South Africa Generator
market was valued at USD 185.87 million in 2022 and is anticipated to project
robust growth in the forecast period with a CAGR of 5.94%, owing to the
following factors such as rapid industrialization & urbanization, increase
in need for continuous & stable power supply, increase in
investment on electrification of remote & rural area, and rising smart and
digital solutions. On the other hand, implementation of stringent government
regulations toward environmental pollution and rapid development in the
renewable energy sector is expected to hamper the growth of South Africa
generator market.
A device or
mechanism that transforms mechanical energy into electrical energy is called a
generator. It uses a rotating shaft or turbine powered by an external power
source, such as an engine or wind, and functions on the electromagnetic
induction theory. Coils of wire within the generator travel through a magnetic
field to produce an electrical current. Generators are often utilized to
deliver a dependable and continuous power source in a variety of industries and
applications.
Increase In
Need for Continuous & Stable Power Supply:
The rise of the
generator market is being driven by an increase in steady energy demand from
South Africa's emerging provinces, including Gauteng, KwaZulu-Natal, the
Western Cape, and the Eastern Cape. This is attributed to the fact that
industries are able to continue manufacturing and other processes without
suffering production losses because backup power sources such as generators are
employed when the main grid is unavailable. In addition, owing to properties
such as quick startup time, high efficiency, and reliability of generators, an
increase has been witnessed in their demand from sectors such as oil & gas,
manufacturing, building & construction, and processing. This factor is
anticipated to significantly contribute towards the growth of the South Africa
generator market during the forecast period.
Increase in
road construction activities and rise in infrastructure projects, coupled with
other construction activities in regions like Gauteng, KwaZulu-Natal, together
propel the demand for generators, which, in turn, drive the growth of the
market in the upcoming years. Moreover,
numerous activities are carrying out in construction and building industries
such as concrete mixing, crane operation, bore well digging, on-site
pre-stressed concrete production, welding operations, bridge construction, and
rail/road construction that require consistent electric power. Such an increasing need for electricity can be met with the help
of generators, which significantly contributes toward the growth of the South
Africa generator market. However, the outbreak of the COVID- 19 pandemic halted
these abovementioned activities, which, in turn, has led to decrease in crude
oil prices, thus resulting in sluggish growth of the generator market in the
current and upcoming years.
Rapid Industrialization
& Urbanization:
The generator
industry continues to witness substantial growth, due to advancements in
product manufacturing technologies over decades. This is attributed to rapid
industrialization and urbanization, which have boosted the demand for
efficient, advanced generator sets to cater to the regulatory criteria related
to emissions. Due to the increase in demand for generators in oil and gas
mining, commercial complexes, and other residential and industrial
applications, the generator market in regions like Gauteng, KwaZulu-Natal, the
Western Cape, the Eastern Cape, and Mpumalanga exhibit potential growth
opportunities. This has resulted in an upsurge in energy consumption at an
enormous rate, which, in turn, increased the demand for generators.
Increase In
Investment on Electrification of Remote & Rural Area:
The emerging regions
such as Gauteng, KwaZulu-Natal and Western Cape are engaged in the investment
on electrification of remote and rural areas. For instance, according to the
Democratic Alliance (DA) political party, South Africa government has spent USD
116.15 thousand on the procurement and installation of electricity generators
at the homes of its Ministers since 2021 and a further USD 38.21 thousand since
the first half of 2022. Furthermore, increase in population and surge in
urbanization are the primary factors increasing the need for electrification,
which fuels the demand for generators in these regions. These regions registered
the highest electrification growth rate in the past five years with the help of
on-grid and off-grid solutions. Thus, considering all aforementioned factors,
the increase in demand for generators from emerging regions is expected to
provide remunerative opportunities for market expansion during the forecast
period.
Moreover, rural
electrification will help in boosting the growth of the rural areas in terms of
production, economy, and others. In addition, there is a huge potential for
electricity generation in the rural and remote areas using forest wood biomass,
along with renewable energy such as solar or wind. This power generation is
also called solar thermal power generation, which is expected to create
opportunity in the South Africa generator market.
Smart and
Digital Solutions:
The generator
market is rapidly evolving to embrace the power of digitalization and smart control
systems. This technological shift has allowed for enhanced efficiency in power
generation and has paved the way for increased flexibility in meeting the
demands of consumers. With digitalization and smart control systems, generators
can operate efficiently and with greater precision, maximizing their output and
minimizing waste.
These advances
in technology have also had a significant impact on the management and
maintenance of generators. With the integration of smart control systems,
generators are now able to diagnose and repair themselves, reducing downtime,
and increasing productivity. Additionally, digitalization has allowed for better
monitoring of energy consumption, making it easier to identify areas where
energy use can be reduced. Generators can also be synchronized with the grid
when used in conjunction with energy management systems and smart grids. In
order to ensure optimal power distribution, smart grid and digitalization
enable the use of techniques like load shedding, demand response, and dynamic
load management. Systems with digitalized generators promise a few benefits,
such as increased effectiveness, stability, and dependability. The generator
market will undoubtedly continue to advance with proactive maintenance and smart
solutions.
Increasing the
Demand for Small Diesel Generators:
The need for
small diesel generators has grown in South Africa as more remote areas suffer
from unstable or limited access to the main power grid. Small diesel generators
offer a dependable source of electricity, particularly in remote or underserved
areas. They are often employed to provide for the fundamental electricity
requirements of homes, small businesses, farms, and rural communities. In some
areas of South Africa, both urban and rural, power outages are frequent. During
these power outages, small diesel generators act as backup power sources to
keep critical machinery, appliances, and services running continuously. They
are especially helpful and effective in critical applications like hospitals,
telecommunications, and emergency services. Small diesel generators are an
ongoing trend in South Africa because of the wide availability of diesel fuel
there. Diesel fuel's widespread accessibility guarantees a steady supply for
these generators. Diesel generators provide a dependable and practical solution
for remote or off-grid locations where access to other fuel types may be
constrained.
Implementation Of
Stringent Government Regulations Toward Environmental Pollution:
The alarming
increase in air pollution brought on by generators is a significant barrier to
the growth of the generator sector in South Africa. Use of generators leads to
significant health and environmental issues which is likely to hinder the
market's expansion. Nitrogen oxides, carbon monoxide, hydrocarbons, and
particulate matter are among the air contaminants that generators emit. These
air pollutants severely impact human health, causing diseases such as stroke,
heart disease, lung cancer, and asthma. Hence, government regulations often seek to lessen air pollution and the impact of
generators on the environment. Generators may need to meet explicit
requirements for exhaust emissions, noise levels, and other environmental
factors to comply with strict emission standards. Even though these rules are
crucial for environmental protection, generator suppliers and manufacturers may
find it more expensive to comply. This impacts the price and accessibility of
generators on the market.
Rapid
Development in The Renewable Energy Sector:
During the
projection period, the growth of the South Africa generator market is
anticipated to be negatively impacted by significant expansion in the renewable
energy industry. Due to increased investment in renewable energy projects,
Gauteng has had the fastest growth rate. Renewable energy sectors such as
hydropower and wind & solar are meeting the increasing needs of electricity
from residential, commercial, and industrial consumers, which further hampers
the demand for generators. Moreover, advantages associated with renewable
energy such as its bulk availability, cost efficiency, and clean source are
fueling the demand for renewable energy, which resulted in the development of
renewable energy sector, thereby hampering the growth of the South Africa generator
market.
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Market Segmentation
South Africa Generator market
is divided into product type, installation, output, fuel, application, cooling
type, end user, and region. Based on product type, the market is segmented into AC generator and DC generator. Based on
installation, the market is segmented into stationary and portable. Based on
output, the market is segmented into Above
1000 kW,
501-1000
kW, 61-250
kW, Upto
60 kW, and 251-500
kW. Based on fuel, the
market is segmented into diesel, gas, and others.
Based on application, the market is segmented
into standby, continuous, and peak shaving. Based on cooling
type, the market is segmented into air cooled, water
cooled, and hydrogen cooled. Based on end user, the market is segmented into commercial,
industrial, and residential. The market analysis also studies the regional
segmentation to devise regional market segmentation, divided among Gauteng, KwaZulu-Natal,
Western Cape, Eastern Cape, Mpumalanga, Limpopo, North-West, Free State, and Northern
Cape.
Company Profiles
Cummins
South Africa (Pty) Ltd, Aksa Power Generation SA (Pty) Ltd, Caterpillar
(Africa) (Proprietary) Limited, Mitsubishi Power Africa (Pty) Ltd, Jubaili Bros
SA (Pty) Ltd, Algen Power Generation (Pty) Ltd., GenSol Generator Solutions,
Honda Motor Southern Africa (Proprietary) Limited, Generator Logic Holdings
(Pty) Ltd, Kirloskar Trading SA (Pty) Ltd. are among the major
players that are driving the growth of the South Africa generator market.
|
Attribute
|
Details
|
|
Market
Size Value in 2022
|
USD
185.87 million
|
|
Revenue
Forecast in 2028
|
USD 268.31
million
|
|
Growth
Rate
|
5.94%
|
|
Base
Year
|
2022
|
|
Historical
Years
|
2018–
2021
|
|
Estimated
Year
|
2023
|
|
Forecast
Period
|
2024
– 2028
|
|
Quantitative
Units
|
Revenue in
USD Billion and CAGR for 2018-2022 and 2023E-2028F
|
|
Report
Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
|
Product Type
Installation
Output
Fuel
Application
Cooling Type
End User
Region
|
|
Regional
Scope
|
Gauteng,
KwaZulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, North-West,
Free State, Northern Cape
|
|
Key
Companies Profiled
|
Cummins
South Africa (Pty) Ltd, Aksa Power Generation SA (Pty) Ltd, Caterpillar
(Africa) (Proprietary) Limited, Mitsubishi Power Africa (Pty) Ltd, Jubaili
Bros SA (Pty) Ltd, Algen Power Generation (Pty) Ltd., GenSol Generator
Solutions, Honda Motor Southern Africa (Proprietary) Limited, Generator Logic
Holdings (Pty) Ltd, Kirloskar Trading SA (Pty) Ltd.
|
|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail of customized
purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf format
on special request)
|
Report Scope:
In this report, the South Africa
Generator Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- South Africa
Generator Market, By Product Type:
- AC Generator
- DC Generator
- South Africa
Generator Market, By Installation:
- South Africa Generator Market, By Output:
- Above 1000 kW
- 501-1000 kW
- 61-250 kW
- Upto 60 kW
- 251-500 kW
- South Africa Generator Market, By Fuel:
- South Africa Generator Market, By Application:
- Standby
- Continuous
- Peak Shaving
- South Africa Generator Market, By Cooling Type:
- Air Cooled
- Water Cooled
- Hydrogen Cooled
- South Africa Generator Market, By End User:
- Commercial
- Industrial
- Residential
- South Africa Generator Market, By Region:
o Gauteng
o KwaZulu-Natal
o Western Cape
o Eastern Cape
o Mpumalanga
o Limpopo
o North-West
o Free State
o Northern Cape
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the South Africa Generator market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).