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

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

The Qatar Diesel Generator market is projected to grow at a CAGR of around 8.25% during the forecast period, i.e., 2023-28, owing to the boom in construction activities, including the development of residential & commercial and sports facilities in the country to accommodate the housing, tourism, and entertainment needs of the residents. Similarly, the government investment in the construction & expansion of the stadiums to support the launch of an upscaling number of sports events is largely contributing to the demand for these generators in Qatar. Moreover, upcoming events such as the 2030 Asian Games are acting as a driving force for equipment rental companies, opening up a massive potential market for generator manufacturers in the country.

Additionally, the rising spread of non-communicable diseases among the residents & growing inclination of the government towards strengthening the healthcare infrastructure in the country to serve domestic & neighboring countries' healthcare needs have significantly increased the construction activities in the country. This is further leading to an escalation in the demand for diesel generators for the continuous electricity supply. 

Further, the rising average income of a Qatari inhabitant is creating the need for luxury & well-organized residential areas, thus enhancing the Qatar Diesel Generator market size. For instance:

• In 2021, according to World Bank, the GDP per capita of Qatar grew to around USD66,800 from nearly USD66,200 in 2018.

Thus, to cater to this growing demand for residential units, various projects are in progress in Qatar, which would create a lucrative opportunity for companies operating in the market to provide standby generators as a power backup source in the upcoming years. Consequently, the ongoing development activities of the metro city, Lusail City, comprising residential buildings, schools, mosques, hospitals, shopping centers, etc., and growing initiatives of the Qatar government toward strengthening the domestic healthcare, education & transportation sector are the key factors anticipated to soar the demand for a diesel generator in Qatar in the forthcoming years.

Qatar Diesel Generator Market Key Driver:

Growing Shipping & Maritime Sector to Fuel Market Growth - The strategic location of Qatar in the Persian Gulf has always supported the growth of its shipping & maritime sector. Along with it, the country is already rich in oil & gas reserves and has emerged as one of the prominent suppliers of natural gas to major countries like China, Japan & South Korea. To export oil & gas, the country needs to maintain an extensive network of logistics & warehouses that require electricity & power generation sources to run efficiently & for the handholding of the containers.

Additionally, warehouse facilities store commodities like pharmaceuticals, food products, and livestock, which need constant cooling. Thus, to serve these commodities, these generators are required in the warehouses to provide a constant power supply to the refrigerating unit. Hence, generating the demand for these generator sets in Qatar. Moreover, the country is also focusing on the construction of green & sustainable ports, such as Hamad Port, the world’s largest green port. Hence, such construction activities are anticipated to create more demand for diesel generators in Qatar, positively impacting the market during the forecast period.

Qatar Diesel Generator Market Possible Restraint:

Rising Adoption of Clean Fuel to Impact the Demand - Qatar's government is actively pursuing the decarbonization of its economy & the country is currently in a transition period in which a significant shift from conventional energy sources to cleaner fuels such as natural gas is being observed. With the intensifying use of natural gas as a source of energy, natural generator sets have emerged as an alternative to diesel generators. Natural gas generator sets have evolved as an important replacement, particularly in the small-range categories of up to 375kVA. These natural gas generators are commonly used in residential & commercial units to provide backup power.

Moreover, due to the rising inclinations of end-users in sectors like construction, logistics, etc., towards environmentally sustainable generators & the constant push by the government to use natural gas generators, there has been a rise in the adoption of natural gas generators in Qatar. This has resulted in the launch of new natural gas generators to cater to the emerging market. Additionally, these new launches in natural gas generators have led to a shift in the end-user sector. Thus, it is emerging as a challenge for the market growth in the following years.

Qatar Diesel Generator Market Growth Opportunity:

Development of the Country as a Digital Hub - Qatar's government is actively promoting the country as a regional digital hub. To achieve that, the government has announced ambitious plans to shift the country's revenue away from oil-based sources & toward areas such as technology & digital space. As a result, the nation has emerged as a notable destination for data centers to store the country's big data. These data centers require a constant power supply because even minor power outages can result in significant economic losses for data center operators. As a result, diesel generators must be installed in them to provide continuous power & backup support.

These facilities are generally located in remote locations & have limited electricity gridline connections, hence necessitating the installation of diesel generators at data center facilities. Additionally, the improved internet connectivity is expected to spur online activity in Qatar. This would entail the development of data centers in the country. As a result, the construction of new data centers would surge the demand for these generators in Qatar in the following years.

 Qatar Diesel Generator Market Key Trend:

Mounting Popularity of Smart Generators - Climate change has emerged as a crucial agenda for the government of Qatar in recent years & the government is actively pushing the country towards adopting fuel-efficient & low-carbon emission equipment. The change in government policy has led to constant research & development for diesel generators that have resulted in their technological upgradations like fuel efficiency & hybrid technology. The rising inclination of end-users towards it has positively impacted sales in Qatar.

These generators are also equipped with the latest technologies, such as the internet of things & machine learning, which make the operation work easily & flexibly by enabling real-time monitoring. This technological upgradation enables the end-users to meet the government’s carbon emission norms, leading to the growing adoption of smart generators in place of conventional diesel generators. Thus, having a positive impact on the growth of the market in Qatar.

Qatar Diesel Generator Market (2023-28): Segmentation Analysis

The Qatar Diesel Generator Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Type, and End Users the market has been further classified as:

Based on Type:

• Standby
• Prime & Continuous Power
• Peak Shaving

Among these, Standby diesel generators are witnessing notable market growth in the Qatar. The standby power generator operates on an automatic basis, as the automatic transfer switch detects power loss within seconds, commands the generator to start, and then transfers the electric load to the generator. These generators are primarily used for power backup in the residential sector, malls, hotels, and others. It starts automatically when grid power is temporarily unavailable & does not require manual assistance to start or close the switch. Qatar is a tourism-oriented country & is witnessing the construction of numerous hotels & villas, which are further necessitating the requirement for a generator to provide backup power. Thus, with the growing demand for uninterrupted power supply in the various sectors, the need for standby generator models is expected to escalate during 2023-28.

Based on End Users:

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

Of these, the Commercial segment is becoming a major source of demand for diesel generators in Qatar due to the rise in the commercial sectors, such as hospitality & educational institutions, which require these generators for continuous power & emergency backup. The commercial sector is growing due to the rising number of tourists, which, in turn, is increasing owing to the government’s policies for promoting tourism. The government is forming such policies as they are trying to diversify their oil-based economy. The Qatar National Tourism Sector Strategy 2030 anticipates a spike in the number of tourists.

As a result of the increased number of tourists, the hospitality industry has grown with the establishment of new hotels & restaurants. Moreover, the ongoing & upcoming sports events are leading to an exponential rise in the number of tourists in the country. With the rise in tourism, the retail sector is also expanding as more malls & shops would install these generators to improve the efficiency of their operations.

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