Increasing public and private infrastructure construction backed by government policies and programs such as UAE Vision 2021, Surface Transport Master Plan and international events such as Dubai Expo 2020 would drive the market for diesel gensets in UAE. Further, certain key sectors such as oil & gas, hospitality and manufacturing would also heavily contribute towards the surging demand for diesel gensets in the country.
According to 6Wresearch, UAE diesel genset market revenues are projected to grow at a CAGR of 3.4% during 2019-25. Increasing demand for continuous power supply in the country, specifically in the commercial and manufacturing sectors would drive the demand for diesel gensets in the country as standby and auxiliary power source systems. Additionally, rise in tourism sector would accelerate the construction activity of new hotels in the country, which would significantly surge the demand for diesel gensets in the region.
According to Priya Sharma, Research Analyst, Research and Consulting, 6Wresearch, "Oil & gas coupled with power utilities sub-segments captured the highest revenue share in the overall UAE diesel genset market. This growth can be attributed to the oil & gas and power utilities sector, as it contributes a major chunk in the GDP of the country and heavily rely on diesel genset as a backup source of power. Additionally, recent developments in the oil & gas sector, such as the discovery of 15 trillion standard cubic feet gas field and 1 billion barrels of oil by ADNOC (Abu Dhabi National Oil Company), would act as a key growth driver for diesel genset market in UAE."
"Further, rising FDI in UAE due to efficient economic and investment policies, as well as ease of doing business has made the country a regional hub for the Middle East region. The bulk of FDI is concentrated in the sectors which heavily uses diesel genset, such as manufacturing and construction, which would provide a boost to the growth to diesel genset market of UAE. Additionally, proposed construction of sustainable smart cities under the Smart UAE initiative would also support the growth of diesel genset market in the country, "Priya further added.
According to Prithu Chawla, Research Associate, Research and Consulting, 6Wresearch, "On account of growing investment in the construction vertical with new upcoming projects such as La Maison by HDS, Il Primo Tower 1, Al Wasl Tower and Jumeirah Gate, along with numerous transportation projects such as Dubai metro and Abu Dhabi metro transit network in UAE, the 375.1 - 750 kVA rating diesel genset captured the highest revenue share in the diesel genset market of UAE, closely followed by the above 1000 kVA rated diesel genset segment."
"Further, Abu Dhabi region captured the highest revenue share in the diesel genset market of UAE, owing to the region being the national hub of oil & gas and manufacturing industry. Moreover, Abu Dhabi is expected to show the highest growth during the forecast period as well due to the increasing investment by the government of UAE in the infrastructure, tourism, transport, health and education sectors in the region," Prithu further said.
Some of the prominent companies in UAE diesel genset market are Mitsubishi Heavy Industries Engine System Middle East FZE Ltd., Caterpillar Inc., FG Wilson FZE, Cummins Middle East FZE, MTU Onsite Energy Corporation, Himoinsa Middle East, FZE and Atlas Copco AB.
"UAE Diesel Genset Market (2019-2025)" report provides an in-depth analysis with 56 figures and 14 tables, covered in more than 130 pages. The report estimates and forecast the overall UAE diesel genset market by kVA rating, regions and verticals such as residential, commercial and industrial. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.