HomeRegional NewsCentral AfricaGlobal revenue for Gensets to reach $68bn in 2024, says report

Global revenue for Gensets to reach $68bn in 2024, says report

The installation if diesel gensets is expected to increase. Pic credit: centralbasin.org.
The installation of diesel gensets is expected to increase in the next decade. Pic credit: centralbasin.org.

Global revenue from the installation of diesel generators is estimated to grow from $41.3 billion (ZAR513 billion) in 2015 to $67.5 billion (ZAR851 billion) in 2024 according to a new report released by Navigant Research.

The report examines and analyses diesel generator units in residential, commercial, industrial and power plant facilities.

Developing countries have become dependent on expensive diesel back-up generators to ensure that they receive sufficient power supply.

Growing need for diesel gensets

In sub-Sahran Africa, it is estimated that there is around 620 million people living without access to power. This is the result of ailing infrastructure and the lack of funding to develop new grid infrastructure, states the report.

Dexter Gauntlett, senior research analyst with Navigant Research said: “Diesel gensets are expected to see moderate growth during the forecast period in key segments such as critical infrastructure, data centres, and extraction industries.”

“The market is also evolving as natural gas gensets are gaining market share, and at the same time, leading genset providers have initiated strategic partnerships with renewable energy companies to provide integrated hybrid and microgrid solutions targeting large customers concerned with high diesel costs.”

Biggest users of diesel gensets

The report indicates that the global annual installations of diesel gensets in the 500kW to 3.5MW range are predicted to make up the majority of installed capacity during “the forecast period”.

The US, China, and India have been identified as the main countries to install the diesel gensets.

“Used as a source of emergency standby, prime, or continuous power, diesel gensets are poised for continued growth in most regions and power classes, yet the technology is expected to face increasing competition from natural gas generators”, Navigant Research said in a statement.

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.