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According to the market research analysts at Technavio, the gensets market in India is anticipated to witness tremendous growth and will post an impressive CAGR of close to 14% over the forecast period. Frequent power outages are one of the most common problems faced by developing countries such as India. Moreover, as India is one of the fastest developing nations in the world, it relies heavily on electricity for its industrial, commercial, infrastructure, transport, and other sectors. 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.
The increasing demand for hybrid gensets is one of the significant trends propelling the growth prospects for this market during the predicted period. Several manufacturers have introduced hybrid gensets that run on gas, diesel, solar, and batteries and offer better cost and fuel efficiency than the conventional gensets. They are cost-effective solutions for applications where the average running of the load is much below the size of installed gensets. Moreover, unlike a diesel genset, a hybrid genset emits fewer harmful substances like NOx, CO, hydrocarbons, and particulates. 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.
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 -
Other prominent vendors in the market include Atlas Copco, Ashok Leyland, C&S Electric, The Escorts Group, Eicher Motors, FG Wilson, Generac Power Systems, Greaves Cotton, Honda Siel Power, Kohler, International Tractors Ltd. (Sonalika), Sterling Generators, and TATA Motors.
The gas genset segment is one of the fastest growing segments in the market and is expected to grow 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.
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.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by fuel type
PART 07: Market segmentation by application type
PART 08: Market segmentation by end-users
PART 09: Genset market by power output capacity
PART 10: Market drivers
PART 11: Impact of drivers
PART 12: Market challenges
PART 13: Impact of drivers and challenges
PART 14: Market trends
PART 15: Vendor landscape
PART 16: Appendix
PART 17: Explore Technavio
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