Report Overview

Thriving telecom sector and government initiatives toward infrastructure development are expected to boost the growth of the South Africa diesel generator market during the forecast period between 2023 and 2029.

South Africa Diesel Generator Market - Industry Trends & Forecast Report, 2029

South Africa diesel generator market size was estimated to be worth USD 107.52 million in 2022. During the forecast period between 2023 and 2029, the South Africa diesel generator market size is projected to grow at a CAGR of 5.60%, reaching a value of USD 157.45 million by 2029. Major growth factors for the South Africa diesel generator market include frequent power interruptions, disrupting economic activities, along with the increasing number of data centers owing to expanding digitization. As a result, the government is significantly investing in power backup options for uninterrupted power supply for continuous economic activities.

South Africa Diesel Generator Market – Overview

A diesel generator produces electricity using an electric generator and a diesel engine. Combining the efficiencies of the diesel engine and alternator, the diesel generator has an efficiency range of 30%–50%. Generators are practical devices that provide electricity during a power outage, preventing the interruption of daily activities or business operations. They have 50% higher energy efficiency than a gasoline generator operating at the same capacity because they burn fuel using compression heat rather than spark ignition.

South Africa Diesel Generator Market

Growth Drivers

Government Initiatives toward Infrastructure Development

South Africa is one of the major emerging economies in the world. The demand for residential and commercial structures is expanding along with the economy's fast urbanization, which increases the need for investment in infrastructure development. The country's demand for a reliable power supply is also being fueled by the expansion of the IT infrastructure and the rising number of data centers there. However, frequent power outages might slow the rate of development. As a result, South Africa is experiencing a sharp increase in demand for diesel generators for emergency power backup systems, driving the expansion of the overall market growth.

Restraints

Growing Preference for Clean Energy

The environmental impact of diesel generators is the major factor restricting its market growth in South Africa. The major concern regarding diesel generators is related to their emissions. Nitrogen oxides (NOx), particulate matter (PM), and carbon monoxide (CO) are among the pollutants that diesel engines emit in greater quantities. The fuel usage of diesel generators is still another issue. Since diesel is a fossil fuel, when it is used, greenhouse gasses are released into the environment. Greenhouse gasses have a significant role in climate change, a serious environmental issue. As a result, both the government and the private players are shifting towards clean energy sources such as solar energy, which may limit the overall South Africa diesel generator market growth.

Impact of COVID-19 on the South Africa Diesel Generator Market

The COVID-19 pandemic disrupted the growth of South Africa diesel generator market. The severe restrictions imposed by the South African government on economic activities, especially the operations of the main end users of diesel generators, had a detrimental effect on the market's expansion. Additionally, supply chain disruptions brought about by lockdowns in many regions of the world slowed the market's expansion. However, a growing remote working culture and the requirement for a constant power supply in data centers are expected to propel the growth of the diesel generator industry in the years following COVID-19.

South Africa Diesel Generator Market

Segmental Coverage

South Africa Diesel Generator Market – By Power Rating

Based on power rating, the South Africa diesel generator market is divided into Up to 100 KVA, 100–350 KVA, 350–750 KVA, 750– 1000 KVA, 1000–2000 KVA, 2000–3000 KVA, Above 3000 KVA. The 1000–2000 KVA power rating segment holds the largest share in the market since it can run continuously for 24 hours or more and only needs refilling every 8 to 12 hours or so. However, up to 100 KVA is projected to grow at a high CAGR during the forecast period owing to its extensive usage in residential and small-scale establishments.

South Africa Diesel Generator Market – By Application

Based on application, the South Africa diesel generator market is segmented into manufacturing, construction, telecom, mining, data centers, tourism, banking, and others. The telecom sector accounts for the highest share of the South Africa diesel generator market. The rising digitization and increasing internet penetration further propel the need for uninterrupted power supply in the telecom industry to keep the cell tower sites powered and in service. Following telecom, the construction industry also covers substantial market growth owing to the rising growth in the sector for the infrastructural development of the country.

Competitive Landscape

Major players operating in the South Africa diesel generator market include 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, Aggreko Ltd, and Kohler Co. These companies employ various strategies to further enhance their market share, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Power Rating

• Up to 100 KVA

• 100–350 KVA

• 350–750 KVA

• 750–1000 KVA

• 1000–2000 KVA

• 2000–3000 KVA

• Above 3000 KVA

By Application

• Manufacturing

• Construction

• Telecom

• Mining

• Data Center

• Tourism

• Banking

• Others