Saudi Arabia Diesel Genset Market

Saudi Arabia Diesel Genset Market to Grow at 4.5% in Coming Years

Published | 23 August 2022

 Saudi Arabia Diesel Genset Market is flourishing owing to the government's effort to diversify the economy away from oil and toward non-oil sectors, expanding number of forthcoming infrastructure projects, and the rising power demand all contribute to this trend. 

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Saudi Arabia Diesel Genset Market is projected to grow at a CAGR of 4.5% during 2022-2028. Growth is predominantly expected to emanate from an increasing customer preference for electrical independence as well as a lack of accessibility to the country's electricity grid system. Renewable energy sources are used to provide electricity to Saudi Arabia, with hydroelectric power facilities providing the vast bulk of the nation's electricity needs. Furthermore, Saudi Arabia Diesel Genset Market is one of the most emerging markets that grow continuously owing to the fast integration of new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and others. However, along with its benefits, it also has several disadvantages, including noise pollution and the release of dangerous gases, in turn, may act as a huge restraining factor for market growth.

Increasing Use of Diesel Gensets in Industries

Industrial operations typically employ diesel genset during power outages and in places with limited grid connectivity to reduce production hazards. The industrial sector, which includes mining, manufacturing, and construction, will be responsible for more than 40% of all energy use throughout the anticipated period. The building sector in Saudi Arabia has experienced tremendous growth as a result of the expansion of industrial and commercial facilities. Saudi Arabia's telecom and information technology sectors are anticipated to develop at the fastest rates in the GCC market. As a result, the Saudi Arabia Diesel Genset Market is predicted to develop at a significant rate during the forecast period (2022-2028).

Saudi Arabia Diesel Genset Market Growth

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Rising Power Demand

Power demand is being met by factors such as continued population growth, infrastructure expansion, and the rapid industrialization of emerging nations. Diesel generators provide numerous advantages, including low operating costs and greater fuel economy. As a result, they are popular in developing countries, especially in the Saudi Arabia region. Along with its benefits, it had a lot of drawbacks, including noise pollution and the discharge of hazardous gases. During the forecast period, all of these factors contribute to the growth of the Saudi Arabia Diesel Genset Market (2022-2028).

Challenge: Strict Government Regulations Regarding GHG Emissions

The implementation of stringent government regulations regulating the emissions of greenhouse gases from diesel generators and the accelerating growth of the renewable energy sector, however, are the main barriers to the market's progress. In addition, it is predicted that the country's efforts to diversify its power generation mix by incorporating renewable energy sources may obstruct the growth of the market under review. All of these things limit the Saudi Arabian Diesel Genset Market's expansion.

Segmental Coverage

Saudi Arabia Diesel Genset Market - By kVA Rating

Based on the kVA rating, the Saudi Arabia Diesel Genset Market is segmented into Up to 75 kVA, 1-375 kVA, 1-750 kVA, 1-1000 kVA, and Above 1000Kva. Among these, Passenger Car accounts for the largest share in the India Brake Pad Market. The market size for heavy-duty applications 1-1000 kVA is expected to grow as a result of rising demand from various industries. Additionally, the thriving residential and commercial sectors, together with the establishment of small and medium firms, are predominantly favoring the growth of up to 75 kVA and 1-375 kVA segments. All these factors propel the growth of the Saudi Arabia Diesel Genset Market during a forecast period (2022-2028).

Impact of COVID-19 on Saudi Arabia Diesel Genset Market

The COVID-19 pandemic reduced power usage, delayed worldwide economic growth, and caused substantial supply chain disruptions. Factors such as rising demand for an uninterrupted and consistent power supply, as well as increased demand from the commercial sector, particularly the healthcare sector, are projected to boost the market. The market's expansion, however, is expected to be hampered by increased demand for generators fueled by alternative fuels such as natural gas and biofuels.

Competitive Landscape

The leading market players in the Saudi Arabia Diesel Genset Market are Aksa Power Generation, Alkhorayef Group, Atlas Copco Industrial Equipment, Caterpillar Inc, Cummins Inc, Kirloskar Oil Engines Limited, Kohler Co, Saudi Diesel Equipment Co Ltd, Yanmar Holdings Co Ltd, and other prominent players. The Saudi Arabia Diesel Genset Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Don’t miss the business opportunity in the Saudi Arabia Diesel Genset Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Saudi Arabia Diesel Genset Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Saudi Arabia Diesel Genset Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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