Indonesian Diesel Genset Market
Dublin, May 06, 2022 (GLOBE NEWSWIRE) -- The "Indonesia Diesel Genset Market Report: By Power Rating, Application - Latest Trends, Competition Analysis and Demand Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The estimated Indonesian diesel genset market 2021 value was $339.9 million, and it will reach $504.5 million by 2030, at a 4.5% CAGR between 2021 and 2030.
The key reason behind it would be the high frequency of power outages in the country owing to its poor grid infrastructure and high incidence of natural calamities, such as earthquakes, incessant rain and flood, and volcanic eruptions.
For instance, during February-April 2021, certain parts of Indonesia were ravaged by floods and rain, which led to a massive power outage. Moreover, the country faces a critical shortage of coal, with mining firms deliberately not meeting their targets to supply 25% of the output to domestic power plants. Further, the government estimated in May 2021 that across the country, 500,000 households were still without a grid connection.
During the COVID-19 pandemic, diesel genset sales dropped massively in the country because of the closure of major industrial and commercial spaces and challenges in the import of these systems and their components. However, as the lockdowns have now been lifted, economic activity is resurging. Moreover, on January 12, 2022, the country lifted the ban on the arrival of people from overseas, which is a positive sign for its tourism sector.
Key Findings of Indonesia Diesel Genset Market Report
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Till now, gensets with a power rating of 5 to 75 kVA have witnessed the highest sales (in terms of volume) due to their lower prices and popularity in small industries, residential facilities, telecom towers, commercial complexes, restaurants, and hotels.
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However, high-power variants are now beginning to trend in the Indonesian diesel genset market because the government is strongly focusing on the development of industrial and social infrastructure.
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For instance, the National Medium-Term Development Plan (2020-2024) entails a spending of $412 billion for the construction of highways, buildings, roads, ports, and refineries, thereby driving the demand for gensets for powering construction equipment.
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Among the residential, industrial, and commercial sectors, the industrial sector will most rapidly increase the procurement of such power production systems in the country in the coming years.
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In this regard, the Making Indonesia 4.0 initiative, which aims to make the country a global manufacturing hub, will be a key Indonesian diesel genset market growth driver.
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In the same way, the high population of the country has made the residential sector the greatest user of gensets. This is also attributed to the large number of people who don't have grid connections, thus depend on gensets.