Saudi Arabia DG Sets Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

The Saudi Arabian DG sets market size stood at USD 426.7 million in 2023, and it is predicted to reach USD 555.8 million by 2030, advancing at a CAGR of 4.0% during 2024–2030. The market has witnessed significant growth, owing to the increase in construction and industrial activities as well as retail business across the country.

However, the country imports about 70% of the total sales of DG sets yearly. This is due to the limited local production of medium and large-sized diesel generators in Saudi Arabia.

Additionally, the market is offering lucrative opportunities to players, due to the strategic location and geography of the country, which helps in creating a high demand for generators and also allows players to supply these products in other markets of MEA.

Moreover, the increasing construction activities as a result of population growth, rising income of people, and government initiatives to develop better infrastructure are expected to increase power consumption. Thus, the need for generators is rising to offer nonstop electricity for various applications and provide a continuous power supply during a blackout.

Saudi Arabia DG sets market Trends & Drivers

Booming Oil & Gas Industry Will Drive Market Growth Rate

The Ministry of Energy manages the exploration work to enable oil and gas discoveries, and the country has one of the world's lowest extraction costs. With an estimated 267 billion barrels of oil reserves, Saudi Arabia currently controls more than 20% of global oil sales, 12% of global production, and 19% of global oil reserves.

It also has more than 5 million barrels of refining capacity daily, both domestically and through its international network. The widespread deployment of on-site gensets to power drilling equipment in remote locations is driving the market growth.

Major Market Opportunities

• The industry growth rate is expected to surge in the coming years, as the mining & metals, oil & gas, chemicals, food & beverage, construction, rail, and renewable sectors are growing significantly in the country, which, in turn, drives the demand for diesel generators in local markets.
• The production of vessels at the proposed King Salman Maritime Complex in RIC will ensure a high demand for diesel generators.
• The industry is going to offer lucrative opportunities with the increasing investment by OEMs in the country, as its strategic location allows them to supply their products in emerging markets of MEA.

In-Depth Segmentation Analysis

Power Rating Insights

Gensets with a power capacity of 751–999 kVA held the largest revenue share in 2023. The category is expected to grow at a CAGR of around 4.3% during the forecast period. This is ascribed to the rapidly growing hospitality sector of Saudi Arabia, which is typically boosted by the development of midscale and budget hotels, such as 2-star, 3-star, and 4-star categories and pilgrim accommodation across the city of Makkah. Hence, the demand for gensets in hotels is increasing at the highest pace to meet the power backup.

Moreover, in terms of volume, the 15–75 kVA category accounted for the largest revenue share, of around 60%, in 2023. This is attributed to the low costs, versatile applications, and easy maintenance of 15–75 kVA diesel generators.

Also, the surge in the number of mega projects in Saudi Arabia, such as educational institutions, hotels, office spaces, residential areas, and city expansions, has resulted in a massive increase in the demand for power backup solutions in the country.

Moreover, the growing retail and telecom industries are fuelling the demand for these generators in the country. Thus, this factor drives the market growth in this category.

Power ratings covered in the report include:

• 15–75kVA
• 76–375kVA
• 376–750 kVA (Fastest Category)
• 751–999 kVA (Largest Category)
• 1000 kVA and Above

Application Overview

The sales of diesel generators in the industrial sector accounted for the largest revenue share, of about 50%, in 2023 in the market. The demand for DG sets in this sector of Saudi Arabia is rising, as these systems provide a one-stop solution for supplying power in situations such as grid failure, power outages, and emergencies.

Furthermore, several major infrastructure projects, such as the Amaala, the Neom, and the Red Sea, which are being developed under the Vision 2030, are also driving the demand for diesel generators.

Moreover, in terms of volume, the industrial category is also expected to grow at a significant pace in the coming years. This can be because of the Saudi government's increasing focus on diversifying its economy away from the oil & gas sector to the developments of other industrial areas and the rise in the number of construction projects across the country. Thus, this factor boosts the demand for diesel generators in the industrial sector to provide an uninterrupted supply of power.

In addition, the sales of generators in the residential sector a significant revenue share in 2023 to the market. The demand for DG sets in this sector has been increasing since the government launched the housing program in 2018, with the aim of creating a vibrant environment for families and society as a whole. Moreover, by 2030, it is expected that the ownership percentage of Saudi families owning houses will increase to 70%, as compared to 60% in 2020.

The following applications are included in the report:

• Commercial (Fastest-Growing Category)
• Industrial (Largest Category)
• Residential

The Market is Consolidated

The market is consolidated in nature and in recent years, players in the Saudi Arabian DG sets market have been involved in strategic developments, such as product launches, joint ventures, and facility expansions, to attain a significant position.