Indonesia Diesel Genset Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Key Highlights

The Indonesia diesel genset market was valued at USD 382.7 million in 2023, and it will increase to USD 530.0 million, powering at more than 4.5% compound annual growth rate, by 2030.

The growing telecom sector is a key factor driving the growth of the industry. The Indonesian government has taken substantial steps to boost the 5G rollout, including 5G infrastructure expansion & open partnership openings with the private sector.

The Ministry of Communication and Informatics (MCI), under the tactical strategy for 2022-2024, is concentrating on 5G infrastructure development in six provincial capitals on Java Island, the new capital city of Indonesia, the manufacturing sector, and five tourist destinations.

Such plans aim at abolishing the problem experienced with 4G networks. The plan would ultimately offer flexible technology to develop more radiofrequency spectra, to enable quicker connectivity.

The increasing need for high-power-rating diesel gensets is a key trend in the industry. In Indonesia, the high-power-rating diesel genset industry will advance steadily in the years to come.

This is because of the development of the industrial sector, the expansion of social infrastructure across different regions, and the increasing count of small and medium-sized businesses.

The growing populace has been also driving the need for these gensets, because of which the key players are introducing greater power-rating variants.

Key Insights

The above-750kVA diesel gensets are likely to advance at approximately 5.3% compound annual growth rate in the years to come, in terms of revenue.

This can be ascribed to the rising need for them for heavy-duty applications in various sectors, including mining, oil & gas, construction, and manufacturing.

The 5 kVA-75 kVA category is leading the industry, and it is likely to remain leading throughout this decade.

This is mainly because of the low cost of these generator sets and their high need in telecom towers, small industries, restaurants, hotels, residential facilities, and commercial complexes.

Telecom towers account for a substantial share of the net volume demand for diesel gensets in the nation. These gensets are extensively used in telecom towers to serve auxiliary and prime power necessities.

The residential sector accounted for a share of around 50% in 2023. This can be primarily because of the high occurrence of power outages and the growing count of housing complexes in this nation.

The regular earthquakes, widespread flooding, and volcanic eruptions resulted in power outages nationwide, which, sequentially, boosts the need for diesel gensets in the residential sector.

To deal with power outages, the public in this country strongly relied on diesel generator sets.

The industrial category is likely to advance at the highest compound annual growth rate, of more than 5.3%, in the years to come, both in terms of value and volume.

This is primarily because of the increasing count of government initiatives for the expansion of the industrial sector.

Indonesia's Ministry of Industry has planned the 'Making Indonesia 4.0' initiative as a combined roadmap to enhance manufacturing practices and make the nation a global industrial center attracting foreign firms to establish their factories.

The Indonesia diesel genset industry is consolidated, because of the presence of few major players. Industry players have been involved in product introductions to enhance their presence.