The surging demand for power in differentiated industries and substantial base power deficit and power transmission losses in the country are the major growth drivers for the Nigerian diesel genset market. Due to the aforementioned factors, the industry is projected to generate $806.8 million revenue by 2030, growing at a CAGR of 6.8% during the forecast period (2021–2030).
Due to the COVID-19 pandemic, the production and sales of diesel gensets declined due to the restriction on the movement of workers and materials, supply chain disruption, hindrance in suppliers’ capacity, and limited availability of raw materials at manufacturing plants. Further, the suspension of trade of diesel gensets contributed to the contraction of their use in the country. In March 2020, Bima Enagi, the Senator of Nigeria South, introduced a bill to ban the import of gensets. However, the ban excludes gensets used for essential services, including medical purposes, airports, and railways.
The Nigerian diesel genset market is categorized into 15 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, 751 kVA–999 kVA, and 1,000 kVA and above, based on power rating. Among these, 15 kVA–75 kVA category dominated the market during the historical period (2017–2021), and it is expected to maintain its dominance during the forecast period as well. This is mainly due to the increasing demand for gensets of power rating of 15 kVA–75 kVA in several areas, such as telecom towers, hotels, restaurants, and residential units, owing to the inadequate power supply in the country.
Further, the market for diesel gensets in Nigeria is categorized into commercial, industrial, and residential, based on application. Among these, the commercial category accounts for the largest share in 2021 and it is also projected to dominate the market during the forecast period. This is ascribed to the huge adoption of diesel gensets for commercial applications in areas, such as hotels, hospitals, and offices. High-capacity diesel generators are generally used for meeting electricity needs in Nigerian industries, which often face erratic grid power supply.
The major players operating in the Nigerian diesel genset industry 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.