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

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

By KVA Rating (Up to 75 KVA, 75.1 KVA to 375 KVA, 375.1 to 750 KVA, 750.1 KVA to 1000 KVA, Above 1000 KVA), By Type (Stand By, Prime & Continuous Power, Peak Shaving), By End Users (Residential, Comme Read more

  • Energy
  • May 2023
  • 102
  • EN77049

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

The Lebanon Diesel Generator Market is projected to grow at a CAGR of around 9.21% during the forecast period, i.e., 2023-28. Various factors have propelled the market in recent years, including rising infrastructure development activities in the country & unit sales of diesel generators. Frequent power outages & unavailability of efficient grid electricity to the economic sectors, namely residential, commercial, and industrial facilities, are the key factors augmenting the sales of diesel generators for standby, prime & continuous power solutions. According to the World Bank, in 2018, around 36% to 45% of electricity demand in the country was being met by private diesel generators across all sectors due to limited grid power availability.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 9.21%
Key Companies Profiled Cummins, Caterpillar, Rolls-Royce Solutions Middle East FZE , Jubaili Bros , Generac Holdings Inc., Kohler Co., Ghaddar Machinery Co. , International Machinery & Generators , Sakr Power Generation, HMH Machines, Others
Unit Denominations USD Million/Billion

 

Moreover, the hours of electricity supply by the national grid continued to decline in 2021 to around 7hrs of electricity per day, down from 11hrs in 2020 and 13hrs in 2019, according to the UNHCR (the UN Refugee Agency). This has soared the deployment of diesel generators in residential spaces & commercial areas to cope with the supply deficit.

Further, as the country is witnessing a notable rise in infrastructure development activities which needs to be completed by 2025 or later years in sectors, including oil & gas and hospitality, among others, the revenue growth of the Lebanon Diesel Generator market is anticipated to surge during 2023-2028 owing to the need for optimum power in the emerging industries.

Market Dynamics

Growth Driver: Surging Demand for Diesel Generators by Independent & Local Power Distribution Businesses in Residential Areas

Local businesses which offer subscription-based uninterrupted power have emerged & flourished during the past period by supplying the power generated from diesel generators to homes in residential areas. These businesses have been adding diesel generators to their fleet & installing them in residential areas across Lebanon. The shortage of primary power supply has led to frequent & long-duration power outages across the country. Hence, this has been one of the key reasons behind the emergence of these businesses. The owners of private diesel generators & local businesses took advantage of the electricity demand & supply gap to expand their subscription-based businesses, which have been resistant to government regulations.

Further, Lebanon has witnessed increasingly frequent power outages owing to the closer of power plants due to growing fuel shortages amid ongoing political & economic crises. Along with this, the two main power plants in the country were closed due to a fuel shortage. Hence, this increased the population’s dependency on private diesel generators for power, thereby enhancing the Lebanon Diesel Generator Market size.

Possible Restraint: Decline in Residential Construction Activities to Hinder the Demand for Diesel Generator

The country is witnessing a sharp drop in the number of residential construction projects, hindering the demand for diesel generators in the sector. A significant factor driving the demand for diesel generators in Lebanon is the development of new construction projects. However, since the onset of the political & economic crisis, the country is witnessing a dramatic decline in the count of new residential construction projects, which has negatively impacted the market growth of diesel generators in the region.

The banking restrictions, devaluation of the Lebanese lira, and changes in payment methods have disrupted the residential construction projects in the country. Moreover, the difficulties encountered by construction companies & consumers in procuring construction materials at a competitive cost negatively impacted their purchasing power, which resulted in a decline in construction activities in the country.

Further, since no new residential investments have been observed in the country, demand for diesel generators from the residential sector is expected to remain marginal in the upcoming years.

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

Growth Opportunities: Rising Commercial Infrastructure Development Projects to Propel Demand for Diesel Generators

The growing focus of the Lebanon Government to strengthen its economy by boosting the tourism sector is significantly contributing to an increase in infrastructure development projects in the country. As the government of the country is eyeing to welcome a significant number of visitors in the coming years, several projects, including railways development, airport expansion, etc., have been announced by the government. For instance

  • In 2022, the government announced the release of a tender to construct a new terminal in the Beirut International Airport, intending to handle over 20 million annual passengers by 2030.

Further, the country is also witnessing investments in oil & gas projects, including Beddawi-Al Zahrani Gas Pipeline, Lebanon Offshore Oil Exploration, and LNG Floating Storage Regasification Unit-Zahrani, etc., as it is eyeing to boost oil & gas trade activities from the country.

Thus, the expansion of the new oil & gas projects in the country is anticipated to create an opportunity for the sales of diesel generators in these facilities to power the equipment & facilities as a whole.

Key Trend: Steadily Expanding Industrial Activities in the Country to Fuel the Demand for Diesel Generators

The industrial sector in Lebanon is increasing its efforts to revive economic growth from the recent economic & social crisis. As part of this, the industrial manufacturers are working to boost their production activities, owing to the rising demand for Lebanese products in the United Arab Emirates, Saudi Arabia, etc. This is greatly contributing to ongoing demand from manufacturing facilities for diesel generators for both replacement & new installations.

Further, the Lebanon government, in 2022, announced to increase in its focus on developing three sectors, namely artificial intelligence (AI), recycling, and cinema production, which is expected to support the development of recycling units, ICT business, and the entertainment industry in the country in the coming years.

As the development of these industries would require constant power needs to ensure the smooth functioning of the facility operations, the demand for diesel generators is anticipated to rise for standby & continuous power in the upcoming years.

Market Segmentation

By Type

  • Standby
  • Prime & Continuous Power
  • Peak Shaving

Of them, the Standby diesel generator accounted for the highest share of the Lebanon Diesel Generator market. The growing need for uninterrupted power supply in residential units & small commercial businesses at times when grid electricity is unavailable is a prominent factor augmenting the sales of standby diesel generators in the country.

In addition, the rising expansion of retail chains in the country due to the surging demand for e-commerce services among the residents is anticipated to notably enhance the sales of standby diesel generators in the coming years as well.

By End User

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

Here, the Commercial sector is projected to witness the fastest growth in the forthcoming years. Historically, the commercial sector acquired a notable share in the Lebanon Diesel Generator industry, owing to a significant need for continuous power supply in various industries, such as IT, Telecom, etc. Additionally, the rising support of international organizations to boost infrastructure development activities is certainly supporting the demand for diesel generators for standby & continuous power needs.

Besides, the growing tourist arrivals in the country have led to the growth of the hospitality sector & related infrastructure such as hotels, restaurants, etc. Hence, this would strengthen the Lebanon Diesel Generator market during the forecast period, 2023-2028.

Gain a Competitive Edge with Lebanon Diesel Generator Market Report

  1. Lebanon Diesel Generator Market Report by Markntel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
  2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  3. Lebanon Diesel Generator Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

A. The Lebanon Diesel Generator Market is expected to grow at a CAGR of around 9.21% from 2023 to 2028.

A. The surging demand for diesel generators by independent & local power distribution businesses in residential areas is expected to drive the market.

A. Cummins, Caterpillar, Rolls-Royce Solutions Middle East FZE, Jubaili Bros, Generac Holdings Inc., Kohler Co., Ghaddar Machinery Co., International Machinery & Generators, Sakr Power Generation, and HMH Machines.

A. The commercial sector is the leading segment in the Lebanon Diesel Generator Market.

A. The steadily rising industrial activities in the country to fuel the demand for diesel generators is the key trend shaping the growth of the Lebanon Diesel Generator Market.

A. The decline in residential construction activities to hinder the demand for diesel generator growth are the possible restraints affecting the growth of the Lebanon Diesel Generator Market.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Macroeconomic Outlook
  5. Lebanon Diesel Generator Market Porters Five Forces Analysis
  6. Lebanon Diesel Generator Market Supply Chain Analysis
  7. Lebanon Diesel Generator Market Trends & Insights
  8. Lebanon Diesel Generator Market Dynamics
    1. Drivers
    2. Challenges
  9. Lebanon Diesel Generator Market Growth Opportunities & Hotspots
  10. Lebanon Diesel Generator Market Policy & Regulations
  11. Lebanon Diesel Generator Market Pricing Analysis
  12. Lebanon Diesel Generator Market Outlook, 2017-2027F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Units Sold
    2. Market Share & Outlook
      1. By KVA Rating
        1. Up to 75KVA
        2. 75.1 KVA to 375 KVA
        3. 375.1 to 750 KVA
        4. 750.1 KVA to 1000 KVA
        5. Above 1000 KVA
      2. By Type
        1. Stand By
        2. Prime & Continuous Power
        3. Peak Shaving
      3. By End Users
        1. Residential
        2. Commercial (Hospitality, Retail, Educational Institutions, etc.)
        3. Healthcare
        4. Government & Transport (Airports, Metro Stations, Govt. Buildings, Religious Centres, etc.)
        5. Oil & Gas
        6. Industrial (Manufacturing Facilities, Assembly Units, etc.)
        7. Equipment Rental Companies
      4. By Company
        1. Market Share
        2. Competition Characteristics
  13. Lebanon Up to 75KVA Diesel Generator Market Outlook, 2017-2027F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  14. Lebanon 75.1 KVA to 375KVA Diesel Generator Market Outlook, 2017-2027F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  15. Lebanon 375.1 KVA to 750KVA Diesel Generator Market Outlook, 2017-2027F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  16. Lebanon 750.1 KVA to 1,000 KVA Diesel Generator Market Outlook, 2017-2027F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  17. Lebanon Above 1000 KVA Diesel Generator Market Outlook, 2017-2027F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  18. Lebanon Diesel Generator Market Key Strategic Imperatives for Growth & Success
  19. Competitive Benchmarking
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
    2. Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)
      1. Cummins
      2. Caterpillar
      3. Rolls-Royce Solutions Middle East FZE
      4. Jubaili Bros
      5. Generac Holdings Inc.
      6. Kohler Co.
      7. Ghaddar Machinery Co.
      8. International Machinery & Generators
      9. Sakr Power Generation
      10. HMH Machines
      11. Others
  20. Disclaimer
Lebanon Diesel Generator Market - Segmentation Slide