Market Definition
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.
Market insights
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.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 5% |
| 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.
Market Segmentation
By Capacity:
Of them all, the Commercial & Telecom sectors dominate the Egypt Diesel Generator market. The rapidly increasing infrastructural developments in line with Egypt Vision 2030, coupled with massive investments & large-scale developments in the telecom sector to improve urban & rural connectivity across Egypt and meet the burgeoning requirements of ever-increasing subscribers, are the prime aspects driving the Diesel Generator Market across Egypt's commercial & telecom sectors. Besides, the proper functioning of various construction equipment & industrial machines requires an uninterrupted power supply, owing to which the demand for diesel generators is increasing significantly across these sectors.
Moreover, the extensive use of oil & gas in several industries is also surging the need for continuous power supply for uninterrupted operations in the oil & gas sector, which, as a result, is fueling the demand for diesel generators. Also, the power outage in such huge industries can lead to a massive amount of loss. In addition, escalating research & developments in hydrocarbon reserves, coupled with the exploitation of offshore wells, are also expected to drive the diesel generator market around the oil & gas sector.
On the other hand, the residential sector is also projected to attain a substantial market share over the forecast years, mainly due to the increasing demand for reliable power supply in residential areas. The rapidly growing population & immigrants have exponentially surged the need for infrastructural developments. As a result, the increasing number of construction projects is contributing to the burgeoning demand for diesel generators at construction sites, thereby driving the market.
By Type:
A Stand-By generator is an emergency power backup system that operates automatically. Within seconds of a power outage, it identifies the power loss and instructs the generator to start. Once the utility power supply is back, the Stand-By generator shuts off, where it remains in the Stand-By position and waits for the next outage. These generators are used majorly in residential sectors, malls, & hotels for providing power backup as they start automatically at the time of utility power loss and do not require any manual support for their operation.
Across the residential sector, they are used mainly for elevators & escalators in high-rise buildings. Due to the booming tourism industry in Egypt, many hotels require power backup whenever there's any power outage to avoid any discomfort to customers. Hence, the demand for Stand-By diesel generators in Egypt is surging significantly. On the other hand, Peak Shaving diesel generators are being used widely across large industrial sectors & commercial hubs during peak hours.
Key Trends in the Egypt Diesel Generator Market
Since diesel is one of the largest contributors to environmental pollution, the increasing use of diesel generators in Egypt is leading to ever-increasing carbon emissions & rapid climate changes in the country, which can result in cancer, cardiovascular, & respiratory health conditions.
To overcome these challenges, several companies participating in the Egypt Diesel Generator Market are focusing on expanding their product portfolio by launching new diesel generators with advanced technologies that emit extremely low emissions and can operate effectively in harsh conditions.
Market Dynamics:
Key Driver: Rising Efforts to Fight Against Power Outages in Egypt
Egypt experiences frequent loss of electric grid power due to extreme environmental conditions like storms, natural disasters, & high demand. With the increasing usage of electronic devices and rising dependency on interconnected systems that rely on electricity, there's a burgeoning need for uninterrupted & reliable power sources across hospitals, water & sewage facilities, data centers, transportation, and communication to enhance public safety. Among many technologies, diesel generators are the best option for a steady & high-quality power supply since they pose superior performance for the transient power demand, owing to the high torque characteristics of diesel engines. Apart from these critical applications, building operations like elevators & escalators and banking networks also require continuous electricity supply since they face significant losses due to power outages. Hence, these factors are projected to drive the Egypt Diesel Generator Market during 2021-26.
Possible Challenge: Adverse Environmental Impact of Diesel Generators
1L of diesel consumption emits around 2.7 kg of carbon dioxide. Compared to other power sources, many diesel generators adversely impact the environment. Along with the formation of carbon monoxide, they also generate other hazardous air pollutants like nitrogen oxide and particulate matter. As a result, people are shifting toward cleaner alternatives for energy generation, which shall hamper the growth of the Diesel Generator Market.
In addition, diesel generators significantly contribute to noise pollution. Moreover, they also incur high installation costs with expensive maintenance & servicing compared to other energy sources. The most prominent service requirement is regular oil changes in diesel generators for their efficient working. Hence, the aspects cited above are likely to hinder the diesel generator market growth in the coming years.
Competitive Landscape
According to MarkNtel Advisors, the leading players in the Egypt Diesel Generator Market are Doosan Corporation, Caterpillar Inc., Cummins, Perkins, Generac Holding Inc, and MTU.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Egypt Diesel Generator Market is projected to grow at a CAGR of around 5% during 2021-26.
A. The Commercial & Telecom sector holds the largest share of the Egypt Diesel Generator Market and is projected to create remunerative growth opportunities for the leading players in the industry over the forecast years.
A. The mounting incidences of power outages and increasing construction projects that require uninterrupted power supply are the key factors projected to drive the Egypt Diesel Generator Market during 2021-26.
A. In the coming years, the Egypt Diesel Generator Market is expecting steady growth owing to the resumption of construction projects that will fuel the demand for diesel generators.
1. Introduction
1.1. Product Definition
1.2. Research Process
1.3. Assumptions
1.4. Market Segmentation
2. Executive Summary
3. Expert Verbatim- What our Experts Say?
4. Macroeconomic Outlook
5. Egypt Diesel Generator Market Analysis, 2016-2026F
5.1. Market Size & Analysis
5.1.1. Revenues
5.1.2. Units Sold
5.2. Industry Revenue Shares & Outlook
5.2.1. By KVA Rating
5.2.1.1. 5 KVA to 75KVA
5.2.1.2. 75.1 KVA to 375 KVA
5.2.1.3. 375.1 to 750 KVA
5.2.1.4. 750.1 KVA to 1000 KVA
5.2.1.5. Above 1000 KVA
5.2.2. By Type
5.2.2.1. Stand By
5.2.2.2. Prime & Continuous Power
5.2.2.3. Peak Shaving
5.2.3. By End Users
5.2.3.1. Residential
5.2.3.2. Commercial & Telecom
5.2.3.3. Govt. & Transport
5.2.3.4. Oil & Gas
5.2.3.5. Retail
5.2.3.6. Others
5.2.4. By Region
5.2.4.1. East
5.2.4.2. West
5.2.5. By Company
5.2.5.1. Revenue Shares
5.2.5.2. Strategic Factorial Indexing
5.2.5.3. Competitor Placement in MarkNtel Quadrant
6. 5 KVA to 75KVA Diesel Generator Market Analysis, 2016-2026F
6.1. Market Size & Analysis
6.1.1. Revenues
6.1.2. Units Sold
6.2. Market Share & Analysis
6.2.1. By Type
6.2.2. By End Users
6.2.3. Region
7. 75.1 KVA to 375KVA Diesel Generator Market Analysis, 2016-2026F
7.1. Market Size & Analysis
7.1.1. Revenues
7.1.2. Units Sold
7.2. Market Share & Analysis
7.2.1. By Type
7.2.2. By End Users
7.2.3. Region
8. 375.1 KVA to 750KVA Diesel Generator Market Analysis, 2016-2026F
8.1. Market Size & Analysis
8.1.1. Revenues
8.1.2. Units Sold
8.2. Market Share & Analysis
8.2.1. By Type
8.2.2. By End Users
8.2.3. Region
9. 750.1 KVA to 1,000KVA Diesel Generator Market Analysis, 2016-2026F
9.1. Market Size & Analysis
9.1.1. Revenues
9.1.2. Units Sold
9.2. Market Share & Analysis
9.2.1. By Type
9.2.2. By End Users
9.2.3. Region
10. Above 1000 KVA Diesel Generator Market Analysis, 2016-2026F
10.1.Market Size & Analysis
10.1.1. Revenues
10.1.2. Units Sold
10.2.Market Share & Analysis
10.2.1. By Type
10.2.2. By End Users
10.2.3. Region
11. Egypt Diesel Generator Industry Policy & Regulations
12. Egypt Diesel Generator Industry Trends & Development
13. Egypt Diesel Generator Industry Dynamics
13.1.Drivers
13.2.Challenges
13.3.Impact Analysis
14. Egypt Diesel Generator Industry Sales & Distribution Channel Analysis
15. Egypt Diesel Generator Industry, Customer Survey
15.1.Customer Priorities
15.2.Expectations from Vendors
15.3.Brand Awareness
15.4.Price Neutrality
15.5.Current Brand Satisfaction Level
16. Egypt Diesel Generator Industry Vendor Selection Criteria
17. Egypt Diesel Generator Industry Porters Five Forces Analysis
18. Egypt Diesel Generator Industry Growth Opportunities & Hotspots
19. Egypt Diesel Generator Industry Key Strategic Imperatives for Growth & Success
20. Competitive Benchmarking
20.1.Competition Matrix
20.1.1. Product Portfolio
20.1.2. Target Markets
20.1.3. Target End Users
20.1.4. Research & Development
20.1.5. Strategic Alliances
20.2.Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)
20.2.1. Caterpillar Inc.
20.2.2. Cummins
20.2.3. FG Wilson
20.2.4. Perkins
20.2.5. MTU
20.2.6. Himoinsa
20.2.7. Atlas Copco
20.2.8. Kohler Power System
20.2.9. Mitsubishi
21. Disclaimer
