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Infrastructure Development Would Drive UAE Diesel Genset Market During 2016-22 - 6Wresearch

September 13, 2016

UAE diesel genset market witnessed optimum growth in last 5 years due to surging public and private infrastructures in the country along with rising power demand. Large number of projects planned in the areas of public infrastructure, oil & gas, power & water and residential sector have led for the growth of diesel genset market in UAE.

According to 6Wresearch, UAE diesel genset market is projected to touch $309.9 Million by 2022. UAE diesel genset market is anticipated to witness negative growth during 2016-17 as a result of drop in global crude oil prices. However, the market is expected to rebound post 2017 owing to upcoming World Expo 2020, which would fueled the growth of infrastructure development in the country. During the forecast period, demand for diesel gensets on rent is expected to rise specifically from construction sector.

According to Ravi Bhandari, Research Analyst, 6Wresearch, "UAE Diesel Genset Market is projected to register moderate growth during 2016-22 on account of delay in execution of several construction projects in UAE due to increasing burden on government due to low oil prices"

"However diversification of UAE's economy into sectors such as manufacturing and tourism have decreased the reliance on oil based revenues which has helped to minimize the effects of low crude oil prices on UAE's economy", Ravi concluded.

According to Prakhar Srivastava, Research Associate, Research and Consulting, 6Wresearch, "In small KVA rating diesel genset segment, more than 100 players are present in UAE including Chinese players and local OEM's that purchases diesel engines from companies such as Perkins and Cummins and locally assemble them at their facilities."

"Government & Transportation vertical is the key contributing sector in overall UAE's diesel genset market on account of development of public infrastructure projects like Dubai Metro and Etihad rail network project. Also, hospitality and retail sector would further create strong demand for diesel gensets owing to growth in tourism sector," Prakhar further added.

Some of the major companies in UAE Diesel genset market include- Cummins, Caterpillar, MTU, FG Wilson, Kirloskar and Perkins.

Media Source: Zawya

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