Middle-East And Africa Generator Sets Market Size
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
|CAGR||> 2.00 %|
*Disclaimer: Major Players sorted in no particular order
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Middle-East And Africa Generator Sets Market Analysis
The Middle East and Africa generator sets market is expected to register a CAGR of more than 2% over the period.
The market was negatively impacted by COVID-19 in 2020. Presently the market reached pre-pandemic levels.
- Over the long term, increasing demand for uninterrupted and reliable power supply is expected to drive the market.
- Conversely, the availability of cleaner alternatives and advancement in battery technologies is expected to restrain market growth during the forecast period.
- Nevertheless, the increasing popularity of hybrid generators and the 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 electricity demand is expected to rise with an increase in the size of its population.
Middle-East And Africa Generator Sets Market Trends
Backup Power Generators to Dominate the Market
- Several African countries, especially Western Africa, heavily rely on small-capacity generators to meet daily electricity usage. It is primarily due to the demand for an uninterrupted and reliable power supply, which the utility grid cannot provide.
- The transmission network and reliability of the utility grid may directly correlate with the power generated by the backup generators. North Africa, which includes higher grid access, uses backup generators less than the Sub-Saharan countries.
- In 2021, Egypt's citizens had 100% access to electricity, whereas, in the Democratic Republic of Congo, less than 20% of the population was covered. The Democratic Republic of Congo, consequently, includes 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 2021, newer backup generators, like 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.
- According to Arab Petroleum Investments Corporation, during 2022-2026, the share of planned energy investment projects in the power sector in the Middle East and North Africa (MENA) region was 28%. It was followed by the petrochemical sector with a share of 27%. Countries with high oil production use diesel and gasoline generators to produce electricity. For example, Saudi Arabia and the United Arab Emirates (UAE) contain a high backup generator installed capacity. Other oil-producing countries in the region, like Iraq, are among the largest backup generator users in the Middle East region. It is primarily due to low electricity generated in the grid by other means.
- Also, as of 2022, Saudi Arabia's construction industry continues to lead the Middle East and Africa region. The Kingdom witnessed the highest value of project awards in 2022, transforming the country in line with its Vision 2030. Construction output growth in the Kingdom was anticipated to rise by 3.2% in 2022.
- Therefore, backup power generator sets are expected to continue to dominate the market due to their flexible use and significant share in electricity generation relative to other market segments.
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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 fossil fuel availability, poor governmental policies leading to low transmission capabilities, and an increasing population, leading to increased electricity demand. All these factors push consumers to produce their electricity using small backup generators, aiding the market's growth.
- According to the National Bureau of Statistics, Nigeria, nearly 36.4 thousand GWH of electricity was generated in Nigeria in 2021, up from around 35.7 thousand GWH in the previous year. Notable producing companies in the country include Egbin and Azura-Edo.
- The country is a large user of small-scale generators, relying heavily on gasoline as the primary fuel. Problems with electricity transmission are a significant driver of the market, as, in 2021, around 56 % of the population had direct access to the utility grid.
- Although gasoline generator sets can provide only basic electricity needs (3 - 5 KW) and contain much lower efficiency than diesel generators, they make up a large share of backup generation capacity in the country. It is primarily due to their lower initial investment costs.
- In September 2022, The Government of Nigeria announced that it had spent USD 5.26 billion importing electric generating sets, transformers, vacuum cleaners, hair clippers, and other electrical machinery and equipment in 2020 and 2021. Also, the National Bureau of Statistics disclosed that Nigeria gets 48.6% of its electricity needs from generators powered by petrol, diesel, and gas.
- Hence, Nigeria is expected to dominate the market due to its growing population and low transmission capabilities, leading to increased demand for generator sets.
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Middle-East And Africa Generator Sets Industry Overview
The Middle East and Africa generator sets market is partially fragmented. Some key players in this market (in no particular order) include Caterpillar Inc, Cummins Ltd., Yanmar Holdings Co., Ltd., Atlas Copco AB, and Honda Siel Power Products Limited., among others.
Middle-East And Africa Generator Sets Market Leaders
Honda Siel Power Products Limited
Yanmar Holdings Co., Ltd.
Atlas Copco AB
*Disclaimer: Major Players sorted in no particular order
Middle-East And Africa Generator Sets Market News
- November 2022: Bergen Engines AS signed an agreement to supply a 120 MW Combined Heat & Power (CHP) plant in Nigeria. The 120 MW plant will comprise ten 12 MW Bergen B36:45V20 gas engines fitted with Marelli Motori alternators. Each generator set will weigh over 175 tonnes.
- November 2022: Generator manufacturer HIMOINSA Southern Africa, which won Renergen subsidiary Tetra4's tender process, supplied, installed, and commissioned a fully functioning power plant for LNG, a helium plant in South Africa. The supply includes 8 fully synchronized generator sets, neutral earth transformers, fuel tanks, and a control room installed to run the site at 8 MW power.
MEA Generator Sets Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
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
5.1.1 Natural Gas
5.2.1 0 - 75 kVA
5.2.2 75 - 375 kVA
5.2.3 Above 375 kVA
5.3.1 Prime Power
5.3.2 Backup Power
5.3.3 Peak Shaving
5.4.2 Saudi Arabia
5.4.3 South Africa
5.4.4 United Arab Emirates
5.4.6 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Cummins Inc.
6.3.2 Kirloskar Oil Engines Limited
6.3.3 Honda Siel Power Products Limited
6.3.4 Yanmar Holdings Co., Ltd.
6.3.5 Caterpillar Inc.
6.3.6 Mitsubishi Heavy Industries, Ltd.
6.3.7 Perkins Engines Company Limited
6.3.8 Atlas Copco AB
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
MEA Generator Sets Market Research FAQs
What is the current Middle-East and Africa Generator Sets Market size?
The Middle-East and Africa Generator Sets Market is projected to register a CAGR of greater than 2% during the forecast period (2023-2028).
Who are the key players in Middle-East and Africa Generator Sets Market?
Honda Siel Power Products Limited, Cummins Ltd., Yanmar Holdings Co., Ltd., Caterpillar Inc. and Atlas Copco AB are the major companies operating in the Middle-East and Africa Generator Sets Market.
Middle-East and Africa Generator Sets Industry Report
Statistics for the 2023 Middle-East And Africa Generator Sets market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle-East And Africa Generator Sets analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.