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The Nigerian Genset Market
Frost & Sullivan, April 2011, Pages: 60
Nigeria is facing a major power crisis and is highly dependent on diesel generated power as its primary source of energy. The high economic growth experienced in 2009 led to an increase in the demand for gensets. The major end users in the market experiencing tremendous growth such as telecommunications. This research service gives a comprehensive analysis of the market drivers, restraints and challenges currently affecting the growth, the market size in terms of revenues and unit sales over a forecast period, the competitive environment, end user trends, and assessments of the performance of key suppliers and provides strategic recommendations to equipment suppliers based on the market assessment.
This research service titled The Nigerian Genset Market offers a comprehensive analysis of the current dynamics driving market growth. It also provides an examination of the challenges faced by equipment suppliers in the Nigerian genset market. The future impact of these market dynamics and industry challenges are analysed and revenue forecasts until 2014 are given. The research also provides an in-depth analysis of the current and future competitor and end-user profiles. In this research, Frost & Sullivan's expert analysts thoroughly examine the following end-user sectors: telecommunications, industrial and commercial, construction, residential as well as oil and gas.
Market Overview
Demand from Telecommunication Sector to Drive the Uptake of Gensets in Nigeria
Nigeria is facing a major power crisis. This is a direct result of insufficient power generated by the Power Holding Company of Nigeria (PHCN). The crisis, coupled with high economic growth in the country, is the main factor driving growth in the diesel genset market. High demand for gensets is coming from industries across the board. The Nigerian genset market is, therefore, entering a period of steady growth.
“Growth in the Nigerian genset market will be driven by the expansion of the telecommunications sector,” notes the analyst of this research. “Telecommunications are among the fastest growing end user sectors of gensets in the country even as other end users such as manufacturing, commercial, construction and oil and gas sectors register strong growth.”
Telecommunications and infrastructure development, road constructions as well as expansion of industries have led to increase in the use of gensets. They are projected to remain as important sources of prime power during the medium and long terms, despite the major power plant construction projects underway and research on alternative energy sources like renewables.
A key issue is the absence of quality control regulations in the region. This is proving to be the major challenge for original equipment manufacturers (OEMs). The market is flooded with gensets of varying quality and, hence, varying prices as a direct result of the lack of quality control regulations in Nigeria. As the demand for gensets is set to gradually rise in parallel with the country’s economic growth, more equipment suppliers are entering the market.
“Product quality and efficient after-sales services are fast replacing product price as the key differentiating factors in the genset market,” advises the analyst. “Equipment suppliers that can ensure efficient service delivery, product quality and cost competitiveness are in a better position to capture and increase their market share.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following end user sectors in this research:
- Telecommunications
- Industrial and commercial
- Construction
-Residential
- Oil and gas
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