Posted On: 2021-03-23
Commercial vertical accounts for the majority revenue share in the diesel gensets market of UAE- 6Wresearch
The UAE diesel genset market suffered a modest downturn from 2017-2020 on account of low crude oil prices followed by the global pandemic situation caused by the outbreak of COVID-19 in 2020. The fall in crude oil prices led to many large-scale construction projects being postponed or canceled as a result of reduced government expenditure, thereby negatively affecting the demand for diesel generators. Also, due to coronavirus, the country imposed a nationwide lockdown that led to the stoppage of all international trade practices and resulted in supply chain disruptions. However, due to the opening of international borders and the gradual restart of construction, manufacturing, and trade activities in the country, the UAE's economy has begun to recover in 2021, which would contribute to the slow growth of the diesel genset market of the UAE in the years to come.
According to 6Wresearch, the UAE Diesel Genset Market revenue size is projected to grow at a CAGR of 3.3% during 2021-2027F. The increasing demand for a consistent and reliable source of electricity and a rise in power outages would require the use of power backup solutions in the coming years. Additionally, government initiatives, such as UAE Vision 2021, UAE Water Security Strategy 2036, Plan Abu Dhabi 2030, Fujairah 2040 Plan, Surface Transport Master Plan, Abu Dhabi Economic Vision 2030, would also promote the growth of diesel gensets in the country. These initiatives include the expansion of metros and airports and the construction of new hotels hosted in the region, which would boost the UAE Diesel genset market revenues over the upcoming years.
According to Navneet Aggarwal, Senior Research Analyst, 6Wresearch, "In terms of kVA ratings, diesel gensets with the power rating of 75.1- 375kVA had emerged as a significant revenue contributor in UAE's diesel genset market in 2020. On account of increasing demand in residential, small commercial offices, retail stores, and telecom towers as they are a prime source of power during power outages and are suitable in industrial and logistics applications."
"Moreover, 75.1kVA - 375kVA rating diesel gensets would also witness the fastest growth in terms of both revenues and volumes due to a rise in upcoming development projects such as the Rosewood Dubai, Vision Saraya Abu Dhabi Corniche, Dubai Sustainable Tourism, Vida Hotel, and Residences- Dubai Marina Yacht Club, Al Wasl Tower, etc. Furthermore, government-led efforts to develop religious tourism infrastructure would require the installation of 75.1-375kVA diesel gensets. It would fuel demand for these diesel gensets in the overall DG industry in the UAE in the years to come", Navneet further added.
According to Bhawna Singh, Research Associate, 6Wresearch, "Among applications, commercial sector emerged as the leading revenue share contributor in UAE diesel genset market for the year 2020. The segment is projected to lead the market during the forecasted period due to a large number of upcoming infrastructure projects in the country. Additionally, upcoming projects such as Grand Millennium ADNEC, Mohammed bin Rashid City, Madinat Jumeirah Phase four, Vision Hydra Executive, along with Smart Dubai 2021 Vision, would contribute to the increase in deployment; of DGs in the commercial segment of UAE in the years to come."
"Based on regions, Dubai region acquired the largest revenue share in UAE diesel genset market in the year 2020, and this trend is likely to continue in the coming years primarily because Dubai is UAE's biggest construction market and all major developments and projects are ongoing in this region. Also, as per MEED media reports released in Oct 2020, private investment in Dubai's real state sector has been the primary driver of UAE construction as it accounts for over 46% of all construction contracts awarded in the UAE over the past 16 years and 19 percent of GCC. This would also contribute to the demand for diesel gensets in Dubai in the forthcoming years", Bhawna further added.
Some of the major companies in the UAE diesel genset market include Caterpillar Inc., Cummins Inc., Kohler Co. KOEL, Aggreko PLC., Aksa Power Generation, MTU Onsite Energy Corporation.
"UAE diesel genset Market (2021-2027F)" report provides an in-depth analysis with 22 figures and 10 tables, covered in 100 pages. The report estimates and forecasts the UAE 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 stakeholders devise and align their market strategies according to the current and future market dynamics.