THE epileptic public power situation in Nigeria and in other developing countries is currently swelling the Global Generator Sales Market. The market, as revealed is valued at $18.65 billion in 2016 and projected to reach $30.66 billion by 2025, an indication to the fact that it is growing at the rate of six percent from 2017.
Generators are easily one of the common air and noise pollution in communities of the Niger Delta, Nigeria's big gold pot. A generator, however, is a device that converts mechanical energy into electrical power for use in an external circuit.
The demand for uninterrupted and reliable power supply has increased significantly that in turn, results in increased sales of generators. Generators are robust mediums providing backup power in industrial buildings, data centres, hospitals, construction sites, and remotely located buildings and cabins.
Its market share in Nigeria is expected to grow to around N151.16 billion ($950.7 million) by the year 2020 according to data published by a global research firm, GBI Research. Accordingly, it reveals that Nigeria is the largest market for diesel and gas generator sets in Africa, it also predicted to see growth rates of 8.7 percent driving up the market volume from N71.55 billion ($450 million) in 2011, to hit N151.16 billion ($950.7 million) by 2020.
The research firm expects the growth in the Nigerian generator sets market to be driven by the deplorable power situation in the country going by the current state of power generation, power transmission and distribution networks, along with the economic growth in the country.
Inadequate power supply, unreliable grid infrastructure coupled with escalating demand for invariable power will stimulate the market. The industry is extensively driven by the rapidly expanding global population and urbanization worldwide. Strengthening need for self-generating power to combat chronic power shortages will further boost the product penetration.
The US market is set to witness a growth of over 4.00% by 2024. A rapid recurrence of natural adversities resulting in prolonged power outages has entailed an extensive installation of generator sets. In September 2017, Hurricane Maria, a Category 4 storm vandalized nearly 80 percent of Puerto Rico power transmission lines. The storm led to the longest outage in the US history leaving more than 1.57 million electricity customers without power.
Sizeable government investments in backup power generation to mitigate the risks of blackouts and support load shedding during peak times will augment the market. In 2017, the Government of Australia announced an energy plan worth $550 million to bring online temporary backup power generators to reinforce the country’s power reliability.
Gas generator sets market is predicted to expand by 9.00 % by 2024. Natural gas is being increasingly used as an alternative energy source to replace conventional fossil fuels including diesel and gasoline. The growing inclination toward natural gas as a fuel source is attributed to stringent government regulations restricting the use of other counterparts.
Growing dependency on digitization along with a steady upsurge in data centre outages cost will significantly boost the gensets adoption. According to Ponemon Institute, an average data centre outage cost has dramatically increased by over 38 percent from $505 thousand in 2010 to $740 thousand in 2015. The burgeoning expansion of the data centres sector is invariably accompanied by significant growth in the global market.
The ongoing deployment of generator sets across the industrial sector as a source of prime power generation will fuel the industry growth. These units are being increasingly installed in multiple industries including mining, oil and gas, a construction where grid access is limited. Rapid industrialization along with increasing investments in infrastructural development will propel the global market.
Polyphase generator sets will witness an appreciable growth owing to their operational suitability in wide-ranging applications. The product is predominantly deployed across commercial and industrial sectors on account of their high flexibility, material efficiency and ability to support high power requirements.
High electricity costs, poor transmission and distribution networks along with rapid population growth across developing economies will positively impact the market growth. Increasing energy consumption coupled with inadequate installed capacity will further complement the business outlook.
Meanwhile, the key players in the market include, Generac, Kirloskar, Cummins, Briggs and Stratton, Kohler, Caterpillar, Yanmar, Sterling, John Deere, Mahindra Powerol, Mitsubishi, America Honda Motor.