Posted On: 2018-12-21
Nigeria Diesel Genset market is expected to witness modest growth owing to the expansion of telecom infrastructure, the establishment of new industries, and poor grid infrastructure of the country. Growing investment in the non-oil sector of the country is anticipated to support the economic growth in the region over the coming years which would foster the demand for diesel gensets during 2018-24. Additionally, the growing number of manufacturing units in the country is expected to boost the growth of the diesel Genset market.
According to 6Wresearch, Nigeria diesel Genset market is forecast to grow at a CAGR of 2.8% during 2018-24. The global oil price crisis coupled with the implementation of poor economic policies by the Nigerian government resulted in a slowdown in the economy of the country. As a result, the government of Nigeria has shifted its focus on the development of non-oil sectors of the country by investing across the manufacturing, retail, and commercial sectors. These initiatives to strengthen the non-oil economy of the country continues with upcoming industrial projects across tobacco, food & beverages, and chemical industries of Nigeria. These initiatives would fuel the demand for diesel gensets in the non-oil domain.
According to Ravi Bhandari, Research Manager, Research and Consulting, 6Wresearch, "Poor electrification rate of the country and bad grid infrastructure have surged the demand for diesel gensets across the residential vertical of the country especially in the low KVA rating segment".
"Further, the high kVA rating diesel gensets are more popular among the industrial and power utility end-users as a source of auxiliary power resource. Construction of new industrial units in the country along with the growing number of SMEs in the region would further help the diesel Genset market to grow specifically in the 375KVA-750KVA segment," Ravi added.
According to Priya Sharma, Research Analyst, Research and Consulting, 6Wresearch, "The residential sector accounted for the majority of the share of diesel gensets in volume terms due to low electrification rate and thus most of the power demand is met by diesel generators. However, in terms of growth, the market is driven by the telecom sector owing to an increasing number of subscribers and growing penetration of 3G and 4G technologies among mobile subscribers. As a result, several telecom companies are deploying new telecom towers across the country which requires diesel gensets to provide continuous/ backup power support for streamline operation".
"Moreover, the commercial sector of the country is also experiencing a healthy investment in the development of office space in Lagos and Lekki regions, which would further help the diesel Genset market to grow during the forecast period," Priya further added.
Nigeria Economy Recovery & Growth Plan 2017-20 would accelerate several new projects across the commercial and industrial verticals of the country, which is expected to fuel the demand for diesel gensets majorly in the Northern region of the country. Some of the major players in Nigeria diesel Genset market include - Cummins, Kirloskar, YorPower, Mikano International, Mitsubishi Heavy Industries, Perkins Engines, and Caterpillar.
"Nigeria Diesel Genset Market (2018-2024)" provides an in-depth analysis with 52 figures and 3 tables covered in more than 110 pages. The report estimates and forecast the overall Nigeria diesel Genset market by revenue, volume, KVA rating, verticals, regions, and states. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas, and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.