U.A.E. Diesel Generator Set Market Size and Share Analysis by Power Rating (15–75 kVA, 76–375 kVA, 376–750 kVA, 751–1,000 kVA, Above 1,000 kVA), Application (Commercial, Industrial, Residential) – Industry Forecast to 2030

Market Overview

The U.A.E. diesel generator set market was valued at $143.6 million in 2021, and it is expected to witness a CAGR of 4.0% during 2021–2030. The substantial growth is attributed to the rising demand for prime and backup power sources, primarily in residential buildings, retail stores, office spaces, hospitals, and hotels. Furthermore, the market growth is driven by the high-volume demand for medium- and high-power diesel gensets from the commercial sector and the growth in the construction, mining, energy & power, oil & gas, and manufacturing industries.

The country has also hosted several global events in the past, for instance, the 29th Abu Dhabi International Book Fair, which attracted over 1,000 exhibitors from 50 countries; it was organized in 2022. Moreover, in 2019, the U.A.E. hosted the 2019 AFC Asian Cup, which witnessed the participation of 24 football teams.

Similarly, the Special Olympics World Games were organized in Abu Dhabi, which were attended by about 7,500 athletes from around the world. In the same vein, Expo 2020, which was conducted in 2021, was one of the biggest recent events in Dubai. These events attracted visitors from all over the globe, which boosted tourism in the country. Furthermore, they required an uninterrupted supply of power, for which diesel gensets were used as the key utility. Moreover, due to power outages, people in the U.A.E. have begun using backup power sources, such as diesel or gas gensets and solar PV systems.

Gensets are also required in the industrial sector, mainly for manufacturing, power generation, and oil & gas production, as a prime or backup power source. For example, the oil & gas industry requires gensets to power its production sites, refineries, and pieces of distribution infrastructure, such as pipelines (refinery to oil depots) and gas stations (end-use delivery points). Furthermore, because of the strong demand for these systems at building sites, the majority of which lack grid access, commercial utilization of these systems in the U.A.E. is likely to increase over the forecast period.

376–750 kVA Category Dominates Market

The 376–750 kVA category held the dominating revenue share in the market, of more than 40%, in 2021. This is attributed to the rising installation of these diesel gensets in commercial buildings, including shops, healthcare facilities, and hospitality units; manufacturing facilities, and many other facilities as a backup electricity source. In order to work around power outages, diesel gensets are preferred in the country owing to their low cost and easy availability.

Launch of advanced Diesel Generator Sets Is Key Market Trend

The demand for efficient diesel generator sets has been increasing in the U.A.E., as big construction companies, oil & gas organizations, and other enterprises are demanding the latest variants. To satisfy the surging demand, several manufacturers are launching advanced products and allocating resources and capital to establish or expand their supply chains. Some have also entered into partnerships to serve customers and clients in the U.A.E.

Increasing Number of Data Centers Is Key Market Driver

The U.A.E. is witnessing an increasing usage of data centers by hyperscale cloud providers and other companies seeking to capitalize on the domestic and global data consumption. Government agencies have also contributed to the growth in the demand for cloud-based services in the country. Furthermore, with the rapid evolution and adoption of technologies such as the internet of things (IoT), edge computing, and 5G connectivity, in the U.A.E., additional storage space for data is required. Additionally, big data is increasingly being used in the e-commerce, online payment, and internet banking sectors, which, in turn, is expected to drive the demand for data centers during the forecast period.

Data centers require a constant supply of electricity, thus resulting in a high demand for reliable power sources that are available 24*7. Furthermore, data center components, such as power controls, servers, heating, ventilation, and air conditioning (HVAC) systems, and security controls, do not tolerate power surges, and even a power outage can lead to major data loss and disruption in operations; hence, diesel gensets are required.

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Industrial Category Holds Majority of Revenue Share

Based on application, the industrial category held the largest revenue share, of over 40%, in 2021, and it is projected to show significant growth over the forecast period. The booming industrial development in the country is driving the sales growth of diesel generator sets. Moreover, the country’s burgeoning number of industrial construction projects will drive the adoption of diesel gensets for industrial applications during the forecast period.

Key Players Are Involved in Product Launches to Stay Ahead

The U.A.E. diesel generator set market is competitive, and the major players are increasingly engaging in product launches to strengthen their position. For instance, in October 2021, Caterpillar Inc. launched a new line of Cat GC diesel gensets in the U.A.E., via its dealer Al-Bahar.

Additionally, in November 2020, Kohler Co. launched KD Series diesel-powered generator sets of 3,500 kW and 4,000 kW (60 Hz)/4,000 kVA and 4,500 kVA (50 Hz), respectively, all powered by the KOHLER KD103V20 diesel engine.

Key Players in U.A.E. Diesel Generator Set Market Are:

• Cummins Inc.
• Kohler Co.
• Kubota Corporation
• Atlas Copco AB
• Mitsubishi Heavy Industries Ltd.
• Generac Holdings Inc.
• Rolls-Royce plc
• Caterpillar Inc.
• Doosan Enerbility Co. Ltd.
• Wacker Neuson Group
• Aksa Power Generation FZE
• Jubaili Bros

Market Size Breakdown by Segment

The research offers the market size of the U.A.E. diesel generator set for the period 2017-2030.

Based on Power Rating

• 15–75 kVA
• 76–375 kVA
• 376–750 kVA
• 751–1,000 kVA
• Above 1,000 kVA

Based on Application

• Commercial
  • By user
    • Retail establishments
    • Offices
    • Telecom towers
    • Hospitals
    • Hotels
  • By power rating
    • 15–75 kVA
    • 76–375 kVA
    • 376–750 kVA
    • 751–1,000 kVA
    • Above 1,000 kVA
• Industrial
  • By user
    • Manufacturing
    • Energy & power
  • By power rating
    • 15–75 kVA
    • 76–375 kVA
    • 376–750 kVA
    • 751–1,000 kVA
    • Above 1,000 kVA
• Residential