The U.A.E. diesel generator set market is projected to generate $204.5 million revenue in 2030, advancing at a CAGR of 4.0% during 2021–2030. The increasing adoption of this power source in several industries, including construction, oil & gas, manufacturing, and data centers, is the strongest force aiding the market advance.
The COVID-19 pandemic hampered the market growth by reducing the product demand from the manufacturing, construction, and other industries. Furthermore, the closing of retail stores, offices, hotels, and airports had a major impact on the market. However, the economy started recovering in 2021, as manufacturing sites and commercial spaces reopened. This is leading to the increasing need for backup power sources, which is, in turn, driving the demand for diesel gensets in the U.A.E.
Based on application, the market is categorized into commercial, industrial, and residential. Among these, the commercial category is projected to grow with the highest CAGR, more than 4%, during the forecast period, on account of the increase in DG set installations at malls and smaller shopping complexes, restaurants, hotels, and other commercial establishments. Hence, with the increase in the requirement for a continuous power supply, the adoption of diesel gensets in the commercial sector is expected to grow in the country.
Furthermore, on the basis of power rating, the U.A.E. diesel generator set market is categorized into 15–75 kVA, 76–375 kVA, 376–750 kVA, 751–1,000 kVA, and above 1,000 kVA. Among these, the 376–750 kVA category dominated the market, with an over 40% revenue share, in 2021. This was due to the rising disposable income leading to the growing installation of these gensets in residential societies, as well as offices, hotels, stadia, and hospitals. Additionally, the high preference for these gensets in commercial buildings, including data centers, retail establishments (such as malls), and educational institutes, contributes to the growth of the market.
Players in the U.A.E. diesel generator set market have been frequently involved in product launches to gain a significant position. For instance, in June 2021, Caterpillar Inc. launched 12 new models in the Cat GC diesel generator set series for stationary standby applications. The products are available in Europe, Africa, the Middle East, the Commonwealth of Independent States (CIS), Latin America, and Asia-Pacific. They include an additional six models with power ratings from 450 to 715 kVA for 50Hz applications, as well as from 350 to 600 kW for 60Hz applications.
Major players operating in the diesel generator set market of the U.A.E. 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, and Jubaili Bros.