Jordan Diesel Generator Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: Jordan Diesel Generator Market (2023-28)

The Jordan Diesel Generator Market is projected to grow at a CAGR of around 14.60% during the forecast period, i.e., 2023-28. As Jordan's industrial & power generation sectors have developed over the past few years, the market has experienced numerous growth factors. The country has a significant presence in manufacturing industries such as petroleum refining, chemicals, petrochemicals, fertilizers, and mineral products, which are highly dependent on diesel generators to ensure continuous power supply for producing finished products.

Additionally, the rising mining activities in the country have notably contributed to the demand for the deployment of diesel generators at mining sites to power extraction equipment. Moreover, the implementation of the 2015-2025 Mineral Resources Strategy envisions, by the government of Jordan, which aims at enhancing the mining share in the country’s GNP from 7.7% in 2019 to 11% by 2025, is expected to fuel the production activities & investments in the mining sector. This would further fuel the requirement for diesel generators for both replacement & new installations.

Furthermore, the rising support by international organizations, including the World Bank, for the infrastructure development in Jordan is anticipated to push the demand, further elevating the Jordan Diesel Generator Market size in the coming years.

Market Dynamics

Growth Driver: Launch of Infrastructure Development Projects to Boost the Market Growth

The Government of Jordan has established several projects to boost the country's economic growth. This has significantly exacerbated the need for diesel Public-Private Partnership (PPP) generators on construction sites to power construction machinery. Further, as the projects include the development of school transit stations, gas pipelines, etc., the need for continuous power in these spaces is significant. As a result, the requirement for diesel generators in these spaces is anticipated to boom with the completion of the projects to sustain their power demand, hence, fueling the sales of standby diesel generators in the country in the upcoming years as well.  

Growth Opportunities: Rising Investments in Healthcare Infrastructure Augmented the Need for Diesel Generators

The rising initiatives of the government of Jordan to strengthen its healthcare sector by encouraging investments in the development of new hospitals have provided a lucrative opportunity for the market growth of diesel generators in Jordan. For instance:

• In 2022, the Jordan investment fund & the Saudi Investment fund collaboratively announced a funding commitment of USD400 million for the development of the healthcare & medical education sector in the country.

This project consists of a university hospital with over 300 beds, outpatient clinics, an ambulatory care building, etc., which would notably augment the demand for power supply to function the facilities. Further, the evolution of existing hospital units in the country, such as the expansion of Samih Darwazah Oncology Centre at the government-run Al Bashir Hospital in 2022, etc., is expected to boost the demand for diesel generators for standby power in these facilities. Hence, the growing development & improvisation of the healthcare industry in the country would create a flourishing opportunity for diesel generators in the market to fulfill the demand for a continuous supply of electricity in the coming years.

Key Trend: Mounting Popularity of Varied Types of Advance Diesel Generators

In recent years, Jordan has seen a rise in the usage of silent & portable diesel generators. Portable & silent diesel generators have gradually experienced an increase in demand across various residential, corporate, and industrial sites due to their effective noise-cancellation properties and the convenience involved. Hence, this has generated the need for these generators from malls, theaters, telecom towers, hospitals, schools, and corporate & government offices.

Along with this, Jordan, a developing nation, is witnessing a high rate of mining & construction activities, such as the development of bridges, buildings, etc. According to World Bank, the industrial sector's contribution to the GDP of the country, including construction, has surged from around USD10.77 billion in 2019 to nearly USD10.84 billion in 2021.

Moreover, diesel generator providers & equipment rental companies have focused on this trend, thus enhancing their product portfolio in the category of portable & silent diesel generators. Thus, the surging adoption of silent & portable generators owing to the modifications for improved performance & higher efficiency is estimated to support the growth of the Jordan Diesel Generator market in the forecast years.

Possible Restraint: Long Custom Clearance Procedures to Hinder the Supply of Diesel Generators in the Country

Jordan lacks most of the critical raw material resources due to which the country lacks manufacturing units of diesel generators, therefore Jordan is highly dependent on imports. Additionally, slower customs clearance processes have widely restricted the supply of diesel generators in the country. Moreover, the strict regulations of customs & border control agencies, along with a decline in ease & affordability of arranging priced shipments, further hampered the import logistics in the country. According to World Bank, in 2019, it took around 5.3 days in Jordan to clear direct imports through customs, which is quite long. Hence, the high regulations on custom clearance have potentially impacted the sales of diesel generators in the country in the past years and are anticipated to continue to do so in the forthcoming years as well.

Market Segmentation

Based on KVA Rating:

• Up to 75KVA
• 75.1KVA TO 375KVA
• 375.1KVA TO 750KVA
• 750.1KVA TO 1000KVA
• Above 1000KVA

375.1KVA to 750KVA gained the highest share in the Jordan Diesel Generator market during 2017-2019. Healthcare facilities, government buildings, etc., dominated the segment with incessant demands for standby power. In addition, new investments are expected to be made in the expansion of healthcare facilities, which would moderately boost demand for 375KVA to 750KVA. For instance:

• In 2022, the Saudi Jordan Investment Fund announced the construction of a USD400 million healthcare project in the country to meet the growing demand for healthcare services among residents.

Thus, the rise in the development of new healthcare facilities would continue to dominate sales of diesel generators with capacities ranging from 375.2KVA to 750KVA during 2023-2028.

Based on the End User:

• Residential
• Commercial
• Healthcare
• Government & Transport
• Oil & Gas
• Industrial
• Equipment Rental Companies

Of them, the Standby Diesel Generator has been witnessing considerable growth in the Jordan Diesel Generator market over the past years. This growth is based on the prominent usage of these generators as a backup power source in residential & commercial facilities of the country. Further, the infrastructural development in the commercial sector involving the construction of healthcare units and hospitality & entertainment spaces would escalate the sale of standby diesel generator models during the upcoming period.

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