Ghana DG Set Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Ghana DG Set Market Size

Ghana DG Set Market Trends & Growth Drivers

High Price of Electricity Boosting the Demand for Gensets

• Despite the energy generation has increased, power remains expensive and unreliable, and has become a constraint on doing business in Ghana.
• Although there is an improvement in electricity access and distribution, the tariff structure places a burden on industrial and commercial users.
• This makes unintended consequences of electricity theft and unpaid bills, hindering full cost recovery.
• This negatively affects further investments that could enhance the supply of electricity.
• Furthermore, compared with some neighboring West African countries, power in Ghana is expensive.
• For example, the average tariff of Ghana is more than its neighbor Côte d'Ivoire.
• This leads to a reduction in the country’s competitiveness, as cheaper power attracts both foreign investment and domestic capital.
• It is also important to meet sustainable development goals, which aim to combat climate change and surge access to modern energy.
• Thus, the high price of electricity has played a pivotal role in propagating the growth of the DG set market in Ghana.

Infrastructure Development Offers Market Opportunities

• Ghana has made significant progress in infrastructure development over the last decades, which has fueled socioeconomic growth.
• Moreover, numerous transportation projects are in pipeline. One of them is the 'Central Spine Rail Line,' the construction of which was to begin in 2023 and will connect Ghana and Burkina Faso, thereby facilitating economic development.
• In addition, there is another project called 'Airport City II,' which is a 291-acre high-end, mixed-use commercial precinct for the development of hotels, shopping malls, offices, and parks.
• It will consist of roads and accessways, residential facilities, open space car parks, and intermodal transport terminals, among others.
• Thus, the rapid development in the economy, due to the growing infrastructure, transportation, and construction industries, is providing ample opportunities for the growth of the industry in the country.

Ghana DG Set Market Analysis

Power Rating Insights

The 15–75 kVA category holds the largest revenue share, of 35%, in 2024 in the market. Due to their suitability for small-to-medium-size locations, these have a high installation rate in residential apartments and commercial complexes, such as telecom towers, small-scale businesses, and retail shops. As a result of the abovementioned factor, these gensets are predicted to have high sales in the coming years as well in the country.

The 751–999 kVA category is the fastest-growing, at a CAGR of 2.8%. These systems are considered highly reliable, which boosts their usage across applications, especially mining, oil & gas, and construction. In this regard, the rampant infrastructure development in Ghana, which requires efficient power backup, drives the market in this category.

The following power ratings have been analyzed:

• 15–75 ­kVA (Largest Category)
• 76–375kVA
• 376–750 kVA
• 751–999 kVA (Fastest-Growing Category)
• 1,000 kVA and Above

End Use Insights

Industrial is the largest category, with 55% value share, and it will witness the highest CAGR, of 2.6%, during the forecast period. This is due to the rampant industrialization in Ghana as a means of boosting its economy and exports. Since power outages can have a significant impact on production, power backup systems are vital at industrial facilities. Depending on the floor area and overall electrical load, DG sets of varying power ratings are used.

The report covers the following end uses:

• Commercial
• Industrial (Largest and Fastest-Growing Category)
• Residential

Ghana DG Set Market Share

• The market is consolidated as a handful of the major companies hold the major share.
• These companies have been in operation for decades, and their products are known around the world.
• Manufacturing gensets compliant with the prevailing emission and fuel efficiency norms requires substantial capital investments, thus increasing the entry barriers for small, local firms.
• Additionally, having been in business for a long time, the major companies enjoy economies of scale, strong customer trust, and comprehensive distribution networks.
• In recent years, major manufacturers in the industry have been fairly active, taking various steps, such as product launches, facility expansions, and collaborations, to enhance their product portfolio, expand their customer reach, develop their brand identity, and ensure aftermarket services for their products.

Ghana DG Set Company News

• In May 2024, Kohler Co. sold its energy business to Platinum Equity, post which it has been established as an independent company.