The South African DG set market is projected to be worth USD 159,129.0 thousand by 2030, growing at a CAGR of 3.9%, according to P&S Intelligence. This growth can be ascribed to the high demand for medium- and high-power diesel gensets from the commercial industry and the development in the construction and manufacturing sectors.
The development in such industries is because of the macroeconomic growth, surge in capital investments by private and public-private companies, and government support and steps to boost foreign and domestic expenditure in numerous sectors.
Key areas aiding South Africa's economy comprise financial, well-developed legal, and transport sectors, and also an open trade rule and a comparatively robust domestic industry.
Furthermore, steps of the government regarding the construction of healthcare infrastructure and health and wellness centers, the establishment of business hubs, the power industry rebound, and industries are boosting the requirement for a continuous electricity supply.
Furthermore, substantial loss of power and unsuitable distribution channel frequently causes electricity failure in the nation. In order to counter the electricity cuts, retail shops, households, and commercial workplaces are utilizing diesel gensets with an energy rating of 15–75 kVA.
It is projected that the DG set industry in South Africa will grow significantly in the coming few years, credited to the growing requirement for power, because of government steps like Vision 2025, National Transport Master Plan 2050, and National Development Plan (NDP) 2030. Furthermore, the nation performs well in terms of trade services and logistics, and transport infrastructure.
On the basis of sales, in recent years, the commercial category dominated the market with a share of over 46%. This can be credited to the high-volume need for DG sets in this industry, because of the quick growth of transportation (rail and road) infrastructures, retail outlets, restaurants, malls, and telecom towers, in the nation.
Hence, the high demand for medium- and high-power diesel gensets from the commercial industry and the development in the construction and manufacturing sectors are the major factors propelling the South African DG set market.
