The UAE Diesel Generator Market is projected to grow at a CAGR of 8.08% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. This attributes to the wide use of these generators to provide a continuous flow of power in a wide variety of industries such as residential, hospitality, industrial, healthcare, etc. Sectors, including manufacturing industries, construction, information & technology, receive the major share of investments in the country. The UAE government is investing heavily to facilitate the economic development of the country. Along with this, foreign investments by multinational companies from all over the world in response to favorable business policies such as 100% foreign ownership are leading to the expansion of these sectors.
Additionally, the oil & gas sector of the UAE is becoming another major source of demand for diesel generators. The use of these generators for ensuring continuous operations of machinery by providing uninterrupted power supply at different locations such as onshore, offshore, and refining sites is supporting the market in the country. Further, the constant exploration of new oil & gas production sites would continue to drive the market in forecast years.
Furthermore, the vast presence of minerals such as aluminum, copper, limestone, etc., has made the mining sector one of the prominent revenue sources for the economy of the UAE. The development of this sector in response to enriching investments & expansion plans of the government combined with the requirement of generators for the operation of machinery & equipment at mining sites would impact the market positively in the upcoming years, further states the research report, “UAE Diesel Generator Market Analysis, 2023.”
Standby Diesel Generators to Witness Surge in Demand in Coming Years
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 during the forecast period. This is in line with the surging demand for uninterrupted power supply from varied industries such as commercial, manufacturing, industrial, etc., coupled with the role of standby generators to provide automatic power supply. Development of sectors where power outages are not tolerable such as telecommunication, healthcare, transportation, etc., are becoming key sources of demand. Furthermore, innovations & advancements in the industry to come up with cost-effective & efficient diesel generators by leading manufacturers, such as Caterpillar, Cummins, Mitsubishi, etc., to meet the growing demand of industrial and commercial sectors is widening the market in the forthcoming years.
Commercial Sector to Lead the Growth of The UAE Diesel Generator Market
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 during the forecast period. This attributes to the government initiatives to diversify the economy of the country, which is leading to the expansion of non-oil sectors such as manufacturing, e-commerce, tourism, etc. The development of these sectors is further resulting in the expanded construction of commercial buildings like shopping malls, supermarkets, warehouses, restaurants, etc., which require these generators for an optimum power supply.
Further, development of the resorts, hotels, lounges, and other tourist attractions by the government to create a tourist hub in the country would heighten the requirement for these generators in the ensuing years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Caterpillar Inc., Cummins Middle East FZE, FG Wilson Engineering FZE, PR Middle East FZE, Rolls Royce Solution Middle East FZE, Himoinsa Middle East FZE, Atlas Copco Middle East FZE, MHI Engine Solution Middle East FZE, Saudi Diesel Equipment Co. Ltd., and JCB) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report