South Africa DG Set Market To Generate Revenue Worth $159,129 Thousand in 2030
- Published: May 2022
The South African DG set market is projected to generate $159,129 thousand revenue in 2030, advancing at a CAGR of 3.9% during 2021–2030. The growth in the manufacturing and construction industries, surge in the telecom sector, high need for medium- and high-power DG sets from the commercial sector, and government initiatives for infrastructure development are propelling the market growth.
The South African telecom sector is rapidly growing with time. Telkom, Liquid Intelligence Technologies, Broadband InfraCo, and municipal providers have all made significant investments to improve their network capabilities. Moreover, MTN South Africa aims to cover 25% of the South African population with 5G infrastructure by the end of 2022 and 60% by 2025. In addition, the company currently has 1,000 5G mobile sites.
Furthermore, in November 2021, Vodacom South Africa agreed to acquire all material assets possessed by Community Investment Ventures Holdings (CIVH), including Vumatel and Dark Fibre Africa. Under this agreement, Vodacom would hold an approximately 30% equity interest in a newly designed entity, InfraCo, along with certain fiber assets that Vodacom would bring to InfraCo. Due to these factors, the telecon sector will flourish in the country, which, in turn, the South African DG set market is expected to witness considerable progress in the upcoming years.
76–375 kVA Is the Fastest-Growing Category in the Market
The 76–375 kVA category is expected to witness the fastest growth during the forecast period, advancing at a CAGR of 4.1%. This can be mainly due to the high demand for these variants in small telecom towers, commercial complexes, industries, restaurants, and hotels.
Moreover, the industrial category is expected to witness the fastest growth during the forecast period, based on application. This can be ascribed to the high requirement for DG sets in the industrial sector of the country, mainly for manufacturing, oil and gas production, and power generation, as a prime or a backup power source.
Product Launches Are Most-Effective Strategic Measures Taken by Players
Players in the South African DG set industry have been involved in product launches to gain a significant position. For instance, in October 2021, Generac Mobile, a manufacturer of heaters and generators, launched two new large diesel mobile generators, the MDE330 and MDE570, which are specifically designed to be simple to operate and maintain. The rental-ready machines have wide-opening removable doors that allow technicians to reach all service points easily. Moreover, the construction and rugged steel design enable the operation in a variety of applications regardless of weather conditions.
Major players operating in the South African DG set market include 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., and Aggreko Ltd.