Nigeria Diesel Genset Market Research Report: By Power Rating (15 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, 751 kVA–999 kVA, 1000 and Above), Application (Commercial, Industrial, Residential) - Industry Analysis and Growth Forecast to 2030

Market Overview

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 To Witness Fastest Growth

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.

Commercial Category Dominates the Market

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.

Decreasing Import of Low-Power Diesel Gensets Is a Key Market Trend

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.

Growing Demand for Power in Differentiated Industries, and Substantial Base Power Deficit and Power Transmission Losses Are Driving the Market Growth

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).

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Key Players in Nigeria Diesel Genset Market Include:

• 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
• JMG Limited

Market Size Breakdown by Segments

The Nigerian diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Power Rating

• 15 kVA–75 kVA
• 76 kVA–375 kVA
• 376 kVA–750 kVA
• 751 kVA–999 kVA
• 1000 and Above

Based on Application

• Commercial
• By user
  • Retail establishments
  • Commercial Offices
  • Telecom towers
  • Hospitals
  • Hotels
• Industrial
• By user
  • Manufacturing
  • Energy & power
• Residential