India Gas Genset Market Size & Forecast 2025–2033

India’s power landscape is undergoing a strategic transition—from traditional fuel-dependent backup systems to cleaner, smarter, and more sustainable alternatives. Among these, gas gensets (generator sets powered by natural gas, CNG, LPG, or biogas) are emerging as a critical solution, balancing industrial demand, environmental compliance, and grid reliability.

According to Renub Research, the India Gas Genset Market is projected to reach US$ 714 million by 2033, up from US$ 387.1 million in 2024, expanding at a CAGR of 7.04% during 2025–2033. This growth is driven by increasing electricity demand, stricter emission norms, expansion of city gas distribution (CGD) networks, industrial momentum, and a growing push toward green energy infrastructure.

What Is a Gas Genset and Why Is It Gaining Popularity in India?

A gas genset is an electricity generation unit powered by natural gas, biogas, CNG, or LPG, which converts fuel into electricity through a combustion engine connected to an alternator. Compared to diesel gensets, gas-based systems offer:

✅ Lower emissions (CO₂, NOx, particulate matter)

✅ Reduced noise pollution

✅ Higher fuel efficiency

✅ Lower long-term operating cost

✅ Compliance with India’s CPCB IV+ emission standards

With escalating urban pollution and corporate ESG goals taking center stage, gas gensets are positioning themselves as the preferred alternative for backup power across industries, hospitals, data centers, commercial buildings, and even residential complexes.

Market Growth Drivers: What’s Powering the Surge?

1. Rising Adoption of Green Power Solutions

India’s environmental policy framework is pushing industries toward clean fuels. Gas gensets emit considerably lower pollutants than diesel gensets and align with India’s CPCB IV+ norms and carbon reduction commitments. Corporates prioritizing sustainability and emissions transparency are rapidly replacing diesel units with gas-based systems.

A key development—In July 2025, Cooper Corporation launched India’s first CPCB IV+ certified 10 kVA LPG genset developed under the brand Daimon Genset, designed for both domestic and global markets. This product symbolizes the shift toward clean, economical, and compliant backup power.

2. Rapid Expansion of City Gas Distribution (CGD) Infrastructure

India aims to increase its natural gas share in the primary energy mix from 6% to 15% by 2030. The ongoing expansion of CGD pipelines is unlocking gas access beyond metros, reaching Tier 2 and Tier 3 cities, industrial clusters, and residential hubs.

An additional milestone—The Government of India and IGL recently inaugurated a Smart Gas Meter Manufacturing Unit with a capacity of 1 million meters annually, scheduled to commence production in October 2025. This strengthens domestic gas adoption, reduces import dependency, and enhances fuel monitoring efficiency—adding momentum to gas genset deployment.

3. Industrial Growth and Infrastructure Boom

Programs such as Make in India, Smart Cities Mission, Dedicated Freight Corridors, and Digital India have intensified industrial electricity demand. Sectors including:

Manufacturing

Pharmaceuticals

Hospitals

Data centers

IT parks

Commercial real estate

now require uninterrupted 24/7 backup systems. Gas gensets are emerging as the most cost-efficient, low-emission, high-duty-cycle solution for these energy-intensive operations.

Biggest Challenges in Market Adoption

⚠ Limited Natural Gas Reach in Rural and Remote Regions

Despite growing infrastructure, piped natural gas access still remains inconsistent outside major cities. In areas with limited gas connectivity or volatile LNG prices, diesel remains more convenient.

⚠ Higher Upfront Installation Cost

Gas gensets require:

Gas pipelines or cylinders

Pressure regulators and monitoring systems

Compliant installation infrastructure

This raises initial investment cost, discouraging SMEs that are not aware of long-term operational savings.

⚠ Limited Awareness

Many small businesses still perceive gas gensets as complex to install and maintain, which slows market penetration despite strong environmental and financial benefits.

India Gas Genset Market Segmentation Insights

By Power Capacity

🔹 Medium KVA (75–375 KVA)

High demand from hospitals, hotels, malls, education institutions

Ideal for urban commercial power backup

Preferred in pollution-sensitive zones for low noise & emissions

🔹 High KVA (375 KVA and above)

Used in heavy industries, data centers, airports, refineries

Delivers continuous power in mission-critical applications

Strong demand in industrial corridors with gas pipeline access

By End-User Industry

🏭 Industrial Sector (Largest Consumer)

Requires uninterrupted power for production floors

Uses gas gensets to reduce diesel dependency and carbon footprint

Increasing usage as both primary and standby units

🏢 Commercial Sector

IT parks, healthcare, BFSI offices, hotels, shopping complexes

Demand driven by sustainability mandates and emission regulations

State-Wise Market Highlights

Jharkhand

Heavy industrial hub (metallurgy, mining, steel plants)

Growing adoption due to frequent power fluctuations

Increasing demand for medium-to-high KVA gas gensets

Karnataka

Data centers, IT parks, hospitals driving demand

CGD network expansion enabling fuel availability

High traction in Bengaluru-Mysuru-Mangaluru corridor

Telangana

Hyderabad’s industrial, pharma, and IT boom fueling demand

Logistics parks and SEZs adding requirement for high-capacity units

CGD availability strengthening commercialization

Maharashtra

Largest gas genset market in India

Strong pipeline coverage across Mumbai, Pune, Nashik

Data center boom is a major demand accelerator

Strict pollution control laws favor cleaner genset adoption

Tamil Nadu

Manufacturing powerhouse for textiles, automotive, electronics

Shift from diesel to gas for cleaner industrial operations

CGD expansion improving fuel logistics in Chennai, Coimbatore, Hosur

India Diesel Genset Market (Contextual Overview—For Category Mapping)

Segment Classification

KVA Range Low • Medium • High

End Users Residential • Commercial • Industrial

Regions East • West • South • North & Central

Key States West Bengal, Odisha, Jharkhand, Gujarat, Maharashtra, Karnataka, Tamil Nadu, Telangana, Delhi, UP, Haryana, MP, Assam, others

Key Market Players (Company Analysis Scope)

Each company is analyzed based on:

✔ Overview

✔ Recent developments

✔ Sales performance

Major Companies Covered:

Kirloskar Oil Engine

Mahindra & Mahindra Ltd

Ashok Leyland

Cummins India Ltd

Greaves Cotton Ltd

Caterpillar Inc.

Escorts Limited

Powerica Ltd

Competitive Edge: Why Gas Gensets Will Beat Diesel in Future

Feature Diesel Genset Gas Genset

Emissions High Very Low

Fuel Cost Higher & volatile Lower & stable

Noise High Low

Compliance Challenging CPCB IV+ compliant

Maintenance Higher Lower

Eco-friendly Limited Strong advantage

Final Thoughts: India’s Power Backup is Turning Green

India’s gas genset market is no longer a niche—it is becoming a strategic energy backbone for clean, reliable power generation. With government backing, infrastructure expansion, ESG compliance pressure, rising fuel efficiency consciousness, and corporate sustainability initiatives, gas gensets are transitioning from alternative to mainstream.

As CGD pipelines reach deeper into India and industries replace diesel fleets, the next decade will witness an irreversible transformation toward gas-powered backup systems.

Summing it up:

📌 Market size will nearly double by 2033

📌 7.04% CAGR signals consistent adoption

📌 Urban infrastructure + Industry 4.0 will drive demand

📌 Gas gensets = future of clean backup power in India