Africa Diesel Genset Market to Grow at 6.4% CAGR between 2022-2028

Africa Diesel Genset Market

Africa diesel genset market is thriving owing to rising oil production, shift toward the industrial sector across the region, growing digitization, development and expansion of state and national highways, improving political stability, and lack of on-grid infrastructure.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expects Africa diesel genset market size to grow at a decent CAGR of 6.4% during the forecast period between 2022 and 2028. Africa diesel genset market is booming because of the acceleration of the region’s digitalization. To ensure continuous operation, datacenters need to have multiple levels of backup power. Additionally, a power outage, even one that lasts only a few minutes, can stop the work of the entire organization and cause significant financial losses. In addition, there are more infrastructure development projects underway in healthcare, hospitality, residential, commercial, and industrial sectors. They, in turn, drive demand for diesel generators in many African countries. Another factor promoting market growth is the widespread use of small-capacity diesel generators by several African nations to meet daily energy needs for various applications. However, high operating and maintenance costs associated with diesel genset may limit the growth of Africa diesel genset market.

Increasing consumer preference for electricity backup systems

The standby diesel genset market is expected to grow due to insufficient electricity generation and the rising frequency of brief power outages following weather-related disasters like earthquakes, hurricanes, and snowstorms. Additionally, the ability to automatically start when an outage occurs will encourage product adoption by lowering the significant downtime costs incurred by a datacenter. Other significant factors supporting the market growth include rising per capita income, rising standards of living, and a shift in consumer preference toward the adoption of technologically advanced products.

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Rising demand for inverter, hybrid, and bi-fuel generators

New and creative fuel sources are currently being developed in an effort to find substitute energy sources for traditional fossil fuels. The hybrid generators, which are essentially internal combustion engines with batteries, are now being offered by many OEMs. These hybrid gensets power the engine directly when the load is high, while when the load is low, power is provided by the battery. They cut down on the amount of time, fuel, and noise the generator runs. They are expected to replace mobile gensets, which are mainly used in mining operations, urban construction sites, and remote area applications but have a number of advantages over traditional gensets.

Challenge: Environment-related issues

Diesel generators can be used for a wide range of residential, business, and industrial applications. Nitrogen oxides, carbon monoxide, and particulates are released when diesel is burned. These emissions are directly released into the atmosphere, harming both the environment and nearby people. Several rules have been implemented globally to reduce the air and noise pollution that generator sets are responsible for. Every country has created its own set of laws and regulations to reduce air pollution as environmental concerns have grown. Different African nations have different environmental laws, policies, and subsidy programs depending on the number of emissions from harmful gases, such as SOx, NOx, and CO2. The development of marine propulsion systems that abide by the various environmental regulations set forth by governments all over the country is the primary focus of manufacturers of ship components. For new and regional businesses engaged in the sale of generators, this poses a serious challenge to their growth.

Segmental Coverage

Africa Diesel Genset Market – By Power Rating

Based on power rating, Africa diesel genset market is segmented into Up to 30 kW, 30.1 to 60 kW, 60.1 to 150 kW, 150.1 to 300 kW, 300.1 to 500 kW, 500.1 to 1,000 kW, and Above 1,000 kW. The segment 30.1 to 60 kW is predicted to grow at the fastest CAGR of these over the course of the forecast period. The demand for generators with power ratings of up to 30.1 to 60 kW is being driven by the rising demand for backup power solutions in the residential sector. Small-scale commercial operations like telecommunications, retail, and others use backup power from generators with power ratings of up to 30.1 to 60 kW. Recreational vehicles, fire and emergency vehicles, utility and telecom fleets, and other specialty vehicles needing prime power all use these generators. During the period in analysis (2022–2028), all of these factors are expected to drive the growth of Africa diesel genset market.

Impact of COVID-19 on Africa Diesel Genset Market

Demand from the power range decreased as a result of the COVID-19 pandemic. This was primarily because the COVID-19 outbreak reduced non-essential mining, industrial, and construction activities across several African nations. The majority of the countries in the region have adopted work-from-home policies widely, which sharply increased the demand from service sector companies for internet services and video & audio-conferencing equipment. This factor led to an increase in demand for diesel generators from datacenters with this level of power.

Competitive Landscape

Leading players in Africa diesel genset market include Aggreko PLC, Aksa Power Generation, Atlas Copco AB, Briggs & Stratton Corporation, Caterpillar Inc., Cummins Inc., Deere & Company, Kirloskar Oil Engines Limited, Kohler Co., Mitsubishi Heavy Industries Ltd., MTU Onsite Energy Corporation, and Yanmar Holdings Co., Ltd. Africa diesel genset market is highly fragmented with the presence of several manufacturing companies. The market leaders retain their supremacy by spending on research and development, incorporating innovative technologies into their goods, and releasing upgraded items for customers. They employ various strategies, including strategic alliances, agreements, mergers, and partnerships.

Don’t miss the business opportunity in Africa Diesel Genset Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Africa Diesel Genset Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Africa Diesel Genset Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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