Saudi Arabia’s diesel genset market recorded a healthy growth rate during 2010-14 and is expected to witness upward trend over the next six years, a new report claims.
The market is forecast to grow at a CAGR of 13.5% during 2015-21 on the back of booming construction and hospitality sectors, and the need to supply power in remote areas, a report by 6Wresearch says.
Energy and utilities are also contributing to the growth in the genset market, where these are required to provide auxiliary or back up power.
Saudi Arabia is one of the largest oil producers in the world but almost 90% of the extracted crude is exported in the international market.
Unavailability of grid power in remote locations has resulted into an increased demand for diesel gensets.
Avishrant Mani, senior research analyst with 6Wresearch, said: “During the forecast period, 85 mega projects each worth more than $1bn (…) would spur the growth of genset in the coming years.
“Further, rising number of tourists have resulted into construction of new hotels and malls, which are depending heavily on diesel gensets. Additionally, these provide back-up power source in case of any power failure.
Diesel genset on rent is one of the major trends that is witnessed in the country. Real estate companies deploy gensets on rental basis at the construction sites to reduce the burden of high purchasing cost,” Avishrant added.
The major companies in Saudi Arabia’s diesel genset market include- Saudi Diesel Equipment, Cummins, Caterpillar, Himoinsa Power, Atlas Copco, and Kirloskar.
