India Power Generation Engines Industry Report 2025: $1.7 Bn Market Trends, Regional insights, Competition, Forecast & Opportunities, 2021-2031 - Cummins and Mahindra Leading Innovations

Core Insights - The India Power Generation Engines Market is projected to grow from USD 1.20 Billion in 2025 to USD 1.70 Billion by 2031, with a CAGR of 5.81% driven by increasing energy demands from urbanization and industrialization [2][11]. Market Overview - The market is experiencing robust expansion due to rising energy demands across residential, commercial, and industrial sectors, with power generation engines being essential for converting energy into electricity [2][3]. - Technological advancements are improving engine performance and environmental compliance, supporting the shift towards sustainable energy solutions [3]. Demand Drivers - Rapid industrialization and urbanization in India are major factors driving the demand for power generation engines, particularly in sectors like IT, construction, and manufacturing [4]. - The urban population is expected to exceed 600 million by 2030, with energy use projected to grow by 8% in 2024, indicating long-term growth potential for the market [5]. Environmental Regulations - The market faces challenges related to environmental impact, particularly from traditional diesel and coal-fueled engines, which contribute to air pollution [6][7]. - Stricter emission regulations, such as Bharat Stage VI (BS-VI) norms, require manufacturers to invest in cleaner technologies, increasing production costs and posing challenges for smaller firms [8]. Shift to Natural Gas - There is a significant trend towards the adoption of natural gas engines, driven by environmental awareness and regulatory pressures, as these engines emit fewer pollutants and reduce operational costs [9][10]. - Government support for city gas distribution and the availability of LNG and CNG are facilitating this transition, making natural gas engines a preferred choice for industries [10]. Key Market Players - Major players in the India Power Generation Engines Market include Cummins India Limited, Kirloskar Oil Engines Limited, Mahindra Powerol, Ashok Leyland Limited, Caterpillar India Pvt. Ltd., Siemens India Limited, Greaves Cotton Limited, and Tata Motors Limited [15].