Indonesia Generator Market to Reach US$ 1,757.70 Million by 2035 | Astute Analytica

Driven by urgent backup power demands from an unstable grid, the market is expanding rapidly. Massive infrastructure spending and digitization fuel strong growth, while users navigate volatile fuel costs and a slow-moving environmental regulatory landscape.

Chicago, Aug. 26, 2025 (GLOBE NEWSWIRE) -- The Indonesia generator market was valued at US$ 679.46 million in 2024 and is expected to reach US$ 1,757.70 million by 2035, growing at a CAGR of 9.09% during the forecast period 2025–2035.

Indonesia's commitment to national development is a primary catalyst for the generator sector. The government's formidable investment of approximately USD 430 billion in infrastructure between 2021 and 2024 is creating immense demand. In 2023 alone, 49 new infrastructure projects were planned, highlighting a continuous pipeline of opportunities. These projects are a mix of 33 Public-Private Partnership (PPP) and 16 non-PPP initiatives. The sheer scale of development is evident in the specifics; the PPP projects included 18 in the road sector and one dedicated to electricity, all requiring dependable power sources during and after construction. Industrial activity is also surging.

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Domestic steel consumption is projected to hit 22.7 million tons in 2024, a clear indicator of manufacturing and construction growth that directly impacts the Indonesia generator market. Major urban developments, such as a 10-hectare land acquisition in Jakarta under the 2020–2024 National Medium-Term Development Plan, further underscore the need for onsite power generation. The government's "Making Indonesia 4.0" vision to modernize its industrial base positively influences demand, while state-owned PT PLN's program to replace or convert 5,200 diesel power plants signals a significant market shift.

Indonesia Generator Market

Urbanization and Digital Transformation Fueling Critical Need For Uninterrupted Power Solutions

The commercial sector's expansion is another powerful engine driving the generator market forward. As Indonesia's cities grow, so does the construction of commercial real estate. In 2024, Jakarta has nearly 700,000 square meters of office space currently under construction. Each of these new buildings will require robust backup power systems to ensure business continuity, creating a substantial order book for diesel generator units. The digital economy is expanding at an even more startling pace. Projections show its transaction value reaching an astounding USD 130 billion by 2025. A explosive growth fuels the construction of data centers, facilities that absolutely depend on uninterrupted power and, therefore, high-capacity generators. For large office complexes and modern skyscrapers, diesel generators in the 2,000 kVA to 2,500 kVA range are considered the ideal solution to meet their extensive power needs. Even specialized commercial facilities, exemplified by the new 14,700-square-foot e-fishery office in Bandung, contribute to a diverse and growing demand for reliable power solutions across the nation.

Reliable Backup Power Driving Indonesia’s Digital Expansion and Network Modernization

Beyond large-scale industrial and commercial applications, the telecommunications and residential sectors represent a foundational demand base for the generator market. The reliability of the national grid can be inconsistent, making generators a vital asset for homes and small businesses that cannot afford disruptions. In the telecom sphere, the government's push for modernization is creating new opportunities. The Ministry of Communication and Informatics is prioritizing a nationwide 5G network rollout, starting with six provincial capitals on Java Island and the new national capital. Each new telecom tower built becomes a point of demand for a backup generator, especially in rural and off-grid locations where power supply is less stable. Telecom towers have become a significant and consistent source of demand for diesel gensets, ensuring that Indonesia’s expanding digital communication network remains operational around the clock. A trend is crucial for connecting the archipelago and powering its digital future.

Diverse Power Requirements Shaping A Multi-Faceted and Segmented Market Landscape Now

The Indonesia generator market is not a monolithic entity; it is highly segmented by power rating, reflecting the varied needs of its end-users. At the high end, the market for diesel gensets with ratings above 750 kVA is experiencing steady and robust growth. A demand is fueled by heavy industries like manufacturing, mining, and large-scale construction projects that require substantial power. In 2023, the 351-1000 kVA segment held a dominant market position, representing a sweet spot for a wide range of industrial and large commercial applications. However, in terms of sheer volume, the 5 kVA–75 kVA category leads the market. A dominance is due to its affordability and high demand from the residential sector, small commercial enterprises, and telecom tower sites. Leading companies are innovating to meet these specialized needs. For instance, KOHLER Co. has introduced advanced enclosures for its industrial generators with ratings of 2,000 kW and above, specifically targeting the critical power needs of the rapidly growing data center industry.

Diesel Dominance Meets A Growing Appetite For Cleaner and Greener Alternatives

When analyzed by fuel type, the market reveals a dynamic interplay between established technologies and emerging alternatives. Diesel generators continue to be the backbone of the industry, commanding the highest revenue share in Indonesia's power rental market in 2024. Their reliability and established service networks make them the preferred choice for many. However, a significant shift is underway. The Indonesian gas generator market is poised for considerable expansion, driven by a national push for cleaner energy sources and more favorable economics. The government is supporting this transition; as of 2024, Indonesia's subsidized gas price for seven key industrial sectors is attractively set at USD 6 per MMBTU. A policy actively encourages industries to adopt gas-powered generators. Furthermore, the government's promotion of biodiesel blending allows for a greener application of existing diesel generator technology. A competitive landscape of the Indonesia generator market is populated by global titans. The gas generator segment features leaders like Cummins , Caterpillar Inc., and Wartsila Corporation, while the diesel market includes Cummins ., Caterpillar Inc., and Mitsubishi Heavy Industries Ltd.

Leading Brands Drive Fierce Competition in Indonesia’s Portable Generator Market Segment

The portable generator segment of the market has its own unique set of leaders and dynamics. An area is fiercely competitive, with major brands like Honda, Yamaha, Mitsubishi, and Denyo vying for market share. Honda has carved out a dominant position, particularly with its popular and reliable EU series of portable generators. Yamaha, meanwhile, has successfully built a strong and loyal customer base in Indonesia's vast rural areas, providing essential power where the grid is often unreliable or nonexistent. Mitsubishi targets a different audience, focusing its heavy-duty portable generators on the demanding commercial and industrial sectors, where durability and high performance are paramount. In contrast, Denyo has specialized in a niche market, producing smaller portable generators that are perfectly designed for residential backup, leisure activities, and small-scale applications. A diverse competitive field ensures that consumers across all segments have access to products tailored to their specific power needs and budgets.

Indonesia’s Expanding Power Equipment Trade Shows Strong Growth and Shifting Import Trends

Indonesia's role in the global power generation equipment trade is evolving, with promising projections for the near future. The nation is not just a consumer but also an increasingly important producer and exporter in the generator market. Forecasts indicate that exports of electric generators from Indonesia will experience healthy growth, reaching a projected value of $16.075 million by the year 2026. Conversely, the value of electric generator imports into the country is expected to see a slight decline, settling at an anticipated $25.5 million by 2026. This trend suggests a strengthening of local manufacturing capabilities and a move towards greater self-sufficiency in certain market segments.

Placing these figures in a broader context, Indonesia's total exports in January 2025 were valued at US$21.45 billion against total imports of US$18.00 billion. A positive trade balance reflects the nation's robust economic health, which underpins the continued growth of the Indonesia generator market.

Unlocking Flexible Power Solutions and Identifying Key Geographic Growth Demand Centers

The power rental market in Indonesia offers a vital and flexible solution for businesses with temporary or fluctuating power requirements. A sector is thriving, valued at approximately USD 6.8 billion in 2024, and is on a strong upward trajectory. Within a rental space, the 750.1 to 1000 kVA diesel genset segment is expected to witness the highest revenue growth in the coming years, driven by short-term infrastructure and construction projects. Geographically, demand is concentrated in the nation's economic powerhouses. The islands of Java and Sumatra stand out as the leading regions for diesel genset demand, a direct result of their high concentration of industrial estates and bustling commercial activities. Key urban centers like Jakarta, Surabaya, and Bandung are crucial commercial hubs fueling a constant need for reliable backup power. Simultaneously, new pockets of demand are emerging, driven by the expansion of telecom infrastructure in areas like Surabaya, Sulawesi, and the Papua islands, further broadening the geographic scope of the Indonesia generator market.

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Forecasting The Long-Term Energy Needs Of A Rapidly Advancing Indonesian Economy

The long-term outlook for the Indonesia generator market is exceptionally bright, anchored by the nation's escalating energy requirements. The Ministry of Energy and Mineral Resources projects a sustained annual electricity demand growth rate of between 4.8% and 5.2% for the period from 2023 to 2060. The sheer scale of this growth is staggering. Total power demand, which stood at 363-377 TWh in 2023, is forecasted to surge dramatically to a range between 1,846 and 2,152 TWh by 2060. Near-term projections are equally robust, with forecasts indicating that annual on-grid electricity demand will reach 445 TWh by 2030. These figures illustrate a fundamental reality: as Indonesia's economy continues to expand and modernize, its appetite for electricity will grow exponentially. A persistent gap between grid capacity and peak demand will ensure that generators remain an indispensable component of the nation's energy infrastructure for decades to come, guaranteeing a vibrant and dynamic future for all players in the market.

Indonesia Generator Market Major Players:

• Cummins
• Aksa Power Indonesia
• Brilltech Engineers Pvt
• PT Conductorjasa Suryapersada
• HONDA POWER PRODUCTS INDONESIA
• PT. Triguna Karya Nusantara
• Dunia Tehnik
• Other Prominent Players

List of Distributors/Suppliers

• PT Interjaya Surya Megah
• Real Genset
• Pt. Wahyu Tehnik Utama
• Berkat Manunggal Energi (BME)
• Other Prominent Players

Market Segmentation:

By Power Band

• <75 kVA
• 75-375 kVA
• 375-750 kVA
• 750~1000 kVA
• 1000~2000 kVA
• 2000~3000 kVA
• 3000~4000 kVA
• 4000+ kVA

By Type

• Diesel Generator
• Gas Generator
• Hybrid Generator
• Battery Generator
• Others (e.g., Biofuel, Solar Backup)

By Application

• Standby
• Prime/Continuous
• Peak Shaving

By Emission

• High-Emission Generators (CO₂, NOₓ, SO₂, CO)
• Moderate-Emission Generators (CO₂, NOₓ, CH₄, CO)
• Low to Zero-Emission Generators (H₂O, negligible CO₂)

By Prime Power Rating

• < 600 kW
• 600-800 kW
• 800-1600 kW
• >1600 kW

By Mobility

• Stationary
• Portable

By Phase

• Single Phase
• Three Phase

By Cooling System

• Air-Cooled Generator
• Liquid-Cooled Generator

By Power Generation Technology

• Conventional Generators
• Inverter Generators

By End User

• Residential
• Commercial
  • Retail & Shopping Centers
  • Hospitality (Hotels & Restaurants)
  • Office Buildings & Business Parks
  • Education Institutions
  • Others
• Industrial
  • Mining
  • Manufacturing
  • Others
• Infrastructure
• Healthcare
• Data Centers
• Others

By Distribution Channel

• Direct Sales
• Distributors/Dealers
• Online Retail
• Rental Companies

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Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/