Posted On: 2022-02-03
By types, diesel gensets acquired the largest revenue share in the genset market of Nigeria in recent years – 6Wresearch.
Nigeria diesel genset market has witnessed growth during 2017-2019 due absence of a consistent and appropriate power supply, coupled with frequent power outages. However, steady growth is expected in the forecast period due to government investments to reduce the country's infrastructure deficit through increased spending as part of a 30-year infrastructure plan (National Integrated Infrastructure Master Plan) with a 2043 target date.
According to 6Wresearch, Nigeria Genset Market size is projected to grow at a CAGR of 5.9% during 2021-2027. Rising industrialisation, a lack of dependable and adequate power supply accompanied by frequent power outages, and improved gas distribution networks are driving the Nigeria genset market. The genset industry is expected to grow in the next years due to an increase in construction activities and infrastructure development under Nigeria's "Vision 2030" programme. Government infrastructure development projects such as the Lagos light rail, the World Trade Centre, the Lekki free trade zone, the Eko-Atlantic city, and others will act as catalysts for the overall growth of the genset market in Nigeria, as gensets are a foremost solution for power generation and provide continuous power.
According to Navneet Aggarwal, Manager, 6Wresearch, above 1000 gas genset KVA garnered maximum revenue size in 2020 and the same trend is expected in the coming years as well due to rising focus of Nigerian government in the development of power & energy sector. About 100 oil and gas projects are set to be commenced between 2021 to 2025 resulting in rising demand of gas genset in the coming years
"Moreover, based on regions, South-West region dominates the genset market of Nigeria in 2020 as it is the most populous and industrialized region with about 70-80% manufacturing units functioning in the area. Government investments in current megaprojects in the region, including the US $11 billion Lagos-Calabar Railway, the US $5.8 billion Mambilla Hydroelectric Power Project, and the Abuja Gateway Airport, would assist the south-west region maintain its prominence in the upcoming years. Navneet further added.
According to Ramit Behl, Research Analyst, 6Wresearch, Above 1000 kVA diesel gensets garnered highest revenue size in 2020 in Nigeria genset market on account of rising usage in industrial, construction and large manufacturing units. In Nigeria, manufacturing companies rely heavily on power backup equipment to avoid losses caused by frequent power cuts. Furthermore, high-power diesel generators are deployed for power generation and distribution in off-grid rural areas because supplying direct grid electricity to many remote locations is not economically feasible. Thus, above 1000 kVA find application in such industries.
"Additionally, Upto 100 kVA dominated the Nigeria gas genset market in terms of volume owing to their major usage in residential and telecom sector and the trend is likely to continue in the following years due to the government's aim of reaching 90% penetration of telecom services by 2025 as a result, the deployment of towers is projected to generate further development prospects for the Nigerian gas genset market." Ramit further added.
Nigeria Genset Market (2021-2027) provides an in-depth analysis with 45 figures and 26 tables covered in 128 pages. The report estimates and forecasts the overall Nigeria genset market by types, KVA ratings, applications, and regions. The report provides an unbiased and detailed analysis of the Nigeria diesel genset market on-going 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.