Madagascar Diesel Genset Market Size and Share Analysis by Power Rating (15–75 kVA, 76–375 kVA, 376–750 kVA, Above 750 kVA), Application (Commercial, Industrial, Residential) – Industry Growth Forecast to 2030

Market Overview

The Madagascar diesel genset market size generated an estimated $21,429.8 thousand revenue in 2021, and the market size will advance at a CAGR of 2.9% during 2021–2030. The rapid growth in the telecom and construction sectors and the increase in the frequency of power outages are driving the market growth.

As per the World Bank, in 2019, only 26.9% of the total population of the country had the access to electricity, which is leading to the rising demand for diesel gensets. In addition, the market is expected to be driven by the surge in the need for backup power from the residential and commercial sectors and the growth in the construction and mining industries.

Moreover, power reliability is a defining feature of the country's level of development. As a result, the need for energy is being assessed among public institutions in Madagascar is increased, in order to improve the quality of services provided to populations. The public services that are considered include health centers, schools, administrative buildings, customs offices, police stations, army settlements, and public street lighting units. The quality of these services varies significantly between rural and urban areas in the country, and it is heavily influenced by power availability.

Further, the Madagascar telecom sector has benefited from the increasing competition among major operators, including Airtel, Orange Madagascar, and Telma. In the 2021 Finance Law, the Government of Madagascar reduced the excise duty levied on telecom products from 10% to 8%, which will benefit consumers at all levels. This leads to a potentially high demand for diesel generators in telecom towers to deal with power outages, whose frequency is high. Due to this factor, the Madagascar diesel genset market is expected to witness considerable progress in the forthcoming years.

15–75 kVA Gensets Held Largest Market Share

In 2021, the 15–75 kVA category accounted for the largest share, of around 42%, in the market. This is primarily due to the high usage of these gensets in residential facilities, small industries, telecom towers, restaurants, commercial complexes, and hotels. Moreover, they are highly safe in terms of storage, consume less fuel, and have good durability.

Furthermore, 376–750 kVA diesel gensets are the second-largest category in the market. This is due to the high demand for these variants in industries, telecom towers, commercial complexes, hotels, and restaurants.

Commercial Category To Witness the Fastest Growth

The commercial category is expected to witness the fastest growth during the forecast period, advancing at a CAGR of 3.9%. This can be mainly attributed to the ongoing development in the construction industry, which includes hotels, residential establishments, transport infrastructures, retail outlets, hospitals, restaurants, malls, and telecom towers, which generates high demand for DG sets in the country.

Market Player Involved in Partnerships & Collaborations to Gain Competitive Edge

The major companies operating in the Madagascar diesel genset market have been involved in partnerships and collaborations, in order to stay ahead of their competitors. For instance:

• In April 2021, Colas Madagascar and Green Energy Solutions (GES) signed a partnership agreement. The goal of this collaboration is to build a hybrid solar power plant at the Ambokatra quarry for Colas Madagascar, and provides construction materials to the island.

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Key Players in the Market Are:

• Aksa Power Generation SA (Pty) Ltd.
• Jubaili Bros
• Atlas Copco AB
• Kohler Co.
• Cummins Inc.
• Caterpillar Inc.
• Aggreko Ltd.