Diesel Gensets Market in GCC to Grow by USD 310.45 Million from 2024-2028, Driven by Low Operating Costs, AI's Role in Market Transformation -- Technavio

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The Diesel gensets market in GCC size is estimated to grow by USD 310.45 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 5.56%  during the forecast period. Low operating costs of diesel gensets is driving market growth, with a trend towards incorporation of remote monitoring systems in diesel gensets. However, growing demand for alternative backup power equipment  poses a challenge. Key market players include Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cummins Inc., Deere and Co., Generac Holdings Inc., HD Hyundai Co. Ltd., J C Bamford Excavators Ltd., Jubaili Bros, Kirloskar Oil Engines Ltd., Kohler Co., Mahindra and Mahindra Ltd., Mitsubishi Heavy Industries Ltd., Rolls Royce Holdings Plc, Siemens AG, Wacker Neuson SE, and Yanmar Holdings Co. Ltd..

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Diesel Gensets Market In GCC Scope
Report Coverage	Details
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.56%
Market growth 2024-2028	USD 310.45 million
Market structure	Fragmented
YoY growth 2022-2023 (%)	5.07
Regional analysis	GCC
Performing market contribution	GCC at 100%
Key countries	Saudi Arabia, Qatar, United Arab Emirates, Oman, and Rest of GCC
Key companies profiled	Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cummins Inc., Deere and Co., Generac Holdings Inc., HD Hyundai Co. Ltd., J C Bamford Excavators Ltd., Jubaili Bros, Kirloskar Oil Engines Ltd., Kohler Co., Mahindra and Mahindra Ltd., Mitsubishi Heavy Industries Ltd., Rolls Royce Holdings Plc, Siemens AG, Wacker Neuson SE, and Yanmar Holdings Co. Ltd.

Market Driver

The Diesel Gensets market in the GCC region is witnessing significant growth due to the industrial sectors' increasing demand for reliable power sources in the face of unreliable grid power and extreme climatic conditions. Generator sets, consisting of a diesel engine, alternator, and mechanical-to-electrical energy conversion, serve as backup power solutions for various sectors. These include data centers, hospitals, construction sites, remote areas, and emergency backup systems. Diesel gensets are crucial for industries such as oil reserves and petrochemicals, where consistent power supply is essential. Commercial establishments like shopping malls, hotels, and office complexes also rely on these systems for uninterrupted services, highlighting their strategic importance in the global energy markets. Durability and fuel efficiency are key factors in the selection of diesel gensets, particularly in regions prone to sandstorms and power outages. The market trends include stricter emissions standards, alternative power sources like natural gas and renewable energy, and hybrid systems incorporating digital technologies such as the Internet of Things and 5G connectivity. The Peak Load and Industrial segments are major contributors to the market, with renewable energy projects and stricter emissions standards driving the adoption of hybrid solutions. Residential, commercial, and industrial buildings, retail stores, office spaces, manufacturing, power generation, gas stations, and commercial buildings are significant consumers of diesel gensets. Environmental concerns, including air pollution and greenhouse gas emissions, are influencing the market, with emissions regulations and fuel prices impacting the supply chain. The market is expected to continue growing, driven by the need for reliable power backup and uninterrupted services in various industries. 

The Diesel Gensets market in the GCC region is witnessing significant advancements with the adoption of remote asset monitoring solutions. Leveraging IoT connectivity, these systems collect real-time data from gensets, providing valuable insights into fuel consumption, performance metrics, operating conditions, and maintenance requirements. Vendors are developing sophisticated monitoring systems, enabling users to access this information from anywhere, ensuring comprehensive asset management. For instance, Caterpillar Inc.'s recent initiative includes factory-installed Cat Connect Remote Asset Monitoring (RAM) on small- and medium-sized Cat diesel generator sets at no additional cost to customers. 

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 Market Challenges

•         The Diesel Gensets market in the GCC region faces several challenges in providing reliable power solutions to various industries. Unreliable grid power and extreme climatic conditions are major concerns for businesses relying on mechanical energy for electrical energy generation. Industrial sectors such as data centers, hospitals, construction sites, and remote areas require backup power sources to ensure uninterrupted services. Durability and fuel efficiency are crucial factors for generator sets using diesel engines and alternators. Power outages can cause significant losses for businesses, particularly in sectors like telecommunications, finance, healthcare, and tourism. Sandstorms and other extreme weather conditions pose challenges for diesel gensets in the region. Fuel supply and prices, emissions regulations, and supply chain disruptions are also significant challenges. Backup power solutions are essential for industries like oil reserves, petrochemical industries, and commercial establishments, including shopping malls, hotels, and office complexes. Reliable power backup is strategically important for global energy markets, as power outages can impact industries like agriculture, rural electrification, military and defense, and renewable energy projects. Environmental issues, such as air pollution and greenhouse gas emissions, are becoming increasingly important. Stricter emissions standards and the availability of alternative power sources, such as natural gas, renewable energy, and hybrid systems, are influencing the market. Digital technologies, including the Internet of Things, 5G connectivity, e-commerce, online payment, and internet banking, are driving the demand for reliable power backup in various sectors. The Peak Load and Industrial segments are expected to dominate the market, with a focus on hybrid solutions and renewable energy projects.

•         The diesel gensets market in the GCC is experiencing competition from alternative backup power equipment. These new solutions, consisting of large batteries with in-built inverters, are gaining traction. They offer AC wall plug-styled outlets and USB ports for versatile usage. Although these alternatives have been around for some time, their recent market growth is noteworthy. Advanced battery technology enables small, powerful sealed DC batteries to generate sufficient AC voltage for household appliances. This competition may impact the growth of the diesel gensets market, particularly the portable segment.

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Segment Overview 

This diesel gensets market in gcc report extensively covers market segmentation by  

• Product
• Stationery Diesel Gensets
• Portable Diesel Gensets
• Application
• Residential
• Commercial
• Industrial
• Geography
• GCC

1.1 Stationery diesel gensets-  The stationary diesel genset market in the GCC is segmented into three categories based on output power capacity: below 300 kW, 301 kW to 1 MW, and above 1 MW. Low-capacity stationary diesel gensets are commonly used in residential apartments, commercial spaces, and small-scale industries due to their affordability and compact size. These gensets are ideal for applications where power demand is not significant and the operating hours are limited. In contrast, high-capacity stationary diesel gensets are suitable for large-scale industries such as utilities, construction, mining, agriculture, oil and gas, petrochemicals, data centers, telecommunications, manufacturing, mining, and automotive industries. These gensets and reliable, making them perfect for use as standby power sources. The GCC region's rapid industrialization and infrastructure development make it a significant market for stationary diesel gensets. With abundant oil reserves, GCC countries present a lucrative opportunity for genset vendors. Currently, the stationary diesel gensets segment dominates the diesel gensets market in the GCC. Factors such as the expanding IT/ITeS sector, growing automotive manufacturing industry, and development of public infrastructure are driving market growth. Saudi Arabia is the largest market for stationary diesel gensets in the region. While the current demand is primarily for gensets with a capacity of less than 300 kW, there is an expectation that demand will shift towards gensets with a capacity of above 1 MW as the region evolves into a dynamic industrial and commercial hub. Therefore, the stationary diesel gensets segment of the market is projected to grow moderately during the forecast period.

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Research Analysis

The Diesel Gensets Market in the GCC region is witnessing significant growth due to the unreliable grid power and extreme climatic conditions. Generator sets, consisting of a diesel engine, alternator, and mechanical energy conversion system, provide reliable power supply for various industrial sectors and backup power sources for data centers, telecommunications industry, commercial buildings, shops, hospitality units, construction companies, and hyperscale cloud providers. In the GCC, where electricity demand is high, diesel gensets are essential for powering heavy machinery, rural electrification, agriculture, and 5G connectivity. Voltage fluctuations are common in the region, making diesel gensets an attractive solution for maintaining a consistent electrical energy supply. E-commerce and edge computing are also driving demand for diesel gensets as they require uninterrupted power for their operations.

Market Research Overview

The Diesel Gensets Market in the GCC region is witnessing significant growth due to the industrial sectors' increasing demand for reliable power backup solutions. Unreliable grid power and extreme climatic conditions are major factors driving the market. Generator sets, consisting of a diesel engine, alternator, and mechanical energy conversion system, provide electrical energy to various sectors when the main power supply is unavailable. Backup power sources are essential for data centers, hospitals, construction sites, remote areas, and emergency backup systems. Power outages can cause significant losses, especially in commercial establishments such as shopping malls, hotels, office complexes, and commercial buildings. Diesel gensets offer durability, fuel efficiency, and consistent power supply, making them a strategic importance in the global energy markets. The market caters to various sectors, including oil reserves and petrochemical industries, which require uninterrupted services. Extreme climatic conditions, such as sandstorms, pose challenges to diesel gensets, necessitating backup power solutions. Fuel prices and supply chain disruptions are other factors influencing the market. Renewable energy and alternative power sources, such as natural gas and hybrid systems, are gaining popularity due to environmental concerns and stricter emissions regulations. Digital technologies, including the Internet of Things and 5G connectivity, are driving the demand for reliable power backup in various industries, including telecommunications, agriculture, and rural electrification. The market also caters to military and defense, e-commerce, online payment, and internet banking sectors. The market comprises stationery diesel gensets and portable diesel gensets for residential, commercial, and industrial applications. The Peak Load segment and Industrial segment are significant contributors to the market's growth. Renewable energy projects and stricter emissions standards are driving the adoption of hybrid solutions in the market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Stationery Diesel Gensets
• Portable Diesel Gensets
• Application
• Residential
• Commercial
• Industrial
• Geography
• GCC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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