Middle East and Africa diesel genset market to reach $1.54bn by 2026
Research and Markets report forecasts growth in diesel generator set market in line with rising populations and the power demands of both active and built projects
The market for diesel gensets is forecast to grow to reach $1.54bn by 2026, according to the most recent industry report by Research and Markets.
Saudi Arabia and the UAE will continue to lead Middle East and Africa diesel genset market in the coming years – primarily due to the large populations in the two countries – according to the report.
At the same time, infrastructure development and an increasing focus on diversification of the industrial sector are drivers leading to an incline in the Middle East diesel genset market.
Large projects require continuous electricity supply both during execution and post development, and diesel gensets are increasingly being deployed as backup power sources at construction sites in the Middle East, and for use as standby source of power at consumption centres.
A separate report released in April 2017 by 6Wresearch and focused on the diesel genset rental market in Saudi Arabia, similarly forecast a compound annual growth rate of 3.7% from 2017 through to 2022.
It also pointed to key factors including public infrastructure, government support of industry and the need to supply power in off-grid and remote areas.
It noted that while the diesel genset rental market declined by 60% during 2015 and 2016 as a result of the slump in oil prices and its impact on public finance and projects, the market has bottomed out and is now steadily rising again.
It further indicated that the shift in Saudi government policy in favour of diversifying the country’s revenue into non-oil sectors will also drive the growth of rental market in Saudi Arabia.