Africa Diesel Generator Market (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) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The Africa diesel generator market was valued at USD 5.43 billion in 2021 and it is predicted to surpass around USD 8.98 billion by 2030 with a CAGR of 5.75% from 2022 to 2030

Report Highlights

• 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 2021. 
• The telecom end-use segment led the market and accounted for the largest revenue share of more than 18.66% in 2021. 
• South Africa dominated the market and accounted for the largest revenue share of over 16.86% in 2021. 

The rise in demand for these products is being witnessed with the easing of lockdown restrictions in countries in Africa, which will increase the demand for diesel generators from this power range over the forecast period.

Above 3,000 kVA diesel generators are mainly utilized by large-scale industries involved in metal production, food and beverages, mining, and automobile manufacturing. Major vendors such as Mitsubishi Heavy Industries, Ltd. and Caterpillar provide diesel generators in this power rating range which are capable of providing emergency power supply and continuous power supply in case of unexpected power outages.

The banking sector came under the essential category during the pandemic, which resulted in the normal operation of banks in countries of the African region. However, construction of new banks and renovation in existing banks was on hold in the majority of the countries owing to restrictions on construction activities during the pandemic and fund diversion by banks to financially sustain the pandemic.

Diesel generators in tourism sectors are utilized in hotels and resorts. Diesel generators are majorly utilized for providing backup power supply in case of short or longer-duration power outages. However, diesel generators also account to be a source of continuous power supply in tourist places which has no access to grid power. Hotel owners generally opt for diesel generators over other backup power supply options owing to low capital cost and easy availability of diesel.

However, the COVID-19 pandemic has resulted in a reduction in demand from this power range due to the closure of automobile manufacturing, mining, and construction activities as per the mandate of lockdown imposed in various countries. The rise in demand for medical equipment such as ventilators and necessary medicines has resulted in high demand for diesel generators from the pharmaceutical and medical equipment manufacturing industries. Additionally, the lifting of lockdown in various countries has resulted in starting of industrial activities which are expected to boost the growth of this power segment over the forecast period.

Scope of The Report

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 2021. 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 2021. 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 2021. 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 Players

• Caterpillar
• Cummins Inc.
• Atlas Copco AB
• AKSA power generation
• Kohler Co
• HIMOINSA
• Wartsila
• Kirloskar Oil Engines Ltd.
• MITSUBISHI HEAVY INDUSTRY LTD.

Market Segmentation

• By Power Rating Outlook

• 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 Outlook
• Manufacturing
• Construction
• Telecom
• Mining
• Data Center
• Tourism
• Banking
• Others
• By Country Outlook
• Kenya
• Algeria
• South Africa
• Ethiopia
• Ghana
• Tanzania
• Morocco
• Mali
• Uganda