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Construction and power demand fuel diesel genset market in Middle East

Pictoral representation of Istanbul New Airport Phase-1. (Image source: ?GA)

Continuous development of mega projects such as Dahiyat Al Fursan New City in Saudi Arabia, Al Maktoum International Airport expansion in the UAE and Istanbul New Airport in the Middle East are driving the demand for diesel genset in the construction sector

Low crude oil prices have affected the growth of Middle East countries, which has led to initiatives taken by the governments to diversify their economies towards non-oil sectors.

According to 6Wresearch, Middle East Diesel Genset market is anticipated to grow at a CAGR of 4.3 per cent during 2017-23. The report added that 5-75kVA rating diesel gensets acquired a majority share in Middle East diesel genset market due to high demand in construction, retail and telecom sectors followed by medium rating, 75-375kVA, diesel gensets. Qatar is experiencing a considerable growth rate in the region due to increasing infrastructural development related to 2022 FIFA World Cup. Iran is another potential market for diesel genset due to the removal of economic sanctions.

Ravi Bhandari, assistant manager, research and consulting, 6Wresearch, said, ?Government and transportation, followed by rental segments, are the prime application areas for diesel genset in the Middle East due to increasing investment in government in infrastructural projects such as Hamad International Airport, Doha Metro, Istanbul New Airport Phase-1 and Etihad Railway Network. Power rental market is also witnessing growth in the Middle East due to short term power demand in various development projects.

?Turkey and Lebanon are the two prime locations for export of diesel genset to other parts of the Middle East region, as these countries have a strong local manufacturing base,? Ravi further added.

Akash Jain, research associate, research and consulting, 6Wresearch, stated that Saudi Arabia, the UAE and Turkey are expected to capture a majority of the market in Middle East region during the forecast period due to the recovery of the economies, the highest share of construction awards as well as growing retail sector.

?Development of industrial and petrochemical zones such as Sino-Oman Industrial City and Al Naayem Industrial Zone in Kuwait and Oman would also drive the diesel genset market in Middle East region,? Akash added.

Some of the major companies in diesel genset market include Cummins, Caterpillar, Aksa, Teksan and Perkins, HIMOINSA, Inmesol, PR Middle East.

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