MEA Diesel Generator Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.80 Billion |
| Market Size (2029) | USD 3.42 Billion |
| CAGR (2024 - 2029) | > 4.10 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
MEA Diesel Generator Market Analysis
The Middle-East And Africa Diesel Generator Market size is estimated at USD 2.80 billion in 2024, and is expected to reach USD 3.42 billion by 2029, growing at a CAGR of greater than 4.10% during the forecast period (2024-2029).
- Over the medium term, the unreliable power supply from the distribution center and increasing construction and infrastructure projects are expected to drive the market during the forecasted period.
- On the other hand, increasing concerns over carbon emissions are expected to hinder the growth of the market during the forecasted period.
- Nevertheless, hybrid systems with integrated diesel generators with renewable energy sources are expected to create huge opportunities for the Middle-East and African diesel generator market.
- Nigeria is expected to be a dominant region for the market due to the increasing demand for energy in the region.
MEA Diesel Generator Market Trends
Backup Generator Segment to Dominate the Market
- The Middle-East and Africa often contend with frequent power outages, grid instability, and challenging climatic conditions that disrupt energy availability. The critical need for uninterrupted power to sustain vital operations, protect sensitive equipment, and maintain essential services underscores the compelling value proposition of backup generators.
- Moreover, the industrial growth witnessed in the region amplifies the significance of backup generators. The demand for consistent and resilient power sources becomes paramount as the region's industrial landscape flourishes. Backup generators offer a reliable safeguard against potential production losses, revenue impacts, and operational downtime resulting from power disruptions, thus enhancing overall business continuity.
- According to the Energy Institute Statistical Review Of World Energy 2023, the electricity generated in 2022 grew by 0.6% compared to 2021 in the Middle-East and African region. At the same time, an annual growth rate of 2.2% was recorded between 2012 and 2022. As the demand for electricity is increasing in the region, the power generating sources are not increasing at the same place, specifically in the African region; therefore, the demand for diesel generators is expected to rise in the coming years.
- Furthermore, the dependence on technology and data infrastructure elevates the importance of backup generators. The proliferation of data centers, telecommunications facilities, and digital services requires a continuous and stable power supply to ensure the integrity and functionality of these critical systems. Backup generators, equipped to assume power delivery during outages swiftly, emerge as a critical linchpin in safeguarding technological operations.
- For instance, in February 2023, Microsoft intended to build a new data center and Azure cloud region in Saudi Arabia. It was announced during the LEAP 2023 conference in Riyadh.
- Backup diesel generators are, thus, expected to continue dominating the market. This is due to their flexibility in usage and large size for electricity generation compared to other market segments.
Nigeria to Dominate the Market
- The nation's burgeoning population, rapid urbanization, and diverse industrial sectors create a heightened demand for reliable power sources. Nigeria's quest for uninterrupted electricity supply amid existing grid challenges enhances the appeal of diesel generators as a solution to bridge energy gaps and support critical operations.
- Moreover, Nigeria's infrastructure development and construction boom amplify the significance of diesel generators. The ongoing expansion of transportation networks, real estate projects, and manufacturing facilities necessitates a stable power supply. Diesel generators emerge as a vital enabler, catering to temporary and backup power needs and bolstering Nigeria's ambitious development initiatives.
- For instance, according to the International Trade Administration, Nigeria's construction market size has been on the rise in recent years. In 2022, the total market size was USD 131.53 billion, compared to USD 127.7 billion in 2021, while registering a growth rate of just over 3%.
- Furthermore, Nigeria's geographical distribution of economic activity further underscores its dominance. The nation's varied landscapes and urban centers call for adaptable power solutions, where diesel generators offer the flexibility to provide power in urban and remote settings. This versatility positions Nigeria to capitalize on the potential for a diverse range of diesel generator applications.
- For instance, in March 2023, Hyundai Heavy Engineering announced that the company had signed a contract with Mikano International Ltd to provide six diesel generators. Mikano International Ltd is building a project in Lagos where the company is expected to use these diesel generators as a backup power solution. Hyundai announced that the diesel generators will be shipped to Nigeria by the end of May 2024.
- In conclusion, the envisaged prominence of Nigeria within the Middle-East and African diesel generator market is firmly grounded in economic growth, infrastructure expansion, and regional dynamics. As Nigeria navigates the complexities of energy demand and supply, the integration of diesel generators emerges as a transformative force, poised to redefine energy resilience, support infrastructure development, and contribute significantly to Nigeria's journey towards energy security and sustainable progress.
MEA Diesel Generator Industry Overview
The Middle-East and African diesel generator market is partially fragmented. Some of the key players in this market (in no particular order) include Caterpillar Inc., Cummins Ltd, Yanmar Holdings Co. Ltd, Atlas Copco AB, and Honda Siel Power Products Limited.
MEA Diesel Generator Market Leaders
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Honda Siel Power Products Limited
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Cummins Ltd.
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Yanmar Holdings Co., Ltd.
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Caterpillar Inc.
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Atlas Copco AB
*Disclaimer: Major Players sorted in no particular order
MEA Diesel Generator Market News
- Dec 2023: Nigeria received a USD 750 million loan from the World Bank for the DARES project. The DARES project aims to provide around 17.5 million Nigerians with access to electricity and eliminate noisy and polluting diesel generators with clean energy.
- Aug 2023: Guangxi Dingbo Power Equipment Manufacturing Co. Ltd announced that the company had secured an order from Iran. The Iranian purchaser has ordered a 256 kW silent diesel generator from the company. The company will be shipping the order in August 2023.
MEA Diesel Generator Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 202
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Unreliable Power Supply
4.5.1.2 Construction and Infrastructure Projects
4.5.2 Restraints
4.5.2.1 Environmental Concerns
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Ratings
5.1.1 0-75 kVA
5.1.2 75-375 kVA
5.1.3 Above 375 kVA
5.2 Application
5.2.1 Prime Power
5.2.2 Backup Power
5.2.3 Peak Shaving
5.3 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
5.3.1 Nigeria
5.3.2 Iraq
5.3.3 Saudi Arabia
5.3.4 United Arab Emirates
5.3.5 Qatar
5.3.6 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Cummins Inc.
6.3.2 Kirloskar Oil Engines Limited
6.3.3 Honda Siel Power Products Limited
6.3.4 Yanmar Holdings Co. Ltd
6.3.5 Caterpillar Inc.
6.3.6 Mitsubishi Heavy Industries Ltd
6.3.7 Perkins Engines Company Limited
6.3.8 Atlas Copco AB
- *List Not Exhaustive
6.4 Market Share
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Hybrid Solutions
MEA Diesel Generator Industry Segmentation
Diesel generators are the type of backup power solution that uses diesel engines to generate electricity. They are commonly used to provide electricity in situations where there is a lack of grid power or as a backup during power outages. Diesel generators consist of a diesel engine connected to an alternator that converts mechanical energy produced by the engine into electrical energy.
The market is segmented by power ratings application and geography. The market is segmented by rating into 0-75 KVa, 75-375 KVa, and above 375 KVa. By applications, the market is segmented into prime power, backup power, and peak shaving, and by geography, the market is segmented into Nigeria, Iraq, Saudi Arabia, United Arab Emirates, Qatar, and the Rest of the Middle-East and Africa. The report offers the market size and forecasts for the Middle-East and African Diesel Generators in revenue for all the above segments.
| Ratings | |
| 0-75 kVA | |
| 75-375 kVA | |
| Above 375 kVA |
| Application | |
| Prime Power | |
| Backup Power | |
| Peak Shaving |
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | |
| Nigeria | |
| Iraq | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| Rest of Middle-East and Africa |
MEA Diesel Generator Market Research FAQs
How big is the Middle East And Africa Diesel Generator Market?
The Middle East And Africa Diesel Generator Market size is expected to reach USD 2.80 billion in 2024 and grow at a CAGR of greater than 4.10% to reach USD 3.42 billion by 2029.
What is the current Middle East And Africa Diesel Generator Market size?
In 2024, the Middle East And Africa Diesel Generator Market size is expected to reach USD 2.80 billion.
Who are the key players in Middle East And Africa Diesel Generator Market?
Honda Siel Power Products Limited, Cummins Ltd., Yanmar Holdings Co., Ltd., Caterpillar Inc. and Atlas Copco AB are the major companies operating in the Middle East And Africa Diesel Generator Market.
What years does this Middle East And Africa Diesel Generator Market cover, and what was the market size in 2023?
In 2023, the Middle East And Africa Diesel Generator Market size was estimated at USD 2.69 billion. The report covers the Middle East And Africa Diesel Generator Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Middle East And Africa Diesel Generator Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Diesel Generators in MEA Industry Report
Statistics for the 2024 Diesel Generators in MEA market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Diesel Generators in MEA analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Diesel Generators Market in MEA Report Snapshots
