6wresearch logo

Can power rentals make up for low GCC liquidity?

January 11, 2016

As market activity wrapped up in 2015, details about the GCC's diesel genset market emerged, providing a glimpse of what the new year held for the regional construction industry. According to Saudi Arabia Diesel Genset Market (2015-2021) by 6Wresearch, the Kingdom's diesel genset market is forecasted to grow at a compound annual growth rate (CAGR) of 13.55% between 2015 and 2021.

The demand for diesel genset is expected to thrive on account of growing public infrastructures, industrial base, retail and hospitality sectors, and supplying power in remote areas.

The situation is similar in the UAE, where the expansion of public transport infrastructure has led to increased demand for generators. 6Wresearch's report added major construction activities anticipated in the country this year and near future - such as the expansion of Dubai Metro, road infrastructure, and Dubai Expo 2020 - will boost the local generator market.

Ravi Bhandari, analyst at 6Wresearch's energy and power division, says the energy and utilities sector in Saudi Arabia is also driving genset demand in the country.

"Saudi is an oil producing nation and almost 90% of its extracted oil is exported in the international market," Bhandari tells Construction Week.

"Unavailability of grid power in remote locations has resulted in an increased appetite for diesel gensets, motivated by power deficit during peak hours, especially summer months. Demand is also growing from construction sites and industries where grid power is unavailable. Power demand in the Kingdom is growing at the rate of 7.5% annually, and generators play vital role in bridging the gap between demand and supply of electricity," he adds.

Clearly, portable power remains a lucrative sector in the Middle East, where transmission has historically been riddled with challenges.

As Tim Spearing, global product manager at Lucy Electric's automation business said to Construction Week in October 2015, the Middle East faces many challenges in achieving a stable, reliable, and high-performance electrical distribution network due to its rate of growth.

Experts suggest this is one of the factors boosting the deployment of portable power technology in the GCC region.

"Large scale industries are gradually shifting to rental power, as it helps maintain productivity, minimise capital costs, and sustain overhead costs," Bhandari explains.

Media Source: Construction Week Online

      Browse More Report

UAE Video Surveillance Market (2017-2023)

Market Forecast by Types (Analog Video Surveillance Systems (Analog Camera and DVR), IP Video Surveillance Systems (IP Cameras, NVR and Encoder/ Decoder), Surveillance Software (Video Management Software, Video Analytics Software and Others)...

Read More

India Air Conditioner Market (2017-2023)

Market Forecast by AC Types (Window AC, Split AC, Floor Standing, Cassette Type, Packaged, Ducted Split/Ceiling Concealed, Centralized (Chiller, VRF and AHU/FCU)), Applications (Residential, Commercial & Retail Buildings, Government & Transportation, Hospitality and Others)...

Read More

India Lithium Ion Batteries Market (2017-23)

Market Forecast by Applications (Automotive, Industrial, Consumer Electronics and Others (Medical, Military and Textile)), Materials (Lithium Cobalt Oxide, Lithium Manganese Oxide, Lithium Iron Phosphate and Others (Li Nickel Cobalt Aluminum Oxide and Li Titanate))...

Read More

Africa Fire Safety Systems and Equipment Market (2017-2023)

Market Forecast by Types (Fire Fighting Systems and Equipment (Fire Extinguishers (Dry Chemical Fire Extinguisher, CO2 Fire Extinguisher, Clean Agent Fire Extinguisher, Foam Fire Extinguisher, Wet Chemical Fire Extinguisher and Water Fire Extinguisher...

Read More

India 5-30 Hp Diesel Engine Market (2018-2023)

Market Forecast by Types (Horizontal and Vertical Engine), Cylinder Types (Single, Double, Triple and Four), Applications (Agricultural, Automobiles, Power and Others), Regions (Northern, Western, Eastern and Southern) and Competitive Landscape

Read More

Middle East Diesel Genset Market (2017–2023)

Market Forecast By KVA Ratings (5-75 KVA, 75.1-375 KVA, 375.1-750 KVA, 750.1-1000 KVA and Above 1000 KVA), Applications (Retail & Logistics, Oil & Gas, Government & Transportation, Rental, Commercial and Others), Countries...

Read More

India Electric Vehicle Powertrain Systems Market (2017-2023)

Market Forecast By Technology (Battery Electric Vehicle Powertrain and Hybrid Electric Vehicle Powertrain), Components (Transmission, Battery, Motor/Generator, Engine and Controller)...

Read More

GCC Video Surveillance Storage Market (2017-2023)

Market Forecast by Product Device (SAN, DAS and NAS), Deployment (Cloud, Hybrid and On-Premise), Verticals (Government & Transportation, Retails, Enterprise & Data Centers, Residential, Healthcare & Hospitality, BFSI and Others), Countries...

Read More

Latin America Elevator and Escalator Market (2017-2023)

Market Forecast By Segments (Elevators (Low-Rise, Mid-Rise & High-Rise) and Escalator (Moving Stairs & Moving Walkways)), Services (New installation, Maintenance & Modernization) and Countries Covered...

Read More


Our Key Clients
6wreserach client list