Saudi: Genset rental to grow by 3.7% until 2022

The expansion of public infrastructure, government support of industry and the need to supply power in off-grid and remote areas are the key factors that have spurred the diesel genset rental market in Saudi Arabia.

The diesel genset rental market declined by some 60% during 2015 and 2016 as a result of the slump in the construction industry following the depression in oil prices and its impact on public finance.

However, the market has reached in nadir, and is forecast to rise out of it slump at a CAGR of 3.7%, potentially explaining the excitement around the Middle East Electricity trade show in Febuary this year.

Another trend is that with the change in Saudi government policies to generate a greater portion of revenue from non-oil sector will also drive the growth of diesel genset rental market in Saudi Arabia.

Rajat Kharbanda, senior consultant at 6Wresearch, said: "Medium to high rating diesel gensets have dominated the rental market in 2016, owing to high demand from utilities and oil and gas sector.

"Diesel gensets are the prime source of power backup in utilities due to the readily availability and ease of storage of diesel compared to natural gas."

Around 50 major players are currently operating in the market, according to 6Wresearch, with five to eight players operating on turnkey power plant business model.

The major companies in Saudi Arabia's power rental market include: Altaaqa, Peax, Aggreko, Energy Equipment Rental, Rental Solutions & Services (RSS), Hertz, Byrne and others.

The re-meaning players, Ravi Bhandari, an assistant manager at 6Wresearch noted, renting individual units with fleet sizes of 30-40 units, are helping to increase the competition in the market.

The full report by 6Wresearch includes estimates and forecast the overall Saudi Arabia Diesel Genset Rental Market by KVA ratings, applications and regions, and gives the insights into the competitive landscape, the market's opportunities and its drivers and restraints.

Media Source: Construction Week Online