The India Diesel Generator Market Report is Segmented by Capacity (below 75 KVA, 75 To 375 KVA, 375 To 750 KVA, 750 To 2, 000 KVA, and Above 2, 000 KVA), Application (Stand-by/Backup Power, Prime/Continuous Power, and Peak-shaving/Load Management), and End User (Residential, Commercial, and Industrial).

Experience robust growth in the India Diesel Generator Market, with a projected CAGR of approximately 6.88% from 2024 to 2030.

The India diesel generator market size is expected to expand at a CAGR of roughly 4.30% in the forecast period of 2025-2034. The market is likely to be driven by the growing energy needs and the increasing spending power of the people.

The size of the India Diesel Generator Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 5.20% during the forecast period. Recent developments include: June 2022: Oil Engines Ltd (KOEL) launched a new iGreen genset. The iGreen version 2.0 is powered by the R550 series of engines and offers good fuel efficiency and high power quality., December 2021: Government E-Marketplace (GEM) floated a tender for the installation project of diesel generator sets at the head office of the Ministry of Commerce & Industry in New Delhi, India. The tender requires the supply of at least five DG sets for the backup power supply.. Key drivers for this market are: 4., Uninterrupted and Reliable Power Supply and Heavy Deployment of DG (diesel generator) Set4.; Improvement in Technology of Diesel Generator. Potential restraints include: 4., The Growing Trend of Renewable Power Generation. Notable trends are: The Commercial Segment is Expected to Dominate the Market.

The size of the Diesel Genset Market was valued at USD 19 billion in 2023 and is projected to reach USD 29.53 billion by 2032, with an expected CAGR of 6.5% during the forecast period. Recent developments include: In June 2023, Sterling Generators allied with Moteurs Baudouin, a French company that manufactures both gas and diesel generators. They will capitalize on Baudouin's legacy of engineering and manufacturing high-quality petrol engines and diesel engines as well as Sterling Generators' sensible engineered auxiliary power solutions, which are fuel efficient and fulfill the latest exhaust emission standards., Cummins Inc. launched the marine diesel Cummins turbo (MDCT) genset in May 2023. This reliable genset can be fitted with either a low or high kW Cummins B4.5 auxiliary engine, resulting in genset ratings of 40 kWe - 80 kWe and 80 kWe - 110 kWe respectively. An MDCT generator set has been made for sale and is expected to start shipping by the end of this year., In July 2022, Octopus Hydrogen and GeoPura partnered to develop green hydrogen for a game-changing cleaner technology that would replace dirty diesel generators. This partnership is expected to help decarbonize numerous industries by providing fossil fuel substitutes in the context in which they are being used., The Indian government sweeps its focus towards improving the economy through increased infrastructure spending, mainly on roads, railways and metro rail, among others; there are huge growth opportunities for Diesel Generators in Metro Rail projects with the new metro rail policy being contemplated currently by every big city across India., On the other hand, in February 2022, A subcommittee of the government's air quality council removed the ban on diesel generator sets in Delhi-NCR today, effective immediately. The panel reported that air quality has improved recently and is anticipated to improve further in the coming days., The industrial sector, which includes mining, manufacturing, agriculture and construction, accounts for the highest energy consumption among any end user. Therefore, this is likely to increase demand for diesel gensets due to the increasing need for uninterrupted power supply from these sectors, particularly institutions in health care delivery, pharmaceuticals industry and factories., July 2022 Cummins Inc. launched a new 1MW twinpack rental generator, the C1000D6RE, which offers a competitive rental power solution for a diverse range of applications throughout North America. The C1000D6RE is a twinpack that combines two 500kW, 15L Cummins generators into a 40ft power unit with aftertreatment. As a result, the C1000D6RE can deliver dependable, high output performance and still comply with Tier 4 final emissions regulation. The generator is capable of masterless load demand and can be used in parallel with other rental power solutions., March 2022 Mitsubishi Heavy Industries launched a new MGS-R Series of diesel generator sets. The new series, which was created to meet the expanding demands of the digital economy and is primarily aimed at data centers in Asian and Middle Eastern markets, also provides a dependable backup power solution for commercial facilities like office buildings and shopping centers., October 2021 Generac, a leading manufacturer of mobile light towers, generators, heaters, pumps, and dust suppression solutions, launched two large new diesel units – the MDE330 and MDE570 diesel mobile generators, which are aimed at providing ease of operation and maintenance. The rental-ready machines feature wide-opening removable doors to maximize serviceability by allowing the technician to reach all service points more easily. The rugged steel design and construction allow for operation for a variety of applications, regardless of weather conditions., October 2020 Aggreko launched its Tier 4 Final-compliant generators, a lower-emission fleet of solutions ranging from 25 kW to 1200 kW. Tier 4 Final generators are intended to meet the Environmental Protection Agency's stricter emissions regulations in the United States and Canada. To remove harmful pollutants, all units in the fleet use a variety of advanced exhaust treatment processes. These systems achieve a 98% reduction in particulate volume and a 96% reduction in NOx emissions when compared to traditional generators.. Key drivers for this market are: INCREASING DRILLING ACTIVITIES 30, DEVELOPMENT OF UNCONVENTIONAL HYDROCARBON RESOURCES 30. Notable trends are: Increasing Demand for Reliable Backup Power is driving the market growth for Diesel Genset Market.

The India DC and AC diesel generator market was valued at USD 1.45 Billion in 2024. The industry is expected to grow at a CAGR of 7.60% during the forecast period of 2025-2034. Rapid infrastructure development and persistent power outages in the country have been increasing the demand for trustworthy diesel generators, which stand as a requirement for urban and rural power needs alike. In turn, all these factors have resulted in the market attaining a valuation of USD 3.02 Billion by 2034.

As per Cognitive Market Research's latest published report, the Global Diesel Generator market size was $17.82 Billion in 2022 and it is forecasted to reach $26.68 Billion by 2030. Diesel Generator Industry's Compound Annual Growth Rate will be 5.5% from 2023 to 2030. Factors Affecting Diesel Generator market growth

Rising continuous population growth & infrastructure development augment the demand for Diesel Generator

Continuous population growth leading to urbanization has increased the demand for power supplies throughout the world and has significantly increased the demand for backup power supplies such as diesel generators. These generators are also widely used for commercial and industrial purposes and with rapid infrastructure development around both these sectors diesel generator market will show significant growth during the forecast period. The construction of new buildings and infrastructure projects, such as roads, bridges, and tunnels, require a reliable source of power, which is fueling the demand for diesel generators.

Emission of hazardous gases acts as a restraint of the Diesel generator market

Diesel generators emit harmful pollutants and contribute to air pollution, which is a major concern for governments and environmental agencies. This has led to strict regulations and restrictions on the use of diesel generators, which can limit their market growth.

The increasing demand from emerging markets and the advancement in technology will drive the Diesel generator market growth

Emerging markets such as India, China, and Southeast Asia have a growing need for reliable power supply, which is driving the demand for diesel generators in these regions. The diesel generator market is constantly evolving, with technological advancements leading to more efficient and cost-effective products. This presents an opportunity for manufacturers to develop new and innovative diesel generator solutions. What is a Diesel Generator?

Diesel generators are a type of backup power source that uses diesel fuel to generate electricity. They are commonly used in a variety of settings, including homes, businesses, hospitals, and data centers, to provide emergency power in the event of a power outage or other electrical failure. The basic operation of a diesel generator involves an internal combustion engine that burns diesel fuel to power an alternator that generates electricity. The engine is typically air-cooled or water-cooled, and the generator typically has an automatic transfer switch that detects when the main power supply has failed and automatically switches the generator on to provide power.

The global diesel generator market size is expected to reach USD 46.31 billion in 2032, growing at a CAGR of 8.45% and Europe accounts for a major share of the diesel generator market.
Report Scope:

India Prime Power Diesel Genset Market was valued at USD 225.87 million in 2024 and is expected to reach USD 367.32 million by 2030 with a CAGR of 8.28% during the forecast period.

The Asia-Pacific Diesel Generator Market Report Segments the Industry Into Capacity (Below 75 KVA, 75-350 KVA, Above 350 KVA), End-User (Residential, Commercial, Industrial), Application (Standby Backup Power, Prime/Continuous Power, Peak Shaving Power), and Geography (China, India, Japan, South Korea, Rest of Asia-Pacific). Get Five Years of Historical Data Alongside Five-Year Market Forecasts.

The India diesel generator market, valued at approximately ₹15000 million (estimated based on a global market size context and India's economic standing) in 2025, is projected to experience robust growth with a Compound Annual Growth Rate (CAGR) of 5.20% from 2025 to 2033. This growth is primarily driven by increasing urbanization, industrialization, and the rising demand for reliable power backup solutions across residential, commercial, and industrial sectors. The expansion of infrastructure projects and the increasing adoption of diesel generators in remote areas with limited grid access further fuel market expansion. Key market segments include portable generators for residential use, larger industrial generators for commercial and industrial applications, and inverter generators prioritizing fuel efficiency. The market is also segmented by power output (0-75kVA, 75-375kVA, above 375kVA) reflecting diverse power needs. While government initiatives promoting renewable energy sources pose a potential restraint, the continued need for reliable backup power in case of grid failures and power outages ensures sustained demand for diesel generators in the foreseeable future. The competitive landscape is characterized by a mix of domestic and international players, including Honda India Power Products Ltd, Yamaha Motor Co Ltd, and Kirloskar Oil Engines Ltd, among others. These companies are focusing on technological advancements such as improved fuel efficiency, reduced emissions, and enhanced durability to cater to evolving customer demands. The market is likely to witness increased product diversification and strategic partnerships to capitalize on the growth opportunities. Furthermore, the focus on after-sales service and maintenance will play a crucial role in gaining customer loyalty and maintaining a competitive edge. The forecast period (2025-2033) suggests a significant increase in market value, driven by the factors mentioned above, making it a promising sector for investment and growth. Recent developments include: June 2022: Oil Engines Ltd (KOEL) launched a new iGreen genset. The iGreen version 2.0 is powered by the R550 series of engines and offers good fuel efficiency and high power quality., December 2021: Government E-Marketplace (GEM) floated a tender for the installation project of diesel generator sets at the head office of the Ministry of Commerce & Industry in New Delhi, India. The tender requires the supply of at least five DG sets for the backup power supply.. Key drivers for this market are: 4., Uninterrupted and Reliable Power Supply and Heavy Deployment of DG (diesel generator) Set4.; Improvement in Technology of Diesel Generator. Potential restraints include: 4., Uninterrupted and Reliable Power Supply and Heavy Deployment of DG (diesel generator) Set4.; Improvement in Technology of Diesel Generator. Notable trends are: The Commercial Segment is Expected to Dominate the Market.

India diesel generator market is expected to grow at a steady rate during the forecast period 2026.

The India Generator Sets Market Report is Segmented by Capacity (Below 75 KVA, 75 To 375 KVA, 375 To 750 KVA, 750 To 2, 000 KVA, and Above 2, 000 KVA), Fuel Type (Diesel, Natural Gas, Dual-Fuel and Hybrid, Renewable/Bio-fuel, and Others), Application (Standby Power, Prime/Continuous Power, Peak-Shaving, and More), and End-User (Commercial Buildings, Industrial and Manufacturing, Data Centers, Healthcare Facilities, and More).

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Generator Market In Data Centers Size 2025-2029

The generator market in data centers size is valued to increase USD 4.63 billion, at a CAGR of 8.6% from 2024 to 2029. Increasing investments in data centers will drive the generator market in data centers.

Major Market Trends & Insights

Europe dominated the market and accounted for a 33% growth during the forecast period.
By Type - Diesel segment was valued at USD 4.88 billion in 2023
By Capacity - Less than 1MW segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 143.59 million
Market Future Opportunities: USD 4634.70 million
CAGR : 8.6%
Europe: Largest market in 2023

Market Summary

The market is a dynamic and evolving sector, driven by the increasing demand for uninterrupted power supply and the growing reliance on data centers for digital transformation. Core technologies, such as fuel cells and lithium-ion batteries, are gaining traction due to their efficiency and environmental benefits. Meanwhile, applications like backup power and prime power continue to dominate the market. Service types, including generator rental and maintenance, are essential for ensuring the reliability and longevity of these systems. Regulations, such as emissions standards, are shaping the market landscape, with an increasing focus on reducing carbon emissions. Looking forward, the next five years are expected to bring significant growth, as investments in data centers continue to surge. For instance, according to recent reports, the data center market is projected to reach a compound annual growth rate of 12% by 2026. Furthermore, the adoption of next-generation power monitoring and management software is on the rise, enabling more efficient energy management and reducing the overall carbon footprint of data centers. Related markets such as the renewable energy sector and energy storage systems are also experiencing significant growth, offering opportunities for collaboration and innovation in the market.

What will be the Size of the Generator Market In Data Centers during the forecast period?

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How is the Generator In Data Centers Market Segmented and what are the key trends of market segmentation?

The generator in data centers industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeDieselGasCapacityLess than 1MW1MW-2MWMore than 2MWVariantTier IIITier IVTier I and IIGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyThe NetherlandsUKAPACChinaIndiaJapanRest of World (ROW)

By Type Insights

The diesel segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving data center market, diesel generators play a pivotal role in ensuring high-performance and reliability during power fluctuations or transient scenarios. With a wide range of capacity offerings, these generators are the preferred choice for large-scale data center infrastructure due to their cost-effectiveness and safety features. The diesel generator system encompasses various components, such as the diesel engine, generating unit, fuel storage supply, and electrical switchgear. According to recent studies, approximately 65% of data centers rely on diesel generators for backup power. Furthermore, the market for diesel generators in data centers is projected to expand by 25% in the next five years, as more businesses invest in critical power systems to maintain high availability and minimize downtime. Power quality monitoring, generator commissioning, and load balancing are essential aspects of generator maintenance schedules. Fuel cell technology and energy storage solutions are increasingly integrated into these systems to enhance efficiency and reduce noise levels. Power factor correction and generator control systems ensure optimal performance and minimize environmental impact. Environmental impact assessment, power usage effectiveness, and diesel generator efficiency are crucial metrics for data center infrastructure. Predictive maintenance models and fault-tolerant systems enable proactive maintenance and reduce downtime. Generator automation, backup power redundancy, and critical power systems are integral components of high availability systems. The generator installation standards mandate strict adherence to safety regulations and emissions guidelines. Generator exhaust emissions are continuously monitored and reduced through advanced technologies. Remote generator monitoring and paralleling systems enable seamless integration into the power distribution units. In summary, diesel generators are a vital component of data center infrastructure, pr

The India Diesel Generator Market is booming, projected to reach ₹15,000 million by 2025 with a 5.20% CAGR. Discover key trends, drivers, restraints, and leading companies shaping this dynamic sector. Analyze market segmentation and regional growth forecasts for informed business decisions. Key drivers for this market are: 4., Uninterrupted and Reliable Power Supply and Heavy Deployment of DG (diesel generator) Set4.; Improvement in Technology of Diesel Generator. Potential restraints include: 4., The Growing Trend of Renewable Power Generation. Notable trends are: The Commercial Segment is Expected to Dominate the Market.

The global diesel generator market, valued at approximately $XX million in 2025, is projected to experience robust growth, driven by increasing electricity demands in developing economies and the need for reliable backup power in both residential and commercial sectors. A compound annual growth rate (CAGR) of 5.37% from 2025 to 2033 indicates a significant expansion in market size. Key growth drivers include rising infrastructure development, particularly in emerging markets experiencing rapid urbanization and industrialization, coupled with the increasing frequency and severity of power outages. The rising adoption of standby power solutions in data centers and hospitals further fuels market expansion. Segmentation reveals that the "More Than 375 kVA" capacity segment holds significant market share due to its suitability for large-scale industrial applications. Similarly, the industrial end-user segment is expected to dominate due to the high power requirements of manufacturing facilities and other industrial processes. While the market faces restraints such as stringent emission regulations and the growing adoption of renewable energy sources, the continued reliance on diesel generators for reliable power in remote areas and situations requiring immediate backup power will ensure continued market growth. The competitive landscape includes established players like Caterpillar, Cummins, and Generac, along with regional manufacturers catering to specific market needs. The market's regional distribution reflects varying levels of infrastructure development and economic growth. North America and Europe currently hold significant market shares, owing to established infrastructure and higher disposable incomes. However, the Asia-Pacific region, particularly India and China, is poised for substantial growth due to rapid industrialization and expanding energy needs. The adoption of advanced technologies such as improved fuel efficiency and emission control systems will play a significant role in shaping future market trends. Furthermore, the increasing demand for prime and peak-shaving power solutions in diverse sectors will contribute significantly to market expansion. Future growth will depend on navigating environmental regulations and adapting to the evolving energy landscape. Recent developments include: June 2023: Sterling Generators formed a strategic alliance with Moteurs Baudouin, a French manufacturer of power generation, both gas and diesel engines. The collaboration will capitalise on Baudouin's tradition of engineering and producing high-quality diesel and petrol engines and Sterling Generators' fuel-efficient, sensibly engineered auxiliary power solutions that meet the most recent emission standards., May 2023: Cummins Inc. introduced the marine diesel cummins turbo (MDCT) genset. This durable genset can be equipped with either a low or high kW Cummins B4.5 auxiliary engine, resulting in genset ratings of 40 kWe - 80 kWe and 80 kWe - 110 kWe. The MDCT generator set is available for order, with delivery expected in late 2023., July 2022: Octopus Hydrogen and GeoPura collaborated to offer green hydrogen for cutting-edge clean technology that will replace polluting diesel generators. The agreement calls for the two companies to work together to provide viable alternatives to fossil fuels and speed the decarbonisation of various industries.. Key drivers for this market are: 4., The Increasing Demand for Uninterrupted and Reliable Power Supply4.; Increased Demand from the Commercial Sector, Including the Healthcare Industry. Potential restraints include: 4., The Increasing Demand for Uninterrupted and Reliable Power Supply4.; Increased Demand from the Commercial Sector, Including the Healthcare Industry. Notable trends are: The Industrial Sector to Dominate the Market.

The Asia-Pacific (APAC) diesel generator market is experiencing robust growth, driven by increasing electricity demand, particularly in rapidly developing economies like India and China. The market's Compound Annual Growth Rate (CAGR) exceeding 5.37% from 2019 to 2024 indicates a significant upward trajectory, projected to continue through 2033. Key drivers include infrastructure development, industrialization, and the need for reliable backup power in regions with inconsistent electricity grids. Growth is further fueled by rising urbanization and the expanding commercial and residential sectors. The market is segmented by capacity (below 75 kVA, 75-350 kVA, above 350 kVA), end-user (residential, commercial, industrial), and application (standby, prime/continuous, peak shaving). While the industrial sector currently dominates, the residential and commercial segments are expected to show strong growth, driven by increasing adoption of standby power solutions for homes and businesses. China, India, and Japan represent the largest markets within APAC, contributing significantly to overall market value. However, other countries in the region are also exhibiting considerable growth potential. Market restraints include stringent emission regulations, increasing adoption of renewable energy sources, and fluctuating fuel prices. Despite these challenges, the APAC diesel generator market is poised for continued expansion, fueled by the region's ongoing economic development and the persistent need for reliable power solutions. Major players like Cummins, Mitsubishi, Yanmar, Caterpillar, and Generac are actively competing in this dynamic market, constantly innovating to meet evolving customer demands and regulatory requirements. The market segmentation provides valuable insights into specific growth areas. The demand for higher capacity generators (above 350 kVA) is predominantly driven by industrial applications and large-scale infrastructure projects. Meanwhile, smaller capacity generators (below 75 kVA) cater to the growing residential and small commercial sectors. The continuous power application segment is expected to witness notable expansion as businesses prioritize uninterrupted operations. Geographic variations exist, with China and India exhibiting strong growth due to rapid economic expansion, while Japan and South Korea show steady growth based on existing infrastructure needs and maintenance cycles. The competitive landscape is characterized by both global giants and regional players, leading to innovative product offerings and competitive pricing. The future of the APAC diesel generator market hinges on balancing the demand for reliable power with environmental concerns, leading to an increased focus on cleaner and more efficient generator technologies. Recent developments include: June 2022: Kirloskar Group, an Indian conglomerate, unveiled Kirloskar iGreen Version 2.0 for the power generation business. The gensets powered with the R550 series of engines offer compactness, fuel efficiency, and high-power quality.. Notable trends are: Industrial Sector to Dominate the Market.

The India Hybrid Diesel Genset Market is expected to see significant growing due to the increasing demand for reliable and efficient power solutions.

India Diesel Genset Rental Market was valued at USD 558 Million in 2025 and is expected to reach USD 853 Million by 2031 with a CAGR of 7.19% during the forecast period.

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Low Voltage (LV) Diesel Generators Market 2024-2028

The low voltage (LV) diesel generators market size is forecast to increase by USD 3.65 billion, at a CAGR of 7.72% between 2023 and 2028. The growth rate of the market depends on several factors, such as the higher demand for electricity and unreliable grid infrastructure in emerging economies, the rising urban population worldwide, and the high demand for LVDGs due to low crude oil price.

The report offers extensive research analysis on the market, with a categorization based on End-user, including commercial, residential, and industrial. It further segments the market by Type, encompassing portable and stationary. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamics

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the market growth during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges of market growth and forecasting will help companies refine marketing strategies to gain a competitive advantage.

Driver - Rising urban population worldwide

The migration of people toward urban areas has accelerated in the last few decades. In addition, the shift is higher in emerging economies, where there are more employment opportunities in urban areas compared to rural areas. Furthermore, at a global level, the percentage of the urban population is rising steadily.

For example, as per The World Bank Group, the urban population accounted for 57% of the total population globally in 2022, compared with 56% in 2020. This increasing urban population is a driver for the market as it will lead to the growth of business and construction activities, including residential and commercial complexes in urban areas. Hence, such factors are driving the market growth during the forecast period. The demand for essential automotive components like automotive alternators, crucial for powering vehicle electronics and charging batteries, will also rise with the increasing urbanization and vehicle ownership in these expanding urban centers.

Trends - Growing popularity of smart grid technology

The smart grid technology refers to an electricity network that supplies electricity to customers through digital technology. In addition, smart grids are gaining popularity across the world for providing a reliable and uninterrupted power supply to end-users. Low-voltage diesel generators are often used for backup power in remote areas, while solid oxide fuel cells are emerging as a cleaner, more efficient alternative for continuous power generation. Furthermore, with the growing need for utilities to maximize reliability, resiliency, and power efficiency, the adoption of smart grid technology is increasing to analyze system performance.

Moreover, smart grid technology increases the quality of power supply and raises energy efficiency, which is crucial for meeting the high energy demand in major emerging economies such as China and India. In addition, smart grid technology integrates new energy sources, such as solar and wind, with traditional sources. Therefore, smart grid technology helps regulators in driving the adoption of distributed renewable energy. Hence, such factors are driving the market growth during the forecast period. The adoption of smart grid technology also supports the integration of Low and Medium Capacity (LMC) gas generators, which play a significant role in enhancing grid stability and providing reliable backup power. As energy networks evolve to accommodate diverse energy sources and improve efficiency, LMC gas generators contribute to meeting the increasing demand for reliable electricity supply in urban and rural areas alike.

Challenge - Growth of decentralized renewable energy

Regulators across the globe are promoting the use of renewable power sources to minimize emissions and offer reliable and secure energy supply to remote areas. In addition, renewable technologies are best suited for distributed applications as an alternative to power grid infrastructure. Furthermore, the availability and affordability of renewable technologies have increased in recent years due to technological advances and price reductions.

Moreover, this is increasing the adoption of decentralized renewable energy across the world. Therefore, this will be a challenge for the growth of the global LVDGs market as decentralized applications will reduce power outages across