The Zambian diesel genset market is projected to generate $21,210.5 thousand revenue in 2030, advancing at a CAGR of 4.9% during 2021–2030. This can be attributed to the increase in demand for standalone and backup power sources, rapid growth in the telecom sector, and government initiatives for infrastructure development.
Moreover, diesel generators have played several vital roles in the healthcare industry. Hospitals have diesel generators to power medical equipment, along with backup generators to support the continuous supply of energy. Furthermore, since the COVID-19 pandemic, the government has been focusing strongly on increasing the number of hospitals, which, in turn, the need for gensets is also rising in the country.
The major reason for power outages in Zambia is the electricity demand and supply gap. Compared to the net demand for electricity in residential and commercial spaces, the supply is not adequate, which creates excessive workload and power outages often in the country. This leads to high demand for diesel gensets to supplement power production during outages.
For instance, in October 2021, Zambia suffered a wide-scale power outage, which affected the power supply in several parts of the country, after a problem occurred in the generation at Kariba North Bank hydropower station. Moreover, frequent natural calamities, such as floods and drought, cause power outages in Zambia. Thus, the rising cases of power outages in the country are one of the key factors driving the diesel genset market in Zambia.
The industrial category is expected to witness the fastest growth during the forecast period, advancing at a CAGR of 5.3%. This can be because the industrial sector of the country uses a large number of DG sets as a prime or a backup power source for applications such as manufacturing, power generation, and oil and gas production.
Moreover, the 376–750 kVA category accounts for the largest market share, based on power rating. This is mainly due to the increasing demand for 376–750 kVA gensets for heavy-duty applications across different industries, such as mining, oil & gas, construction, and manufacturing.
Players in the Zambian diesel genset industry have been involved in portfolio expansions to gain a significant position. For instance, in January 2021, Atlas Copco AB expanded its QES portable generator range up to 500 kVA with four new models that provide a reliable source of electrical power for the world's most demanding work sites. The latest models in the range are the QES 250, QES 325, QES 400, and QES 500, all of which are Stage 3A emission compliant and available in 50 Hz or 60 Hz versions.
Major players operating in the market include Atlas Copco AB, Kohler Co., Cummins Inc., Caterpillar Inc., and Aggreko Ltd.