Saudi Arabia DG Set Market To Generate Revenue Worth $555.4 Million by 2030
- Published: February 2023
The Saudi Arabian DG sets market revenue is set to reach USD 555.4million by 2030, advancing at a CAGR of 3.8% during 2022–2030. This can be ascribed to various factors such as the increasing investment in the mining & metals, food & beverage, 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. These factors result in the rising sales of diesel gensets to meet the backup power demand.
Additionally, the market is offering lucrative opportunities to players, due to the strategic location and geography of the country, which help 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.
15–75 kVA DG Sets Hold the Largest Market Share
Gensets with a power capacity of 15–75 kVA accounted for the largest share, of 57%, in the Saudi Arabian DG sets in terms of volume in 2022. This is attributed to their low cost, easy maintenance, and versatile applications. Moreover, the growing retail and telecom industries are fuelling the demand for these generators in the country.
Residential Sector Is a Significant Revenue Contributor to the Market
The sales of generators in the residential sector a significant revenue share in 2022 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.
Some of the major players operating in the Saudi Arabian DG sets market include Aggreko generators, Atlas Copco Industrial Equipment Co., Cummins Saudi Arabia Limited, Caterpillar Inc., FG Wilson, Jubaili Bros LLC, Kirloskar Middle East FZE, Himoinsa Middle East, Kubota Corporation, and Kohler Power Systems.