Market Snapshot
| Study Period: | 2019-2027 |
| Base Year: | 2021 |
| CAGR: | >3.6 % |
|
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Market Overview
The Tanzanian diesel generator market is expected to record a CAGR of around 3.6% during the forecast period. The COVID-19 outbreak significantly impacted the country’s diesel generator (DG) market due to reduced power demand caused by the slowdown in major sectors like manufacturing and construction. It was estimated that, in 2020, the production capacity in the light products manufacturing industry of all the East African nations reduced to 42% during the pandemic, from over 50% before the outbreak. The Tanzanian DG market is likely to grow due to the country’s deteriorated power supply scenario and the increasing industrial development. However, the market’s growth can be hindered by stringent regulations by the government on various industries to reduce the carbon-emission rate by adopting a cleaner method of power generation.
- The industrial segment is expected to witness the highest growth in the future due to the numerous planned industrial projects in the country.
- The recent growth in the construction activities in the country is likely to become the most attractive opportunity for the Tanzanian DG market. It includes private projects, such as residential and commercial real estate projects, and public projects, such as the construction of roads, bridges, railways, and water systems.
- The steady growth in the service sector is expected to drive the market in the coming years.
Scope of the Report
The Tanzanian diesel generator market report includes:
| Specification | |
| Less than or Equal to 75kVA | |
| 75kVA-375kVA | |
| More than 375kVA |
| End User | |
| Residential | |
| Commercial | |
| Industrial |
Key Market Trends
Industrial Segment Expected to Dominate the Market
- Tanzania's industrial sector witnessed an upsurge in recent years. The share of the industrial sector in the country's GDP was around 28.67% in 2020, which stands second in the sectoral contribution, after the service sector and agricultural sector.
- The country's Ministry of Finance and Planning recently recommended allocating more funds to the key projects planned for 2022-2023, as it is the second year of the National Five Year Development Plan (2021-2026). The projects tabled for the plan are mostly from the industrial sector.
- In August 2021, installations for the Julius Nyerere Hydropower Plant began in Tanzania through the joint venture of the Arab Contractors and the Egypt-based company Elsewedy Electric. The project consists of 9x235 MW turbines installation for a total capacity of 2,115 MW. The commissioning of the project is expected in 2022 or 2023. Installation work has come after completing relevant civil works carried out by Egyptian and Tanzanian engineers and technicians.
- In December 2021, the Tanzanian government entered a contract with Turkish firm Yapi Merkezi to construct a 368 km section of standard gauge railways in Tanzania. The USD1.9-billion project will connect Dar es Salaam and Morogoro city. The electrical testing began in 2021, and the project is expected to be operational by 2022.
- Such initiatives to expand the industrial sector will have an overwhelming impact on the share of the industrial sector of the Tanzanian diesel generator market.
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Growth of the Service Sector Expected to Drive the Market
- The service sector of the country largely includes services like IT and data centers, schools, hospitals, and small and medium business startups. The sector's contribution to the GDP was around 36.25% in 2020, the largest among all the sectors.
- The government programs to boost trade and economic activity and foster digitalization in the country are leading to the highly awaited technical development in the service sector.
- The Ministry of Communications and Information technology, Tanzania, approved the Digital Tanzania Project in May 2021, which aims to increase access to high-quality broadband internet services for government, businesses, and citizens and enhance the government's capability to offer digital public services in the country. The initiative will lead to more data centers and other IT services in Tanzania, which will require a continuous power supply.
- Moreover, the infrastructural development of the commercial sector is expected to boost the market. For instance, in November 2021, the Bagamoyo Special Economic Zone project in Tanzania became the new subject of contention for the Ministry of Industry and Trade, Tanzania. The multi-billion-dollar project was implemented by the Tanzanian government, China Merchants International, and the Oman National Government Reserve Fund (SGRF) to establish the largest port for trade and industries in East Africa. The project is expected to be in service by 2023.
- Such developments will boost the service sector and lead to robust growth in the power demand and solutions like DG sets.
Competitive Landscape
The Tanzanian diesel generator market is moderately fragmented. Some of the key players in the market include Masterpower Generator Industry and Trading Inc., African Power Machinery (TZ) Ltd, Aksa Power Generation, Caterpillar Inc., and Phoenix Diesel Power Ltd.
Recent Developments
- In January 2021, Caterpillar Inc. introduced 31 new models of GC diesel generator sets for the global electrical contractor market. The new models are for 50Hz and 60Hz applications. They are the company's new range of value-engineered standby power solutions, including 1100 kVA models exclusively launched for Africa, Europe, Asia-Pacific, and the Middle East.
- In January 2022, the Tanzanian government discussed moving ahead with the Coal, Iron, and Steel mining project in Liganga, Tanzania. The project is being implemented by the Tanzania China International Mineral Resource Ltd (TCIMRL), which has been waiting for the proceedings in the project for the last nine years. The project will resume after the settlement with an agreement over incentives with the government.
Table of Contents
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 2027
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 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Specification
5.1.1 Less than or Equal to 75kVA
5.1.2 75kVA-375kVA
5.1.3 More than 375kVA
5.2 End User
5.2.1 Residential
5.2.2 Commercial
5.2.3 Industrial
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 Masterpower Generator Industry and Trading Inc.
6.3.2 African Power Machinery(TZ) Ltd
6.3.3 Aksa Power Generation
6.3.4 Caterpillar Inc.
6.3.5 Phoenix Diesel Power Ltd
6.3.6 Power Providers Tanzania
6.3.7 Sincro Sitewatch Ltd
6.3.8 Merrywater Ltd
6.3.9 Diesel Electric Services (Pty) Ltd
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Tanzania Diesel Generator Market market is studied from 2019 - 2027.
What is the growth rate of Tanzania Diesel Generator Market?
The Tanzania Diesel Generator Market is growing at a CAGR of >3.6% over the next 5 years.
Who are the key players in Tanzania Diesel Generator Market?
Masterpower Generator Industry and Trading Inc, African Power Machinery (TZ) Ltd , Phoenix Diesel Power Ltd , Aksa Power Generation, Caterpillar Inc. are the major companies operating in Tanzania Diesel Generator Market.
