Press Release

The Nigeria Agriculture & Industrial Equipment Engine Market to Surge at a CAGR of Around 12.21% During 2024-30

The Nigeria Agriculture & Industrial Equipment Engine Market is anticipated to grow at a CAGR of about 12.21% during the forecast period of 2024–30, cites MarkNtel Advisors in the recent research report. The upwelling in investment within various sectors such as marine, industrial, and agricultural domains has prompted an intensified demand for engines, serving purposes such as power generation and propulsion. The Nigerian government's attention has notably pivoted towards boosting agricultural output in the country, aiming to augment food security and decrease dependency on imports. A key milestone in this route was the Nigerian government's unveiling of the National Agricultural Technology and Innovation Policy (NATIP) for 2021-2025, targeting to heighten agriculture through improved inputs, research, mechanization, funding, and sustainability.

The strategic emphasis of NATIP revolves around attaining self-sufficiency, predominantly in rice and other critical crops. Subsequently, these initiatives and programs led by the government have revitalized agricultural operations, leading to amplified demand for agricultural equipment such as tractors and harvesters. Accordingly, companies such as Vishvas KOZ Tractor Limited and Hello Tractors have extended their manufacturing and assembly facilities for tractors in Nigeria. This enlargement is attributed to the augmented need for engines to power agricultural equipment such as tractors and harvesters. For instance,

According to the USDA (United States Department of Agriculture), the production of palm oil rose to 1,500 thousand tons in 2023/24, compared to 1,400 thousand tons in 2022/23 in Nigeria.

Furthermore, the government's prominence in attracting foreign investment in the agricultural sector has played an essential role in intensifying manufacturing activities within Nigeria. Remarkably, foreign direct investment (FDI) in the agricultural sector of the country increased to approximately USD 4.84 million in Q1 2023, reflecting a considerable 175 percent upsurge from Q1 2022. Projections specify that this increase in foreign investments is set to further heighten the demand for tractors and harvesters across farms, propagating the need for engines from the agricultural segment in the forthcoming year, further states the research report, “Nigeria Agriculture & Industrial Equipment Engine Market Analysis, 2024.”

Segmentation Analysis

Diesel Engines Hold the Majority of the Market Share

Based on the fuel type, the market is further bifurcated into, diesel engines and gasoline engines. Among them, diesel engines have exhibited the majority of the market share since the historical period. This can be attributed to their remarkable fuel efficiency, providing nearly 25 to 30% better fuel economy compared to gasoline engines with comparable performance. Diesel engines stand out for their notable efficiency and the utilization of more energy-dense fuel existing in the Nigerian market, offering a higher amount of usable energy compared to gasoline engines. Subsequently, the demand for diesel engines has been on the rise across diverse sectors, including commercial, industrial, agricultural, and transportation.

The tourism sector in Nigeria has been witnessing steady growth, prompting an augmented need for transportation means such as boats, ferries, and other vehicles, characteristically powered by diesel engines. This upwelling in the tourism sector intensifies the demand for transportation infrastructure, further fueling the demand for engines. The subsequent enhancement in infrastructure enlargement is anticipated to considerably boost the market size in the forthcoming period.

The Power Generation Segment Leads the Market

The power generation segment dominates the market, driven by increasing urbanization and subsequent development in infrastructure across commercial, residential, and industrial sectors. This growth is directly associated with the intensified demand for power to fuel machinery, equipment, and operations in these increasing industrial and commercial domains. Critical sectors such as hospitals, data centers, telecommunications facilities, etc. profoundly rely on diesel generators to ensure continuous operations, predominantly during power outages.

This dependence on diesel generators underscores the vigorous need for engines to facilitate efficient power production. Moreover, rural areas of the country grapple with inadequate power supply, necessitating a solution for power generation. Engines play a crucial role in offering electricity to these remote and off-grid areas, where extending the primary electrical grid may not be feasible or cost-effective. The widespread adoption of diesel generators for consistent power supply considerably intensifies the market size of engines in Nigeria. This trend is projected to persist and strengthen the market share of engines in the upcoming years as well.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Cummins Inc., Caterpillar Inc., Volvo Penta, Kubota Corporation, Deere & Company, Clarke Energy, HD Hyundai Infracore Co., Ltd., Deutz AG, Rolls Royce plc, Honda Manufacturing (Nigeria) Ltd., MAN Energy Solutions, Wärtsilä Corporation and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?