Nigeria Diesel Genset Market by Power Rating, by Application - Market Size, Share, Development, Growth, and Demand Forecast to 2024

Nigeria Diesel Genset Market by Power Rating, by Application - Market Size, Share, Development, Growth, and Demand Forecast to 2024

  • April 2019 •
  • 112 pages •
  • Report ID: 5782422 •
  • Format: PDF
Nigeria Diesel Genset Market by Power Rating (5 kVA-75 kVA, 76 kVA-375 kVA, 376 kVA-750 kVA, Above 750 kVA), by Application (Commercial [Retail Establishments, Commercial Offices, Telecom Towers, Hospitals, Hotels], Industrial [Manufacturing, Energy & Power], Residential) - Market Size, Share, Development, Growth, and Demand Forecast to 2024

The Nigerian diesel genset market is expected to generate a revenue of $527.4 million by 2024, advancing at a CAGR of 4.1% during the forecast period (2019–2024), according to the report. The key factors driving the growth of the market are substantial transmission loss, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications.

The country’s power domain is facing various issues such as weak transmission and distribution network, inefficient operations, and a huge gap in demand–supply, with the demand outrunning the production of domestic electricity by a notable margin. According to industry experts, in 2018, the demand for electricity in the country was over 40,000 MW, whereas the energy produced hovered near the 7,000 MW–8,000 MW mark. This clearly suggests an increasing consumer reliance upon diesel generator sets in the country.

During the forecast period as well, government initiatives might not be able to completely fill the gap between the demand and supply due to the substandard grid infrastructure, high base power deficit, and surging population. This is resulting in a greater dependence on off-grid sources to cater to the power requirements, thereby further strengthening the Nigerian diesel genset market.

Based on power rating, the market is classified into 5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA. Out of these, during the historical period (2014–2018), 5 kVA–75 kVA gensets dominated the Nigerian diesel genset market in terms of sales volume, due to the massive demand for these gensets in commercial complexes, hotels, residential settings, and other places with low-power needs.

Based on application, the Nigerian diesel genset market is divided into industrial, commercial, and residential applications. Among these, the industrial division dominated the market with a revenue contribution of more than 40.0% in 2018. This can be attributed to the huge demand for comparatively expensive high-power generator sets in the industrial sector of the country. In addition, the proposed Economic Recovery and Growth Plan (ERGP) of the Nigerian government is projected to attract huge investments in the manufacturing sector, thereby, encouraging the adoption of diesel gensets for operations and setting up of various industries.

In 2018, in Nigeria, telecom towers registered more than 12.0% sales volume share in the market. Furthermore, the category is predicted to advance at a CAGR of 6.3% in terms of revenue during the 2019–2024 period, owing to the increasing demand for these gensets in telecom towers to fulfil the auxiliary and prime power requirements. Also, the investments in the telecom sector, along with the significant installation of towers in erratic power supply scenario and in off-grid areas, are anticipated to support the Nigeria diesel genset market during the forecast period.

NIGERIA DIESEL GENSET MARKET SEGMENTATION
Market Segmentation by Power Rating
• 5 kVA–75 kVA
• 76 kVA–375 kVA
• 376 kVA–750 kVA
• Above 750 kVA

Market Segmentation by Application
• Commercial

- By user

- Retail establishments
- Commercial offices
- Telecom towers
- Hospitals
- Hotels
- Others (public transport agencies, party halls, petrol pumps, cold storage facilities, and amusement parks)
• Industrial

- By user

- Manufacturing
- Energy and power
- Others (small industrial units, construction projects, and locomotives)
• Residential