The costs of the power outages for any business can be considerable. The diesel generator is a long-standing technique that produces electricity during emergency power needs. It comprises various equipment like a control panel, AC alternator, fuel tank, engine, radiator, etc., and provides electric energy by converting the chemical energy present in diesel. It can be installed in homes, hospitals, schools, construction sites, factories, and other verticals, either as a backup or primary power source. Frequent power outages due to the surging number of disasters & extreme climate changes across Egypt are leading to the snowballing inclination of Egyptians toward using diesel generators for a reliable power backup.
The Egypt Diesel Generator Market is anticipated to grow at a CAGR of around 5% during the forecast period, i.e., 2021-26. The growth of the market attributes primarily to the rapidly increasing construction of government buildings, hotels, water treatment plants, etc., coupled with soaring developments of urban cities, including East Port Said, New Mansoura, New Nasser in Assiut, West Qena, etc., in line with Egypt Vision 2030. In addition, the upcoming construction projects of smart cities in the provinces of Beni Suef, Cairo, Daqahiliya, & Luxor, among others, are also projected to boost the demand for diesel generators in Egypt during 2021-26.
Moreover, the rising demand for a reliable & uninterrupted power supply from various end-user segments like oil & gas, healthcare, manufacturing & construction industry, etc., rapidly growing population, several infrastructural developments are other crucial aspects projected to propel the demand for diesel generators in the coming years.
However, rising environmental concerns regarding the harmful Green House Gas (GHG) emissions from diesel generators, coupled with the paradigm shift toward renewable energy generation, might hinder the market growth during the forecast period. But the adoption of advanced technologies in diesel generators that will lead to extremely low emissions shall provide a lucrative growth opportunity for the market in the years to come.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Doosan Corporation, Caterpillar Inc., Cummins, Perkins, Generac Holding Inc., MTU|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the Egypt Diesel Generator Market
The Covid-19 pandemic in 2020 adversely affected Egypt's economy, with the suspension of operations of major industries. The Egypt Diesel Generator Market was no exception since the pandemic led to the imposition of lockdown, which disrupted the supply of raw materials required for manufacturing diesel generators. In addition, the lockdown & other stringent restrictions led to delays in construction projects, thereby declining the demand for diesel generators.
Moreover, due to the shutdown of commercial spaces and factories, the electricity demand significantly declined and negatively impacted the production & sales of diesel generators. However, with the ease of restrictions & the upliftment of lockdown, Egypt's government allowed the resumption of all construction projects, along with business operations associated with the market, which shall generate lucrative growth opportunities for the market to recover from losses gradually in the coming years.