Market Research Report

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

By KVA Rating (Up 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 Users ...(Residential, Commercial, Healthcare, Government & Transport, Oil & Gas, Industrial, Equipment Rental Companies), By Company (Cummins Arabia, Atlas Copco Industrial Equipment Co., FG Wilson, Kohler SDMO, Aksa Power Generation, Caterpillar Inc., Saudi Diesel Equipment Co. Ltd., Generac Holdings Inc., Siemens Energy AG, Kirloskar DMCC) Read more

  • Energy
  • May 2023
  • 137
  • EN44014

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

The Saudi Arabia Diesel Generator market is projected to grow at a CAGR of around 12.18% during the forecast period, i.e., 2023-28. This is owing to the growing application of diesel generators in the oil & gas industry, manufacturing units, commercial, and other sectors. A diesel generator is the combination of a diesel engine with an electric generator to generate electrical energy. The main components of these generators include a diesel engine, an AC alternator, a fuel tank, a control panel, & radiator. These generators are used either as a power backup system or as a prime electricity source.

Extensive focus on the exploration & production of crude oil is one of the leading factors for the deployment of the generators. These generators are being utilized in the absence of a power grid at the offshore & onshore sites for drilling the oil wells, along with operating various other machinery at the rig. According to the Organization of Petroleum Countries, Saudi Arabia possess approximately 17% of the world’s proven petroleum reserves. This high presence of a huge oil reserve & the ongoing exploration process to discover new oil wells is expected to upscale the Saudi Arabia Diesel Generator market share.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 12.18%
Key Companies Profiled Cummins Arabia, Atlas Copco Industrial Equipment Co., FG Wilson, Kohler SDMO, Aksa Power Generation, Caterpillar Inc., Saudi Diesel Equipment Co. Ltd., Generac Holdings Inc., Siemens Energy AG, Kirloskar DMCC
Unit Denominations USD Million/Billion

 

 

Moreover, the emergence of government initiatives for the expansion of IT, manufacturing, tourism, and service industry to attain the economic diversification target of 2030 would further assist the demand for diesel generators to be deployed in the expanding industrial units. As part of the government’s initiative to strengthen the manufacturing base in the country, various investments are underway. For instance,

  • In 2022, Saudi Aramco signed 55 agreements across sustainability, digital, industrial, manufacturing, and social innovation sectors, which grew from 32 agreements made in 2021.

Additionally, the surge in investment opportunities has been a part of a major expansion of its Namaat industrial investment programs. Hence, it is anticipated that the continuous investment in manufacturing & other industry by the public & private sectors would surge the Saudi Arabia Diesel Generator Market. Further, the surging construction activities in the country are propelling the demand for diesel generator installation in construction sites that are located in remote areas with limited grid connectivity.

The government of Saudi Arabia has announced various construction projects such as the Red Sea Project, AMAALA, Neom City, and others which would consist of hotels, malls, hospitals, tourist attraction places, etc. These ongoing construction activities would enhance the demand for diesel generator sets in the construction sites for powering the equipment during the forecast period, therefore enhancing the market size.


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

Market Dynamics

Key Driver: Uninterrupted Power Supply Demand from the Industries for Operational Activities

There are certain sectors where an uninterrupted power supply is required to ensure the smooth functioning of the industry. Hence, to suffice this need, several industries seek diesel generators as standby units. These generators are in high demand in industries like healthcare, oil refineries, and telecommunications due to unforeseeable circumstances such as power outages & blackouts. In the healthcare sector, machines such as ventilators rely on electricity to function, therefore hospitals & nursing homes keep standby diesel generators on hand to avoid disruption. Furthermore, the telecom industries have led to growth in the market for diesel generators, as telecom companies have set up new base stations to ensure better network coverage following the arrival of 5G in 2019.

Additionally, over 1000 base stations were formed to provide users with a better network coverage range & increase internet penetration in Saudi Arabia, which elevated the requirement for generators. Further, the oil & gas industries use power generators for drilling & digging since the equipment requires more power to provide the service. As a result, industries rely on these generators to supply power & provide backup to fine-tune industrial operations, as these industries typically require a consistent supply, resulting in a demand for commercial & large-power generators during 2023-28.

Possible Restraint: Disruption in Supply Chain for Raw Materials

Saudi Arabia Diesel Generation industry is an import-dependent economy, owing to the fewer manufacturing facilities for generators. Further, most construction companies & rental equipment industries in the country buy these generators for short- & long-term construction projects to have an uninterrupted power supply. In recent years, the government in Saudi Arabia has highly invested & announced several mega construction projects such as NEOM, and Four Points Hotel Jeddah Corniche, among others, which led to a surge in the requirement for these generators in the construction sites.

However, due to supply chain disruption, the unavailability of components faced by the manufacturing companies resulted in hampering the market growth. The delay in supplying generators further slowed the country's construction activities. Hence, the supply chain disruption for the raw materials after the pandemic made it difficult for the manufacturers to fulfill the growing need, thus impeding market growth.

Growth Opportunity: Emergence of the Country as a Prominent Data Center Hub

In recent years, Saudi Arabia has emerged as the preferred destination for establishing data centers. This is due to the constant push by the government to establish the country as the regional digital hub & boost the development of data center facilities in the country to store government-specified data effectively. Thus, this has increased the demand for diesel generators for data center facilities, owing to their requirement for 24x7 continuous power to minimize revenue loss. Furthermore, the government of the country has also planned to diversify the economy from oil-based to other avenues like technology, communication, etc. Owing to this, many strategic investments in data centers have come up in Saudi Arabia. For instance,

  • In 2021, Quantum Switch & Tamasukh entered into a joint venture to establish a 300MW data center unit near Dammam. It plans to develop 60MW a year for the next 5 years. The project also includes the construction of six 50MW units in Riyadh, Jeddah, and Neom City.

Furthermore, companies such as Aramco, Cognite, STC, Huawei, and others made significant investments to establish data centers in 2022. As a result, the demand for diesel generators is predicted to rise in the near future as more data center units are to be built, therefore supporting the market growth.

Key Trend: Increasing Popularity of Common Rail Technology & Electronic Fuel Injection in DG

The burgeoning vogue of advanced technology has affected the market of diesel generators in Saudi Arabia, where consumer preference has enhanced with technologically advanced features. The demand for high fuel efficiency, high reliability, and low emission has generated a supplemented demand for mechanically advanced generators, due to which technologies like Common Rail Technology & Electronic Fuel Injections are witnessing rapid adoption in diesel sets. The trend of continuous mechanical & technical upgradation of generator sets has been brought about by growing government initiatives & consumer awareness about carbon emissions & energy efficiency.

Diesel generator sets have higher carbon footprints than their counterparts, so continuous improvement has been a long-term trend. Although companies like MTU Solutions introduced their diesel generators with common rail technology in 2014, the requirement for advanced engine modifications has occurred only in recent years. Hence, this has further brought a new trend where continuous research & development activities are being carried on by the manufacturers, to deal with the consumer demands of mechanical & technological advancements.

Market Segmentation

Based on Type:

  • Standby
  • Prime & Continuous Power
  • Peak Shaving

Among these, Standby diesel generators are witnessing notable market growth in the Saudi Arabia Diesel Generator market due to their surging application in the residential, commercial, and healthcare sectors for providing an uninterrupted supply of electricity. End-user industries are actively utilizing standby generators to meet short-term power requirements in the event of a power outage to reduce the possibility of operational inefficiency. Due to the surging construction of residential, commercial, and healthcare buildings in the country, the deployment of these generators is also rapidly expanding.  Additionally, the launch of various housing projects like the Sakani housing program, Nasaj Town, and others to cater to the growing housing needs of the residents would drive the installation of these generators in the coming years. For instance,

  • In 2022, Saudi Arabia launched Nasaj Town Alnarjis to construct 455 villas. It is one of the 28 housing projects located in the Riyadh region of the country.

Hence, with the upscaling investments in the commercial, residential, and healthcare sectors of the country as a part of the Saudi Vision 2030 to strengthen the non-oil economic sectors, the demand for standby generators is anticipated to rise in the upcoming years.

Based on End Users:

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

Of them, the Healthcare segment is becoming a major source of demand for diesel generators in Saudi Arabia owing to the surging construction of hospitals & clinics due to the growing prevalence of various non-communicable diseases. The continuous requirement for power supply for operating medical devices like ECG monitors, ventilators, oxygen concentrators, etc., for treating these diseases has augmented the demand for DG sets in healthcare units. In addition, the launch of government initiatives like 'The Health Sector Transformation' to restructure the health sector by implementing an integrated health system like e-health services & digital solutions. This has augmented the adoption of modern technologies & integrated care models in hospitals, thereby requiring these generators for continuous operations.

Additionally, the country is undergoing several public-private partnerships to construct healthcare facilities, including King Abdullah Bin Abdulaziz Medical Complexes – Riyadh & Jeddah, King Khalid Medical City, King Faisal Medical City, etc. Further, the investment plans of the Saudi Government for the expansion of the healthcare industry by 2030 would significantly contribute to the healthcare-based construction activities & deployment of modern electrical equipment. Hence, the upcoming construction of the healthcare sector supported by public-private & government investment would further push the market in the coming years.

Recent Developments by the Leading Companies

  • 2022: Atlas Copco launched its new range of energy storage systems, which operate by working in hybrid mode with diesel-driven generators. This was done to provide sustainable power solutions for companies operating in demanding & noise-sensitive applications like metropolitan construction & events.

Gain a Competitive Edge with Saudi Arabia Diesel Generator Market Report

  1. Saudi Arabia 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. Saudi Arabia 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 Saudi Arabia Diesel Generator Market is expected to grow at a CAGR of around 12.18% during 2023-28.

   A. The demand for uninterrupted power supply from the industries for operational activities is expected to drive the Saudi Arabia Diesel Generator Market during the forecast period.

   A. Cummins Arabia, Atlas Copco Industrial Equipment Co., FG Wilson, Kohler SDMO, Aksa Power Generation, Caterpillar Inc., Saudi Diesel Equipment Co. Ltd., Generac Holdings Inc., Siemens Energy AG, and Kirloskar DMCC are the top players in the Saudi Arabia Diesel Generator Market.

   A. The Standby diesel generator is the leading type for the growth of the Saudi Arabia Diesel Generator Market.

   A. The increasing popularity of common rail technology & electronic fuel injection in diesel generator is the key trend shaping the growth of the Saudi Arabia Diesel Generator Market.

   A. Residential, Commercial, Healthcare, Government & Transport, Oil & Gas, Industrial, and Equipment Rental Companies are the industry's potential end-users.

   A. The emergence of the country as a prominent data center hub is the growth opportunity driving the Saudi Arabia Diesel Generator Market through 2028.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Macroeconomic Outlook
  5. Saudi Arabia Diesel Generator Market Porters Five Forces Analysis
  6. Saudi Arabia Diesel Generator Market Supply Chain Analysis
  7. Saudi Arabia Diesel Generator Market Trends & Insights
  8. Saudi Arabia Diesel Generator Market Dynamics
    1. Drivers
    2. Challenges
  9. Saudi Arabia Diesel Generator Market Growth Opportunities & Hotspots
  10. Saudi Arabia Diesel Generator Market Policy & Regulations
  11. Saudi Arabia Diesel Generator Market Pricing Analysis
  12. Saudi Arabia Diesel Generator Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues (USD Million)
      2. Units Sold (Thousands)
    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. Saudi Arabia Up to 75KVA Diesel Generator Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  14. Saudi Arabia 75.1 KVA to 375KVA Diesel Generator Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  15. Saudi Arabia 375.1 KVA to 750KVA Diesel Generator Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  16. Saudi Arabia 750.1 KVA to 1,000 KVA Diesel Generator Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  17. Saudi Arabia Above 1000 KVA Diesel Generator Market Outlook, 2018-2028F
    1. Market Size & Outlook
      1. Revenues
      2. Units Sold
    2. Market Share & Outlook
      1. By Type
      2. By End Users
      3. By Company
  18. Saudi Arabia 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 Arabia
      2. Atlas Copco Industrial Equipment Co.
      3. FG Wilson
      4. Kohler SDMO
      5. Aksa Power Generation
      6. Caterpillar Inc.
      7. Saudi Diesel Equipment Co. Ltd.
      8. Generac Holdings Inc.
      9. Siemens Energy AG
      10. Kirloskar DMCC
  20. Disclaimer


Saudi Arabia Diesel Generator Market - Segmentation Slide