The Nigerian diesel genset market will record a 4.1% growth between 2019 and 2024, according to a new study conducted by research firm Prescient & Strategic Intelligence.
Revenue generation within the market is expected to reach $527.4 million during the forecast period.
Factors driving the genset market growth include the need to address substantial energy transmission losses, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications.
Consumers are increasingly relying on diesel generators to meet their energy needs.
Nigeria is facing a huge gap in energy demand and supply due to:
- Aging energy transmission and distribution systems unable to efficiently supply the required capacity
- Energy demand outrunning local generation
In 2018, energy demand in Nigeria was 40,000MW of which the country was only able to produce between 7,000MW and 8,000MW mark.
Based on application, in 2018 the industrial genset sector dominated other segments, namely residential and commercial.
In addition, the proposed Economic Recovery and Growth Plan (ERGP) of the Nigerian government is projected to attract huge investments in the manufacturing sector, thereby, encouraging the adoption of diesel gensets for operations and setting up of various industries.
The industrial sector generated more than 40% of the market’s total revenue.
This can be attributed to the huge demand for comparatively expensive high-power generator sets in the industrial.
Source: ESI Africa