The Africa diesel generator market size is expected to reach $9,71-billion by 2030, according to a new report by Grand View Research, expanding at a CAGR of 6% from 2023 to 2030.
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 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.