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In recent years, the diesel generator market in South America and Africa has been witness to various trends that speak volumes about how fast these regions are changing their economic setups as well as infrastructure. In South America, the demand for diesel generators has increased due to a number of factors including unreliable power grids, frequent outages; and industries requiring backup solutions.
Countries such as Brazil, Argentina and Colombia have seen rapid growth in the use of diesel generators within different sectors including industries like manufacturing health & care services communication etc. A strong market trend observed in South America is the greater focus on clean and efficient diesel generator technology. The growing consciousness on environmental issues has brought about the use of more environmentally friendly alternatives with advanced technological enablers that minimize emissions and improve fuel efficiency.
This trend is in line with global attempts to combat climate change and will shape the future of diesel generator market regionally. Africa’s diesel generator market has been shaped by a variety of factors such as rapid urbanisation, infrastructural development and the constant challenge of unstable power supply over large areas. For instance, countries including Nigeria, South Africa, and Kenya have seen remarkable increase in demand for diesel generators due to the requirement of stable energy sources in order to sustain economic activities.
A significant development in the African diesel generator market is greater emphasis on off-grid and decentralized power systems. In peripheral areas where an opportunity to the major power network is confined, diesel generators have gained significance as vital suppliers of electricity. There is an adoption of the diesel generator sets in these areas by governments and even private corporations to fill this energy gap as they invest in decentralized power generation to support those communities that lack electricity.
One of the essential factors affecting market trends in South America and Africa is increasing integration of digital technologies within diesel generators. The modern diesel generators are currently equipped with such standard features as remote monitoring, predictive maintenance and smart control systems. This not only improves the overall effectiveness and efficacy of these generators but also minimizes down periods as well as running costs.
The implementation of digitalization can be viewed as a part of the global shift towards Industry 4.0, shaping different industries across the world. However, government policies and regulations are also of great importance in shaping the diesel generator market within these regions. For example, in South America regulatory frameworks focusing on emissions standards and environmental issues shape the choice of diesel generator technologies.
Likewise in Africa, government measures aimed at improving electrification rates and energy access also create additional demand for the diesel generators as a reliable source of power. Although these are positive trends, a number of challenges may impact the diesel generator market in both South America and Africa – instability on fuel prices being one such challenge; another is an uncertain economic environment as well as its susceptibility to international events. Strategic navigation of these challenges is critical to the survival and prosperity of industry players who must learn how to adapt in adjusting market conditions.
South America & Africa Diesel Generator Market Highlights:
South America & Africa Diesel Generator Market Scenario
South America & Africa Diesel Generator Market Size was valued at USD 9.2 billion in 2023. The South America & Africa Diesel Generator industry is projected to grow from USD 9.73 Billion in 2024 to USD 12 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.65% during the forecast period (2024 - 2032). Surge in power outages & power failure is expected to drive the South America & Africa Diesel Generator Market.
The total reliance of energy customers in South America and Africa on diesel generators for uninterrupted and dependable electricity is reflected in South America & Africa Diesel Generator Market. When the end-user is experiencing frequent power outages and need emergency power backup, these diesel generators provide standby, prime, and continuous power production. Diesel generators for the South America and Africa regions are expected to rise at a significant rate, owing to rising urbanization and industrialization, which has resulted in increased demand for surplus and reliable electricity. Diesel generators supply prime, standby, and continuous power to the residential, commercial, and industrial sectors, as well as being a stable source of power generation in emergencies and distant locations.
The rising demand for diesel generators in Africa and South America is due to an increase in power interruptions and the high average price of electricity generated by traditional power plants. These factors lead to consumers opting for a long-term and consistent power source. Due to a lack of grid infrastructure and insufficient power generation capacity, a large investment in independent diesel generators has been made. Diesel generators are more fuel-efficient and have a longer life cycle than other types of generators. Diesel generators deliver dependable and continuous electricity according to consumer demand, while also being safe and efficient to operate. Diesel generator demand in South America and Africa is being driven by all of these primary drivers.
South America & Africa Diesel Generator Market is marked with the overall dependency of the energy consumers in South America & Africa for uninterrupted & reliable power through diesel generators. These diesel generators provide standby, prime & continuous power output, where the end user is facing frequent power outages and needs emergency power backup. Diesel generators for South America & Africa regions are poised to grow at a substantial rate as the growing urbanization & industrialization has resulted in demand for excess and uninterrupted electricity supply. Diesel generators provide prime, standby and continuous power output to residential, commercial & industrial sector, and is also a reliable source of power generation in emergency situation and at remote location.
South America & Africa regions have most of the countries that are in their developing stage or are under-developed. These countries are highly reliable on standby power generation or non-conventional methods of power generation, as the overall power generation through conventional methods is expensive and is generated in smaller capacity than the actual demand. All these factors majorly result in power outage in these regions. Thus, most of the end users are heading towards the utilization of diesel powered generator. The diesel generator provides continuous, prime and standby power to the end users such as industries, hospitals, construction sites, remote & discrete sites, commercial and residential.
The growing demand for diesel generators in African & South American region is due to, rise in power outages and high average price of power produced through conventional power plants. These make the consumers, opt for an interminable & dependable power supply. The poor grid infrastructure and low power generation capacity have resulted in high investment in independent diesel generators unit. Diesel generators are more fuel efficient than other fuel type generators and also have a longer life span. Diesel generators provide reliable and continuous power supply according to consumer need with safe operations and high efficiency. All these major factors are driving the demand of diesel generators in South America & Africa Diesel Generator Market.
Diesel generators for South America & Africa Diesel Generator Market are poised to grow at a substantial rate as the growing urbanization & industrialization has resulted into the demand for excess and uninterrupted electricity supply. Diesel generators provides prime, standby and continuous power output to residential, commercial & industrial sector and is also a reliable source of power generation in emergency situation and at remote location. The South America & Africa Diesel Generator Market is driven by various factors such as surge in power outages & power failure, growing demand for interminable & dependable power supply and growth in hybrid renewable energy systems. However, rise in renewable energy technologies and high operating & maintenance cost of diesel generator will act as restrains for the South America & Africa Diesel Generator Market.
South America & Africa Diesel Generator Market Key Players
The key players of South America & Africa diesel generator market are Caterpillar Inc., Cummins Inc., Generac Holdings Inc., Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., AKSA Power Generation, Kohler Co., Rolls-Royce Power Systems AG, Wuxi Kipor Power Co. Ltd, Aggreko PLC, MAN Diesel & Turbo, General Electric Company and Wärtsilä.
South America & Africa Diesel Generator Market - Industry News
This diesel generator, which is silent and has a 150 kVA capacity, was shipped to Ghana in Africa in June 2023. With its help, this solution will secure standby electricity for the warehouses and offices of a scale building materials supplier in Accra.
A press release from the African Development Bank on January 2023 stated that it is currently collaborating with the Nigerian government in a 410 million dollar transmission scheme and also plans to plough another 200 million dollars via Rural Electrification Agency (REA). The project aims to increase access to electricity across the nation, which includes providing backup generators for rural communities.
The Brazilian incoming government announced in November 2022 that it will revoke its decision to maintain mandatory biodiesel blend in diesel at 10% till March 31st,2023, hence increasing the blending mandate above current rates.
Engie Energy signed a financing agreement worth $60m with CrossBoundary Energy Access (CBEA) in September 2022 to roll out solar mini-grids for Nigeria.
It has been informed since January, 2022 that Argentina produced from shale gas by increasing production by 42% YoY since December. This is expected to create new opportunities for enterprises involved in the cooling system business.
In August 2021, Microsoft might install backup power solution diesel generator sets manufactured by Cat at its data centers located in Sweden. In order to provide full standby power possibilities during the initial phase of the Swedish centers, we can utilize any combination of Cat C175-20 and C18 generator sets. As fuel for all these generators can be used renewable liquid fuel Preem Evolution Diesel Plus,
Cummins Inc. launched SD20—a new commercial mobile application covering diesel generator sets—in October 2021. Trailer or vehicle-based applications such as ambulance food trucks, mobile command center utility boom trucks mobile medical disaster relief are well suited for SD20s.
Regional Analysis
The South America & Africa Diesel Generator Market is growing tremendously under the influence of factors such as surge in power outages & power failure, growing demand for interminable & dependable power supply and growth in hybrid renewable energy systems.
Colombia is hugely investing in developing hybrid renewable energy system so to fulfill the growing demand for electricity. According to World Bank, the national electrification rate of Columbia in 2016 was 98% with about 90% rural electrification rate, also industrial sector contributed 34.00% of the total GDP. It was also observed that about 53.3% of firms experienced electrical outages, in 2016 with about 10.8% of firms owing or sharing a generator. The current scenario in the states of Colombia is the growing demand for electricity, which can be fulfilled through a hybrid renewable energy systems.
Nigeria is one of the biggest economies in Africa, with a GDP of 405,082.7 million USD, in 2016. However, Nigeria’s growth is harshly constrained by an inadequate supply of reliable electricity. According to World Bank, the national electrification rate of Nigeria in 2016 was 45% with 36% rural electrification rate. Also industrial sector contributed 19.4% of the total GDP. It was also noticed that about 77.6% of firms experienced electrical outages, in 2016, with about 70.7% of firms owing or sharing a generator. Nigeria is currently receiving heavy aid & investment for the development of hybrid renewable energy systems and micro-grids. It has been forecast that diesel generator market in Nigeria will witness a substantial growth in forecast period.
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