Saudi Arabia DG Sets Market Size and Share Analysis by Power Rating (15–75 kVA, 76–375 kVA, 376–750 kVA, 751–999 kVA, 1000 kVA and Above), Application (Commercial, Industrial, Residential) - Industry Demand Forecast to 2030

Market Overview

The Saudi Arabian DG sets market size stood at USD 412.7 million in 2022, and it is predicted to reach USD 555.4 million by 2030, advancing at a CAGR of 3.8% during 2022–2030. 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.

DG Sets with Power Rating 751–999 kVA Account for Largest Market Share

Gensets with a power capacity of 750–999 kVA held the largest market revenue share in 2022. The category is expected to grow at a CAGR of 4.1% 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 market share, of about 57%, in 2022. 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. Thus, this factor drives the market growth in this category.

Industrial Sector Is Largest Revenue Contributor to the Market

The sales of diesel generators in the industrial sector contributed the largest revenue share, of about 46%, in 2022 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.

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 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.

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.

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Recent Strategic Developments of Key Players

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. For instance:

• In May 2021, Kohler launched its M139 generator canopy, with power ranging from 165 kVA to 250 kVA, for use in harsh outdoor environments in the MEA market.
• In July 2021, Cummins Arabia expanded its distribution network in Kuwait, with the launch of Cummins Kuwait, to distribute Cummins products in the GCC countries.

Key Players in Saudi Arabia DG Sets Market Are:

• Aggreko Generators 
• Atlas Copco Industrial Equipment Co.
• Caterpillar Inc.
• Cummins Saudi Arabia Limited
• FG Wilson
• Himoinsa Middle East
• Kirloskar Middle East FZE
• Kubota Corporation
• Jubaili Bros LLC
• Kohler Power Systems

Market Size Breakdown by Segment

This report offers deep insights into the market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based On Power Rating

• 15–75 kVA
• 76–375 kVA
• 376–750 kVA
• 751–999 kVA
• 1000 kVA and Above

Based on Application

• Commercial
  • By user
    • Retail Establishments
    • Commercial Offices
    • Telecom Towers
    • Hospitals
    • Hotels
  • By power rating
    • 15–75kVA
    • 76–375kVA
    • 376–750 kVA
    • 751–999 kVA
    • 1000 kVA and Above
• Industrial
  • By user
    • Manufacturing
    • Energy & power
    • Construction
  • By power rating
    • 15–75kVA
    • 76–375kVA
    • 376–750 kVA
    • 751–999 kVA
    • 1000 kVA and Above
• Residential