JEDDAH -- Saudi Arabia is the key trade hub of GCC region. With rising investments in the country, changing government policies and reforms, several mega construction activities has been witnessed in the last few years. Among all GCC countries, Saudi Arabia is the leading country in the construction segment. To build these infrastructures and supply power at the construction sites, diesel gensets are primarily used.
Saudi Arabia's diesel genset market recorded a healthy growth rate during 2010-14 and is expected to witness upward trend over the next six years. According to 6Wresearch, Saudi Arabia Diesel Genset Market is forecast to grow at a CAGR of 13.55% during 2015-21. 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.
Energy and utilities is another contributing application in Saudi Arabia's diesel genset market, where these are required to provide auxiliary or back up power. Saudi Arabia is an oil-producing nation and almost 90% of oil extracted is exported in the international market. Unavailability of grid power in remote locations has resulted into an increased demand for diesel gensets.
According to Avishrant Mani, Senior Research Analyst, Research and Consulting, 6Wresearch, "during the forecast period, 85 mega projects, each worth of more than $1 billion are lined up, which are expected to be completed by 2030, would spur the growth of genset in the coming years. Further, rising number of tourists have resulted into construction of new hotels and malls, which are depending heavily on diesel gensets. Additionally, these provide back-up power source in case of any power failure.
Diesel genset on rent is one of the major trends that is witnessed in the country. Real estate companies deploy gensets on rental basis at the construction sites to reduce the burden of high purchasing cost," Avishrant added.
The major companies in Saudi Arabia's diesel genset market include Saudi Diesel Equipment, Cummins, Caterpillar, Himoinsa Power, Atlas Copco, and Kirloskar.
Media Source: ZAWYA