Saudi Arabia Diesel Generator Market Research Report: Forecast (2021-2026)

Market Definition

Diesel generators are witnessing increasing adoption across different end-user verticals for multiple applications in Saudi Arabia to produce electric energy by converting chemical energy using diesel-powered engines & gensets. Diesel generators are the one-stop solution in providing power supply in situations like grid failure, power outages, & emergencies. They can be used either as the primary power source or backup systems.

Market Insights

The Saudi Arabia Diesel Generators Market is projected to grow at a CAGR of around 5% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the rapidly increasing need for electricity across different end-user verticals like residential, commercial, telecom, government & transport, oil & gas, & retail, among others. 

In addition, the escalating focus of the Saudi government on diversifying the economy away from oil & gas is displaying an increasing number of construction projects across Saudi Arabia and, in turn, augmenting the demand for diesel generators to deliver an uninterrupted flow of power. 

Some prominent projects associated with infrastructure developments in the country include the Neom Project, Amaala, the Red Sea Project, Waterfront Infrastructure Facilities Project - Phase II, GCC Railway Project, and Medina Metro Project. Besides, the rapidly expanding automotive sector is another prominent consumer of diesel generators & acts as an area of remunerative opportunities for the leading market players. 

Moreover, strategies like Saudi Arabia Vision 2030 that intend to develop & strengthen public sectors like education, commercial, healthcare, infrastructure, tourism, etc., are also creating immense demand for power backup systems like diesel generators.

Impact of Covid-19 on the Saudi Arabia Diesel Generators Market

The Covid-19 pandemic in 2020 catastrophically impacted most industries, where the Saudi Arabia Diesel Generator Market observed dynamic changes. With the imposition of stringent restrictions & lockdown by the Saudi government, the market witnessed several unprecedented challenges like supply chain disruptions, shortage of labor & raw materials, demand-supply gaps, shut down of manufacturing units, etc. It, in turn, introduced massive financial losses to the market players.

Additionally, the deliveries of pre-produced generators got hampered, and no new productions could take place amidst the crisis. However, on the other hand, the growing number of Covid-19 patients triggered the healthcare sector in Saudi Arabia and stimulated the demand for ICU & operation theatres. As a result, the demand for diesel generators soared substantially to provide uninterrupted power supply to the hospitals & healthcare institutions.

Moreover, since the pandemic tested the healthcare capabilities of the country, the government commenced several construction projects to facilitate the exponentially rising number of patients. As a result, it propelled the need for diesel generators & displayed a temporary hike to the market amidst the crisis.

Later, since 2021, the country has been observing a gradual decline in Covid-19 cases, owing to which the government uplifted the restrictions & allowed the recommencement of business operations. Hence, in the coming years, the country would display numerous opportunities for the leading players in the market, enabling them to revive from the financial losses.

Market Segmentation

Based on Type:

• Stand By
• Prime & Continuous Power
• Peak Shaving 

Of them all, Stand-By generators are anticipated to dominate the market with the largest share during the forecast period. It owes principally to the increasing adoption of diesel generators as a backup source of power supply at times of power outages & emergencies. It, in turn, is propelling the demand for Stand-by generators to sense a power outage & prompt energy supply automatically to keep the facility out of power loss.

Additionally, these generators are witnessing rapid adoption across the commercial sector, owing to their capabilities to provide electricity until power is restored. Besides, Intensive Care Units (ICUs), operating rooms, telecommunication centers, computer server farms, banks, & other critical systems that cannot afford power outages are amongst the prominent consumers of these generators.

Based on End-Users:

• Residential
• Commercial & Telecom
• Govt. & Transport
• Oil & Gas
• Retail

Here, the Commercial & Telecom sector is anticipated to dominate the market with the largest share during the forecast period. It owes principally to the rapidly increasing number of construction projects in the country with massive support from the government in developing the infrastructure in line with Saudi Vision 2030. As a result, it is propelling the demand for diesel generators to provide massive quantities of power required for construction equipment & machinery.

Additionally, the commercial sector in Saudi Arabia is witnessing continuous developments with the establishment of businesses, enhanced healthcare sector, & increasing number of construction activities to stimulate tourism, among others. As a result, it is infusing the demand for diesel generators primarily as a back-up for sudden power interruptions like voltage fluctuations & electrical outages, thereby driving the market.

On the other hand, the Residential sector is projected to display substantial market growth during the forecast period. It owes principally to the rising awareness among homeowners about the benefits of diesel generators to deliver power at times of outages & emergencies entwined with improving living standards & mounting demand for uninterrupted power at residential areas as a secondary power source in case of grid failures. Additionally, high reliability, cost-effectiveness, & continuous power flow are other crucial aspects driving the Saudi Arabia Diesel Generator Market across the residential sector.

Recent Developments by Leading Companies

• In May 2020, leading player Atlas Copco unveiled its plan to incorporate Saudi Arabia-based Energia MTC to offer a Quality Assurance Scheme (QAS) range of diesel gensets. The leader is actively seeking strategies like bringing several acquisitions of small businesses & expanding its services & equipment scalability.
• In 2019, another prominent leader in equipment manufacturing, Cummins, launched its latest ignition-protected marine generator MDKBJ Onan Marine, i.e., designed to deliver extra power to a vessel with gasoline propulsion.

Market Dynamics:

Key Driver & Opportunity

• The Abundance of Oil & Gas to Instigate Technological Advancement in Gensets

Saudi Arabia is the largest oil & gas producer and constantly undergoing several exploration activities, which require an uninterrupted power flow. It, in turn, is infusing the demand for diesel generators as a prominent power source, especially for drilling & digging, while instigating the leading players in the Saudi Arabia Diesel Generator Market to enhance the product capabilities with new technologies.

• Ongoing & Upcoming Infrastructural Developments & High Power Demand

With a plethora of construction activities & development projects across the country in line with Saudi Vision 2030, the power demand is escalating swiftly. It, in turn, is stimulating the adoption of diesel generators & generating growth opportunities for the leading players, thereby driving the market through 2026.

Possible Restraint: Strict Government Regulations for Emissions & Availability of Clean Alternatives

With rising concerns over the alarming emission levels & environmental issues, the government of Saudi Arabia is laying out stringent restrictions on the use of fossil fuels, which might reduce the adoption of diesel generators & hinder the market expansion in the coming years.

Moreover, several manufacturers & companies are seeking the development & utilization of generators based on clean energy sources like solar, hydro, & wind, i.e., another prominent aspect that might restrain the market growth in the coming years.

Competitive Landscape

According to MarkNtel Advisors, the leading players in the Saudi Arabia Diesel Generator Market are Cummins, Caterpillar, FG Wilson, Perkins, MTU, Himoinsa, Atlas Copco, Kohler Power System, Kirloskar, Saudi Diesel Equipment Co., Ltd.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Saudi Arabia Diesel Generators Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Saudi Arabia Diesel Generators Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Saudi Arabia Diesel Generators Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Saudi Arabia Diesel Generators Market study?

Market Outlook, Segmentation, and Statistics

• Impact of COVID-19 on Saudi Arabia Diesel Generator Market
• Market Size & Analysis
• By Revenue
• Market Share & Analysis
• By KVA Rating
• 5 KVA to 75KVA
• 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-User
• Commercial & Telecommunications
• Residential & Retail
• Government & Transportation
• Oil & Gas
• Others
• By Region
• By Competitors
• Competition Characteristics
• Market Share & Analysis
• Competitive Matrix
• Saudi Arabia Diesel Generator Market Hotspots & Opportunities
• Saudi Arabia Diesel Generator Market Regulations & Policy
• Key Strategic Imperatives for Success and Growth

Frequently Asked Questions