In 2021, the Madagascar diesel genset market generated $21,429.8 thousand, and it is predicted to reach $27,755.7 thousand by 2030. The market is predicted to grow at a 2.9% CAGR owing to the surging count of power cuts and robust development in the construction and telecom sectors. In 2019, merely 27% of the country’s population had electricity access, according to the World Bank, which reflects a skyrocketing demand for such power production devices. Essentially, an increasing requirement for power backup within the commercial and residential sectors will drive the market.
The reliability of the power supply is the cornerstone of the economic and industrial development in the country. To enhance the service quality offered to citizens, the government is strictly assessing the requirement for energy in the country. The key power users in Madagascar are public transportation system, army settlements, police stations, customs offices, administrative buildings, schools, and healthcare centers. However, the services offered by these institutions vary notably in quality in urban and rural areas, affected heavily by the availability of power and the reliability of the grid connection.
For instance, a partnership agreement was signed by Green Energy Solutions and Colas Madagascar in April 2021. The aim is to develop a hybrid solar power plant for Colas Madagascar, to allow the country to reduce its dependence of fossil fuels. Such infrastructure development projects create a demand for gensets as the construction sites mostly do not have grid connectivity.
Hence, the robust development in the construction and telecom sectors, coupled with a surging count of power outages, will drive the market.