Fr.. Dez. 27th, 2024

Middle East gensets market is projected to witness a CAGR of 5.43% during the forecast period 2025–2032, growing from USD 3.02 billion in 2024 to USD 4.61 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.

The demand for gensets in the Middle East is driven by various factors, which include rising energy needs, infrastructure development, government initiatives, and the need for reliable power across the region. Countries such as Saudi Arabia and UAE are particularly engaged in industrialization and urbanization, which makes energy demands continue to escalate due to both residential and industrial sectors. Both sectors are looking for reliable power sources due to unpredictable power outages, which could disrupt business and industrial operations. The rise in demand for reliable power sources makes the gensets a vital solution for ensuring continuous power supply for different activities.

In the region, several industries are involved in the manufacturing, oil and gas, and retail sectors, which require an uninterrupted power supply to operate efficiently. Power outages could lead to significant financial losses and downtime, prompting large industries to invest in large gensets. As gensets ensure production activities should be continued during power outrage, which drives the demand for gensets in industrial applications.

Moreover, the Middle East has been rising for power in industrial, residential, and commercial operations, due to which gensets are becoming an attractive alternative for the power source. In addition, residential sectors are adopting fuel-efficient and hybrid gensets systems to manage electricity flow more effectively, which drives the demand for gensets in the Middle East.

For instance, August 2024, Saudi Diesel Equipment Company supplied 23 gensets in Saudi Arabia for NEOM project. Saudi Arabia planned to spend USD 500 billion on a futuristic city known as Neom. This development will increase the demand for gensets in the market.

In October 2023, Saudi Diesel Equipment Company supplied a 4,000kVA diesel genset to the petrochemical sector in Saudi Arabia. This development will increase the demand for gensets and boost the company’s revenue.

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Rise in Demand for Uninterrupted Power Supply from Industrial and Commercial Sector Accelerate Market Growth

As the industrial sector expands in the region, it leads to a rise in demand for consistent power supply. The industrial and commercial sectors are increasingly dependent on technology that requires power to operate effectively. The retail, hospital, and service industries contribute to the rising demand for gensets. Furthermore, shopping malls, restaurants, banks, and other commercial establishments need uninterrupted power to operate efficiently. Gensets are the best options to maintain backup for continuous operations, even during power interruptions.

The ongoing infrastructure development across the Middle East creates a robust demand for gensets. Gensets are frequently used to supply reliable electricity for new commercial buildings, factories, and other infrastructure projects to ensure the developments proceed without being hampered by power shortages. Moreover, both sectors are becoming more conscious of the implications of power reliability in operations, which increases the demand for dependable emergency power sources. Thus, prioritizing energy resilience to safeguard against operational disruptions in the sector drives the demand for gensets in the Middle East region.

For instance, in February 2022, Saudi Arabian government purchased two Baudouin diesel-powered gensets to provide power to municipal buildings in the town of Al Quoz. The 6M16 PowerKit units have been purchased through Almajd Power. The development highlights the high demand for power in the commercial sector in the region, which drives the demand for gensets.

Establishment of Industrialization and Economic Diversification at Off-Grid Locations Elevate Market Size

Industrialization in off-grid regions is crucial for economic development. Industrial projects are often taking place in remote or off-grid areas where reliable electricity is not available. Gensets facilitate the establishment of manufacturing units, commercial sectors, and other industrial activities by providing the necessary energy to power operations. Gensets are becoming the essential component for several construction activities, commercial places and support various industrial applications, which further stimulates gensets market growth.

The availability of reliable power through gensets encourages companies to develop and explore new opportunities in remote areas. Access to power allows businesses to extend operational hours, which helps improve product quality and enhance service delivery. Government is promoting economic diversification to reduce reliance on only source of income and entering in manufacturing business which required the stable power supply. Moreover, the shift often involves developing new industries which drive the demand for gensets in the region.

For instance, in October 2024, AQT Generators is engaged in the supplying of high quality gensets in Middle East. The company has successfully implemented the comprehensive gensets installation and synchronization automation gensets. NEOM project demands power solutions to support its expansive infrastructure, which increases the demand for gensets in the Middle East region.

Upcoming Technological Advancement Creates Market Opportunity for Market

With increased energy efficiency, less fuel consumption, and decreased running costs, gensets are becoming an essential part of hybrid systems in both residential and commercial settings. The growing popularity of hybrid systems is driving up demand for efficient and suitable gensets in the region. The introduction of advanced technology which includes hybrid power systems that integrate renewable energy sources with conventional fuel to gensets, creates an opportunity for the market in the forecast period. In addition, hybrid power backup solutions enable consumers to make use of renewable energy sources while maintaining power continuity and sustainability of the environment.

Furthermore, the incorporation of Internet of Things (IoT) technologies allows for real-time monitoring of genset performance, which enables predictive maintenance strategies and reduces downtime of the genset. In addition, the integration of battery storage systems with gensets allows for better load management and energy efficiency. The integrated genset with storage systems is able to store excess energy generated during low-demand periods for use during peak times, which enhances overall system reliability. Moreover, commercial and businesses are looking for lower carbon impact and abide by environmental laws, creating the opportunity for gensets in Saudi Arabia.

For instance, in November 2023, Hitachi Energy Ltd. company decided to unveil the new emission-free generators under the trademark name “HyFlex” which is an alternative to diesel-powered generators. This development will help the company to increase the company product portfolio with modern technology.

Dominance of Standby Gensets in Middle East Region

The standby genset has a high adoption rate which makes the segment dominate the market. Standby gensets provide a reliable source of backup power in case of outages and protect against loss of productivity during the process, which drives the demand for standby gensets in the region. For many large industries, the power factor is very critical in maintaining the operations, which worked to prevent revenue loss and avoid damage to the equipment. The high demand for electricity from industries often puts a strain on the national grid, leading to power outages or voltage fluctuations. To avoid disruptions during the critical process, the industrial sector invests in standby gensets to ensure continuous power supply.

Additionally, the newly designed standby gensets with stricter standards of acceptance in the new laws pertaining to environmental regulations, such as lower emissions and fuel consumption, are driving the market for gensets in the Middle East.

Saudi Arabia Leads the Gensets Market

Saudi Arabia dominated the gensets market with the highest market share. Saudi Arabia continues to grow as a central hub of economic and industrial activity, thereby the demand for reliable power supply for different applications increasing at a high rate. Saudi Arabia continues expanding its industrial base, including manufacturing, logistics, and construction. The large production sector, which needs a continuous and reliable power supply, drives the demand for gensets in the country. Saudi Arabia country is mainly investing in reliable energy sectors, which boosts the gensets market size in the country.

The country is also looking to invest in infrastructure, such as hospitals, airports, ports, and data centers. These facilities need uninterrupted power to operate smoothly, resulting in high demand for efficient gensets in the market. Additionally, the rise in investment in infrastructure in Saudi Arabia is expected to be a major factor in market growth during the forecast period.

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Future Market Scenario (2025–2032F)

  • Ongoing improvement in technology and design of gensets will improve genset efficiency, which will enhance the productivity of power systems in the region.
  • As environmental concerns push for more sustainable technological solutions, hybrid gensets will gain significance in the coming years.
  • Commercial and Industrial sectors heavily invest in gensets solutions to ensure reliable power sources for different operations, which drive the demand for gensets in the market.
  • Supportive government policies and the development of new infrastructure projects in developing countries will continue to play a significant role in driving gensets market growth.

Report Scope

“Middle East Gensets Market Assessment, Opportunities and Forecast, 2018–2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the Middle East gensets market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

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