The Saudi Arabia Diesel Generator Market is projected to grow at a CAGR of 12.18% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The growth amounts to the increasing use of diesel generators in several industries, including the commercial sector, manufacturing facilities, and the oil & gas industry. The continuous discovery of new oil & gas sites to enhance the production of crude oil is raising the requirement for diesel generators which are required to drill oil wells & run machinery at offshore & onshore locations in the oil & gas industry of Saudi Arabia.
In addition, the ongoing economic development in the Kingdom led by government initiatives to widen the sources of revenue for its nation & to reduce dependence on the oil & gas sector is resulting in the growth of the commercial & industrial sectors of the country. Favorable business policies of the government, such as tax incentives, foreign ownership, etc., have been pushing the companies to expand their products & services in Saudi, leading to a rise in the construction of corporate offices, industrial units, manufacturing units, and other allied commercial infrastructure. Moreover, the emergence of government housing programs & projects to cater to the soaring population is expanding construction in the residential sector. For instance,
The requirement for diesel generators to provide prime & backup power supply in all the residential, commercial, industrial, and manufacturing units is driving the market for diesel generators in Saudi Arabia. Further, the country is witnessing a surge in the number of hotels, restaurants, resorts, shopping malls, and other tourist attractions such as theme parks, entertainment zones, etc., in line with the goal of the government of the Kingdom to make the country a tourist hub in the Middle East & Africa. Hence, such developments would strengthen the demand for diesel generators in the coming years, further states the research report, “Saudi Arabia Diesel Generator Market Analysis, 2023.”
Standby Diesel Generator to Drive Market
Based on the type of diesel generators, the market is further bifurcated into Standby, Prime & Continuous Power, and Peak Shaving. Of these, Standby Generators would acquire a major share of the market in the UAE in the anticipated years due to the role of these generators to ensure the operational efficiency of commercial & industrial units by providing automatic power supply during power outages.
In addition, the wide application of standby generators in residential, healthcare, and other sectors, combined with the rising infrastructural development of these sectors, is enlarging the market for key companies in the country. This combined with raising investments by government & private players in various sectors, would facilitate the deployment of these generators in the forecast years.
Healthcare Industry to Become a Major Source of Demand for Diesel Generators
Based on end users, the market is divided into Residential, Commercial, Healthcare, Government & Transport, Oil & Gas, Industrial, and Equipment Rental Companies. Amongst these, the Commercial sector would register consistent growth in the market for diesel generators in Saudi Arabia in the upcoming years. This attributes to the requirement for uninterrupted power supply in healthcare facilities like hospitals, clinics, pathology labs, R&D labs, and nursing homes to operate medical equipment, temperature control units, etc.
Additionally, the government plan to invest nearly USD65 billion by 2030 in the healthcare sector under its Vision 2030, along with the increasing contribution of the private sector. Hence, this would augment the demand for diesel gensets to provide continuous power supply to power-consuming healthcare devices & equipment such as ICU machines, oxygen plants, and others.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Cummins Arabia, Atlas Copco Industrial Equipment Co., FG Wilson, Kohler SDMO, Aksa Power Generation, Caterpillar Inc., Saudi Diesel Equipment Co. Ltd., Generac Holdings Inc., Siemens Energy AG, and Kirloskar DMCC, are looking forward to strengthening their market position.
Key Questions Answered in the Research Report