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The Middle-East and Africa generator sets market is expected to grow at a CAGR of more than 2% over the period. Factors such as increasing demand for uninterrupted and reliable power supply are expected to drive the market. However, the availability of cleaner alternatives and advancement in battery technologies is expected to act as a restrain for market growth during the forecast period.
– The backup generator segment is expected to be the largest market as most of the countries, especially the sub-Saharan countries, lack quality transmission that leads to citizens owning their generator, which can be used when required.
– The increasing popularity of hybrid generators and rising reliability of the hybrid system may be an opportunity for the industry due to its usage of various resources, driving down the cost, and reducing dependence on a single fuel.
– Nigeria is expected to be the largest market due to its large population and increasing economic growth. The demand for electricity is expected to rise with an increase in the size of its population.
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Key Market Trends
Backup Power Generators to Dominate the Market
– Several countries in Africa, especially western Africa, heavily rely upon the use of small capacity generators to meet daily usage of electricity. Primarily due to the demand for uninterrupted and reliable power supply, which the utility grid is unable to provide.
– The transmission network and reliability of the utility grid may directly correlate with the power generated by the backup generators. North Africa, which has higher access to the grid, has a lower use of backup generators than the Sub-Saharan countries.
– In 2018, Egypt's citizens had 100% access to electricity in their country, whereas in the Democratic Republic of Congo, less than 20% of the population was covered. The Democratic Republic of Congo, consequently, has a higher electricity generation from its diesel backup generators than Egypt. Therefore, countries in the region, especially the sub-Saharan nations, are expected to provide growth to the market.
– In 2020, newer types of backup generators, like the natural gas generators, are gaining prominence in the market due to their cheaper fuel and higher efficiency. Natural gas generators are expected to grow significantly in the forecast period.
– Countries with high oil production tend to be using diesel and gasoline generators to produce electricity. For example, Saudi Arabia and the United Arab Emirates (UAE), have a high backup generator installed capacity. Other oil-producing countries in the region like Iraq is among the largest user of backup generators in the middle-east region, primarily due to low electricity being generated in the grid by other means.
– Therefore, backup power generators sets are expected to continue to dominate the market due to its flexible use and a significant share in the electricity generation relative to other market segments.
Nigeria to Dominate the Market
– Nigeria is among the highest consumer of energy generated by backup generators in the region. It is due to several factors including easy availability of fossil fuel, poor governmental policies leading to low transmission capabilities, and an increasing population leading to an increase in electricity demand. All these factors push consumers to produce their electricity using small backup generators, thereby aiding the growth of the market.
– Consumption of electricity in the country increased, by 3.85%, from approximately 52 million tons of oil equivalent (mtoe), in 2017 to nearly 54 mtoe, in 2018. A high rate of consumption is expected to maintain in the forecast period, thereby driving growth in the market.
– The country is a large user of small-scale generators. Relying heavily on the use of gasoline as the primary fuel. Problems with the transmission of electricity is a significant driver of the market, as, in 2018, only 56.5 % of the population had direct access to the utility grid.
– Although gasoline generator sets are able to provide only basic electricity needs (3 – 5 KW) and have much lower efficiency than diesel generators, they make up a large share of backup generation capacity in the country. Primarily due to their lower initial investment costs.
– Hence, Nigeria is expected to dominate the market due to its growing population and low transmission capabilities leading to an increase in demand for generators sets in the country.
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Competitive Landscape
The Middle-East and Africa generator sets market is partially fragmented. Some of the key players in this market are Caterpillar Inc, CumminsLtd., Yanmar Holdings Co., Ltd., Atlas Copco AB, and Honda Siel Power Products Limited
1 INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
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