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The GCC Countries Diesel Gensets Market size is forecast to increase by USD 310.45 million, size is estimated to grow at a CAGR of 5.56% between 2023 and 2028. The Diesel Gensets Market in the GCC region experiences significant growth due to various factors. Primarily, the low operating costs of diesel gensets make them an attractive solution for businesses and households seeking uninterrupted power supply. Furthermore, power blackouts caused by natural disasters such as sandstorms and heavy rainfall are common in the GCC, increasing the demand for backup power sources. Additionally, the increasing industrialization and urbanization in the region have led to a surge in energy consumption, further boosting the market for diesel gensets. Despite challenges such as fuel price volatility and environmental concerns, the market is expected to continue its robust growth trajectory.
Market Forecast 2024-2028
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In various industrial sectors, where reliable power supply is crucial, especially in regions with unreliable grid power and extreme climatic conditions, generator sets powered by diesel engines provide a dependable solution. These sets consist of an alternator converting mechanical energy into electrical energy, mitigating issues such as voltage fluctuations common in areas with heavy machinery operations. Industries like the telecommunications industry and oil and gas exploration rely heavily on such setups for uninterrupted operations. Moreover, generator sets in the 376–750 kVA category are widely used in commercial buildings, shops, hospitality units, and by construction companies, ensuring continuous power supply. With the rise of hyperscale cloud providers and edge computing, along with the demand for 5G connectivity and thriving e-commerce, the need for reliable backup power solutions becomes even more pronounced, driving innovation in generator technology to meet the evolving demands of modern industries.
Increasing demand for energy, rising population, and ageing power infrastructure have increased the strain on the current power grids, which is a major cause of power outages in most GCC countries. Countries such as the UAE and Saudi Arabia have also observed an increase in power outage incidents, which are usually caused by the lack of fuel spurred by the failure of a deal for the delivery of natural gas. Some of the other causes of power failure in GCC countries include distribution station failure, load shedding, maintenance shutdown, vandalism, and cyberattacks.
Moreover, the industrial and commercial sectors need an uninterrupted supply of power to ensure streamlined operations and sustainability in a highly competitive business environment. Thus, the rise in the number of unexpected power outages and brownouts has spurred the demand for reliable and efficient backup power sources, such as diesel generators in GCC countries. Hence, the above-mentioned factors are expected to drive the growth of the market during the forecast period.
Remote asset monitoring utilizes connectivity solutions, often leveraging the Internet of Things (IoT), to collect real-time data from gensets in the field. Companies in the market are developing and implementing sophisticated monitoring systems that allow users to access this information from virtually anywhere, providing a comprehensive view of their genset assets. For instance, on February 7, 2022, Caterpillar Inc. announced a significant initiative wherein they will be including factory-installed Cat Connect Remote Asset Monitoring (RAM) on small- and medium-sized cat diesel generator set across the globe, and this enhancement comes at no extra cost for customers.
Additionally, Cat Connect RAM is an advanced system designed for data collection, visualization reporting, and alerts. This strategic move aligns with Caterpillar Inc.'s broader plan to standardize Cat Connect RAM across its entire range of diesel generator sets, a feature that is already a standard offering on larger diesel generator sets. The implementation of Cat Connect hardware as a standard feature extends to Cat generator sets with a capacity of up to 850 kVA for 50 Hz applications and up to 750 kW for 60 Hz applications. Thus, the integration of remote asset monitoring in diesel gensets is expected to be a major trend in the market during the forecast period.
Growing environmental concern due to hazardous gas emissions has led to the imposition of several regulations on diesel engines by the governments. Diesel engines hurt the environment, especially in the air. The combustion of diesel produces pollutants such as nitrogen oxide, oxide monoxide, hydrocarbons, and particulate matter. The US Environmental Protection Agency (EPA) has imposed regulations that regulate the emission of hazardous gases. These regulations cover the use of fuels, such as low-sulfur and ultra-low-sulfur diesel fuels, which promote engine efficiency and low environmental footprint.
However, the stringent regulation adds to the overall production costs, compelling manufacturers to increase the selling price of diesel gensets. If manufacturers are unable to sell their equipment at the same competitive prices, diesel gensets will lose their market share and popularity. Thus, such factors are expected to hinder the growth of the market countries during the forecast period.
The market share growth by the stationery diesel gensets segment will be significant during the forecast period. Stationary diesel gensets with a larger capacity are ideal for applications in the utility, construction, mining, agriculture, oil and gas, and petrochemical industries, besides data centers, telecommunication, manufacturing, mining, and automotive industries, among others.
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The stationery diesel gensets segment was the largest segment and was valued at USD 766.69 million in 2018. At present, the stationary diesel gensets segment holds the largest share of the GCC Countries - diesel gensets market. Factors such as the growing IT/ITeS sector, the growing automotive manufacturing sector, and the development of public infrastructure are impacting the GCC Countries - diesel gensets market positively. Of the six countries in the region, Saudi Arabia is the largest market for stationary diesel gensets. Currently, the majority of the demand in the GCC is coming from the gensets segment with an output power capacity of less than 300 kW. However, it is expected that the demand will gradually shift toward gensets with an output power capacity of above 1 MW during the forecast period as the region is evolving into a dynamic industrial and commercial destination. Thus, the stationary diesel gensets segment of the market in focus will witness moderate growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Atlas Copco AB - The company offers diesel gensets such as QAX60, QAX80, and QAX100.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including 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.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In various sectors like hospitals, construction sites, and remote areas, emergency backup systems are indispensable, ensuring consistent power supply. These systems, known for their durability and fuel efficiency, handle diverse load handling capabilities, utilizing oil reserves and diesel fuel for fuel supply. They are critical for commercial establishments such as shopping malls, hotels, and office complexes, guaranteeing reliable power backup for uninterrupted services, and highlighting their strategic importance in global energy markets and sectors like tourism, finance, and healthcare.
Moreover, the facilitating rural electrification and military defense, they address environmental issues like air pollution and greenhouse gas emissions through alternative power sources such as renewable energy and hybrid systems. With the integration of digital technologies and the rise of e-commerce, online payment, and internet banking, these systems become pivotal in supporting the industrial category and industrial development, especially in industrial construction projects and events like the Special Olympics World Games.
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Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.56% |
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Market Growth 2024-2028 |
USD 310.45 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.07 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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