India Natural Gas Genset Market to Reach ~USD 930 Million by 2033, Driven by Data Centers, CGD Expansion, and Low-Emission Backup Power

Phoenix Research Forecasts 8.5% CAGR as West India Leads Market and South India Emerges as Fastest-Growing Region in India Natural Gas Genset Market

–December 5, 2025 – Phoenix Research has released its latest industry assessment titled “India Natural Gas Genset Market Size & Share Analysis Press Release 2025–2033.” The report reveals that the India Natural Gas Genset (NGG) Market, valued at USD 480 million in 2025, is projected to grow to ~USD 930 million by 2033, registering a CAGR of ~8.5% during the forecast period.

“As factories, commercial buildings, and data centers pivot from diesel to cleaner natural gas gensets, demand for reliable, low-emission, and high-efficiency power backup is rapidly increasing,” said Rachna Patni, Principal Analyst at Phoenix Research. “CGD network expansion, stricter diesel regulations, and the growth of digital infrastructure are driving this market across urban and industrial hubs.”

India Natural Gas Genset Market Highlights

Cleaner Energy & Environmental Compliance:

Strict rules on diesel generators, especially in NCR and Tier‑1 cities, push commercial and industrial consumers toward gas gensets.

CGD Network Expansion:

Increasing piped natural gas (PNG) and CNG availability improves accessibility, reliability, and operating costs.

Data Center & Digital Infrastructure Growth:

Rapid growth in hyperscale and colocation data centers drives high-reliability, low-emission backup power requirements.

Lower Operating Cost & High Fuel Efficiency:

Natural gas gensets offer 15–30% lower running costs compared to diesel in CGD-connected cities.

Industrial Decarbonization & ESG Mandates:

Manufacturing and commercial entities adopt NGGs to meet sustainability and corporate compliance goals.

Competitive Landscape of India Natural Gas Genset Market

Cummins India, Caterpillar (CAT), Kirloskar (KOEL Green), Mahindra Powerol, Generac, MTU/Rolls Royce Power Systems, YANMAR, Greaves Power, Ashok Leyland Power Solutions, Wartsila

Cummins India is the largest and most influential player in the India Natural Gas Genset Market.

Regional Dynamics of India Natural Gas Genset Market

West India – Largest Market: Maharashtra, Gujarat, Rajasthan; driven by industries, commercial hubs, and strong CGD network.

South India – Fastest Growing: Karnataka, Tamil Nadu, Telangana, Andhra Pradesh; fueled by IT parks, data centers, and industrial expansion.

North India – Emerging Demand: Delhi NCR, Haryana, UP, Punjab; stricter diesel restrictions and growing commercial power needs.

East India – Moderate Growth: West Bengal, Odisha, Bihar, Jharkhand; industrial clusters gradually adopting NGGs.

North-East & Islands – Niche Market: Assam, Meghalaya, Andaman & Nicobar; off-grid and remote setups, growing hybrid adoption.

Key Insight: West India leads in size, South India grows fastest, and other regions show emerging or niche opportunities.

To get the entire report please use below the link

India Natural Gas Genset Market size and share Analysis 2025-2033