Published: December 2021 | Report Code: 11661 | Available Format: PDF | Pages: 123
The Nigerian diesel genset market generates $445.1 million revenue in 2021, and it is expected to grow at a CAGR of 6.8% during the forecast period (2021–2030). The key factors responsible for the growth of the market include the surging demand for power in differentiated industries and substantial base power deficit and power transmission losses in the country.
The COVID-19 pandemic caused the temporary suspension of manufacturing operations and office closures. Several companies continued to experience economic and operational uncertainty through the second wave of the pandemic. The lockdown of various commercial establishments, including retail stores, offices, telecom towers, and factories, adversely affected the market growth. Another factor for the decline in the market revenue was the suspension of the import and export of these products. The decline also led to large contractions in Nigeria, driven by its economic reliance on the exports of certain commodities whose prices have crashed.
15 kVA–75 kVA category holds the largest share in the Nigerian diesel genset market in 2021, based on the power rating. Also, the category is expected to register the highest growth rate during the forecast period. This can be mainly attributed to the low price and high demand for these gensets in residential facilities, small industries, telecom towers, restaurants, commercial complexes, and hotels.
The commercial category holds the largest share in the Nigerian diesel genset market in 2021, based on application. This is due to the wide usage of gensets in commercial areas such as retail establishments, commercial offices, telecom towers, hospitals, and hotels. According to the National Bureau of Statistics, the construction of commercial buildings in Nigeria has increased since 2017 on account of the growth in business activities in the country.
According to the UN Comtrade, the import value of gensets in Nigeria has been falling since 2015. One of the major factors driving this trend is the implementation of government regulations aimed at reducing the bulk import of low-power gensets in the country. Further, small, medium, and large gensets emit 1,580 g/kWh, 883 g/kWh, and 699 g/kWh of CO2 in the atmosphere, respectively. The low-power gensets are majorly used in houses, hostels, and small commercial facilities, including restaurants, salons, and small offices. The wide application base of gensets contributes to the high-volume release of toxic fumes in the country. Further, the imposition of regulations for limiting the import of gensets has led to the local manufacturing and assembling of these power-generating systems in the country.
The demand for diesel gensets in Nigeria is projected to grow on account of their increasing usage in several industries, such as oil and gas, telecom, and construction. Gensets are used in the oil and gas industry to assist in upstream operations. Furthermore, oil and gas fields are generally located in remote locations and, on most occasions, lack grid connectivity, thereby exerting heavy dependence on gensets for power supply.
The power and energy infrastructure in Nigeria is quite weak, owing to the presence of high-value base power deficit and significant power transmission losses. This, in turn, drives the demand for diesel gensets in the country. Also, Nigeria’s electricity demand is growing rapidly with the rising economic growth and surging urbanization rate. According to an article published by the International Trade Administration, the Government of Nigeria (GON) is investing heavily to boost generation through large, medium, and small hydrostatic power plants with a total capacity of over 6,024 MW in various cities, including Mambila (3,050 MW), Makurdi (1,000 MW), and Kashimbila (40 MW).
Base Year (2021) Market Size
Market Size Forecast in 2030
Forecast Period CAGR
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Company Profiling
Market Size by Segments
By Power Rating; By Application
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The Nigerian diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.
Based on Power Rating
Based on Application
In 2030, the value of the Nigerian diesel genset market will be $806.8 million.
Commercial is the largest category under the application segment of the Nigerian diesel genset industry.
The major Nigerian diesel genset market drivers are the surging demand for power in differentiated industries and substantial base power deficit and power transmission losses in the country.
The Nigerian diesel genset market is expected to witness a CAGR of 6.8% during 2021–2030.
The major players operating in the Nigerian diesel genset market are Denyo Co. Ltd., YorPower Ltd., Honda Manufacturing (Nigeria) Limited, Jubaili Bros, Cummins Inc., Caterpillar Inc., Kirloskar Oil Engines Limited, General Electric Company, Siemens AG, SUMEC Group Corporation, John Holt Plc, Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Mikano International Limited, and JMG Limited.
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