In an increasingly electrified world, reliable power is the backbone of economic growth and industrial development. Yet, power outages remain a persistent challenge, especially in a country as vast and diverse as India. In such a situation, gensets play a critical role in maintaining power continuity, ensuring that industries and services remain operational despite grid disruptions. In this article, we highlight the evolving technology, innovation and market for gensets
Electricity powers nearly every facet of modern life, from lighting and heating to industrial machinery and public transit. It has become an indispensable part of both daily living and the economy. Yet, despite its critical role, power outages are still common in many parts of the country. India’s power supply and distribution network, though improving, is not yet foolproof. For industries that require a constant, reliable power source - such as those with 24/7 refrigeration needs or operations heavily reliant on machinery - any disruption can lead to operational breakdowns and significant financial losses. This risk extends across sectors, impacting businesses and households alike. This is where generator sets (gensets) step in as indispensable solutions. For industries that demand uninterrupted electricity - such as cold storage facilities relying on 24/7 refrigeration or manufacturing units with heavy machinery - any power disruption can cause chaos. In such scenarios, gensets act as the backbone of power continuity, bridging the gap when the main power supply falters. “The genset industry is a critical backbone of India’s industrial and energy sectors. Gensets, while operating quietly in the background, have been pivotal in supporting India’s economic growth and transformation. Their reliability, durability, and adaptability, coupled with technological advancements, ensure that they provide consistent backup power, ensuring uninterrupted operations, enhancing productivity, and driving sustainable development,” says Jameson Mendonca, Power Generation Business Leader, Cummins India.
Growing market
In India, diesel power generators have long been the primary backup solution during power outages, and the market continues to grow steadily. “The global surge in infrastructure projects is driving an increased demand for gensets. For example, the construction industry is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2026,” says Sanjay Jadhav, CEO, Sterling Generators. According to Mordor Intelligence, the Indian diesel generator market is projected to expand from USD 1.10 billion in 2023 to USD 1.42 billion by 2028, at a compound annual growth rate (CAGR) of 5.20 percent during the forecast period. The report highlights that, over the medium term, factors such as the need for an uninterrupted and reliable power supply, along with the widespread deployment of diesel generators in healthcare services and the IT sector, are driving the market's growth. Additionally, technological advancements are expected to further boost the market during this period. “Gensets offer essential backup power for project sites, ensuring continuous operations and reduced downtime. While several factors are driving the demand for gensets across various sectors, the construction sector, especially in remote areas where grid power is unavailable, relies heavily on gensets to power various operations. This demand is further propelled by initiatives like the National Infrastructure Pipeline, which seeks to drive economic growth by improving infrastructure quality and accessibility, underscoring the critical role of gensets in facilitating continuous and efficient construction activities,” says Jameson Mendonca.
New entrant in the market
Sensing surge in demand for gensets Cummins India has launched Retrofit Aftertreatment System, an innovative clean air solution that allows customers to use their existing CPCBII and CPCBI gensets, and comply with the latest genset emission regulations. This highly efficient and indigenously designed retrofit emission control device effectively reduces particulate matter (PM), carbon monoxide (CO), and hydrocarbon (HC) emissions from genset exhaust upto 90 percent. Cooper Corporation, in partnership with Sinfonia Technology has launched India’s first 10 KVA LPG CPCBIV+ certified genset. This genset is engineered to meet the stringent emission standards set forth by the CPCBIV+ legislation in India, representing a major step towards achieving a zero carbon footprint and heralding a new era of clean power generation. Greaves Engineering has introduced its range of new CPCB IV+ Compliant Gensets, adhering to the latest standard set by the Central Pollution Control Board (CPCB). The company is offering CPCB IV+ compliant gensets across its diverse product portfolio, ranging from 5 kVA to 500 kVA in the <800kW segment. Greaves also offers gensets from 1010 kVA up to 2500 kVA.
Jakson Group has introduced the next-generation CPCB IV+ compliant gensets, powered by Cummins. Designed to operate under extreme conditions, the CPCBIV+ gensets exceeds reliability expectations with innovations like a next-generation remote monitoring system, an advanced engine control module, and precise fuel level sensors. Tata Motors has launched the new-generation, cutting edge range of gensets in India. Backed by the reliable and technologically advanced CPCB IV+ compliant Tata Motors engines, the high-performance gensets are available in 25kVA to 125kVA configurations. The new range of Tata Motors Gensets are more fuel efficient and come with strong block loading capability, which provides lower operating costs and uninterrupted power delivery for businesses. Designed, developed and tested at Tata Motors’ top-notch R&D facility, Tata Motors engines that power these gensets are perfectly suited for diverse applications. Sterling Generators has signed an agreement with Tecnicas Reunidas, S A for the joint development of a 1 MWe hydrogen electrolyzer, which is planned to be commissioned in the last quarter of 2024 and that would thereafter be scaled upto 10MW. Ashok Leyland has launched cutting-edge ‘AL H6 Engine - CEV Stage V’.
Tackling Roadblocks
The genset industry faces galore of challenges. The industry contributes to the release of pollutants, including nitrogen oxides and particulate matter, which pose risks to both the environment and public health. In response, the government introduced stringent emission regulations, notably the Bharat Stage VI (BS-VI) standards, which were enforced across the country in 2020 to mitigate these effects. “Several pressing challenges affect the genset industry. Rising fuel prices have escalated operational costs, pushing manufacturers to prioritise fuel-efficient technologies. Additionally, stricter environmental regulations require significant investments in cleaner technologies and compliance strategies,” says Sanjay Jadhav. The Central Pollution Control Board, in partnership with the Ministry of Environment and Forest, has introduced new emission standards for diesel generator sets. According to these regulations, for diesel generators with a power output of up to 8 kW, the emission of nitrogen oxides and hydrocarbons must be limited to 7.5 g/kWh, while carbon monoxide emissions should not exceed 3.5 g/kWh, and particulate matter must stay below 0.30 g/kWh. For generators in the 8 kW to 19 kW range, stricter limits have been set, reducing the permissible levels of nitrogen oxides and hydrocarbons from 7.5 g/kWh to 4.7 g/kWh. “However, despite their reliability and technological advancements, gensets often face challenges in the form of sustainability concerns, stringent regulations, and cost variations due to fuel price fluctuations. Moreover, the industry faces cost, scalability, and technological readiness barriers for adopting advanced technologies, such as renewable energy integration, energy storage solutions, and smart grid technologies. While these innovations hold the potential to improve genset efficiency and reduce environmental impact, their high initial costs and limited market maturity presents significant barriers to widespread adoption,” says Jameson Mendonca.
Innovations and tech advancements
In recent years, advancements in diesel engines and generator sets have accelerated, fueled by the rising need for cleaner and more sustainable power solutions. “Technological advancements play a crucial role in improving genset efficiency and reliability. Remote monitoring systems enable real-time performance tracking, allowing operators to implement predictive maintenance strategies that can reduce downtime by as much as 20%. IoT-enabled gensets provide valuable data analytics on fuel consumption and operational health, optimising maintenance schedules and improving overall efficiency. Automation technologies allow gensets to adjust output based on demand, which can lead to fuel savings of 10-15%,” says Sanjay Jadhav. The push for energy security and growing environmental awareness are key factors behind the demand for gensets that offer lower emissions, quieter operation, and improved performance. “Our Cummins-powered gensets, compliant with the latest CPCBIV+ emission norms, represent remarkable engineering achievement. We have transformed these machines from simple mechanical devices into sophisticated electronic technologies, integrating intelligent control systems, advanced exhaust treatment systems, remote monitoring, and predictive maintenance capabilities. These gensets feature advanced after-treatment systems designed to improve fuel efficiency and ensure adherence to stringent emission norms. Additionally, we have implemented a closed-loop system with real-time remote monitoring capabilities for these gensets. This system continuously assesses the genset's operating performance and emission compliance, ensuring it remains within optimal parameters. In the event of any deviations, the system triggers alarms for immediate corrective actions,” Jameson Mendonca.
Hybrid and multifuel generators are modern solutions that enhance efficiency, reliability, and reduce costs. By combining traditional diesel generators with renewable sources like solar, wind, and biomass, these systems optimize fuel use, lower noise, and offer a more sustainable power supply. The most common setup pairs diesel gensets with solar PV systems, while multifuel generators allow flexibility between biomass and coal. “Emerging opportunities for growth within the genset industry can be found in hybrid power solutions and off-grid applications. Hybrid systems, which combine gensets with renewable energy sources, are becoming increasingly popular due to their sustainability and efficiency. For instance, research indicates that hybrid solutions can reduce carbon emissions by up to 50%. In off-grid locations, gensets are essential for providing reliable power where grid access is limited, particularly in developing regions,” says Sanjay Jadhav.
Growth Drivers
India is witnessing a significant infrastructure transformation, fueled by rising investments, rapid urbanisation, and government-backed initiatives like the PM GATI Shakti scheme, which focuses on improving multi-modal connectivity. The government’s allocation of around USD 130 billion in the Union Budget for infrastructure development highlights the sector’s critical role in propelling economic growth. As India expands its modern infrastructure, including roads, railways, ports, and smart cities, the demand for uninterrupted and reliable power has surged. This development, coupled with increased industrialization, is driving the need for durable and efficient gensets to ensure a stable power supply, particularly in sectors where even brief outages can cause major disruptions. The genset industry is also benefiting from the rise of infrastructure projects in remote and rural areas, where grid connectivity is limited or unreliable. These projects, such as mining, construction, and telecommunication expansions, rely on gensets for their energy needs. Furthermore, the government's push towards "Make in India" is fostering industrial growth, increasing the requirement for continuous power solutions, further boosting the genset market. As India’s infrastructure sector grows, the genset industry will play an essential role in meeting its expanding power demands.
In sectors like mining, telecom, and data centers, gensets play a vital role in ensuring uninterrupted power supply. In remote mining areas, where grid access is limited, gensets power heavy machinery, driven by ambitious production targets like Coal India Limited’s goal of 1 billion tonnes. Similarly, in the telecom industry, gensets provide backup power for cell towers and data centers, ensuring continuous network operation during outages. The growing digitalization and post-pandemic expansion of data centers have further increased the demand for high-capacity gensets, which are critical to maintaining reliable and resilient digital infrastructure.
Moving Forward
Gensets have become a fundamental pillar in ensuring power reliability across a range of sectors, from industrial operations to infrastructure projects. With India’s growing demand for uninterrupted power, particularly in areas with unreliable grid access, the genset industry continues to expand, driven by advancements in technology and the push for cleaner energy solutions. As the country undergoes rapid industrialization and infrastructure growth, gensets will remain crucial in supporting the nation’s economic development, offering both backup power and sustainability-driven innovations. However, the industry must navigate challenges like rising fuel costs and stricter environmental regulations, pushing manufacturers to innovate further and embrace hybrid solutions to meet future energy demands sustainably.