Home Labour Electric generating set market to hit N152.1bn by 2020’

Electric generating set market to hit N152.1bn by 2020’

There are fresh indications that the nation’s electric generating set market, the largest in Africa will witness  growth  s rates of 8.7 per cent, propelling up market volume from $450 million ( about N72 billion) in 2011, to reach $950.7 million (N152.1 billion) by 2020, respectively.
“Sustained growth is driven by increasing electricity consumption, which has been growing at 8 percent per annum over recent years, and the inability of the Power Holding Company of Nigeria (PHCN) to supply adequate power to meet demand,” a United Kingdom (UK ), research energy analyst, Aman Madhok, has  said.
The Nigerian genset market is mainly driven by imports from other countries such as China and the UK, he disclosed on line.
“The Nigerian market provides considerable opportunities for generating set manufacturers, with good growth recorded between 2006 and 2011, although it experienced a slight decline in 2009 after reaching a peak of $411.8m in 2008,” he added.
In 2007, only around 15 of the 79 power stations in Nigeria were fully functioning. Most of them were built in the 1970s and 1980s.
Given the current state in Nigeria of power generation and the power transmission and distribution network, along with the economic growth in the country, GBI Research expects genset market revenues to grow at a CAGR of 8.7 percent over the forecast period to reach $950.7m by 2020.
Abundance of gas supply at low price drives use of gas generating sets. Low gas prices and an abundance of available gas are two major drivers for gas generating sets in Nigeria. However, a lack of adequate gas infrastructure in the country acts as a major hindrance for gas generating sets in Nigeria.
“The extent of market growth for gas generating sets in Nigeria depends upon the timely implementation of a gas infrastructure in the country,” Madhok suggested.
Although the use of gas generators is on the rise, the Nigerian generating set market is still dominated by diesel generators. “Gas generators currently contribute only a fraction of market revenues,” he said.
Nigeria’s generating set market grew at a cumulative annual growth rate (CAGR) of 5.6 percent between 2006 and 2011, reaching $450 million, despite experiencing a slight decline in 2009 due to the global economic recession. Growth of the market, however, improved in 2010 and 2011.

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