Saudi Arabia Diesel Generator Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Saudi Arabia Diesel Generator Market Trends

Increasing Demand from Healthcare and Construction Sectors

The healthcare sector in Saudi Arabia is undergoing significant expansion, creating substantial demand for reliable emergency power systems solutions. In 2023, the Saudi Ministry of Health announced the addition of 1,200 new hospital beds across the country, while the number of oncology centers doubled from nine to 18 in the same year. This healthcare infrastructure expansion was further accelerated in April 2024, when the Saudi Arabian government unveiled plans to inject over USD 65 billion into the nation's healthcare infrastructure, including the privatization of 290 hospitals and 2,300 primary health centers. The critical nature of healthcare operations necessitates an uninterrupted power supply, making industrial generator solutions an essential component of hospital infrastructure.

The construction sector is witnessing unprecedented growth with several mega-projects under development. The King Salman Park project, covering more than 16 km², features extensive facilities, including a royal golf course spanning 850,000 square meters, a sports complex over 50,000 square meters, and residential compounds providing 12,000 housing units. Additionally, projects like The Line at NEOM, a USD 500 billion development, and Oxagon, a floating city in the Red Sea designed to house 90,000 residents by 2030, are driving the demand for reliable commercial generator solutions during both construction and operational phases. These massive construction initiatives require a consistent power supply throughout their development stages, particularly in remote or underdeveloped areas where grid power may be unreliable or unavailable.

Industrial Development and Infrastructure Growth

Saudi Arabia's industrial sector is experiencing robust growth, particularly in manufacturing and technology infrastructure. According to the Ministry of Industry and Mineral Resources, the number of factories in Saudi Arabia increased by 10% from 10,520 in 2022 to 11,550 in 2023, with 1,379 new industrial licenses issued leading to investments exceeding SAR 82 billion (USD 21.86 billion). The country's ambitious plan to increase the number of factories to 36,000, with 4,000 fully automated facilities by 2035, is creating sustained demand for reliable industrial power solutions. These industrial facilities require an uninterrupted power supply to maintain operational efficiency and prevent production losses.

The telecommunications sector is also driving significant demand for power generation equipment. In March 2024, Zain Saudi Arabia announced plans to accelerate the deployment of 5G-Advanced (5G-A) services, with a comprehensive rollout planned across 18 key cities by 2027-2030. Similarly, in October 2023, STC Group revealed expansion plans to extend its 5G network coverage to over 90% of major city locations. The critical nature of telecom infrastructure necessitates reliable backup power solutions, particularly for maintaining network uptime during power outages. This expansion is complemented by data center developments, such as Saudi Aramco's partnership with Zoom Global announced in February 2023, and Oracle's USD 1.5 billion investment in a Riyadh data center, all requiring robust emergency power systems to ensure continuous operations.

Segment Analysis: Capacity

Below 75 kVA Segment in Saudi Arabia Diesel Generator Market

The Below 75 kVA segment dominates the Saudi Arabia diesel generator market, commanding approximately 58% of the total market share in 2024. This segment's prominence is primarily driven by its widespread application in residential complexes, small restaurants, small-scale industries, and petrol stations. The segment's dominance is further reinforced by the increasing demand from residential buildings and homes where these residential generators serve as crucial backup power solutions. Many small-scale diesel generators in this category are designed to deliver temporary and emergency power during grid failures, though some also function as primary power sources. The segment's strong position is also supported by the growing adoption of portable diesel generators in various construction applications such as wire saw cutting machines, electrical pumps, and cranes, where manufacturers like Atlas Copco provide solutions with features like parking brakes and low noise levels to reduce pollution.

75-350 kVA Segment in Saudi Arabia Diesel Generator Market

The 75-350 kVA segment is projected to be the fastest-growing segment in the Saudi Arabia diesel generator market, with an expected growth rate of approximately 7% during 2024-2029. This robust growth is primarily attributed to the segment's extensive applications in commercial sectors and various industries including telecom, data centers, retail, commercial buildings, healthcare, hospitality, and large-scale enterprises. The segment's growth is particularly driven by Saudi Arabia's expanding data center infrastructure, where standby generators are crucial for maintaining uninterrupted operations. The healthcare sector's continuous expansion, evidenced by recent developments such as the Ministry of Health's announcement of new hospitals adding 1,200 beds in 2023, further propels the demand for generators in this capacity range. Additionally, the segment's growth is supported by its vital role in providing reliable power backup for commercial buildings and retail establishments across the kingdom.

Remaining Segments in Capacity

The Above 350 kVA segment plays a crucial role in the Saudi Arabian diesel generator market, primarily serving heavy industries, oil and gas operations, petrochemicals, manufacturing, and large-scale power generation facilities. This segment is particularly vital for industries located in remote areas where grid connectivity is absent or unreliable. The segment's significance is enhanced by Saudi Arabia's position as a major oil producer and its ongoing industrial expansion initiatives. These high-capacity industrial generators are essential for maintaining continuous operations in critical industrial applications, particularly in the kingdom's extensive oil and gas facilities, where power interruptions can lead to significant operational and financial impacts.

Segment Analysis: End User

Construction Segment in Saudi Arabia Diesel Generator Market

The construction segment dominates the Saudi Arabia diesel generator market, accounting for approximately 25% of the market share in 2024, while also exhibiting the highest growth rate with a projected growth of nearly 7% during 2024-2029. This segment's prominence is driven by Saudi Arabia's ambitious Vision 2030 initiatives, which include several megaprojects currently under development. Notable projects include the Dahiyat Al Fursan New City, which plans to construct 100,000 housing units to accommodate over 600,000 people by 2025, and the King Abdullah Economic City, spanning 181 km² off the Red Sea coast. The NEOM City project, with its first phase set for completion in 2025, and the Amaala City development are further boosting the demand for industrial generators in construction sites. These emergency power generators are essential for providing reliable power supply during construction activities, particularly in remote or undeveloped areas where grid power may be unreliable or unavailable.

Remaining Segments in End-User Segmentation

The healthcare sector represents a significant portion of the market, driven by extensive healthcare infrastructure development and the critical need for uninterrupted power supply in medical facilities. The telecom segment maintains steady growth due to the expansion of 5G networks and increasing digital infrastructure development. The manufacturing sector's demand is primarily fueled by the growing number of industrial facilities and Saudi Arabia's push toward manufacturing sector expansion. The residential segment continues to grow steadily due to increasing urbanization and housing development projects. The remaining market share is comprised of various sectors including oil & gas and mining, which require diesel generators for continuous operations in remote locations and critical backup power applications.

Segment Analysis: Application

Standby Backup Power Segment in Saudi Arabia Diesel Generator Market

The standby backup power segment dominates the Saudi Arabia diesel generator market, accounting for approximately 51% of the total market share in 2024. This segment's prominence is driven by the critical need for reliable emergency power supply across various sectors, particularly in healthcare facilities, data centers, and commercial buildings. The segment is also experiencing the fastest growth trajectory, projected to expand at around 6% from 2024 to 2029, primarily due to the increasing investments in healthcare infrastructure and data center developments across the Kingdom. The Saudi Ministry of Health's announcement in 2023 regarding the opening of several hospitals across the country, adding 1,200 beds to the healthcare sector, has further strengthened the demand for backup power generators. Additionally, the segment's growth is supported by the country's focus on ensuring uninterrupted power supply for critical operations, especially during peak summer months when power demands surge due to extensive air conditioning requirements.

Remaining Segments in Application Segmentation

The prime power generator and peak shaving power segments represent significant portions of the Saudi Arabian diesel generator market, each serving distinct operational needs. The prime/continuous power segment is particularly crucial for industries operating in remote locations, such as oil platforms and mining sites, where grid connectivity is absent or unreliable. This segment is essential for maintaining continuous operations in high-risk industries that require uninterrupted power supply. The peak shaving power segment, on the other hand, plays a vital role in managing electricity consumption during peak demand periods, particularly in industrial and commercial settings. This segment has gained importance with the increasing integration of renewable energy sources into the grid, as peak shaving generators help maintain grid stability and reduce overall electricity costs during high-demand periods. Both segments are influenced by Saudi Arabia's ongoing industrial development and the expansion of its mining and manufacturing sectors under Vision 2030.