South America & Africa Diesel Generator Market Growth Analysis
Market Research Future (MRFR) presumes South America & Africa Diesel Generator Market Growth to grow with the CAGR of approximately 5.80% from 2024 to 2032 (forecast period).
South America & Africa Diesel Generator Market Growth is characterized by the overall reliance of energy consumers in South America & Africa on uninterrupted and reliable power through diesel generators. Where the end-user is experiencing regular power outages and requires emergency power backup, these diesel generators provide standby, prime, and continuous power output. Diesel generators for the South America & Africa regions are expected to expand at a rapid pace due to increased urbanization and industrialization, which has resulted in a need for excess and continuous electricity supply. Diesel generators provide prime, standby, and continuous power production to the residential, commercial, and industrial sectors, as well as a dependable source of power generation in an emergency and at a remote location.
The majority of developing or underdeveloped countries are located in South America and Africa. These countries depend heavily on standby power generation or non-conventional methods of power generation because conventional power generation is costly and generates power at a lower capacity than the actual demand. All these factors majorly result in a power outage in these regions. As a result, the majority of end-users are turning to diesel-powered generators. End users like industries, hospitals, construction sites, remote & discrete sites, commercial and residential rely on diesel generators for continuous, prime, and standby power.
The rising number of power outages and the high average price of power produced by conventional power plants are driving up demand for diesel generators in the African and South American regions. As a result, consumers prefer a continuous and dependable power supply. Due to inadequate grid infrastructure and limited power generation capacity, a significant investment in independent diesel generator units has been made. Diesel generators use less fuel than other types of generators and have a longer life cycle. Diesel generators provide dependable and continuous power supply based on consumer demand while operating safely and efficiently. All these major factors are accelerating the demand for diesel generators in South America & Africa.
Diesel generators for the South America and Africa region are expected to expand at a rapid pace, as increasing urbanization and industrialization have resulted in a demand for excess and continuous electricity supply. Diesel generators provide prime, standby, and continuous power production to the residential, commercial, and industrial sectors, as well as a reliable source of power generation in an emergency or in a remote area. The market is being driven by a number of factors, including an increase in power outages and power failures, rising demand for continuous and dependable power supply, and growth in hybrid renewable energy systems. However, the advancement of renewable energy technologies, as well as the high operating and maintenance costs of diesel generators, will serve as restraints for South America and Africa Diesel Generator Market.
COVID-19 Impact on South America & Africa Diesel Generator Market Growth
The global outbreak of a new coronavirus is expected to cause a slight slowdown in the market. Manufacturing work has come to a halt as a result of labor shortages. As a result, demand from end-use industries has plummeted dramatically.
Regional Analysis
Colombia is heavily investing in the development of hybrid renewable energy systems in order to meet the increasing demand for electricity. According to the World Bank, Columbia's national electrification rate in 2016 was 98%, with approximately 90% rural electrification rate, and the industrial sector contributed 34.00% of total GDP. It was also discovered that approximately 53.3% of businesses suffered power outages in 2016, with approximately 10.8% of businesses owning or sharing a generator. The current scenario in the states of Colombia is a rising demand for electricity, which hybrid renewable energy systems can meet.
Nigeria has one of Africa's largest economies, with a GDP of 405,082.7 million USD in 2016. However, Nigeria's development is severely hampered by an insufficient supply of reliable electricity. According to the World Bank, Nigeria's national electrification rate in 2016 was 45%, with rural electrification at 36%. In addition, the industrial sector contributed 19.4% of the total GDP. It was also discovered that approximately 77.6% of businesses suffered power outages in 2016, with approximately 70.7% of businesses owning or sharing a generator. Nigeria is currently receiving significant assistance and investment to build hybrid renewable energy systems and micro-grids. The diesel generator market in Nigeria is expected to rise significantly over the forecast period.
Key Players
Notable players of South America & Africa Diesel Generator Market Growth are Caterpillar Inc., AKSA Power Generation, Cummins Inc., Generac Holdings Inc., Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., Aggreko PLC, Kohler Co., Rolls-Royce Power Systems AG, Wuxi Kipor Power Co. Ltd, MAN Diesel & Turbo, General Electric Company and Wärtsilä.
Summary
South America & Africa Diesel Generator Market Growth is anticipated to grow with the CAGR of approximately 9.38% from 2018 to 2023 (forecast period). South America and Africa Diesel Generator Market is expanding rapidly as a result of factors such as an increase in power outages and power failures, rising demand for continuous and dependable power supply, and growth in hybrid renewable energy systems.
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