Middle East 2014 power rental market worth $500m
Saudi Arabia and other GCC countries are likely to increase their power generation capacities in the next seven years.
The value of the Middle Eastern power rental market rose to $500m in 2014, fuelled by a growth in demand in both the construction and oil and gas industries, a Verify Markets report has said.
The market in the GCC countries was primarily driven by demand from utilities and the construction industry, with Saudi Arabia emerging as the largest power rental market.
Power project business, or temporary power plants, accounted for just over half of the total Middle Eastern power rental market in 2014, and these projects were mainly in Saudi Arabia, with only a small percentage in the other Gulf countries.
However, Verify Markets noted that the power project business is expected to decrease over the next seven years due to the integration of the grid between the GCC countries and grid expansion in Saudi Arabia.
Additionally, Saudi Arabia and other GCC countries are likely to increase their power generation capacities in the next seven years.
Kuwait’s power rental market was meanwhile primarily driven by demand from the oil and gas industry, while the power rental market in Bahrain is saturated, with slow growth prospects.
The report added that solar energy-based power rental is expected to have a promising future in the GCC countries, although the growth rate of this market will also be slow over the next seven years.
It noted: “Some of the major players in the power rental market in the GCC countries are expected to start their operations in the solar energy-based power rental market.
“Increased technology use for remote monitoring and access to generators and associated equipment is expected to increase within the forecast period as well.”
Overall, the Middle Eastern Power Rental Market was expected to grow steadily during the next seven years. The base year for the study was 2014 and revenue forecasts were provided up to 2021.