Market Trends of Saudi Arabia Diesel Generator Industry
This section covers the major market trends shaping the Saudi Arabia Diesel Generator Market according to our research experts:
Industrial Sector to Dominate the Market
- The industrial sector is estimated to account for the largest share in the diesel generator market. Industrial operations are mainly dependent on electricity generated from diesel generators during power outages (to avoid production risks) and in regions where grid access is limited.
- The industrial sector, which includes mining, manufacturing, and construction, accounts for the largest share of energy consumption of any end-use sector, accounting for more than 40% during the forecast period.
- High economic growth rate, continuing investments toward world-class infrastructure, growth in the telecom market, coupled with an expansion of the healthcare industry and the housing market are some of the factors driving the demand for diesel generators in Saudi Arabia.
- The construction sector of Saudi Arabia is witnessing huge development due to the expansion of industrial and commercial infrastructure. The telecom and IT industries in Saudi Arabia are emerging as the fastest-growing sectors within the GCC market.
- Saudi Arabia being one of the major oil producers of the world has planned to diversify its economy by developing new industrial infrastructure. This has led to the development of petrochemical and refinery projects which is a big boost for diesel generator market because diesel generators are used as a source of electricity during the construction as well as during operation of such plants. Hence, based on the above-mentioned factors, Saudi Ariba is expected to witness significant demand for diesel generator market during the forecast period.
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Standby Backup Power Application to Dominate the Market
- Diesel generators are largely used as a standby power source by the consumers. When there is a lack of power supply, the diesel generators can provide effective backup power. The industrial and commercial sectors are highly dependent on the power supply, to ensure business operations.
- The shortage of power supply results in downtime for business operations, which can be a big loss. To maintain a continuous supply of electricity, the diesel gen-sets can maintain a steady power supply and ensure smooth business operations.
- The diesel generators are beneficial in terms of cost-effectiveness, availability of fuel, and running, which makes it the most sought-after choice as a standby power source.
- Saudi Arabia is witnessing huge investment inflows in infrastructure projects that are expected to increase the demand for electricity.
- In April 2017, Riyadh announced its plans to build the kingdom's largest entertainment, cultural, and sports city near the capital, which will break ground in 2018 and open in 2022.
- These infrastructure projects are expected to drive the demand for diesel generators in the commercial sector during the forecast period.
