24 August 2019

Industry Focus- Generators & Engines

Powering India

 

 

At 15% peak power deficit, the growth of India is getting hampered. Market reports predict that the Indian diesel gensets market is projected to reach $ 1.5 billion by 2024. Therefore, it is expected that the demand for diesel generators will grow in the coming years writes ROHAN AMBIKE.

 

 

India diesel gensets market is projected to reach $ 1.5 billion by 2024. Anticipated growth in the market can be attributed to increasing demand for power backup across commercial as well as residential set-ups, coupled with growing number of huge government sponsored projects, such as 100 smart cities, AMRUT, and freight corridor & national highways. Southern region of the country dominates the diesel gensets market, followed by the western region, owing to the presence of a large number of industries such as IT/ITES, automobile, chemical and petrochemical, jewelry, textiles, cement and oil & gas in the regions. All of these industries require uninterrupted power supply, thereby boosting demand for diesel gensets.

 

 

India currently suffers from almost 15 percent peak power deficit which is hampering growth of all sectors in the economy, ranging from manufacturing to services sector, health and hospitality, and construction and infra sector. Almost each and every organization needs consistent power supply, as data loss can be more expensive than the capital expenditure required for backup power equipment. Therefore, it is expected that the demand for diesel generators will grow in the coming years. Most of the major suppliers of diesel engines and generators in India have been continuously upgrading the design of their products. This has entailed substantial investments and technology transfer agreements with global engine suppliers. With projects now gathering frenetic pace the degree of competition in 15 – 75 kVA and 75.1 – 375 kVA segments is expected to increase considerably with several new players – domestic and international – venturing into the market.

 

 

 

Rising demand in India

 

Major players in the Indian market include market leader Kirloskar Oil Engines Ltd (KOEL), F G Wilson, JCB Power Products India Pvt., Cummins India, Ashok Leyland, Mahindra Powerol, Cooper Corp. etc. are among the leading diesel genset players operating in India. Kirloskar is expanding its dealership network, offering 24/7 support services and addressing client queries through call centres. Moreover, the company’s long-term service agreement programme for customers, Bandhan, is expected to aid KOEL in consolidating its market presence through 2020.

 

The Indian market for diesel genset is broadly classified into four segments on the basis of kVA rating: low (5-75 kVA), medium (75.1-350 kVA), high (350.1-750 kVA) and very high (750.1- 3000 kVA). Low-rating diesel gensets constitute a major share of the market, and are used in the telecom sector for backup power in grid-connected areas and also as a main power source in off-grid areas. India is the second largest mobile phone market in the world with 500 million users and 700,000 telecom towers, which require continuous power supply - on average, the country’s telecom tower network consumes over 11 TWh annually, and this is likely to increase to 17 TWh by the end of this year.

 

 

 

Fast Facts
  • Indian Diesel generator market to grow at 5.56 per cent during 2019-25.
  • By 2025 natural gas will contribute 20 per cent of fuel for generators.
  • Analog to digital control technology transition has bettered monitoring of the fuel and coolant levels.
  • Use of advanced monitoring equipment, high tech control systems and other modern techniques on the rise.

 

 

 

Market report

 

According to this research, the India Diesel Genset market is projected to grow at a CAGR of 5.6% during 2019-25. Diesel gensets with 5 kVA-75 kVA rating accounts for significant India diesel genset market share due to their wide usage across various applications, ease of availability, and low cost. Increasing utilization of lower rating gensets across domains such as telecom infrastructure in unreliable and off-grid areas would help 5 kVA-75 kVA diesel genset market segment to maintain its dominance during the forecast period.

 

 

By region, the Southern region accounted for the highest revenue share in the overall market in 2018. The Northern region would, however, witness a significant increase in demand for diesel gensets over the coming years on account of upcoming large-scale infrastructure projects such as Delhi Metro expansion and Lucknow Metro.

 

 

Construction of industrial corridors such as ‘Delhi Mumbai Industrial Corridor’ worth $100 billion to be completed by 2040, would spur the demand for diesel gensets in the future. Further, with infrastructure sector receiving heavy allocations in the Union Budget for 2019-2020, the construction and transportation sectors are predicted to be the key drivers behind the growth of India diesel genset market over the next six years.

 

 

Globally, power demand is increasing rapidly, while supply is not growing at the same pace, thus creating huge power deficit in many parts of the world. Consequently, the demand for power generation equipment such as diesel generators continues to increase worldwide. Poor power infrastructure and unreliable grid power supply have been largely responsible for increasing frequency of power outages, which is likely to boost the demand for diesel gensets across the globe. Rising demand for mobile diesel gensets and biofuel based diesel gensets is also expected to benefit the diesel genset market.

 

 

 

24x7 Power Supply Sectors to Sustain Demand

 

There are several sectors that require uninterrupted power supply. For instance, healthcare requires constant supply of electricity for critical equipment to function. In case of power disruption, equipment require back up, otherwise it will put the patients’ lives at risk. This is augured to rise demand from healthcare sector in the global generator market. Further, globally hospitals are becoming multispecialty centers of treatment, which means they are increasing in size. Hence, the need for products from the global generator market will increase in the forecast period.

 

At the same time, another sector that will spur demand for products in the global generator market is information technology. A large number of companies today function on digital networks and data. To manage large pools of data, companies use servers which have to be operated 24x7. This determines the need for generators. As more companies adopt digital technologies, the demand for severs will grow, and as a result, the consumption in the global generator market will also rise.

 

 

 

Environment Friendly Products to Create Fresh Opportunities

 

Most generator across the globe are diesel powered and it is a well-established fact that diesel generators will impact the environment. Hence, there is push to develop products that work on renewable energy. Companies across the world are working on technology that could utilize renewable energy sources like solar or wind to power generators. Success in these trials will open fresh avenues for players in the global generator market. Products to power small devices are already available in the market. Devices to power large requirements are the need in the global generator market. Thus, innovation will stoke demand in the global generator market in the coming years.

 

 

The study presented here is based on a Transparency Market Research report titled “Generator (Up to 20 kVA) Market (Power Rating - Up to 5 kVA, 5 to 10 kVA, 10 to 15 kVA, and 15 to 20 kVA; Fuel Type - Gasoline, Diesel, Natural Gas, and LPG; Generator Type - Stationary and Portable; End-user: Residential, Commercial, Industrial, and Telecom) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 – 2025.”

 

 

According to the research, the most potential market in the main countries of Diesel generator sets industry is China, determined by its rapid growth of number of procedures. Besides, Southeast Asia, Middle East and India should also be focused by the investors. They are the potential consumers of diesel generator sets. India is also a rapidly developing economy.

 

 

The market of the diesel generator sets is growing fast due to the huge input to the communication, electricity and infrastructure. At the same time ,the upgrading of the equipment also make a great contributions to the development of the diesel generator sets.

 

The diesel generator sets market is consolidated in nature. Various players are adopting competitive strategies such as collaborations, acquisitions and capitalizing untapped opportunities in the emerging economies of India and China, to sustain and gain market penetrartion across the globe. Some key players of this market include Caterpillar,Kohler, Cummins, Wartsila, MTU, Generac, Briggs & Stratton, GE, Honda, Dresser-Rand, Kipor, Cooltechsh, Saonon, Vpower, Tellhow, Foguang, Dingxin, SWT, Kontune, Xgpower.

 

 

The Indian Diesel Generator market witnessed growth over the past few years with an increase in infrastructure projects and rising demand from residential and commercial segment for uninterrupted power. There has been a strong demand for power back up across all major sectors.   Increasing urbanisation is also paving way for a sustained demand for power. JASMEET SINGH, ASSISTANT VICE PRESIDENT- CORPORATE COMMUNICATION & CORPORATE RELATIONS, JCB INDIA LTD

 

 

 

 

 

 

 

Diesel will still be the leading fuel

 

Diesel as a fuel type dominates the overall generator market. For several decades, the generators, especially those used in the industrial sector, have been resorting to diesel as the most preferred fuel type, due to its lower cost and easy availability. Diesel generators will account for about 65-70 per cent of the market by the end of 2020 due to greater engine lifespan, low maintenance costs, safe fuel storage, and cheaper price.

 

 

Diesel Generators have come under the fire and direct threat of environmental protection groups and strict government regulations. Though the unfavorable effects caused by emission from DG’s can’t be refuted, their role in aiding the manufacturing, mining, telecom, medical and other sectors can’t be undermined either.

 

 

 

The growing infrastructure projects in the country, last mile challenges in the power grid , eco-friendly fuel options like Gas, low foot print and compactness and the need of the customer for value- for – money power solutions are the key drivers. We are the preferred partners in BFSI segment and several infrastructure projects. Farrokh Cooper, Cmd, Cooper Corporation

 

 

 

 

 

 

 

Engines Market in India

 

India Diesel Engine Market (2018-2023), a report by ResearchandMarket states that the  India diesel engine market revenues are projected to grow at a CAGR of 4.9% during 2018-23. In India, major demand for diesel engines is generated from automotive industry due to growing demand for passenger vehicles in domestic and export market. Further, growing retail & logistics industry in the country is also contributing to the increase in sales of commercial vehicle, thus driving diesel engine market. Commercial vehicle segment is forecast to surge the overall diesel engine market due to high demand for trucks and buses in the country. Further, agricultural sector is the second largest consumer in value terms due to high utilization of diesel engines in farm equipment. With farm mechanization rate at just 40%, India is expected to witness growth in demand for self-propelled farm equipment during the forecast period. Decreasing labor availability and increasing labor cost would also lead to growth in farm equipment.

 

 

 

Market offerings

 

 

Cummins

 

Cummins is a world leader in the design and manufacture of engines and power generation equipment, including PowerCommand standby and prime power systems. Cummins has unique expertise in that all aspects of generator set design, manufacture and service have been brought together in one company.Cummins GenSets are the epitome of rugged dependability and reliable mechanical and electrical performance. Cummins has fully redesigned its high-range GenSets to deliver the reliability, efficiency, and versatility that your customers want.

 

 

Mahindra

 

Mahindra Powerol, a business unit of the USD19 billion Mahindra Group, recently announced the extension of its higher kVA Diesel Generators (DG) range with the launch of 400/500/625 kVA DG powered by Perkins 2000 series engines. Designed at its R&D hub at Mahindra Research Valley in Chennai and manufactured at its Chakan plant near Pune, this new range of Generator sets with 12.5 Litre to 18 litre Perkins engine is the latest addition to the Mahindra Powerol’s higher kVA series. The new range of DG Sets is equipped with Mahindra’s unique DiGi-SENSE technology which makes it a Smart DG. The performance of Smart DG sets can be monitored real-time remotely from anywhere, thereby improving the uptime of the DG Sets.

 

The company entered the field of power generation in 2001-02. Since inception, Mahindra Powerol has made rapid strides in the Indian Genset industry within a very short span of time. Mahindra Powerol DG sets are the first choice of Telecom majors across India and overseas market. The brand dominates the Indian Telecom Industry for the last 11 consecutive years. Mahindra Powerol power diesel generating sets from 5kVA to 625 kVA.

 

 

KOEL

 

Incorporated in 1946, KOEL is the flagship company of the Kirloskar group. KOEL specialises in the manufacture of both air-cooled and liquid-cooled diesel engines and generating sets across a wide range of power output from 5kVA to 3000kVA. The company serves Service industries such as telecom, IT/ITES, BPO, shopping malls, hotels, hospitals, and banks; educational and financial institutions. Infrastructure projects such as airports, roads, bridges, residential and commercial complexes, townships, high-rise buildings and many more.

 

 

Volvo Penta

 

Volvo, now in its 20th year in India, has invested `2,500 crores with 400 different Service and Sales points and three manufacturing sites pan India. Volvo Penta offers globally as an independent engine manufacturer fixed speed industrial diesel engines to generator manufacturers between 85 and 800 kVA.Penta, is widely acknowledged for versatile engines developed to satisfy OEM’s demands with their low weight, compact designs and easy installation making them perfect for numerous machine and equipment applications in a variety of industries. 5 and 8 liter engines are equipped with common rail and offer a wide power range. OEMs can replace their 6 or 7 liter 6 cylinder engines with the 4-cylinder D5, due to its higher power density.

 

 

JCB Power Products

 

JCB Power Products offer generators from 8kVA to 3300 kVA worldwide, and a range of diesel generators in India. JCB generators are designed to suit any application from back-up support to industries from small, medium & large; infrastructures, BFSI (Banks, Financial Services, Insurance), Real Estate, Residential & Commercial properties, Hospitals, Hotels, Restaurants, Institutions, Petrol Pumps, Airports, Construction sites or off-grid locations. JCB generators come with JCB ecoMAX engine and the highest quality components, alternator, controller and breakers with the largest, world-class dealer network.

 

 

Mitsubishi

 

Mitsubishi MGS series is the diesel generator sets series designed by Mitsubishi Heavy Industries, Ltd.Japan and has an experience of more than 15 years. Mitsubishi MU-G series is the diesel generator sets series with medium speed SU engine series, with the capacity of 1MW up to 3MW, for any application from stand-by, prime and continuous. MGS-B/C series are equipped with low voltage alternator. (380-415V for 50Hz and 380-480V for 60Hz). MGS-HV series are equipped with medium to high voltage alternator. (3.3–11kV for 50Hz and 3.3–13.8kV for 60Hz). MOG series are specially designed to fit the requirement of oil rig top drive generator sets, in the oil field industry.

 

 

Sudhir Power

 

Sudhir Power is a known name in the generator fraternity with an expertise to successfully meet the power requirements of a wide range of individual and institutional customers. Important sectors for power generation solutions are Telecom, Construction, IT/ITES, Realty, Hospitality, Textiles, Auto & Auto Ancillaries, Food Processing, Data Center, Infrastructure, Pharma and Manufacturing  sector.The company’s product line includes the widest range of Gensets ranging from 7.5 kVA to 3000 kVA, with a fuel option of Diesel or gas.

 

 

Caterpillar

 

Caterpillar commercial and industrial diesel generator sets deliver reliable, clean, economical power – even in the most demanding conditions. Each Cat diesel generator set is designed, engineered and manufactured for optimal performance. The range offered by Caterpillar is from 6 to 14,040 ekW (7.5 to 17,550 kVA) of power potential.

 

 

Greaves Cotton Limited

 

Speaking of generators and engines, one cannot ignore the engine giant with a legacy of over 160 years. The company offers an entire range of engines and power gensets developed with in-house research and strategic alliances with international brands like Ricardo of UK. Their gensets have diverse applications ranging from automotives, marine, defense, construction equipment, and agriculture.

 

 

Sterling Wilson

 

Sterling & Wilson, the parent company, is a leading MEP engineering group with over 90 years of experience in project engineering and execution. Sterling Generators manufactures D.G.Sets starting from 10 kva upto 3000 kva. The Range includes 415 Volts LT Sets as well as 3.3 / 6.6 /11 KV HT Sets. SGPL sets have established benchmarks in fuel efficiency, reliability and adherence to global emission norms. For Domestic requirements, sets upto 750 kva are supplied with Acoustic Enclosure (Ready to Use Sets) as per statutory norms. Higher capacity sets are supplied with Acoustic Enclosures with 25 dB insertion loss.

 

 

FG Wilson

 

For over 40 years, FG Wilson has been a world leader in the provision of diesel and gas generator sets, as well as complex power generation solutions. With global production facilities in Brazil, China, India, the US and at company headquarters in Northern Ireland, UK, FG Wilson generator sets range from 6.8kVA to 2,200kVA and include open and enclosed generator sets providing prime and standby power. FG Wilson diesel and gas generator sets can be used in a variety of applications, including domestic use right through to power modules with the ability to operate as complete power stations supplying electricity to national grids.

 

 

Cooper Corporation

 

Cooper Corporation has a technical tie-up with RICARDO, UK, for the design and manufacture of state-of-the-art technology for engines meeting current & forthcoming emission norms. Engines are available in diesel and gas versions in sizes from 1.2 Liter to 7.8 Liter. Cooper engines are known in the market for their compact size, best in class fuel efficiency and lowest maintenance costs. The company caters to Domestic and International markets in various  applications like Agriculture, Construction equipment, Marine, Automobiles, Pump, Tractor, and more.

 

 

Conclusion

 

Expanding activity across all segments in the manufacturing sector, construction and infra sectors, and standby power from the residential segment, all add up to generating a robust demand for gensets in India, across all types and capacities.

 

 

 

 

 

 

 

 

 




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