Power Rental Market in Saudi Arabia is Expected to Register Growth In-spite of Declining Oil Prices
Posted On: 17-02-2020
With plunging oil prices in the international market, impact on economies of many countries can be witnessed globally. However, this has not affected much to Saudi Arabia to restrict its investments in various construction projects. Although, effect on growth in investments can be recorded for the next 2-3 years, but due to country's rich cash reserves, infrastructure development is anticipated especially in areas such as public infrastructure, utilities, healthcare, and education.
According to 6Wresearch, Saudi Arabia power rental market is forecast to grow at a CAGR of 12.6% during 2015-21. Growth in construction industry, emerging manufacturing sector, rising electricity demand and need to provide power to off-grid areas are spurring power rental market in Saudi Arabia. In Saudi Arabia, generators are either used for prime or standby purposes, completely depending upon the grid connectivity.
According to Avishrant Mani, Senior Research Analyst, Research and Consulting, 6Wresearch," In Saudi Arabia, diesel generators have accounted for majority of share in the overall power rental market. Easy availability and inexpensive diesel have poised the growth of diesel generators on rent in the country; however, in the forecast period, penetration of hybrid and gas powered generators is exhibited. Government initiatives towards reducing carbon emissions are expected to boost the demand for these generators in the country."
"Additionally, in Saudi Arabia's power rental market, utilities, oil & gas, construction and industrial applications are the major revenue generating segments and would remain key contributing segments through the forecast period," Avishrant further added.
According to Ravi Bhandari, Research Associate, Research and Consulting, 6Wresearch," Due to low crude oil prices, short to medium term effect could be witnessed on power rental business in the country. This drop in oil prices may delay execution of government projects to maintain county's cash reserves."
"In the forecast period, Saudi Arabia's initiative to shift towards renewable resources to generate electricity can affect sourcing of diesel generators on rent, but growth would still be witnessed in oil & gas, construction sites and areas lacking transmission & distribution network," Ravi further added.
Some of the key companies in Saudi Arabia's power rental market include- Aggreko, Enerco, Hertz, Byrne Investments, Peax, Altaaqa, Cummins Olayan Energy, RSS, SES and others.
"Saudi Arabia Power Rental Market (2015-2021)" provides in-depth analysis with 56 figures and 6 tables covered in more than 110 pages. The report estimates and forecast overall Saudi Arabia power rental market by revenue, by generator types, by KVA rating of diesel and gas gensets and verticals such as utilities, oil & gas, industrial & construction, quarrying and mining and others. The report also gives the insights on competitive landscape, market share by companies, market trends, rental trends, company profiles, market drivers and restraints.