South Africa DG Set 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 Forecast to 2030

Market Overview

The South African DG set market size generated an estimated revenue of $113,289.3 thousand in 2021, and the market size will advance at a CAGR of 3.9% during 2021–2030. The high need for medium- and high-power DG sets from the commercial sector and the growth in the manufacturing and construction industries are driving the market growth. The growth in these industries is due to the macroeconomic development, increase in capital expenditure (CAPEX) by public and private players, and government reforms and incentives to encourage foreign and domestic investments in various industries.

Major areas supporting South Africa's economy include well-developed legal, financial, communications, and transport sectors, as well as an open trade policy and a relatively strong domestic market. Moreover, efforts of the government toward the construction of healthcare infrastructure and health & wellness centers, power industry rebound, and establishment of business hubs and industries are driving the demand for an uninterrupted power supply.

Moreover, hybrid generators are becoming increasingly popular in the country because they have lower operating costs and are less reliant on a single fuel. Furthermore, the frequent power outages in the country have resulted in crippling traffic delays, as well as reduced mining activities and lower factory outputs. DG sets play an important role in these industries by ensuring continuous power supply for smooth operations, especially in remote locations with no or unreliable grid connectivity. The vigorous growth of the abovementioned sectors is, therefore, likely to provide lucrative opportunities for the development of the DG set market in South Africa.

15–75 kVA Category Captured Majority of the Market Share

In 2021, the 15–75 kVA category accounted for the largest share, of around 40%, in the DG set market. This is primarily due to the surging use of 15–75 kVA DG sets in residential societies and commercial areas, including telecom towers, small commercial offices, and retail outlets. Moreover, significant loss of energy and improper distribution channel often cause power failure in the country. In order to counter the power cuts, households, retail shops, and commercial offices are using diesel gensets with a power rating of 15–75 kVA.

Government Initiatives for Infrastructure Development

The DG set industry will advance in South Africa in the coming years, owing to the rising demand for electricity, due to government initiatives such as the National Transport Master Plan 2050, Vision 2025, and National Development Plan (NDP) 2030. The NDP is aimed at reducing poverty and minimizing inequality by 2030. Moreover, the country performs well in terms of trade facilitation and logistics, and transportation infrastructure.

Commercial Sector Witnessed Highest Demand for DG Sets

In 2021, in terms of sales, the largest share in the South African DG set market was held by the commercial category, of more than 46%. This is mainly attributed to the high-volume demand for DG sets in this sector, due to the rapid development of retail outlets, transportation (rail and road) infrastructures, hospitals, malls, restaurants, and telecom towers, in the country.

Market Players Involved in Partnerships & Collaborations To Gain Competitive Edge

The major trend observed in the market is that key companies have been involved in partnerships and collaborations, in order to stay ahead of their competitors. For instance:

• In December 2020, YANMAR announced its partnership with Vert Energy Group of Johannesburg, South Africa, to make its official distributor for YANMAR industrial engines in South Africa and neighboring countries, in succession to Prodist.

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Key Players in South Africa Diesel Genset Market Are:

• Aksa Power Generation SA (Pty) Ltd.
• Algen Power Generation (PTY) Ltd.
• GENERATOR BOYS
• Multilec Generator Services
• PacB Power Solutions
• Jubaili Bros
• Atlas Copco AB
• Kohler Co.
• Cummins Inc.
• Caterpillar Inc.
• Aggreko Ltd.