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.

Moreover, the inherent highly competitive nature of the players in the telecom sector of the country, such as Telma, Airtel, and Orange Madagascar, will encourage them to expand their network. Further, the finance law implemented in 2021 by the government lowered the excise duty on telecommunications-related products to 8% from 10%, profiting all the customers. This will consequently lead to the snowballing sales of diesel generators to telecommunications towers for continuing to function during power outages, the count of which is high, thus augmenting growth in the market.

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.