• Tuesday, October 03, 2023
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Nigeria gas genset market to hit $514m by 2030 – report

Nigeria gas genset market to hit $514m by 2030 – report

The market revenue for Nigerian gas generator sets (gensets) is expected to reach $514.4 million by 2030, owing to the country’s growing population, fast industrialisation, and urbanisation, all of which are boosting demand for energy, a research report by a Dublin based institute reveals.

According to a market report published by Research and Markert, the world’s leading market research store, individuals, commercial and industrial entities are resorting to gas gensets to keep operations going.

Forecasts by the research store also stated that Nigeria’s gas genset revenue, which was estimated at $259.8 million in 2021, will grow at a 7.9 percent Compound Annual Growth Rate (CAGR) between 2021 and 2030, reaching $8514.4 million by 2030.

“Because of their importance in the energy, manufacturing, and commercial sectors, gas gensets with power ratings of 1,000 kilovolt-Amperes (kVA) and above have the largest sales in the country.

“And also because of the significant sales of these machines to businesses in the telecom and real estate industries, commercial applications would see the fastest development in the Nigerian gas Genset market,” the report added.

Read also: How we are solving problem of refilling gas cylinders – GasPAL founder

The findings showed that increasing construction and oil and gas industries are driving up demand for gas generators. Even in cities, construction sites frequently lack grid connectivity, and most oilfields are located in rural locations. As a result, these industries require a backup power supply to keep their machines and operations running.

“Another important element driving the growing sale of gas generators in Nigeria is rising air pollution levels. Although gas generators create greenhouse gases (GHGs), they do so at a much lower rate than diesel generators.

“As a result of the tight emission laws imposed on diesel engines, individuals in the country are turning to gas gensets, which are also less expensive to run due to their great fuel efficiency,” the report noted.

However, the findings also showed that the Nigerian gas genset industry was negatively impacted by the COVID-19 pandemic, since lockdowns resulted in the closure of companies and commercial areas, reducing demand for energy. And these import limitations resulted in a shortage of components among generator producers.

Research and Markets, based in Dublin, Ireland, was launched in 2002 with a single goal in mind: to link businesses with the market insights and data they need to make informed decisions.