United Arab Emirates Diesel Generator Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 211.16 Million |
| Market Size (2030) | USD 269.87 Million |
| CAGR (2025 - 2030) | 5.03% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Diesel Generator Market Analysis
The United Arab Emirates Diesel Generator Market size is estimated at USD 211.16 million in 2025, and is expected to reach USD 269.87 million by 2030, at a CAGR of 5.03% during the forecast period (2025-2030).
- Over the medium period, the increasing demand for uninterrupted and reliable power supply and increased demand from the commercial sector, including the healthcare industry, is expected to drive the United Arab Emirates diesel generator market.
- On the other hand, the growing trend of renewable power generation is expected to restrain the United Arab Emirates diesel generator market growth.
- Nevertheless, an increasing number of telecom subscribers have created a need to increase the installation of telecom towers in the Kingdom of the country. These towers require a continuous power supply, which is expected to create significant opportunities for market participants in the near future.
United Arab Emirates Diesel Generator Market Trends
Industrial Sector to Dominate the Market
- For years, industrial settings have turned to diesel generators, and the reasons are clear. Diesel generators, known for their fuel efficiency, offer a cost-effective solution for extended use. Their sturdy design allows them to withstand tough conditions, from harsh weather to heavy, continuous operation. This durability not only prolongs their lifespan but also reduces interruptions—vital for maintaining productivity.
- The United Arab Emirates is experiencing a notable industrial surge, driven by economic diversification, infrastructure development, and increasing energy demands. Key sectors fueling this growth include oil & gas, manufacturing, construction & infrastructure, mining & metals, and utilities & power generation.
- In December 2024, the UAE's Minister of Industry and Advanced Technology highlighted a significant achievement: the industrial sector's GDP contribution has jumped by 57%, with forecasts exceeding AED 210 billion. Since the Ministry's establishment in 2020, industrial exports have surged by 63%, now on track to eclipse AED 190 billion. This uptick in the industrial sector's efficiency and competitiveness has made it a magnet for investments, further bolstering the national GDP. As the industrial sector delves into areas like construction, manufactured housing, and metal fabrication, the demand for reliable power systems grows, paving the way for market expansion.
- Ranking as the world's tenth largest oil producer, the United Arab Emirates boasts about 100 billion barrels of proven oil reserves, with 96% located in Abu Dhabi—holding the sixth spot globally. The nation averages a production of 3.2 million barrels of petroleum and liquids daily.
- In the last five years, a slew of projects has spurred a consistent uptick in oil consumption, primarily for infrastructure development. According to the Statistical Review of World Energy, 2023 saw daily oil consumption hit 1,139 thousand barrels—a 2.6% rise from 2022, largely driven by diesel oil. This momentum is expected to persist with numerous projects on the horizon.
- Since 2000, steel production in the UAE has skyrocketed over sixfold, fueled by strong demand from construction, infrastructure, and oil & gas sectors. Today, the UAE proudly claims the title of the Middle East's second-largest steel producer.
- In January 2025, Hibuild Steel Building System International, a UAE-based firm, announced ambitions to boost its structural steel production to 60,000 metric tons annually by 2028. This move is strategically timed to meet the burgeoning demands of the UAE's construction sector, spurred by major projects like Expo City Dubai and extensive residential developments.
- Moreover, in May 2023, the UAE unveiled plans for 30 new industrial units, aiming to further elevate GDP contributions. With these industrial strides, the appetite for diesel generators is set to grow.
- As a result, with these initiatives and projects on the horizon, the sector is poised to amplify market demand in the United Arab Emirates.
Growing Trend of Renewable Power Generation is Expected to Hinder the Market
- The United Arab Emirates is ramping up its commitment to renewable energy, aligning with its long-term energy strategies. This pivot is fueled by a desire to diversify energy sources, shrink carbon footprints, and bolster energy security. Regional governments are pouring investments into renewable projects, keen on tapping into the UAE's rich solar and wind resources.
- Moreover, as technology in the renewable sector advances and the costs of renewable systems drop, the transition to renewables gains momentum. Consequently, the UAE is witnessing a gradual decline in its dependence on traditional diesel generators, underscoring a broader dedication to sustainable energy solutions.
- With electricity demand on the rise, the UAE is turning to renewables, particularly solar power, to bridge the gap. The UAE government has set an ambitious goal: to boost the share of clean energy to 30% by 2031. Data from the International Renewable Energy Agency (IRENA) reveals that the nation's renewable energy generation surged to 6,144 megawatts (MW) in 2024, a remarkable 70.38% jump from 2022. This upward trajectory is set to continue with several projects on the horizon.
- Moreover, as the costs of solar modules and battery technology plummet, the adoption of solar PV systems is on the rise. This trend is further fueled by supportive government policies. With solar power prices dropping swiftly, the UAE is reassessing its power sector strategies, especially those heavily reliant on subsidies for electricity from natural gas and liquefied natural gas (LNG).
- In tandem, numerous companies and industries across the UAE are integrating solar PV systems to meet their energy demands.
- Take, for example, the collaboration between Yellow Door Energy and EMSTEEL Group, unveiled in March 2025. They're set to roll out the UAE's largest industrial solar rooftop project. This ambitious endeavor will see a 31.5 megawatts-peak (MWp) solar photovoltaic (PV) system gracing EMSTEEL’s facilities in Abu Dhabi’s ICAD 1 industrial zone. The partnership encompasses solar panels on rooftops and carports spanning 40 of EMSTEEL's buildings. Once operational, the system is projected to churn out around 50 million kilowatt-hours (kWh) of clean electricity each year. Additionally, 920 solar modules will be installed at Yas Bay waterfront, with construction kicking off in 2025 and commissioning slated for 2026.
- These initiatives not only promise to amplify the nation's renewable energy output but also hint at potential challenges for the solar generator market in the near future.
- As renewables carve out a larger share of the UAE's energy landscape, they offer a sustainable and economically viable power solution. This evolution is curbing the demand for diesel generators, placing the diesel generator industry in a precarious position as the nation leans more heavily on renewable sources.
United Arab Emirates Diesel Generator Industry Overview
The United Arab Emirates diesel generator market is semi-cosolidated. Some of the key players in market (in no particular order) include Cummins Inc., Yanmar Holdings Co. Ltd, Mitsubishi Heavy Industries Ltd., Atlas Copco AB, and Caterpillar Inc., among others.
United Arab Emirates Diesel Generator Market Leaders
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Caterpillar Inc.
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Yanmar Holdings Co. Ltd
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Mitsubishi Heavy Industries Ltd
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Atlas Copco AB
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Cummins Inc
- *Disclaimer: Major Players sorted in no particular order
United Arab Emirates Diesel Generator Market News
- August 2024: AQT Generators has delivered a custom-engineered diesel generator to ADNOC for its offshore operations in the United Arab Emirates.
- April 2024: At MEE 2024 in Dubai, Baudouin rolled out its Stage V-compliant diesel engines, featuring the 6M33 and 12M33 models (ranging from 500 kWe to 1 MWe) and the 4M12 industrial engine (PowerKit Diesel Engines.). Engineered for peak performance and unwavering reliability, these engines cater especially to mobile and rental applications, all while adhering to stringent emissions standards. In addition, Baudouin introduced the EnerKit solution. This semi-finished product offering aids Original Equipment Manufacturers (OEMs) in boosting manufacturing speed, reducing costs, and enhancing efficiency. EnerKit achieves this by supplying components such as alternators, radiators, and skids in a pre-assembled format.
United Arab Emirates Diesel Generator Industry Segmentation
A diesel generator is an electrical energy generator that combines a diesel engine and an electric generator. This is an example of an engine generator. A diesel compression-ignition engine is typically built to run on diesel fuel, but certain models are also designed to run on other liquid fuels or natural gas.
The United Arab Emirates diesel generator market is segmented by capacity, end user, and application. By capacity, the market is segmented into less than 75 kVA, between 75 and 375 kVA and more than 375 kVA. By end-user, the market is segmented into residential, commercial and industrial. By application, the market is segmented into standby backup power, prime power and peak shaving power
For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Capacity | Less Than 75 kVA |
| Between 75 and 375 kVA | |
| More Than 375 kVA | |
| End-User | Residential |
| Commercial | |
| Industrial | |
| Application | Standby Backup Power |
| Prime Power | |
| Peak Shaving Power |
| Less Than 75 kVA |
| Between 75 and 375 kVA |
| More Than 375 kVA |
| Residential |
| Commercial |
| Industrial |
| Standby Backup Power |
| Prime Power |
| Peak Shaving Power |
United Arab Emirates Diesel Generator Market Research FAQs
How big is the United Arab Emirates Diesel Generator Market?
The United Arab Emirates Diesel Generator Market size is expected to reach USD 211.16 million in 2025 and grow at a CAGR of 5.03% to reach USD 269.87 million by 2030.
What is the current United Arab Emirates Diesel Generator Market size?
In 2025, the United Arab Emirates Diesel Generator Market size is expected to reach USD 211.16 million.
Who are the key players in United Arab Emirates Diesel Generator Market?
Caterpillar Inc., Yanmar Holdings Co. Ltd, Mitsubishi Heavy Industries Ltd, Atlas Copco AB and Cummins Inc are the major companies operating in the United Arab Emirates Diesel Generator Market.
What years does this United Arab Emirates Diesel Generator Market cover, and what was the market size in 2024?
In 2024, the United Arab Emirates Diesel Generator Market size was estimated at USD 200.54 million. The report covers the United Arab Emirates Diesel Generator Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United Arab Emirates Diesel Generator Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
United Arab Emirates Diesel Generator Industry Report
Statistics for the 2025 United Arab Emirates Diesel Generator market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Diesel Generator analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
