Press Release

{375.1kVA - 750kVA} segment to dominate the Saudi Arabia Diesel Genset Rental Market

Saudi Arabia Diesel Genset Rental Market is being driven by the booming construction and industrial sectors, which will greatly increase the need for rental diesel Genset in the nation.


According to TechSci Research report, “Saudi Arabia Diesel Genset Rental
Market - By Region, Competition, Forecast & Opportunities, 2028F, the Saudi Arabia Diesel Genset Rental market is expected to experience high expansion throughout the forecast period, owing to the developing public infrastructure, a growing industrial base, growth in the retail and hospitality sectors, and the requirement to provide energy to remote places. Construction has also increased in the Saudi Arabian area, and other countries are working on major infrastructure projects. . Saudi Arabia is the primary business centre of the Gulf Cooperation Council (GCC). Large-scale construction projects have been carried out during the past few years because of growing foreign investment, favorable government policies, . In the GCC, Saudi Arabia leads the pack in the construction industry. The main drivers of the growth of Saudi Arabia's diesel genset rental business are the expansion of the non-oil economy and ambitions under Saudi Vision 2030. Because purchasing and maintaining a generator is rather expensive, most consumers choose to rent generators. Another benefit of renting gensets is their adaptability in terms of setup.


Saudi Arabia Diesel Genset Rental market declined in 2020 on the back of the COVID-19 pandemic, as there were delays and cancellations for projects in various sectors across the country to maintain the social distancing measures. There was also a slump in social gatherings and entertainment events due to the imposed lockdown in the country. This hampered the economic growth of Saudi Arabia, causing a substantial disturbance in the supply chain and bringing a decline in electricity consumption in Saudi Arabia. During the COVID !9 pandemic, Saudi Arabia Diesel Generator market suffered in 2020 because of project delays and cancellations across the nation in order to preserve the social segregation policies put in place to stop the coronavirus's spread. Due to the imposed lockdown throughout the nation, there was also a decline in social gatherings and entertainment activities. This hindered Saudi Arabia's economic expansion seriously, disrupting the supply chain and reducing the country's overall electricity usage.


Browse over XX market data Figures spread through XX Pages and an in-depth TOC on the "Saudi Arabia Diesel Genset Rental Market"


In Saudi Arabia, the market for rental diesel generators also comprises the
energy and utility sectors, where they are required to provide auxiliary or backup power. About 90% of Saudi Arabia's oil production is exported to foreign markets, making it an oil-producing nation. Due to rural areas' lack of grid electricity, rental diesel Genset demand has increased. The Saudi Arabia Diesel Genset Rental Market is expected to expand during the projected period. For instance, development of new hotels and malls, which mainly rely on diesel generators, has also been prompted by an increase in tourists throughout the regions. Because of the 85 mega projects worth more than USD1 billion each that are planned to be finished by 2030 and are expected to boost the growth of diesel Genset rental market in the upcoming years.


The significant demand from the infrastructure and building sectors, as well as more recently developed industries like the automotive and transportation sectors, expected to responsible for the market's expansion. The "Saudi Vision 2030" and large-scale projects like Al Widyan, Aseer Development Project, Jeddah Central Projects, among others, contributed to the market's significant growth in the years that followed. These projects also increased the demand for rental diesel generator sets throughout Saudi Arabia, particularly in the Eastern, Central, Northern, Northwest, Midwest, and Southwest regions.


Based on the KVA rating, there are various sub-segments namely below 100KVA, 100.1-350KVA, 350.1-750KVA, 750.1-1000KVA, and above 1000KVA. The {375.1kVA - 750kVA} has emerged as a major shareholder in the market and is expected to maintain a healthy CAGR in the upcoming years, due to its wide range of applications. In addition to this segment, the above 1,000 kVA rating segment will also experience strong market growth as a result of the Saudi Arabian government's implementation of infrastructure development in a variety of industries. These projects call for a high-power source, which increases the demand for genset rentals above 1,000 kVA rating due to the extensive use of its power backup system in the industrial and logistical sectors. In addition, it is anticipated that the Saudi Arabian National Development and Logistic Program will attract a sizeable amount of investment—roughly USD 500 billion—by 2030 in the manufacturing, logistics, and industrial sectors, which will support the Saudi Arabia Diesel Genset Rental market in the years to come.


The market for rental diesel genset in Saudi Arabia is expected to be impacted by a number of significant factors in the coming years, including an increase in the number of upcoming infrastructure projects and an increase in electricity demand, both of which are supported by beneficial government initiative schemes for the overall development of the country. The Red Sea Project, Amaala, the GCC
Railway Project, Waterfront Infrastructure Facilities Project - Phase II, Medina Metro Project, and many others are prime examples of upcoming infrastructure projects in the country. Additionally, it is estimated that the market for Saudi Arabian diesel genset rentals would profit from the increased focus on energy efficiency during the course of the forecast period. In 2020, the nation's diesel generator business suffered harm from the government-imposed nationwide lockdown brought on by the coronavirus pandemic, which disrupted both the supply and demand of rental Genset. However, it is projected that the market would expand after the outbreak.


Additionally, the Saudi Arabia Vision 2030 and the National Transformation Programme 2020 are two government programmes that seek to advance and expand public service areas including healthcare, education, infrastructure, and tourism. These government measures have therefore boosted Saudi Arabia's need for rental diesel gensets.


Key market players in the Saudi Arabia Diesel Genset Rental Market include:

  • Aggreko Middle East Ltd
  • Altaaqa Alternative Solutions Co. Ltd
  • Byrne Investments Saudi Arabia Ltd
  • Cummins Olayan Energy, Ltd
  • Energia Al Faris Contracting Company Ltd
  • Energy Equipment Rental Co. Ltd
  • Hertz Dayim Equipment Rental Ltd
  • HUNE Specialized International Co. L.L.C. (HUNESICO)
  • Peax Equipment Rental
  • Rental Solutions & Services LLC
  • SES SMART Energy Solutions FZCO


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“Saudi Arabia is the core market for renting diesel generator sets in the GCC. Up to 2014, the development of industrial sector, infrastructure, and an increase in building activities drove the rise of the diesel Genset rental industry. However, the rental industry has been severely impacted and decreased by more than 60% since 2014, as a result of low oil revenues leading to a reduction in building operations. Additionally, the Saudi Government's objectives for economic reform to lessen their dependence on crude oil and the growing need for electricity are expected to contribute significantly to the Saudi Arabia Diesel Genset Rental market.  Therefore, these factors are fueling the growth of Saudi Arabia Diesel Genset Rental market in the upcoming years.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

 

Saudi Arabia Diesel Genset Rental Market, By KVA Rating (Below 100KVA, 100.1-350KVA, 350.1-750KVA, 750.1-1000KVA, Above 1000KVA), By Application (Backup Power, Prime Power, and Peak Shaving), By End User Industry (Residential, Commercial, Industrial, Public, and Others), By Region, Competition, Forecast & Opportunities, 2028F, has evaluated the future growth potential of Saudi Arabia Diesel Genset Rental Market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in Saudi Arabia Diesel Genset Rental market.


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