Report Overview

Saudi Arabia Diesel Genset Market - Industry Trends & Forecast Report 2028

Saudi Arabia Diesel Genset Market is predicted to grow at a CAGR of 4.5% during the forecast period (2022-2028). One of the main reasons driving the Saudi Arabian diesel generator market is the growing number of infrastructure projects and the rising need for energy, both of which are backed by favorable government initiative plans for the overall development of the nation. The commercial, industrial, and transportation sectors in Saudi Arabia accounted for the majority of the country's demand for diesel generator sets. The Red Sea Project, Amaala, GCC Railway Project, Waterfront Infrastructure Facilities Project - Phase II, and Medina Metro Project are just a few of the upcoming infrastructure projects that will increase demand for electricity while also supporting the government's goal to diversify the economy away from oil-dependent industries. These are the main factors that are anticipated to propel the Saudi Arabian market for diesel gensets.

Diesel Genset - Overview

An electric generator and a diesel engine are combined to create a diesel generator, commonly referred to as a diesel genset. An example of an engine generator is this. Most diesel compression-ignition engines are made to run on diesel fuel, although certain models can also run on natural gas or other liquid fuels. Diesel generating units are utilized for more complex applications including peak-lopping, grid support, and export to the power grid as well as in areas that are not connected to a power grid or as an emergency power source if the grid goes down. Diesel gensets must be properly sized to prevent low load or a lack of power. The peculiarities of contemporary electronics, particularly non-linear loads, make sizing challenging.

Saudi Arabia Diesel Genset Market Forecast and Trends

Growth Drivers

Rising Government Initiatives are Driving Market Growth

The commercial, industrial, and transportation sectors accounted for the majority of demand for diesel gensets in Saudi Arabia. Growing electricity demand, supported by the government's goal of diversifying the economy from oil to non-oil sectors, as well as an increasing number of upcoming infrastructure projects such as Neom City, the Red Sea Project, Amaala, GCC Railway Project, Waterfront Infrastructure Facilities Project - Phase II, and Medina Metro Project, are the key factors that are anticipated to drive the market for diesel gensets in Saudi Arabia over the next few years.

Rising Need for Power

The need for power is being kept up with by elements including ongoing population increase, the construction of infrastructure, and the quick industrialization of emerging economies. Numerous benefits, including cheap running costs and improved fuel efficiency, come with diesel generators. As a result, they are very well-liked in developing countries, particularly in the Saudi Arabia region. Along with its benefits, it also had several disadvantages, including as noise pollution and the release of dangerous gases. All these factors boost the growth of the Saudi Arabia Diesel Genset Market during the forecast period (2022-2028).

Growing Usage of Dieses Genset in the Industrial Sector

Diesel genset is mostly used by industrial activities in areas with restricted grid connectivity and during power outages to prevent production risks. More than 40% of all energy consumption throughout the predicted period will be accounted for by the industrial sector, which includes mining, manufacturing, and building. The expansion of industrial and commercial infrastructure has led to significant growth in Saudi Arabia's building industry. In the GCC market, Saudi Arabia's telecom and IT sectors are expected to grow at the quickest rates.

Restraints

Strict Government Rules on the Emission of GHG

The primary obstacles impeding the market's growth, however, are the execution of strict government rules regarding the emissions of greenhouse gases from diesel generators and the quickening expansion of the renewable energy industry. Moreover, it is anticipated that the nation's efforts to diversify its power generation mix by integrating renewable energy sources may impede the expansion of the market under consideration. All these factors hinder the growth of the Saudi Arabia Diesel Genset Market.

Impact of COVID-19 on Saudi Arabia Diesel Genset Market

The market for diesel generators is anticipated to grow at a CAGR of more than 6% from 2022 to 2027. The COVID-19 pandemic resulted in a drop in electricity consumption, slowed global economic expansion, and significant supply chain disruptions. The market is likely to be driven by factors such as the rising demand for an uninterrupted and dependable power supply and the rise in demand from the commercial sector, especially the healthcare sector. However, the market's expansion is anticipated to be constrained by the rising demand for generators powered by alternative fuels like natural gas and biofuels.

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).

Saudi Arabia Diesel Genset Market – By Application

Based on application, the Saudi Arabia Diesel Genset Market is segmented into Retail, BFSI, Government, Oil & Gas, Pharmaceutical, Hospitality, Hospitals, Transportation, Logistics, and Warehouses, Food & Beverage, Others. The idea of remote work emerged as a result of the COVID-19 pandemic, which led to an increase in domestic energy use. Diesel genset adoption in the end-user category has seen a huge increase as a result of the need for a reliable power supply. It is projected that it will keep expanding as residential, commercial, and government buildings become more dependent on power. All these factors boost the growth of the Saudi Arabia Diesel Genset Market during the forecast period (2022-2028).

Saudi Arabia Diesel Genset Market - By Region

Geographically, the Saudi Arabia Diesel Genset Market is segmented into Central, Western, Southern, and Eastern. The eastern region segment now has the biggest market share and is likely to continue to do so during the forecast period (2022-2028). This is owing to the rising population, urbanization, and industrialization along with the expanded lifestyle plays a crucial role in fueling the demand for diesel genset. This influences the eastern region to dominate the market share in the upcoming years.

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, and 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.

Recent Development

• In December 2021- Enrogen, a diesel generator firm in the U.K., announced a deal to provide 30 MW of diesel generators to a data center in the Kingdom of Saudi Arabia. This is the largest ever deal signed by the company and is anticipated to double the company's turnover.

Scope of the Report

By kVA Rating

• • Upto 75 kVA
  • 1-375 kVA
  • 1-750 kVA
  • 1-1000 kVA
  • Above 1000kVA

By Application

• • • Retail
    • BFSI
    • Government
    • Oil & Gas
    • Pharmaceutical
    • Hospitality
    • Hospitals
    • Transportation, Logistics, and Warehouses
    • Food & Beverage
    • Others

By Region

• • Central
  • Western
  • Southern
  • Eastern

1. Research Framework
   1. Research Objective
   2.  Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Diesel Genset Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Saudi Arabia Diesel Genset Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Kva Rating
         1. Upto 75 kVA
         2. 1-375 kVA
         3. 1-750 kVA
         4. 1-1000 kVA
         5. Above 1000Kva
      2. By Application
         1. 1. Retail
            2. BFSI
            3. Government
            4. Oil & Gas
            5. Pharmaceutical
            6. Hospitality
            7. Hospitals
            8. Transportation, Logistics, and Warehouses
            9. Food & Beverage
            10. Others
      3. By Region
         1. Central
         2. Western
         3. Southern
         4. Eastern
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of COVID-19 on Saudi Arabia Diesel Genset Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Aksa Power Generation
   2. Alkhorayef Group
   3. Atlas Copco Industrial Equipment
   4. Caterpillar Inc
   5. Cummins Inc
   6. Kirloskar Oil Engines Limited
   7. Kohler Co
   8. Saudi Diesel Equipment Co Ltd
   9. Yanmar Holdings Co Ltd
   10. Other Prominent Players
9.  Key Strategic Recommendations

Note: Financial information in case of non-listed companies will be provided as per availability

The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable

List of Figures

Figure 1        Saudi Arabia Diesel Genset Segmentation

Figure 2        Saudi Arabia Diesel Genset Market Value Chain Analysis

Figure 3        Porter’s Five Forces Analysis

Figure 4        Saudi Arabia Diesel Genset Market Size, By Value (USD Million), 2018-2028

Figure 5        Saudi Arabia Diesel Genset Market Share, By kVA rating, By Value, 2018-2028

Figure 6        Saudi Arabia Diesel Genset Market Share, By Application, By Value, 2018-2028

Figure 7        Saudi Arabia Diesel Genset Market Share, By Region, By Value, 2018-2028

Figure 8        Market Share Analysis, 2021

List of Tables

Table 1         Saudi Arabia Diesel Genset Market Size, By kVA rating, By Value, 2018-2028

Table 2         Saudi Arabia Diesel Genset Market Size, By Application, By Value, 2018-2028

Table 3         Saudi Arabia Diesel Genset Market Size, By Region, By Value, 2018-2028

Table 4         Key Players and Their Offerings

Table 5         Competitive Benchmarking, By Operating Parameters

Table 6         Mergers, Acquisitions, Partnerships, etc.

Table 7         Aksa Power Generation Company Overview

Table 8         Aksa Power Generation Financial Overview

Table 9         Alkhorayef Group Company Overview

Table 10        Alkhorayef Group Financial Overview

Table 11        Atlas Copco Industrial Equipment Company Overview

Table 12        Atlas Copco Industrial Equipment Financial Overview

Table 13        Caterpillar Inc Company Overview

Table 14        Caterpillar Inc Financial Overview

Table 15        Cummins Inc Company Overview

Table 16        Cummins Inc Financial Overview

Table 17        Kirloskar Oil Engines Limited Company Overview

Table 18        Kirloskar Oil Engines Limited Financial Overview

Table 19        Kohler Co Company Overview

Table 20        Kohler Co Financial Overview

Table 21        Saudi Diesel Equipment Co Ltd Company Overview

Table 22        Saudi Diesel Equipment Co Ltd Financial Overview

Table 23        Yanmar Holdings Co Ltd Company Overview

Table 24        Yanmar Holdings Co Ltd Financial Overview