South African Diesel Genset Industry, Outlook 2025
Description
South African Diesel Genset Industry, Outlook 2025
South Africa is arguably sub-Saharan Africa’s most developed economy and home to the region’s largest energy sector. However, the country’s chronic energy crisis, most evident from the frequent loadshedding, largely stems from the failure of the national power utility, Eskom, to provide reliable, constant power supply due to its ailing coal-powered fleets and insufficient maintenance of the transmission and distribution network. The poor condition of South Africa’s national T&D network makes it prone to frequent unscheduled breakdowns, theft, and vandalization. The industry is looking at alternative backup power sources, such as diesel-powered generators, to avoid further operational losses. South Africa’s primary need for diesel gensets lies in standby applications for industries and businesses, not prime power use. The electricity grid is generally stable, with demand linked directly to loadshedding. The country has no direct manufacturing of diesel generators and heavily relies on the import of engines, alternators, or complete gensets from international markets. While population growth, higher living standards, and increased industrial/mining activity drive demand for diesel gensets, alternative technologies such as renewable sources (wind, solar), battery energy storage systems, and gas generators are increasingly popular, restraining the diesel genset market growth. However, alternative distributed energy resources (DER) are, to date, more expensive than diesel gensets and forecast to remain in the next 5 years. There are many opportunities for genset distributors to overcome market restraints through innovative customer services and the ability to adapt and enter new market opportunities.
South Africa is arguably sub-Saharan Africa’s most developed economy and home to the region’s largest energy sector. However, the country’s chronic energy crisis, most evident from the frequent loadshedding, largely stems from the failure of the national power utility, Eskom, to provide reliable, constant power supply due to its ailing coal-powered fleets and insufficient maintenance of the transmission and distribution network. The poor condition of South Africa’s national T&D network makes it prone to frequent unscheduled breakdowns, theft, and vandalization. The industry is looking at alternative backup power sources, such as diesel-powered generators, to avoid further operational losses. South Africa’s primary need for diesel gensets lies in standby applications for industries and businesses, not prime power use. The electricity grid is generally stable, with demand linked directly to loadshedding. The country has no direct manufacturing of diesel generators and heavily relies on the import of engines, alternators, or complete gensets from international markets. While population growth, higher living standards, and increased industrial/mining activity drive demand for diesel gensets, alternative technologies such as renewable sources (wind, solar), battery energy storage systems, and gas generators are increasingly popular, restraining the diesel genset market growth. However, alternative distributed energy resources (DER) are, to date, more expensive than diesel gensets and forecast to remain in the next 5 years. There are many opportunities for genset distributors to overcome market restraints through innovative customer services and the ability to adapt and enter new market opportunities.
Table of Contents
51 Pages
- Summary and Conclusions
- Key Highlights of the Global Diesel Generator Industry
- Challenges Faced by the Diesel Generator Industry in South Africa
- South African Diesel Generator Industry-Actuals vs Forecast
- Diesel Generator Industry Historical Sales
- Top Predictions Beyond 2022
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8
- The Impact of the Top 3 Strategic Imperatives on the South African Diesel Genset Industry
- Growth Opportunities Fuel the Growth Pipeline Engine
- Research Scope
- Macroeconomic Outlook
- Energy Industry
- Growth Drivers
- Growth Restraints
- Diesel Generator Market
- Diesel Generator Market by Power Range
- Diesel Generator Market Analysis
- Diesel Generator Market by Application Sector
- Diesel Generator Market Share
- Diesel Generator Engine and Alternator Analysis
- Diesel Generator Competitor Activity Analysis
- Growth Opportunity 1: Diesel Genset Technology Merging with Alternative Distributed Energy Resources
- Growth Opportunity 2: Incorporating Diesel Gensets in Charging Stations for Electric Vehicles
- Key Conclusions and Future Outlook
- Learn More-Next Steps
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