South African DG Set Market is Led by Commercial Category
The South African DG set market will power at a rate of 4.2% by the end of this decade to reach USD 170.1 million by 2030 from USD 12.8 million in 2023. The high requirement for medium- and high-power DG sets from the commercial industry and the development in the construction and manufacturing industries are powering the growth of the industry.
The development in these industries is because of the macroeconomic expansion, increase in CAPEX by private and public players, and government reforms and incentives to boost domestic and foreign investments in numerous industries.
Key areas supporting the economy of the country include sophisticated legal, monetary, communications, and transport industry, along with an open trade policy and a comparatively robust domestic market.
Furthermore, government initiatives toward the construction of healthcare infra and health & wellness centers, power sector rebound, and formation of business hubs and industries are powering the requirement for a continuous supply of power.
The 15–75 kVA category led the industry, with around 40%. This is chiefly because of the growing usage of 15–75 kVA DG sets in commercial areas and residential societies, such as small commercial offices, telecom towers, and retail outlets.
Furthermore, substantial loss of energy and inappropriate distribution channel frequently cause power failure. To counter the power cuts, retail shops, households, and commercial offices are employing diesel gensets with a power rating of 15–75 kVA.
The DG set industry will advance in the nation in the future, because of the growing requirement for electricity, because of government initiatives for example the National Transport Master Plan 2050, Vision 2025, and NDP 2030. The NDP is heading for plummeting poverty and minimalizing inequality by 2030.
Furthermore, the nation performs well with regards to trade facilitation and logistics, and transportation infra.
In the past, with regards to sales, the largest share in the South African DG set market was with the commercial category. This has a lot to do with the high-volume demand for DG sets in this sector, as a result of the rapid growth of, transportation infra, retail outlets, hospitals, restaurants, malls, and telecom towers, in the nation.
The key trend observed in the industry is that main companies are involved in collaborations and partnerships, to stay ahead of their competitors.
For example, In December 2020, YANMAR proclaimed its partnership with Vert Energy Group, to make its official distributor for YANMAR industrial engines in the nation and neighboring nations, in succession to Prodist.
It is because of the growth in manufacturing and construction industry in the country, the demand for DG set is on the rise. This trend will continue to rise in the years to come.
