The Yemen Diesel Generator market is projected to grow at a CAGR of around 9.17% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. This attributes to the support provided by the international community to maintain & construct the country's social infrastructure. The ongoing civil war in Yemen has been leading to the destruction of the social & commercial infrastructure of the country.
Thus, various international organizations such as the United States Agency for International Development (USAID), UNICEF, and the government of different countries such as the UAE & Saudi Arabia have started providing support for the construction of social infrastructure such as schools, water storage, etc. The requirement of power supply in these spaces for construction & electricity supply as the prime source is thus generating the demand for generators in the country. In addition, the restoration of the existing infrastructure is further enhancing the construction activities in Yemen, consequently aiding these generators' demand.
Moreover, the destruction of the existing electricity grid of the country due to the war is further necessitating the availability of these generators. Further, the increasing number of power outages due to the demolition of grid infrastructure is increasing the demand for prime-power diesel generators for their daily operations in hospitals and schools. Also, the rising number of malnutrition cases and renal diseases is intensifying the requirement for healthcare infrastructure in Yemen. Thus, the current development of the hospitals & other allied infrastructure backed up by the aid provided by countries & organizations is continuing to generate demand for generators in the country.
However, the war is leading to a decline in the manufacturing, industrial, and tourism sectors of the country. Also, the lack of investment by private companies in other sectors, such as residential, non-residential, etc., is reducing the need for these generators in these sectors, thus impacting the market negatively. However, the reconstruction or the ongoing developments by the neighboring countries is presumed to generate minimal or limited demand, further states the research report, “Yemen Diesel Generator Market Analysis, 2023.”
Prime & Continuous Diesel Generators to Witness an Upward Trend in the 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 Yemen in the forecast years. This is due to the poor condition of the power grid of the country, which has jeopardized electricity generation & distribution through proper infrastructure & grid networks. Hence, this is making these generators the sole source of prime power in Yemen to operate essential activities in almost all the sectors, such as residential, commercial, industrial, etc. Further, the ongoing war situation in the country is predicted to continue to create demand for generators in the upcoming years.
Independent Power Plants to Lead the Market
Based on end users, the market is divided into Independent Power Plants & Re-construction. Amongst these, independent power plants would register consistent growth in the market for diesel generators in Yemen in the upcoming years. This attributes to the requirement of these generators for electricity generation to meet the insufficiency of the electricity grid to supply power in the country. Several independent power plants established in numerous sites provide power supply to communities with the help of generators. Further, power shortages in the country owing to the destruction caused by war & conflict are raising the share of IPPs in the market as they are becoming the primary source of electricity in Yemen.
Competitive Landscape
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Cummins, Caterpillar, MHI Engine System Middle East FZE, Denyo, Greaves Cotton Ltd, PR Middle East FZE, and Noor Generators Technology, are looking forward to strengthening their market position.
Key Questions Answered in the Research Report