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Market Definition
Diesel generators are machines that generate power and meet the electricity requirements at times of grid failure, power outages, emergencies, etc. These generators are being deployed extensively across Africa's different sectors like residential, mining & quarrying, industrial & construction, oil & gas, and telecom, owing to benefits like low maintenance cost, durability, safe storage, reliability, easy access to fuel, and greater power output, among others.
Market Insights
The Africa Diesel Generator Market is projected to grow at a CAGR of less than 5% during the forecast period, i.e., 2022-27. The growth of the market is driven primarily by increasing infrastructural development projects for healthcare, hospitality, residential, commercial, & industrial, among other sectors, i.e., surging the demand for diesel generators across different countries in the region.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 5% |
| Key Companies Profiled | Caterpillar, Cummins, FZ Wilson, Kohler SDMO, Wartsila, Turbomar, Himoinsa, Atlas Copco, Briggs & Stratton Corporation, YOR Power |
| Unit Denominations | USD Million/Billion |
In addition, the prevailing deployment of small-capacity diesel generators by several countries in Africa to meet the daily energy requirements for different applications is another aspect stimulating the market growth. Besides, as several countries across the region are indulged mainly in oil & gas, mining, & construction activities, the demand for an uninterrupted supply of energy is constantly required for activities like production, exploration, excavation, extraction, etc.
Moreover, since Africa is witnessing a growing footfall of tourists, governments of different countries are massively investing in the commercial sector associated with tourism & hospitality. It, in turn, is displaying a growing number of construction projects for hotels, restaurants, and shopping complexes, among others, and surging the demand for diesel generators to provide a continuous, reliable, & stable flow of energy. Additionally, the easy availability of oil & gas at lower prices is another aspect playing a crucial role in promoting the deployment of diesel generators across Africa and driving the market through 2027.
Impact of Covid-19 on the Africa Diesel Generator Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across Africa, and the diesel generator market was no exception. As the governments of different regional countries had to impose stringent movement restrictions & frequent lockdowns to curb the spread of this dreadful disease, the leading players witnessed several unprecedented challenges associated with the production & distribution of diesel generators amidst the crisis.
Owing to the severity of the pandemic, governments suspended all operations to reduce the spread of the virus. As a result, the demand for diesel generators declined significantly, especially across industries like oil & gas, mining, construction, commercial, & corporate sectors. Besides, the market also underwent massive financial losses, owing to disruptions in the supply chain, hampered transportation & logistics, and delayed deliveries of raw materials.
However, the residential & healthcare sector enabled the market to sustain itself amidst the crisis by augmenting the demand for diesel generators for different applications. As the public adopted work from home policies, the need for diesel generators rose dramatically to attain uninterrupted electricity flow & power backups for home appliances.
On the other hand, with the exponential rise in Covid-19 cases, the healthcare sector was under massive pressure. As a result, the demand for diesel generators remained prevalent amidst the crisis in hospitals & other healthcare facilities, which, in turn, portrayed a temporary hike in the market growth.
Nonetheless, with the gradually declining Covid-19 cases, governments uplifted the restrictions & allowed the recommencement of business operations. It, in turn, surged the demand for diesel generators & generated growth opportunities for the leading players to expand their production capacities & meet the burgeoning end-user requirements.
Market Segmentation
Based on End-Users:
Of all end-users, the residential sector is anticipated to create remunerative growth prospects for the diesel generator market across Africa during 2022-27. It owes principally to the swift enhancement in the economy of different countries, i.e., displaying a growing adoption of home appliances in the residential sector and mounting demand for diesel generators for a continuous & stable energy flow.
Besides, the growing government focus on smart city developments, leading to the rise in energy-efficient solutions, is another aspect playing a crucial role in augmenting the demand for diesel generators as a primary source of power generation and, in turn, driving the market through 2027.
On the other hand, the industrial & construction sector is projected to dominate the market with the largest share during the forecast period. The rapid development of industries like healthcare, manufacturing, hospitality, etc., for economic diversification, i.e., infusing the need for a continuous flow of electricity to run power-intensive operations efficiently, is the prime factor driving the market across the industrial & construction sector.
Country Landscape
Geographically, the Africa Diesel Generator Market expands across:
Of all countries across Africa, South Africa dominated the diesel generator market with the largest share in previous years. It attributes principally to numerous government investments & favorable policies, i.e., displaying a growing establishment of multinational companies & start-ups across the country. It, in turn, is surging the demand for diesel generators to meet the increasing electricity requirements for running business operations across these companies.
On the other hand, Nigeria is anticipated to dominate the market with the largest share during 2022-27, principally due to the easy & abundant availability of fossil fuels and poor governing infrastructure, resulting in lower transmission capabilities and massive energy consumption. It, in turn, is surging the demand for diesel generators to increase power generation capacities and meet the electricity requirements across the country.
Moreover, since the country's majority population is deploying small-capacity diesel generators, the leading players are projected to witness significant growth opportunities to expand their production capacities and propel the overall market growth through 2027.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Africa Diesel Generator Market is projected to grow at a CAGR of less than 5% during 2022-27.
A. The mounting inclination of various countries across Africa toward constructing Smart cities is the prime factor projected to drive the Africa Diesel Generator Market through 2027.
A. Active participation of the leading players in the development of hybrid diesel generators with benefits like cost-effectiveness, longer life, and ability to run on different fuels is an emerging trend in the Africa Diesel Generator Market.
A. The residential sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the Africa Diesel Generator Market over the forecast years.
