Ethiopia Diesel Genset Market size is projected to grow at a CAGR of 7.5% during 2021E-2027F

Lower kVA rated diesel genset acquired the largest market volume share among all the power ratings in overall Ethiopia diesel genset market – 6Wresearch

Ethiopia diesel genset market is anticipated to grow on account of developing road infrastructure, growing demand for power in urban and off-grid areas, increasing power needs for the construction activities across Ethiopia. Further, the Ethiopian government intends to increase its operational industrial parks in the region from five in 2018 to 30 by 2025, which is likely to propel the market in the forecast period.

According to 6Wresearch, Ethiopia Diesel Genset Market size is projected to grow at a CAGR of 7.5% during 2021E-2027F. Due to the COVID-19 pandemic, the Ethiopian diesel gensets market has seen a decrease in revenue for 2020 due to the halting of economic activities and disruption in the supply chain as the Ethiopian market is majorly import driven. However, increasing demand from the construction, residential, and ICT sectors is anticipated to create more growth opportunities in the future as the Ethiopian government intends to open its telecom industry to private investors in addition to a minority stake in the state monopoly. This would require the construction of 10,000 new towers over the next five years to support this expansion resulting in rising demand for a reliable power source.

According to Navneet Aggarwal, Senior Research Analyst, 6Wresearch, by KVA ratings 75.1 KVA- 375 KVA garnered maximum revenue size in 2020, and the same trend is expected in the coming years as well due to rising demand from the commercial sector, small and medium-scale manufacturing units, and offices on account of growing demand for reliable and uninterrupted power supply in the region. Further, Up to 75 KVA diesel gensets account for maximum volume size as these are used as a standby source of power in hotels, malls, hospitals, industrial parks, and the telecom sector in case of emergency.

"Moreover, based on regions, southern region acquired the largest revenue share in Ethiopia diesel genset market in the year 2020, and this trend is likely to continue during the forecast period as well due to the high urbanization rate and growing need for electricity in the cities like Addis Ababa and Oromia. Furthermore, ongoing construction projects such as LaGare, a 36-hectare real estate project, and Addis Ababa housing projects with an investment of almost $1.2 bn are anticipated to create more growth opportunities for the diesel generators owing to the lack of grid connectivity in the region. Navneet further added.

According to Ramit Behl, Research Associate, 6Wresearch, by application, the industrial sector captured the major revenue share in the Ethiopian diesel genset market. The same trend is expected in the forecast period and on account of growing investment in the Industrial sector. For instance, a $2.2 billion lemmi National Cement industrial complex supported by private investors is set to be built in Ethiopia, resulting in the growing demand for diesel gensets. Further mega ongoing construction projects such as Mesob Tower, Largest Airport in Africa, Lapsset Project, among others, would act as catalysts for the overall growth of the diesel genset market in Ethiopia.

"Additionally, growing government initiatives such as 10-year economic growth strategy plan to boost the country's tourism, manufacturing, agriculture, ICT & mining sector would result in a growing demand for a reliable source of power. Such requirement would be fulfilled by application of diesel genset thereby, accelerating the demand for diesel gensets in the Ethiopia industrial domain in the coming years." Ramit further added.

Ethiopia Diesel Genset Market (2020-2027) provides an in-depth analysis with 24 figures covered in 75 pages. The report estimates and forecasts the overall Ethiopia diesel genset market by KVA ratings, application, and regions. The report provides an unbiased and detailed analysis of the Ethiopian diesel genset market ongoing trends, outlook, opportunities/high growth areas, and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.