Posted On: 2021-05-07
75.1 kVA– 375 kVA diesel gensets acquired the largest revenue share in the diesel genset market of South Africa in recent years – 6Wresearch.
South Africa Diesel Genset market witnessed a modest decline during the period 2017-2020 owing to the worldwide oil price crises and the subsequent global pandemic situation caused by COVID-19 in 2020, leading to the shutting down of all construction, manufacturing, and trade operations and disrupted the value chain and ecosystem of diesel gensets due to the government-imposed nation-wide lockdown. However, the market has started bouncing back since 2021 with the gradual opening of lockdown restrictions and revival of supply chain disruptions.
According to 6Wresearch, the South Africa Diesel Genset Market size is projected to grow at a CAGR of 2.2% during 2021-2027F. Primary reason for the growth in the South Africa diesel genset industry can be attributed to the growing electricity demand supported by the country's economic diversification plans and government initiatives such as South Africa Vision 2025, National Transport Master Plan 2050, National Development Plan 2030. The government emphasizes the development of manufacturing and construction activities, and expansion of power infrastructure would further propel the growth of diesel gensets in South Africa in the forthcoming years.
According to Navneet Aggarwal, Research Analyst, 6Wresearch, "In terms of kVA ratings, 75.1 kVA– 375 kVA diesel genset garnered the majority share of the market, both in terms of revenues as well as volume in South Africa diesel genset market in 2020. The same would continue to dominate the market in both parameters during the forecast period due to growing power demand in residential, telecommunication, tourism, hospitality, and construction sectors.
Moreover, 75.1 kVA– 375 kVA diesel gensets are primarily deployed in hotels, malls, hospitals, and other commercial spaces as a backup power source in case of emergency. Owing to their economical cost, ease of availability, and widespread applicability across sectors where diesel gensets would be utilized for uninterrupted power supply in case of power failures, the demand for such diesel genset types would propel in South Africa in the coming years." Navneet further added.
According to Bhawna Singh, Research Associate, 6Wresearch, "The industrial sector as emerged as a major market shareholder in terms of revenue during the period 2017-2020 and the same trend is anticipated to persist over the coming years as a result of the government's initiatives such as South Africa's Industrial Policy Action Plan, South Africa NDP 2030 and industrial projects like Engen Refinery Expansion would require a reliable source of power and this requirement would be fulfilled by application of diesel genset on a large scale, thereby, accelerating the demand for diesel gensets in the industrial domain in the coming years in the country."
"Based on regions, eastern region acquired the largest revenue share in South Africa diesel genset market in the year 2020 and this trend is likely to continue during the forecast period as well. The Eastern region is South Africa's biggest construction market. All major industrial, residential, and commercial developments and projects such as Tetra4 Gas Reserve, Modderfontein New City, Breede Valley Housing Project, Nelson Mandela Bay Housing Development, Johannesburg Airport Expansion are ongoing in this region. Along with this, this region's population is highest due to the presence of the most populated cities of South Africa- Cape Town, Durban, and Johannesburg, which would boost the demand for diesel gensets in this region", Bhawna further added.
"South Africa Diesel Genset Market (2021-2027F)" report provides an in-depth analysis with 22 figures and 08 tables, covered in 91 pages. The report estimates and forecasts the South Africa diesel genset market by kVA ratings, applications, and regions. The report provides an unbiased and detailed analysis of the ongoing trends, 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.