Report Overview

Increased demand for uninterrupted power supply and growing construction activities are expected to boost the growth of Middle East and Africa diesel generator set market during the forecast period between 2023 and 2029.

Middle East and Africa Diesel Generator Set Market - Industry Trends & Forecast Report, 2029

Middle East and Africa diesel generator set market size was estimated to be worth USD 696.5 million in 2022. During the forecast period between 2023 and 2029, the Middle East and Africa diesel generator set market size is projected to grow at a CAGR of 6.94%, reaching a value of USD 1,041.5 million by 2029. Major growth factors for the Middle East and Africa diesel generator set market include rapid economic development and industrialization, influencing the demand for continuous power supply in emerging and underdeveloped economies.

Middle East and Africa Diesel Generator Set Market – Overview

Diesel generators are devices that turn burning diesel fuel into electricity. To create power, these devices combine a diesel engine with an electric generator. All associated oil and gas operations, such as drilling, pumping, and loading, can have a constant source of electricity from diesel generators. Generator sets make it possible to have a power source when there is no electrical infrastructure. As a result, they remove roadblocks to project execution and aid in the development of isolated or underdeveloped areas.

Middle East and Africa Diesel Generator Set Market

Growth Drivers

Increased Demand for Uninterrupted Power Supply

The Middle East and African countries are some of the fastest growing economies in the world and as a result, they are making substantial investments in the infrastructure needed to produce electricity. It is projected that the growing industrial sector, burgeoning population, economic diversification, and investments in non-oil and petrochemical industries would all contribute to the nation's demand for diesel generator sets.

Restraints

Environmental Impact of Diesel Generator Set

Although diesel generators offer dependable emergency power, they are bad for the environment. Diesel generators emit both hazardous chemicals and greenhouse gases (GHGs). The quantity of GHG emissions from a typical diesel generator is more than double that of grid electricity. Additionally, compared to some alternatives, traditional gasoline and diesel generators generate a lot more pollutants and greenhouse gases. Consequently, the end-user sectors are switching to more environmentally friendly options, such as the usage of batteries, which might have a negative effect on the growth of the Middle East and Africa diesel generator set market.

Impact of COVID-19 on Middle East and Africa Diesel Generator Set Market

The COVID-19 pandemic adversely affected the growth of the Middle East and Africa diesel generator set market. The industries were temporarily shut down and cross-border trade was restricted during the pandemic lockdown in the region. As a result, the operations of the oil sector, which is one of the major end-user industries of the diesel generator set market, were hindered due to limitations on its export from Middle East countries including Saudi Arabia and UAE. Furthermore, investments in the power sector and the establishment of power generation systems were also halted during this period, which directly influenced the demand for diesel generator sets.

Middle East and Africa Diesel Generator Set Market

Segmental Coverage

Middle East and Africa Diesel Generator Set Market – By Ratings

Based on ratings, the Middle East and Africa diesel generator set market is segregated into 0–75 kVA, 75–375 kVA, and above 375 kVA. The 75–375 kVA ratings hold the largest share in the Middle East and Africa diesel generator set market. Diesel generators with these ratings are extremely effective, economical, quiet, and durable. They are therefore best used in industrial and commercial power systems. Due to their use in high-load applications, the over 375 kVA-rated generator sets also account for a sizable market share.

Middle East and Africa Diesel Generator Set Market – By Application

Based on application, the Middle East and Africa diesel generator set market is segmented into prime power, backup power, and peak shaving. The prime power segment accounts for the highest market share. These generator sets act as an effective solution for a primary source of power in underdeveloped countries, such as Sudan and Uganda, with poor power infrastructure. The backup power also covers a substantial market share, as backup power diesel generators are used as an emergency power supply if the grid fails, which is why it is being prominently used in commercial facilities.

Middle East and Africa Diesel Generator Set Market – By Country

The Middle East and Africa diesel generator set market covers a number of countries in the region including Saudi Arabia, UAE, Qatar, Kuwait, South Africa, Nigeria, Algeria, and rest of MEA. Saudi Arabia dominates the Middle East and Africa diesel generator set market. The Kingdom has been economically growing and investing in infrastructure development and non-oil sectors. The launch of various projects, including a new airport in Riyadh, USD 500 billion Neom mega city, and others, are anticipated to boost the demand for diesel generator sets in the country.

Competitive Landscape

Major players operating in Middle East and Africa diesel generator set market include Caterpillar Inc., Cummins Ltd, Yanmar Holdings Co. Ltd, Atlas Copco AB, Honda Siel Power Products Limited, Kirloskar Oil Engines Limited, Mitsubishi Heavy Industries Ltd, Perkins Engines Company Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2023 - Guangxi Dingbo Power Equipment Co. Ltd, a diesel generator manufacturer based in China, signed an export trade contract for 30 sets of 90 kw open-type Cummins diesel generator sets with a buyer in Saudi Arabia.

Scope of the Report

By Ratings

• 0–75 kVA

• 75–375 kVA

• Above 375 kVA

By Application

• Prime Power

• Backup Power

• Peak Shaving

By Country

• Saudi Arabia

• UAE

• Qatar

• Kuwait

• South Africa

• Nigeria

• Algeria

• Rest of MEA