SOUTH AFRICA DG SET MARKET: TRENDS, OPPORTUNITIES, AND FORECAST 2024-2030

South Africa DG Set Market: Trends, Opportunities, and Forecast 2024-2030

South Africa DG Set Market: Trends, Opportunities, and Forecast 2024-2030

Blog Article

Market Overview

The South African DG set market generated revenue of USD 128.2 million in 2023, which is expected to witness a CAGR of 4.2% during 2024–2030, to reach USD 170.1 million by 2030.

High-capacity medium and high power-output DG sets from the commercial sector as well as the establishment of manufacturing and construction industries are the key market drivers. The industries in these sectors are growing due to the macroeconomic perspective, the public and private capital expenditure (CAPEX) increases in all the industries, and the government reforms and incentives that encourage foreign and domestic investments.

With time, South Africa's telecommunications sector is getting more and more expansive. Telkom, Liquid Intelligence, Broadband InfraCo, and municipal networks have put in a lot of effort and investment to bolster their network abilities. Additionally, MTN South Africa is targeting to cover 60% of the South African population with its 5G network infrastructure by 2025. Moreover, the company manages to get 1,000 5G mobile sites at present.

Moreover, in November 2021, Vodacom South Africa also reached a deal to acquire Material Assets of Community Investment Ventures Holdings (CIVH) including Dark Fibre Africa and Vumatel. Meanwhile, Vodacom will be holding a 30% equity stake in the new entity InfraCo, the name of which will include all the assets from Vodacom as well as certain fiber assets that they will transfer to the newly formed company.

Key Insights


  • During the projection period, the 15–75 kVA category is estimated to grip the largest industry share, accounting for 40%.

  • This supremacy is propelled by the growing acceptance of 15–75 kVA DG sets in housing areas and several commercial settings like telecom towers, small offices, and retail stores.

  • The 76–375 kVA category is projected to witness the fastest development, with a CAGR of 4.7% over the projection period.

  • This development is mainly credited to the high need for such genset variants in applications like small telecom towers, commercial complexes, industries, restaurants, and hotels.

  • The commercial category will copyright the largest industry share based on value until 2030.

  • The significant need for diesel gensets in this category is propelled by the fast development of residential complexes, transportation infrastructure (rail and road), retail establishments, hospitals, restaurants, shopping malls, and telecom towers throughout the nation.

  • Over the forecast period, the industrial category is estimated to witness the fastest development rate of 4.7%.

  • This development is credited to the substantial requirement for DG sets as main or backup power sources in industries like manufacturing, oil and gas, construction, and mining.

  • The market is characterized by consolidation, with a few major players dominating.

  • One notable trend that is noticeable is the growing size of partnerships and collaborations among companies as they seek to keep pace with the competition.

  • Furthermore, in November 2021, Vodacom South Africa carried out a merger between CIVH and its subsidiaries by way of asset acquisition, which led to the emerged of InfraCo, the newly formed entity, with the mission of strengthening the telecom services in South Africa and hence the DG Set market.

  • Such acquisitions and alliances are expected to become critical market drivers, and they will probably shape the development of the market over the next years.


Source: P&S Intelligence

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