How Does Rapid Urbanization Boost Vietnam Diesel Generator Set Market?

In 2021, the Vietnam diesel generator set market generated around $109 million revenue, and it will progress at a rate of 3.6% from 2021 to 2030, to garner approximately $150 million revenue by 2030. The continuous rise in the sales of diesel generators in Vietnam is projected to increase its dominance in Southeast Asia as gensets market. The surge in construction activities in the country is driven by SEZs construction, government infrastructure projects such as smart cities, metro trains, and national and state road construction with the increased consumption of power proliferating the market.

The expansion of the industrial and construction sectors led by the rapid urbanization has also resulted in the propulsion of the Vietnam diesel generator set market to cater to the increasing demand for power. Moreover, the lack of a proper grid infrastructure causes an inadequate power supply in the country that negatively impacts the operations of the commercial and industrial spaces. Therefore, it results in an increase in demand for generators for an uninterrupted power supply during blackouts with a continuous supply of electricity for various applications.

In addition, the Vietnamese government has planned to increase the total housing space to 27 sq m per person by 2025 and 30 sq m by 2030, under the MOC strategy. Moreover, in the next decade, the government will be focusing on the redevelopment of housing development associated with urban development, old apartment buildings, along with green and smart homes. Furthermore, the housing solutions for low-income earners and workers in the urban areas are covered under government policies. The rise in the residential units, caused by government initiatives leads to a boost in diesel generator sales to cater to the backup power requirement.

The industrial sector captured a significant share in the Vietnam diesel generator set market, ascribed to the country becoming an industrial hub with an extensive and educated workforce. Moreover, the government of the country provides support to businesses that facilitate raw materials, spare parts, and components to various sectors such as automotive, IT, electronics, leather and footwear, and apparel and textile. Therefore, the expansion of the industrial sector has resulted in a surge in the requirement for power with the growing demand for generator sets.

Therefore, the insufficient power grid infrastructure leads to increasing demand for diesel generators in Vietnam for the continuous supply of power.

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Telecom Power System Market To hit a Value of Above $7,360 Million in 2030

The total size of the telecom power system market was above $3,974 million in the year 2021, and it will reach a value of above $7,360 million in 2030, advancing at a CAGR of over 7% by the end of this decade. The growth is helped by the increasing penetration of telecom towers in diverse regions, like APAC and Africa, and the booming acceptance of telecom services.

The largest share in the telecom power system market, of about 30%, was with generators, as they are considerably utilized as a standby source of power to offer safe operations against power cuts and insufficient power supply. Furthermore, diesel is less inflammable as compared to natural gas, thus it is a safer fuel for generators for backups of telecom towers. Further, diesel generators last longer than others, since they operate at lower temperatures.

North America will be the fastest-growing market in the near future, because of the solid network connectivity, 4G-LTE networks, and mobile usage. The growing ICT industry, comprising telecommunications along with high-tech sectors, is probably at the center of the market growth of the region. Additionally, the U.S. will register a more distinct 5G cycle with peak smartphone growth in the future, which will further tempt service providers to create better telecom infra. 

DC power systems had over 60% demand in 2021 and will lead the telecom power system market in the years to come too, because of the wide uses of DC power systems in the telecom industry. This power is not restricted to frequency disparity or leading power factor. Moreover, it can be stowed, and hence, backup for telecom buses can be provided by batteries without a power conversion loss. 

With the increasing use of smartphones and a developing telecom infra, there is a surge in the demand for telecom power systems around the globe.

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Why Will 15–75 kVA Category Hold Largest Share in South Africa DG Set Market?

In 2021, the South Africa DG set market accounted for $113,289.3 thousand in revenue, which is projected to reach $159,129.0 thousand by 2030, advancing at a 3.9% CAGR from 2021 to 2030. This is owing to the rapid expansion in the manufacturing and construction industries, coupled with a dire demand for high- and medium-power DG sets from the commercial sector.  The expansion of such industries is particularly owing to the macroeconomic development, government reforms to encourage domestic and foreign investments, and increasing capital expenditure (CAPEX).

Due to the lower operating costs and less dependence on a single fuel, hybrid generators are becoming more and more recognized. Moreover, the persistent power cuts in the nation have not only caused traffic delays but also lowered quarrying activities. By ensuring a regular and frequent power supply, DGs have a prolific role in this industry, especially that have unreliable grid connectivity in states. All of these factors will together offer lucrative opportunities for the expansion of this market.

The major share in the South Africa DG set market, of 40%,  in 2021 was held by 15–75 kVA, when segmented by power rating. This is credited to the growing adoption of gensets of this power rating in commercial and residential places, such as small offices, retail outlets, and telecom towers. Furthermore, power failure is often attributed to improper distribution channels and significant energy losses from the grid. 

The competitors in the South Africa DG set market are taking various measures for achieving dominance. For example, YANMAR established a relationship with Vert Energy Group in December 2020 to become the exclusive distributor of YANMAR’s industrial engines in South Africa and adjacent countries, succeeding Prodist. The major players in this market include GENERATOR BOYS, Aksa Power Generation SA (Pty) Ltd., Kohler Co., Jubaili Bros, Multilec Generator Services, Algen Power Generation (PTY) Ltd., Caterpillar Inc., PacB Power Solutions, Aggreko Ltd., Cummins Inc., and Atlas Copco AB. 

Thus, the government reforms for infrastructure development, along with the growth in the manufacturing and construction industries, are propelling the market.

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How Macroeconomic Development Drives India Prime Power Diesel Generators Market Growth?

The Indian prime power diesel generators market is being driven by the increasing infrastructure expenditures and a substantial power deficit. Because of these factors, the market is projected to reach $356.3 million in 2030 from $143.6 million in 2021, at a CAGR of 10.6% from 2021 to 2030. The commercial sector has a strong need for medium- and high-power diesel gensets. Similarly, the substantial expansion in the manufacturing and construction industries is likely to fuel market growth.

Furthermore, India's burgeoning telecommunications industry is a major driver for the Indian prime power diesel generators market. This industry is concentrating on overcoming one of the most-significant challenges of unpredictable power supplies from the grid. As a result, prime power diesel generators are commonly used by telecom tower operators. The number of telephone users in India rose by 0.71% from January 2021 to the end of February 2021, as per the Telecom Regulatory Authority of India (TRAI). This increases the strain on telecommunications businesses to maintain the operationality of the towers despite the inconsistent grid supplies.

By 2030, the commercial application category is set to account for over 70% of the Indian prime power diesel generators market revenue. This will be due to the high need for a constant electrical supply in commercial facilities, such as hotels, train stations, phone exchanges, and retail stores. Prime power diesel generators serve as a backup power source and a type of insurance, allowing businesses to avoid losing money due to a lack of adequate power for operations. As a result, in 2021, firms selling these devices in the country made over 60% of their income from commercial sales.

Uttar Pradesh has the highest demand for diesel gensets for prime power applications, and it is projected to continue to do so in the future. In 2021, the state had an Indian prime power diesel generators market share of over 10% and produced over $20 million revenue from genset sales. This was owing to the increasing expenditures in the telecom industry, rising power demand in the state's residential facilities, and rapid commercial infrastructure expansion. In addition, the rebound in the Indian commercial and residential real estate industries, commissioning of new construction projects, and a comeback in industrial investment would provide attractive prospects for participants in the future years.

Hence, the growth of the commercial sector is expected to drive the demand for gensets to offer prime power in India.

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Madagascar Diesel Generators Market To Reach $27,755.7 Thousand in 2030

The Madagascar diesel generators market was valued at $21,429.8 thousand in 2021, and the market will propel at a 2.9% CAGR during 2021–2030, to reach $27,755.7 thousand. The speedy growth in the construction and telecom sectors and the intensification in the incidence of power cuts are the main factors accountable for the growth of the market. 

According to the World Bank, only about 27% of the population of Madagascar had access to electricity in 2019, which is one of the primary reasons for the increasing requirement for diesel gensets in the mining, telecom, construction, and residential sectors.

The telecom sector of Madagascar has profited from the snowballing rivalry among key operators such as Orange Madagascar, Airtel, and Telma. In 2021, the government relaxed the excise duty on telecom products to 8% from 10%, which is advantageous for customers. This opened the gates for a high requirement for diesel generators set in telecom towers to cope with the high-frequency power cuts.

Key Findings of Madagascar Diesel Genset Market

• The 15–75 kVA category held the largest share, of approximately 42%, in 2021. This is due to the increasing use of these gensets in residences, small industries, restaurants, hotels, telecom towers, and commercial complexes. 

• Furthermore, the 376–750 kVA category is the second significant contributor to the Madagascar diesel genset market.  The primary reason for this is the high requirement for these generators in industries and commercial complexes.

• The commercial application category is likely to grow at the highest rate in the years to come, propelling at a 3.9% CAGR. This can be primarily due to the constant advancement in the construction sector.

• The Madagascar diesel genset market is likely to be boosted by the increase in the requirement for power backup in the commercial and residential sectors and the development of the mining and construction industries.

• Power consistency is an important prerequisite for Madagascar’s economic development. Thus, the requirement for energy among public institutions of the country has augmented, to improve the eminence of the services provided to people.

• Key firms in the Madagascar diesel genset market are taking part in partnerships and alliances with the intention of staying ahead of their competitors. For example, Green Energy Solutions (GES) and Colas Madagascar entered into a collaboration in April 2021 to construct a hybrid power plant driven by solar energy for Colas Madagascar at the Ambokatra quarry and offer construction supplies within the country.

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