There is no hope yet in sight to end Nigeria’s epileptic power supply as the genset market is projected to grow by 4.1 per cent, up till 2024.
ResearchandMarkets.com are betting that the Nigerian diesel genset market will generate a revenue of $527.4 million by 2024, advancing at a CAGR of 4.1% during the forecast period (2019-2024).
The key factors driving the growth of the market are substantial transmission loss, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications.
Nigeria’s power domain is facing various issues such as weak transmission and distribution network, inefficient operations, and a huge gap in demand-supply, with the demand outrunning the production of domestic electricity by a notable margin.
According to industry experts, in 2018, the demand for electricity in the country was over 40,000 MW, whereas the energy produced hovered near the 7,000 MW-8,000 MW mark. This clearly suggests an increasing consumer reliance upon diesel generator sets in the country.
During the forecast period as well, government initiatives might not be able to completely fill the gap between the demand and supply due to the substandard grid infrastructure, high base power deficit, and surging population.
This is resulting in a greater dependence on off-grid sources to cater to the power requirements, thereby further strengthening the Nigerian diesel genset market.
In 2018, in Nigeria, telecom towers registered more than 12.0% sales volume share in the market. Furthermore, the category is predicted to advance at a CAGR of 6.3% in terms of revenue during the 2019-2024 period, owing to the increasing demand for these gen sets in telecom towers to fulfil the auxiliary and prime power requirements.
Also, the investments in the telecom sector, along with the significant installation of towers in erratic power supply scenario and in off-grid areas, are anticipated to support the Nigeria diesel genset market during the forecast period.