The South Africa diesel generator market is expected to grow at a CAGR of more than 2% over the period of 2020-2025. Factors such as an increase in throughput of peaking plants and demand for uninterrupted and reliable power supply are expected to boost the market. However, the availability of cleaner alternatives and advancement in battery technologies may act as a restrain for market growth during the forecast period.
- The backup power generator in the country is one of the significant segments by application providing on-demand electricity to the nation. It is also a substantial segment among the different backup generators and is expected to increase further in the forecast period.
- The increasing popularity of hybrid generators and 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.
- The increasing demand for uninterrupted and reliable power supply is expected to drive the market. Irregular power supply from the leading utility company and further investments in the sector are expected to give more growth to the market.
Key Market Trends
Backup Generators to Dominate the Market
- Backup diesel generators are fossil fuel generators that are used not as the primary source of supply but as a backup during the power cuts or blackouts from the utility grid. They may also be used in different areas where a direct connection with the grid is not feasible.
- South Africa has the largest per capita backup generators in Africa, accounting for around 2.1 backup generators per 100 people in 2019. Many backup generators are used primarily, due to the unreliability of the country's main utility grid.
- Eskom, which is the main utility organization in the country, is under intense financial stress, which has caused considerable problems in the projects' expansion and may impede the newer projects. Unreliability in the main grid, due to such causes, is expected to fuel growth in the backup diesel generator market.
- In 2019, diesel fuel backup generators produced around 0.85% of the country's total power generation. An increase in the country's economic growth may provide further growth in the segment.
- Therefore, backup generators are expected to remain a significant segment of the diesel generator market and are expected to grow further in the forecast period due to the unreliability of the main utility grid.
Growing Demand for Uninterrupted and Reliable Power Supply to Drive the Market
- The increasing demand for uninterrupted and reliable power supply by the populace coupled with the moderate transmission access (92%, in 2018) to the utility grid has led to the citizens using the diesel generators for a reliable source of energy. Power outages in the country have also contributed to the growth of the market.
- Consumption in the country decreased, by 0.25%, from 121.8 million tons of oil equivalent (mtoe), in 2017 to 121.5 mtoe, in 2018. However, the consumption is expected to increase slightly in the forecast period and provide growth to the diesel generator market.
- It is likely that high investment is expected to come from the utility sector of the country as emergency usage of the diesel generator is also likely to continue to rise in the country.
- Hence, the growing demand for uninterrupted and reliable power supply in South Africa is expected to drive the market for the South Africa diesel market with significant demand coming from the private sector.
South Africa diesel generator market is partially fragmented. Some of the key players in this market are Cummins Inc., Kirloskar Oil Engines Limited, Yanmar Holdings Co., Ltd., Caterpillar Inc, and Honda Siel Power Products Limited.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast, in USD billion, till 2025
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
5.1.1 Backup Power
5.1.2 Prime Power
5.1.3 Peak Shaving
5.2.1 0 - 75 kVA
5.2.2 75 - 375 kVA
5.2.3 Above 375 kVA
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Yamaha Motor Co. Ltd.
6.3.2 Cummins Inc
6.3.3 Kirloskar Oil Engines Limited
6.3.4 Yanmar Holdings Co., Ltd.
6.3.5 Caterpillar Inc,
6.3.6 Briggs & Stratton Corporation
6.3.7 Mitsubishi Hitachi Power Systems Ltd.
6.3.8 Honda Siel Power Products Limited
A selection of companies mentioned in this report includes:
- Yamaha Motor Co. Ltd.
- Cummins Inc
- Kirloskar Oil Engines Limited
- Yanmar Holdings Co., Ltd.
- Caterpillar Inc,
- Briggs & Stratton Corporation
- Mitsubishi Hitachi Power Systems Ltd.
- Honda Siel Power Products Limited