Due to the surge in upstream exploration and production (E&P) activities and the expansion of the refining industry, because of the huge investments made by both foreign and domestic organizations, the sales of diesel gensets (or generator sets) are rising rapidly in Nigeria. Additionally, various proposed construction projects such as the building of airport terminals, bridges, and the Lagos–Calabar coastal railway lines are predicted to propel the sales of diesel gensets in Nigeria in the coming years.
Apart from the aforementioned factors, the increasing usage of renewable sources of energy such as photovoltaic (PV) modules for fulfilling the domestic power needs is also fueling the sales of diesel gensets in the country. In addition to this, the implementation of several government policies and initiatives aimed at enhancing the domestic renewable power capacity is massively boosting the sales of diesel gensets in the country. This is being done for reducing the demand-supply gap in the country.
Due to the above-mentioned factors, the sales of diesel gensets are climbing in Nigeria. This is fueling the expansion of the Nigeria diesel genset market. The value of the market is predicted to grow from $410.9 million in 2018 to $527.4 million by 2024. Furthermore, the market is predicted to progress at a CAGR of 4.1% between 2019 and 2024. Residential, industrial, and commercial sectors are the biggest application areas of diesel gensets in the country.
When power rating is taken into consideration, Nigeria diesel genset market is categorized into above 750 kVA, 376 kVA–750 kVA, 76 kVA–375 kVA, and 5 kVA–75 kVA. Amongst these, the 5 kVA–75 kVA category recorded the highest growth in the market in the past, as per the observations of the market research company, P&S Intelligence. This was because of the huge requirement for these gensets in residential facilities, telecom towers, and retail and small commercial establishments.
Hence, it can be said with surety that the demand for diesel gensets will soar in Nigeria in the future years, primarily because of the existence of a poor power infrastructure and grid uncertainties and the growing adoption of renewable energy sources in the country.
Source: P&S Intelligence
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