The Middle-East and Africa Diesel Generator market is expected to grow at a CAGR of more than 2% over the period of 2020-2025. Factors such as an increase in demand for uninterrupted and reliable power supply coupled with increasing construction activities are expected to drive the market. However, advancement in battery technologies and the availability of much cleaner alternatives may act as a restrain for the market.

  • The backup generator segment is expected to have the largest market share as most of the countries, especially the sub-Saharan countries, lack quality transmission that leads to citizens owning their generator, which can be used when required.
  • New models like modestly sized power stations, which comprise dependable diesel-powered engines, alongside quality alternator and transformer technology, may provide a new source of energy production for previously underserved communities and act as an opportunity for market players.
  • Nigeria is expected to dominate the market due to its large population and increasing economic growth in the country. Demand for electricity is expected to rise with the increase in the size of its population.

Key Market Trends

Backup Generators to Dominate the Market

  • Several countries in Africa, especially western Africa, heavily rely upon the use of small capacity generators to meet daily usage of electricity. Primarily due to the demand for uninterrupted and reliable power supply, which the utility grid is unable to provide.
  • The transmission network and reliability of the utility grid may directly correlate with the power generated by the backup generators. North Africa, which has higher access to the grid, has a lower use of backup generators than the Sub-Saharan countries.
  • In 2018, Egypt’s citizens had 100% access to electricity in their country, whereas in the Democratic Republic of Congo, less than 20% of the population was covered. The Democratic Republic of Congo, consequently, has a higher electricity generation from its diesel backup generators than Egypt. Therefore, countries in the region, especially the sub-Saharan nations are expected to provide growth to the market.
  • Countries with high oil production tend to be using diesel and gasoline generators more to produce electricity. For example, Saudi Arabia and the United Arab Emirates (UAE), have a high backup generator installed capacity. Other oil-producing countries in the region, like Iraq is among the largest user of backup generators in the middle-east region, primarily due to low electricity being generated in the grid by other means.
  • Therefore, backup diesel generators are expected to continue to dominate the market due to its flexible use and large size in the electricity generation relative to other market segments.

Nigeria to Dominate the Market

  • Nigeria is among the highest consumer of energy generated by backup generators in the region. It is due to several factors including easy availability of fossil fuel, poor governmental policies leading to low transmission capabilities, and an increasing population leading to an increase in electricity demand. All these factors push consumers to produce their electricity using small backup generators, thereby aiding the growth of the market.
  • Consumption of electricity in the country increased, by 3.85%, from approximately 52 million tons of oil equivalent (mtoe), in 2017 to nearly 54 mtoe, in 2018. A high rate of consumption is expected to maintain in the forecast period, thereby driving growth in the market.
  • The country is a large user of small-scale generators. Relying heavily on the use of diesel and gasoline as the primary fuel. Problems with the transmission of electricity is a significant driver of the market, as, in 2018, only 56.5 % of the population had direct access to the utility grid.
  • Hence, Nigeria is expected to dominate the market due to its large population and low transmission capabilities and thereby, leading to an increase in demand for diesel generators in the country.

Competitive Landscape

Middle-East and Africa diesel generator market is partially fragmented. Some of the key players in this market are Caterpillar Inc, Cummins Ltd., Yanmar Holdings Co., Ltd., Atlas Copco AB, and Honda Siel Power Products Limited

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support