Zambia 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) – Forecast to 2030

Market Overview

The Zambian diesel genset market size stood at $13,762.1 thousand in 2021, and it is expected to demonstrate a CAGR of 4.9% during 2021–2030, primarily due to the rising demand for standalone and backup power sources, mostly in residential buildings, retail stores, offices, hospitals, and hotels. Furthermore, these gensets are required for construction, manufacturing, power, and oil and gas applications.

Increased government efforts to improve electrification and developments in the power sector, rapid urbanization, and rise in the need for safe and dependable electric supply in Zambia are major factors driving the market for diesel gensets. Furthermore, the increasing household construction activities in the country are significantly boosting the need for dependable electricity backup devices, which is expected to benefit the growth of the market in the upcoming years.

Moreover, Zambia is focusing on infrastructure development. For instance, in November 2021, it planned the expansion of toll booths on major roads, to fund road maintenance and widen the financing options for them. For instance, the Pave Zambia 2000 Program aims at the rehabilitation of 2,000 km of urban roads, and the L400 project involves the construction of 400 km of Lusaka urban roads, which costs $348 million. These ongoing infrastructure projects will positively impact the market growth.

15–75 kVA Variants Witnessed Highest Demand

In 2021, in terms of sales, the largest share in the Zambian diesel genset market was held by the 15–75 kVA category, of more than 40%. This is mainly attributed to the low price of these gensets and their high demand in residential facilities, restaurants, telecom towers, small industries, hotels, and commercial complexes.

Moreover, these gensets are suitable for small-to-medium-size locations and have a high installation rate in commercial complexes and residential apartments, such as telecom towers, retail shops, and small businesses. As a result of the abovementioned factors, these gensets are predicted to have the highest sales in the coming years as well in the country.

Surging Demand for Diesel Gensets in Telecom Sector

The telecommunications industry is rapidly evolving in Zambia. For example, following the August 2021 election, the new government instantly established the Ministry of Technology and Science to promote the use of information and communication technology (ICT) for economic growth and social inclusion. Data centers, computer assembly plants, ICT training centers, and smart education programs have all been funded as part of the Smart Zambia initiative. These efforts are aided by the expansion of broadband access and improvements in connectivity through international submarine cables.

Moreover, the fixed-line and mobile access pricing for end users has significantly reduced. This shows the growth in the ICT and telecom sectors, which require diesel gensets to deal with power outages. Therefore, such initiatives are driving the market for diesel gensets in Zambia.

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Industrial Category Captured Majority of Market Share

In 2021, the industrial category accounted for around 41% revenue share in the Zambian diesel genset market. This is because diesel gensets are highly required in the industrial sector of the country, mainly for manufacturing, power generation, and oil and gas production, as a prime or a backup power source.

Market Players Involved in Product Launches to Gain Competitive Edge

Key market companies have been involved in product launches, in order to stay ahead of their competitors. For instance:

• In February 2022, Volvo Penta boosted its portfolio of generation engines, with the launch of TAD1346GE 500 kVA, a new D13 power node. This fuel-efficient and reliable compact engine is a valuable addition to the power offering of the company. It gives full power output, a key feature for a backup genset, mainly for those being used in standby/emergency operations.

Key Players in the Market Are:

• Atlas Copco AB
• Caterpillar Inc.
• Kohler Co.
• Cummins Inc.
• Aggreko Ltd.