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Africa Generator Sets Market size surpassed USD 2.4 billion in 2022 and is anticipated to expand at 10.3% CAGR from 2023 to 2032. Increasing infrastructure investment and rapid industrialization expansion of infrastructure development in the region in line with rising demand for uninterrupted power supply will energize the industry growth. Growing investment to refurbish and redesign distribution grids and transmission lines will foster product adoption across the region.
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The industry is expected to grow on account of the availability of natural gas resources and supportive government regulations for clean energy deployment. The demand for reliable power supply is being driven by rapid industrialization growth. In addition, the increasing focus on electricity security coupled with ongoing investments in the natural gas sector will positively sway the demand for these units. Growing demand for reliable and continuous power supply from various sources including fueling stations, data centers, communication & transportation systems, manufacturing units, and healthcare facilities will augment the product deployment.
Report Coverage | Details |
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Base Year: | 2022 |
Market Size in 2022: | USD 2.4 Billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 10.3% |
2032 Value Projection: | USD 6.4 Billion |
Historical Data for: | 2019 to 2022 |
No. of Pages: | 250 |
Tables, Charts & Figures: | 589 |
Segments covered: | Power Rating, Fuel, End Use, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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Rapid population growth, inadequate transmission & distribution networks, and high electricity cost are the key factors which will strengthen the product in across the region. The Africa generator sets market is witnessed to upsurge a significant growth owing to rising government investments toward commercial establishment. Increasing legislative spending and numerous key projects will drive the generator sets in Africa. Moreover, the growing espousal of natural gas as a source of power generation in line with the deployment of hybrid and solar-powered generator sets will complement the overall business outlook.
The COVID-19 pandemic had a negative impact on the generator sets industry as key end use sectors experienced delayed operations. The automobile sector suffered a slump, which adversely affected the industry since gensets are commonly used to ensure uninterrupted power supply for automotive production facilities. The pandemic induced drop in vehicle sales contracted production operations significantly. However, the industry is expected to recover in the future with the resumption of business operations and the supported government- programs and schemes.
Ongoing expansion of small and medium scale industries along with growing industrialization sector will propel the generator sets market demand in Africa. These products have become increasingly important in addressing power deficits and providing reliable backup power sources. The growing need for reliable and constant power supply among various end-users including mining, manufacturing facilities, construction sites, and oil & gas sector will lead to increased deployment of these products.
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The ≤ 50 kVA generator sets industry is predicted to depict 10.5% growth during 2023-2032. The primary factor of revenue in this rating is the low upfront cost of these gensets which making them more accessible. Their small size and ability to provide power continuously make them ideal for use in residential, telecom, industrial, and commercial establishment. Furthermore, many of these generators consume less fuel, which significantly reduces operational costs, further boosting their demand.
The > 200 kVA - 330 kVA generator sets market in Africa is set to exceed USD 1 billion in 2032. Ongoing advancements in technology systems together with growing shale gas revolution have led to the reliable supply of energy resources through these systems. Escalating investment by the private and public sector toward the development of small and medium scale businesses will thrust the deployment of these power rating gensets across the region. Surging demand in healthcare sector coupled with growing focus toward infrastructure development will energize the business landscape. However, rising demand for continuous power supply in retail and large industries will influence the implementation of these units.
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The hybrid segment of the Africa generator sets market is expected to garner USD 600 million revenues by 2032 due to the increasing need of hybrid technology in generator sets. Paradigm shift toward requirement of renewable energy sources along with utilization of hybrid technology systems will proliferate the demand for these units. These generators are cost-effective and reduce fuel expenses which are particularly useful in areas where limited fuel access is needed. Furthermore, their lightweight, compact design makes them easy to transport and ideal for providing power in remote locations.
Favorable government policies supporting the use of conventional resources and the increasing demand for natural gas will foster the penetration for natural gas gensets. The shift towards cleaner energy to reduce emissions is driving the demand for these units. Respective regulatory authorities are providing incentives and subsidies schemes to promote the use of natural gas, which in turn will boost the industry size. In addition, the growing investment in surface design and lease equipment in association with the advancements in technology systems will positively sway the business scenario.
The industrial end-use segment is poised to attain 10% by 2032 due to the resurgence of industrialization and infrastructure development in developing economies. Industrial generator sets are primarily used in mining operations for metal, gas, iron, and coal. Higher efficiency, greater fuel savings, and lower emissions as compared to traditional generator sets will augment the Africa generator sets market. Ongoing advancements in generator sets with AI and IoT technologies enabled and the continuous optimization of predictive maintenance and remote monitoring systems in gensets will stimulate the product demand.
The prime/continuous segment of the generator sets industry will cross a valuation of USD 3.4 billion by 2032, on account of increasing need for electricity in remote areas and government efforts to improve electrification rates. In November 2022, several development agencies including the International Finance Corporation (IFC), the World Bank Group, and the Multilateral Investment Guarantee Agency (MIGA) announced a new initiative to accelerate rural electrification. In addition, the application is also expected to benefit from the growing need for continuous power supply in critical applications comprising of data centers, airports, and hospitals.
Egypt generator sets market was valued at over USD 200 million in 2022. Favorable regulatory policies and fundings in line with advancements in technology solutions will accelerate the investment opportunity across the country. The country is currently facing a power deficit, which has led to an increased demand for generator sets across various end-use sectors. The government has also initiated several projects to improve the country's power infrastructure, which in turn will increase the demand for generator sets.
The key players operating in Africa generator sets market are Cummins Inc., GENESAL ENERGY, GFE Power Products, Wärtsilä, Mitsubishi Heavy Industries, Ltd., Deere & Company, Rolls-Royce plc, MAHINDRA POWEROL, J C Bamford Excavators Ltd., Atlas Copco AB, Caterpillar, HIMOINSA, Sterling and Wilson Pvt. Ltd., Yamaha Motor Co., Ltd., Generac Power Systems, Inc., Kohler Co., and Kirloskar.
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Market, By Power Rating
Market, By Fuel
Market, By End Use
Market, By Application
The above information has been provided for the following countries: