Posted On: 2021-05-10
375.1 kVA– 750kVA diesel gensets acquired the largest revenue share in the diesel genset market of Saudi Arabia in recent years – 6Wresearch.
Saudi Arabia diesel genset market witnessed a modest decline during the period 2017-2020 owing to the worldwide oil price crises and the succeeding global pandemic situation caused by COVID-19 in 2020, which led to the halt in all construction, trade, and manufacturing operations and disrupted the value chain and ecosystem of diesel genset market of Saudi Arabia due to the government imposed nation-wide lockdown. However, the market has started reviving back since 2021 with the gradual lifting of lockdown restrictions and revival of supply chain disruptions.
According to 6Wresearch, the Saudi Arabia Diesel Genset Market size is projected to grow at a CAGR of 3.1% during 2021-2027F. Saudi government's initiatives such as Saudi Arabia Vision 2030 and the National Transformation Programme 2020 aim to develop and strengthen public service sectors. Such sectors include infrastructure, healthcare, tourism, and education, would create a huge demand for power backup equipment for developmental activities, thereby leading to a surge in demand for diesel gensets in Saudi Arabia in the forthcoming years.
According to Navneet Aggarwal, Research Analyst, 6Wresearch, "In terms of kVA ratings, 375.1 kVA– 750kVA diesel genset had witnessed the majority revenue share of the market in Saudi Arabia diesel genset market in 2020 and would continue to dominate the market in during the forecast period owing to growing power demand in construction, telecommunication, hospitality, residential and tourism sectors. Also, the government's initiatives like National Industrial Development and Logistics Program seek to strengthen the logistics and industrial sectors in the kingdom by transforming the country into power and a logistics hub with a major focus on industry, energy, and mining sectors. This would create ample opportunities for 375.1 kVA– 750kVA diesel gensets which are majorly deployed in these areas, thereby leading to the fastest growth in this kVA DGs over the coming years."
"Moreover, on the basis of regions, eastern region acquired the largest revenue share in Saudi Arabia diesel genset market in the year 2020 and this trend is likely to continue during the forecast period. The Eastern region is a hub for petroleum production; due to the growth in hotel chains and entertainment areas in this region, where reliable power supply is crucial, the demand for the diesel genset market in the region increases. The diesel genset market in this region is primarily driven by oil & gas activities and petrochemical industries. Jubail, the largest industrial city of Saudi Arabia and a hub for chemical industries, lies in this region. Additionally, government initiatives for the betterment of this region like the "Sakani" Program of the Ministry of Housing, Saudi Arabia would further contribute to the demand for diesel gensets in the Eastern region of Saudi Arabia in the coming years." Navneet further added.
According to Bhawna Singh, Research Associate, 6Wresearch, "The industrial sector as emerged as a major market shareholder in terms of revenue during the period 2017-2020, and the same trend is anticipated to persist over the coming years. The segment is also expected to witness the highest revenues and volume growth in the forthcoming period owing to factors such as the government's focus on industrial development, including implementation of the required infrastructure, construction of Jubail and Yanbu industrial cities as well as other industrial cities in various regions of the country."
"Additionally, the government's initiatives such as new petrochemical investment deals and industrial projects like Pygas & Pyoil Plant Project, development of King Salman Energy Park, construction of fabrication yard, chemical complex and many others would require a reliable source of power and this requirement would be fulfilled by application of diesel genset on a large scale, thereby, accelerating the demand for diesel gensets in the Saudi Arabia's industrial domain in the coming years.", Bhawna further added.
"Saudi Arabia Diesel Genset Market (2021-2027F)" report provides an in-depth analysis with 31 figures and 12 tables, covered in 101 pages. The report estimates and forecasts the Saudi Arabia diesel genset market by kVA ratings, applications, and regions. The report provides an unbiased and detailed analysis of the ongoing trends, opportunities/ high growth areas, and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.