a steady CAGR of 5.4 percent, according to a recent report by Mordor Intelligence.

Industrial growth and infrastructure boom

The backbone of diesel generator demand in India lies in the country's rapidly expanding industrial and infrastructure footprint. Diesel generators remain essential for industries requiring uninterrupted power supply, especially during outages or remote regions lacking consistent grid connectivity.

The manufacturing sector is set to reach $1 trillion by 2025-26, a major driver. Fuelled by investments in automobiles, electronics, textiles and pharmaceuticals and supported by government initiatives like 'Make in India', and the Production Linked Incentive (PLI) scheme, manufacturing hubs in Gujarat, Maharashtra and Tamil Nadu are propelling diesel generator usage.