Nigeria Diesel Genset Markets, 2014-2018 & 2019-2024
DUBLIN, June 24, 2019 /PRNewswire/ -- The "Nigeria Diesel Genset Market by Power Rating, and Application - Market Size, Share, Development, Growth, and Demand Forecast to 2024" report has been added to ResearchAndMarkets.com's offering.
The Nigerian diesel genset market is expected to generate a revenue of $527.4 million by 2024, advancing at a CAGR of 4.1% during the forecast period (2019-2024).
The key factors driving the growth of the market are substantial transmission loss, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications.
The country's power domain is facing various issues such as weak transmission and distribution network, inefficient operations, and a huge gap in demand-supply, with the demand outrunning the production of domestic electricity by a notable margin. According to industry experts, in 2018, the demand for electricity in the country was over 40,000 MW, whereas the energy produced hovered near the 7,000 MW-8,000 MW mark. This clearly suggests an increasing consumer reliance upon diesel generator sets in the country.
During the forecast period as well, government initiatives might not be able to completely fill the gap between the demand and supply due to the substandard grid infrastructure, high base power deficit, and surging population. This is resulting in a greater dependence on off-grid sources to cater to the power requirements, thereby further strengthening the Nigerian diesel genset market.
Based on power rating, the market is classified into 5 kVA-75 kVA, 76 kVA-375 kVA, 376 kVA-750 kVA, and above 750 kVA. Out of these, during the historical period (2014-2018), 5 kVA-75 kVA gensets dominated the Nigerian diesel genset market in terms of sales volume, due to the massive demand for these gensets in commercial complexes, hotels, residential settings, and other places with low-power needs.
Based on application, the Nigerian diesel genset market is divided into industrial, commercial, and residential applications. Among these, the industrial division dominated the market with a revenue contribution of more than 40.0% in 2018. This can be attributed to the huge demand for comparatively expensive high-power generator sets in the industrial sector of the country. In addition, the proposed Economic Recovery and Growth Plan (ERGP) of the Nigerian government is projected to attract huge investments in the manufacturing sector, thereby, encouraging the adoption of diesel gensets for operations and setting up of various industries.
In 2018, in Nigeria, telecom towers registered more than 12.0% sales volume share in the market. Furthermore, the category is predicted to advance at a CAGR of 6.3% in terms of revenue during the 2019-2024 period, owing to the increasing demand for these gensets in telecom towers to fulfill the auxiliary and prime power requirements. Also, the investments in the telecom sector, along with the significant installation of towers in erratic power supply scenario and in off-grid areas, are anticipated to support the Nigeria diesel genset market during the forecast period.
Market Dynamics
Trends
- Decreasing import of low-power diesel gensets
Drivers
- Growing demand for power in differentiated industries
- Substantial base power deficit and power transmission losses in Nigeria
Restraints
- High operating costs of diesel gensets and growing adoption of PV systems
Opportunities
- Adoption of PV-diesel hybrid systems
- Regulatory Framework Analysis
- Regulation on the Import of Diesel Gensets
- Federal Ban on the Bulk Import of Diesel Gensets
- Overview of the Power Sector in Nigeria
Companies Mentioned
- Caterpillar Inc.
- Cummins Inc.
- Denyo Co. Ltd.
- General Electric Company
- Honda Manufacturing (Nigeria) Limited
- Jubaili Bros
- Kirloskar Oil Engines Limited
- Siemens AG
- SUMEC Group Corporation
- YorPower Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/xkbk1u
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SOURCE Research and Markets
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