The Madagascar diesel genset market was valued at $21,429.8 thousand in 2021, and the market will propel at a 2.9% CAGR during 2021-2030, to reach $27,755.7 thousand. The speedy growth in the construction and telecom sectors and the intensification in the incidence of power cuts are the main factors accountable for the growth of the market.
According to the World Bank, only about 27% of the population of Madagascar had access to electricity in 2019, which is one of the primary reasons for the increasing requirement for diesel gensets in the mining, telecom, construction, and residential sectors.
The telecom sector of Madagascar has profited from the snowballing rivalry among key operators such as Orange Madagascar, Airtel, and Telma. In 2021, the government relaxed the excise duty on telecom products to 8% from 10%, which is advantageous for customers. This opened the gates for a high requirement for diesel gensets in telecom towers to cope with the high-frequency power cuts.
Key Findings of Madagascar Diesel Genset Market:
- The 15-75 kVA category held the largest share, of approximately 42%, in 2021. This is due to the increasing use of these gensets in residences, small industries, restaurants, hotels, telecom towers, and commercial complexes.
- Furthermore, the 376-750 kVA category is the second significant contributor to the Madagascar diesel genset market. The primary reason for this is the high requirement for these generators in industries and commercial complexes.
- The commercial application category is likely to grow at the highest rate in the years to come, propelling at a 3.9% CAGR. This can be primarily due to the constant advancement in the construction sector.
- The Madagascar diesel genset market is likely to be boosted by the increase in the requirement for power backup in the commercial and residential sectors and the development of the mining and construction industries.
- Power consistency is an important prerequisite for Madagascar's economic development. Thus, the requirement for energy among public institutions of the country has augmented, to improve the eminence of the services provided to people.
- Key firms in the Madagascar diesel genset market are taking part in partnerships and alliances with the intention of staying ahead of their competitors. For example, Green Energy Solutions (GES) and Colas Madagascar entered into a collaboration in April 2021 to construct a hybrid power plant driven by solar energy for Colas Madagascar at the Ambokatra quarry and offer construction supplies within the country.