The Nigerian diesel genset market is projected to reach $527.4 million by 2024, registering a CAGR of 4.1% during the forecast period. The demand for these gensets in the country is primarily driven by high base power deficit, substantial transmission losses, and growing demand for electricity for residential, commercial, and industrial applications, according to P&S Intelligence.
The country’s power sector is riddled with issues such as inefficient operations, weak transmission and distribution network, and a huge demand–supply gap, with demand outstripping the domestic electricity production by a significant value. According to industry experts, the country electricity demand was more than 40,000 MW in 2018, whereas the energy generated hovered around the 7,000 MW–8,000 MW mark. This clearly hints at the growing consumer dependence on diesel generator sets in the country.
In the near future as well, the government’s reforms may not be able to completely bridge the demand and supply gap owing to inadequate grid infrastructure, growing population, and high base power deficit. This, in turn, would result in increased dependence on off-grid sources for meeting power requirements, further supporting the Nigerian diesel genset market growth.
Insights into market segments
In the report, the Nigerian diesel genset market is segmented on basis of power rating and application. Based on power rating, the market is categorized into 5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA diesel gensets. Among these, 5 kVA–75 kVA generator sets accounted for the largest market share in terms of sales volume during the historical period, owing to the heavy demand for these gensets in residential and commercial complexes, hotels, and other areas with low-power requirements.
The Nigerian diesel genset market is also classified into commercial, industrial, and residential applications. Of these, the industrial category contributed over 40% revenue to the market in 2018. This can be ascribed to the heavy demand for high-power gensets in the country’s industrial sector. Furthermore, the proposed Economic Recovery and Growth Plan (ERGP) of the Federal Government of Nigeria is expected to attract investments in the manufacturing sector of the country, thereby offering impetus to diesel genset adoption for the construction and operation of various industries.
Telecom towers to generate a high demand for diesel gensets in Nigeria
In 2018, telecom towers accounted for over 12.0% sales volume in the commercial demand for diesel generator sets in Nigeria. Additionally, the category is expected to register a CAGR of 6.3% in terms of revenue during the forecast period. This can be attributed to the growing demand for these gensets to serve prime and auxiliary power requirements in telecom towers. Telecom towers in Nigeria majorly employ diesel generator sets of 27 kVA–35 kVA capacity to meet their power requirements. Moreover, investments in the telecom sector, coupled with increased installation of towers in off-grid areas and erratic power supply scenario, are expected to be support the Nigerian diesel genset market growth in this category in the near future.
Browse report overview with 42 tables and 25 figures spread through 112 pages and detailed TOC on "Nigeria Diesel Genset Market by Power Rating (5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, Above 750 kVA), by Application (Commercial [Retail Establishments, Commercial Offices, Telecom Towers, Hospitals, Hotels], Industrial [Manufacturing, Energy & Power], Residential) – Market Size, Share, Development, Growth, and Demand Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/nigeria-diesel-genset-market
Competitive landscape of the Nigerian diesel genset market
Some of the key players operating in the Nigerian diesel genset market are Caterpillar Inc., Cummins Inc., Jubaili Bros, Denyo Co. Ltd., YorPower Ltd., Honda Manufacturing (Nigeria) Limited, General Electric Company, Kirloskar Oil Engines Limited, and SUMEC Machinery and Electric Co. Ltd. (a subsidiary of SUMEC Group Corporation).
Caterpillar Inc. held over 25% share in the Nigerian diesel genset market in 2018. The company has a robust product portfolio and a vast distribution network (comprising dealers and e-commerce gateways) in the country. The company offers diesel generator sets under the Caterpillar, FG Wilson, Perkins, and Olympian brands in Nigeria.
NIGERIA DIESEL GENSET MARKET SEGMENTATION
Market Segmentation by Power Rating
Market Segmentation by Application