As the Middle East pumps capital into marquee projects, the genset market is ready to take off with its promise of continual electricity supply
After being witness to challenging situations in the last few years, the Middle East genset market is cautiously picking up, on the back of a number of infrastructure development projects and a renewed focus on the industrial sector.
Rising oil prices and a wide range of economic diversification efforts in the region are pushing the potential of the genset market. Underscoring this, a Research and Markets report has forecast the diesel genset market in the Middle East to cross US$1.54bn by 2026.
Economic diversification in the GCC is focused on expanding industries such as automotive, mining, construction and manufacturing, which all need an extensive deployment of gensets as a standby source of power at consumption centres for uninterrupted production.
Of all industries, the construction sector remains a crucial driver for genset market. A report by Ventures Onsite said construction contractor awards across the GCC building, infrastructure, and energy markets is expected to increase to US$140.5bn in 2019, compared to US$125bn in 2018. The total GCC construction project value across all three sectors is estimated to be currently worth US$3.6tn.
As a result, proliferating infrastructural development and industrialisation across the Middle East economies are expected to boost the demand for backup power sources such as gensets. Major players in the genset sector include Doosan Bobcat, FG Wilson, Inmesol, Perkins, Teksan and JCB Power.
Reflecting on the current market climate in the Middle East, Hazem Elnaqeeb, district manager portable power, Middle East for Doosan Bobcat, said, ?Saudi Arabia and the UAE are definitely the biggest two markets in the ME region. Saudi Arabia has the biggest domestic market while the UAE has the third largest domestic market and the first export market in the region exporting generators to many ME countries such as Iraq, Yemen and Saudi Arabia, in addition to several African countries.?
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