Africa Diesel Generator Market Size, Share & Trends Analysis Report By Power Rating (Up to 100 kVA, 100-350 kVA, 350-750 kVA, 750-1000 kVA, 1000-2000 kVA, 2000-3000 kVA, Above 3000 kVA), By End Use, By Country, And Segment Forecasts, 2021 - 2028

Report Overview

The Africa diesel generator market size was valued at USD 5.35 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2021 to 2028. Datacenter had experienced a high growth rate owing to an increase in momentum towards digitalization in the region. Datacenters need to have multiple layers of backup power to ensure continuous operation. Further, in case of any power failure which even lasts only for a few minutes can cause interruption of the work of the entire organization and can result in considerable economic losses.

Industry and construction are the major growth contributors to the economy in Tanzania. The growth in the construction sector is due to growing public investments in the construction of railways, airports, roads, port expansions, and bridges. The manufacturing sector in the country mainly includes food processing, textiles, chemicals, beverages, leather products, plastics, and paper & paper industries.

Ethiopia is the second most populated country in the African region after Nigeria; it is one of the highest growing countries in the region. The country’s real GDP was recorded as 9% from 2018–19. However, owing to the country’s large population it has a low per capita income of USD 850 as per the World Bank. The construction and service industries mainly contributed to a majority of the growth in the country. The government has taken steps to support the growth of the private sector and enhance the competitiveness of small- and medium-sized enterprises in the country.

However, the COVID-19 pandemic has resulted in a decline in demand from this power range owing to limited mining, industrial, and construction activities in various African countries for non-essential products owing to the COVID-19 outbreak. With work-from-home models being implemented on a wide scale in the majority of the countries in the region, the demand for internet services and video & audio-conferencing tools from service sector companies has increased substantially. This factor has increased the demand for diesel generators from data centers within this power range.

Power Rating Insights

The 1000-2000 kVA power rating segment led the Africa generator market and accounted for the largest revenue share of more than 42.81% in 2020. The 1000-2000 kVA diesel generator sets are primarily utilized by data centers, mining, industrial, and construction sectors. Major vendors such as Cummins, Kohler, Mitsubishi Heavy Industries, Ltd., and Caterpillar provide diesel generators in this power rating range which are capable of providing continuous power supply for a longer duration. Due to periodic outages in African countries such as Ethiopia, Ghana, Uganda, and Mali, end-users adopt for diesel generators to maintain seamlessness in operations.

Up to 100 kVA diesel generator sets are mainly utilized in telecom towers and residential and small-scale commercial applications such as shops and clinics. The lack of power distribution infrastructure in most African countries has resulted in the demand for up to 100 kVA diesel generators from end-users. The 350-750 kVA diesel generator sets are predominantly utilized in high-end hospitals, shopping malls, small-scale industries, and business centers. The market for 350-750 kVA diesel generators is growing due to the requirement for regular power supply due to the critical nature of their operation. Since African countries such as Ethiopia, Ghana, Uganda, and Mali had witnessed around 13.6, 9.8, 6.9, and 6.8 power outages per month respectively in 2018.

End-use Insights

The telecom end-use segment led the market and accounted for the largest revenue share of more than 18.66% in 2020. Increasing demand for uninterrupted and reliable power supply from the end-use segments, such as manufacturing and construction, telecom, mining, data center, tourism, banking, and others, is anticipated to propel the market growth over the forecast period.

Diesel generators in the range of up to 45 kVA are utilized in the telecom sector to provide emergency or continuous power supply to telecom towers. In the areas with access to grid power, diesel generators act as backup power supply options whereas in areas with no power supply diesel generators act as continuous power supply options. Diesel generators are conventionally used to power telecom towers owing to low capital cost and easy fuel availability in remote as well as developed areas.

Emergency power generators are an essential item for banking institutions. Since backup power source aids to activate automatically in few seconds which aids to keep the systems connected and running. Further, in case of longer duration outages diesel generators aid to provide baseload power to the banks. The critical nature of the operation of banks requires them to compulsorily install backup power solutions such as diesel generators owing to their lower capital cost and easy availability of diesel.

Others include residential, educational institutes such as schools, colleges, and commercial and government institutions such as hospitals, shops, shopping malls, government offices, and sports complexes. All these end-users require a backup power supply in case of power outages. Diesel generators have been conventionally used by these end-users owing to their economic cost and easy storage and availability of diesel fuel.

Country Insights

South Africa dominated the market and accounted for the largest revenue share of over 16.86% in 2020. The country has emerged as a highly developed economy in the region in terms of the presence of advanced economic infrastructure. South Africa has the presence of most of the large companies operating in Africa. For instance, global manufacturing companies such as BMW, Nissan, Ford, Toyota, Volkswagen, Daimler-Chrysler, and General Motors have manufacturing facilities in the country. The country is one of the major producers and exporters of natural resources such as gold, manganese, platinum, palladium, diamonds, and coal.

The industrial sector is significant in the country and consists of consumer goods production, food processing, construction, gold, and phosphate mining. The impact of COVID-19 on Mali’s economy has been limited. Being a net importer of oil, Mali has benefitted from a sharp decline in crude oil prices. The major export item for the country is gold whose demand was less impacted during the pandemic as compared to oil & gas demand.

Key Companies & Market Share Insights

The market is highly characterized by the expansion and joint venture strategies opted by diesel generator companies across the region. Established players such as Cummins are investing in product development to gain a competitive edge in the market. For instance, Cummins in 2019 recorded an overall sales of USD 23,571 million globally, whereas, the Power Systems business segment (includes diesel generator set) of the company recorded sales of USD 4,460 million globally. Some of the prominent players operating in the Africa diesel generator market are:

• Caterpillar

• Cummins Inc.

• Atlas Copco AB

• AKSA power generation

• Kohler Co

• HIMOINSA

• Wartsila

• Kirloskar Oil Engines Ltd.

• MITSUBISHI HEAVY INDUSTRY LTD.

Africa Diesel Generator Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the Africa diesel generator market report based on power rating, end use, and country:

• Power Rating Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)

  • Up to 100 kVA

  • 100-350 kVA

  • 350-750 kVA

  • 750-1000 kVA

  • 1000-2000 kVA

  • 2000-3000 kVA

  • Above 3000 kVA

• End-use Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)

  • Manufacturing

  • Construction

  • Telecom

  • Mining

  • Data Center

  • Tourism

  • Banking

  • Others

• Country Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)

  • Kenya

  • Algeria

  • South Africa

  • Ethiopia

  • Ghana

  • Tanzania

  • Morocco

  • Mali

  • Uganda