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Kohler-SDMO Doubling Down on Latest Product as Global Diesel Gensets Market Heats Up

Kohler is aggressively expanding its Africa presence to try and leapfrog bigger rivals in the global diesel gensets market

Kohler-SDMO recently launched its newest range of large diesel industrial generators at the Africa Energy Forum. The company has identified Africa as one of the biggest potential power markets in the world, and is hoping that its strong presence in Africa will act as a springboard for a larger market share in the global diesel gensets market. TechSci Research reviews and debates, succinctly, the various inputs that went into and the inferences that can be derived from this strategy.

Middle East and Africa: A Great Potential Springboard in the Global Diesel Gensets Market

TechSci Research report “Global Diesel Gensets Market, Competition Forecast & Opportunities, 2012-2022”, predicts that the global diesel gensets market will reach $ 27 billion by the end of 2022, due to growing use of diesel gensets in addressing power requirements across various end user sectors including industrial, commercial and residential. Diesel gensets find application as standby source of power, in cases where prime source of power is unable to satisfactorily address electricity requirements. Africa is one such market that has been identified as key; while emerging markets in the Asia region primarily are starting to rely on their indigenous power sources, Africa is still struggling to build its capacities. Experts at TechSci themselves have pointed out the prime role of Africa in the global diesel gensets market, pointing out, as examples, the widening demand-supply gap in nations such as Tanzania and Nigeria which has resulted in increased use of diesel gensets as a prime source of power.

Moreover, the market share of industrial sector in the global diesel gensets market in 2016 was well over the 50% level. Cornering a slice of the industrial sector in a continent where diesel genset market growth is regularly clocking double digits, seems to be a smart move from Kohler.

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Eye on the Prize: APAC and North America Diesel Genset Market

Kohler has made no bones about the fact that the Africa market will be a stepping stone to the global diesel gensets market. Specifically, the APAC and North American markets. The TechSci Research report on global diesel genset points out the growing dominance of the APAC market. In terms of nuclear capacity construction, one of the major demand generators in the market, China and South Korea alone account for nearly 25,000 MW of future capacity, almost half when considering the top five countries. In addition, major end users such as healthcare, pharmaceuticals, manufacturing etc. are progressing at a faster rate than in Africa. While progress in Africa has been robust, it cannot hold a candle to development of industrial infrastructure in countries such as India, and China.

Not only do North America and APAC account for a combined market share of over 60%, Kohler finds itself third in the list of top manufacturers, behind Cummins and Caterpillar. To streamline its global strategy and expand its market share, Kohler has hit upon the capital idea of aggressively prioritizing on the Africa market to consolidate its position. Whether the plan will succeed or not is a question for the future.

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