Published: February 2023 | Report Code: 12552 | Available Format: PDF | Pages: 105
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.
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.
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.
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.
Market Size in 2022
USD 412.7 Million
Revenue Forecast in 2030
USD 555.4 Million
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Power Rating; By End Use
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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:
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
Based on Application
The Saudi Arabian DG sets market size stood at USD 412.7 million in 2022.
During 2022–2030, the growth rate of the Saudi Arabian DG sets market will be around 3.8%.
15–75kVA is the largest power rating category in the Saudi Arabian DG sets market.
The major drivers of the Saudi Arabian DG sets market include the increasing investment in the construction and industrial sectors; the rapid development of smart cities, educational institutions, hotels, office spaces, and residential buildings; and the increased power consumption in the country.
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