Industry: Industrial Automation
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP34507
The Middle East & Africa generator market is estimated to value at US$4.7 Bn by the end of 2031, up from US$ 3.4 Bn estimated in 2024. Generator sales in MEA are expected to surge at a CAGR of 4.6% in the forthcoming years from 2024 to 2031.
|
Market Attributes |
Key Insights |
|
MEA Generator Market Size (2024E) |
US$3.4 Bn |
|
Projected Market Value (2031F) |
US$4.7 Bn |
|
Middle East & Africa Market Growth Rate (CAGR 2024 to 2031) |
4.6% |
|
Historical Market Growth Rate (CAGR 2019 to 2024) |
1.7% |
The Middle East & Africa generator market is a vital segment of the global energy industry, driven by the increasing demand for uninterrupted and reliable power supply across various sectors.
The market encompasses the sale of generators, which are devices that convert mechanical energy into electrical energy, catering to both residential and commercial needs. Key factors propelling the growth of the generator market include the rising frequency of power outages, growing industrialization, and the expanding construction sector.
The increasing prevalence of natural disasters, and severe weather conditions has heightened the need for back-up power solutions. Technological advancements have also led to the development of more efficient and environmentally friendly generators, further boosting market demand.
Generator sales in MEA are anticipated to experience robust growth, supported by ongoing infrastructure development and the necessity for resilient power systems in an increasingly energy-dependent world.
The rise of hybrid power solutions combining traditional generators with renewable energy sources like solar and wind to enhance efficiency and reduce environmental impact. The growing adoption of smart grid technologies and advanced control systems in generator units is enhancing operational efficiency and enabling remote monitoring and management.
Additionally, the increasing demand for rental generators in various sectors, including construction, events, and emergency response, is driving the expansion of rental services in the generator market in the Middle East & Africa region.
The market for generator sales, mainly fueled by rapidly expanding urbanization and industrial activities, experienced a heightened demand for reliable power solutions, as many areas still grapple with inconsistent electricity supply.
The generator market benefited significantly from infrastructural developments and construction booms, particularly in countries like Saudi Arabia, the United Arab Emirates, and Nigeria. Major events like Expo 2020 in Dubai also spurred the demand for temporary power solutions, thereby boosting generator sales.
Both governments, and private sectors invested heavily in back-up power solutions to mitigate the adverse effects of power disruptions on economic activities. The healthcare sector especially became a significant customer due to the critical need for continuous power supply in hospitals and clinics.
Key Trends and Innovations in the Market
Rapid Industrialization
Industrial sectors in countries like South Africa, and the UAE are expanding rapidly. The UAE, for instance, has witnessed notable growth in its manufacturing and logistics sectors, with the manufacturing sector achieving a real GDP growth rate of 8.75% in 2022, according to the UAE Ministry of Economy.
The Ministry of Industry and Advanced Technology (MoIAT) has launched Operation 300Bn, the UAE's most extensive plan to develop the industrial sector and boost its contribution to the national economy. The strategy aims to elevate the sector's GDP contribution from AED 133 Bn to AED 300 Bn by 2031.
To maintain continuous operations, industries require a reliable power source, and generators are essential for providing back-up during power outages, thereby preventing costly downtimes and production losses. Large-scale industrial projects and economic initiatives, such as Egypt's Suez Canal Economic, further underscore the need for robust power solutions.
Exploding Expansion of Telecom Infrastructure
Telecom infrastructure heavily relies on stable electricity to ensure connectivity for businesses, governments, and individuals. However, many areas in the MEA region suffer from inadequate or unreliable grid power, making generators essential for maintaining continuous operation.
The demand surge is evident in the rollout of 5G networks across the MEA region. Deploying 5G requires a denser network of base stations, which, in turn, necessitates a robust power back-up system. Generators serve as a reliable source of back-up power, ensuring that telecom services remain operational even during power outages or grid failures.
Remote or off-grid locations, extreme weather conditions, and political instability in certain areas disrupt grid power supply. Consequently, telecom companies and infrastructure providers are investing heavily in generator systems to ensure the resilience of their networks.
Regulatory Challenges Shake Middle East & Africa Generator Sales
Stringent government regulations pose a significant challenge for the Middle East & Africa generator sales, particularly concerning conventional fuel generators. These regulations often aim to address environmental concerns such as air pollution, and carbon emissions, which are prominent issues in the region due to heavy reliance on fossil fuels for power generation.
For instance, countries like Saudi Arabia, and the United Arab Emirates have been implementing policies to diversify their energy mix and reduce dependence on traditional fuel sources.
Such measures include promoting renewable energy sources like solar and wind power while imposing stricter emission standards on conventional generators. These regulations impact the MEA generator market by increasing the cost of compliance for manufacturers and distributors.
Growing Emphasis on Energy Efficiency
Governments, and businesses in the Middle East & Africa increasingly prioritize sustainability and cost-effectiveness, there is a growing demand for energy-efficient solutions across various sectors. Generators, serving as crucial back-up power sources in regions with unreliable grid infrastructure, are poised to capitalize on this trend in the MEA generator market.
The rising adoption of hybrid power systems in the MEA region exemplifies this shift. These systems seamlessly integrate generators with renewable energy sources like solar and wind power, aiming to maximize efficiency while minimizing carbon emissions.
By integrating generators into hybrid setups, businesses and communities ensure continuous power supply while simultaneously reducing their dependence on traditional fossil fuels.
Furthermore, advancements in generator technology are driving improvements in energy efficiency and environmental performance. Contemporary generators come equipped with a range of features such as variable speed control, sophisticated fuel management systems, and automatic load sensing capabilities. These enhancements optimize fuel consumption and diminish emissions, aligning with global sustainability objectives.
Increasing Adoption of Hybrid Generators, Bi-Fuel Generators, and Inverter Generators
Hybrid generators, which integrate traditional fuel sources with renewable energy like solar power, present a more sustainable and cost-effective solution. In the Middle East & Africa, the abundant sunlight can utilize to lower fuel consumption and operational expenses. For example, hybrid systems reduce fuel usage by up to 30%, resulting in significant savings and less reliance on diesel, a crucial advantage given the region's fluctuating fuel prices.
Bi-fuel generators, capable of running on a combination of diesel and natural gas, provide another layer of flexibility and cost efficiency. The Middle East, with its abundant natural gas reserves, stands to benefit immensely from this technology. The adoption of bi-fuel generators leads to cost savings of up to 40% compared to traditional diesel-only systems.
This dual-fuel capability also ensures greater reliability and continuity of power supply, which is crucial for industries and businesses operating in remote or off-grid locations where power stability is a major concern. The increasing adoption of hybrid generators, bi-fuel generators, and inverter generators in MEA is poised to significantly enhance the generator market.
|
Category |
Projected CAGR through 2031 |
|
Fuel Type - Gas |
5.6% |
|
Power Rating - 2,500-5,000 kVA |
6.2% |
|
Application - Standby |
4.9% |
|
End Use - Commercial |
5.8% |
Diesel to be the Significant Segment in MEA Generator Market
The diesel segment accounted for the significant market share of about 56.2% in 2023 and is likely to maintain its dominance during in the forthcoming years recording a CAGR of 3.8%. The MEA region faces frequent power outages and has a vast array of industries, from oil and gas to mining and construction, that require consistent and dependable power sources.
Diesel generators are renowned for their ability to provide reliable power over extended periods, which is crucial for operations in these sectors. For instance, the oil and gas industry, which is a significant part of the Middle Eastern economy, heavily relies on diesel generators for drilling operations, remote site power, and emergency back-up. The infrastructure development boom in countries like Saudi Arabia, UAE, and Nigeria also contributes to the dominance of diesel generators.
2,500-5,000 kVA Power Rating Remains Preferred
The segment of 2,500-5,000 kVA is estimated to expand at a CAGR of 6.2 % in terms of value in the forthcoming years. The increasing need for large-scale power solutions to support the region's rapid infrastructure development and industrial expansion.
Mega-projects such as new cities, industrial zones, and transportation networks require substantial power generation capacity, which falls within the range of 2,500-5,000 kVA generators. In countries like Nigeria, and South Africa, where power supply is erratic, businesses heavily invest in back-up power solutions to maintain operations.
Government initiatives aimed at improving access to electricity and promoting industrial growth further fuel the demand for generators in this capacity range. In the Middle East, countries like Saudi Arabia, and the United Arab Emirates are investing heavily in infrastructure projects, boosting the demand for reliable power solutions.
|
Country |
CAGR through 2031 |
|
South Africa |
6.1% |
|
GCC |
4.8% |
GCC Accounts for Substantial Generator Sales in MEA
GCC is the most significant shareholder in the Middle East & Africa generator market and is expected to grow at a CAGR of 4.8% during the forecast period. One primary factor is the region's significant industrial and infrastructural development, which requires reliable power solutions.
Countries like Saudi Arabia, the United Arab Emirates (UAE), and Qatar have been investing heavily in infrastructure projects, such as the Saudi Vision 2030 initiative and the UAE's ongoing construction boom in cities like Dubai, and Abu Dhabi.
According to the International Trade Administration, UAE’s construction sector is expected to see a solid recovery in the next five years with construction industry value growing at up to 4.7% per year according to experts.
The extraction and processing activities in oilfields, and refineries are energy-intensive and often located in remote areas where grid power is not always accessible. Generators play a vital role in powering these operations.
For instance, the GCC countries produced over 18.2 million barrels of crude oil per day in 2022, requiring substantial auxiliary power support provided by generators. This robust demand from the oil and gas industry substantially contributes to the large market share held by the GCC.
South Africa Gears up to Exhibit a Notable CAGR
The South Africa Market is projected to secure a CAGR of 6.1% in the forecast period from 2024 to 2031. South Africa has faced frequent and severe power outages, known locally as load shedding, which have become a significant impediment to both residential life and industrial operations.
For example, in 2023, South Africa experienced over 201 days of load shedding, with Eskom, the national power utility, struggling to meet the demand due to aging infrastructure and maintenance issues. This chronic unreliability of grid power has led to a substantial increase in demand for generators as a reliable alternative power source.
The mining industry, which includes some of the world's largest reserves of gold, platinum, and other minerals, is particularly dependent on a consistent power supply to maintain productivity.
According to the Minerals Council South Africa, the mining sector contributes about ~ 8% to the national GDP and employs roughly half a million people directly. Power outages result in significant operational disruptions and financial losses, prompting mining companies to invest heavily in generators to ensure continuous operations.
Vendors in the Middle East & Africa generator market are increasingly focusing on diversifying their product portfolios to cater to the varied and growing demands of different industries. This diversification includes offering a wide range of generators with different capacities, fuel types, and technological advancements (such as smart generators with IoT capabilities).
By providing customized solutions for sectors such as oil and gas, construction, mining, and residential applications, vendors aim to capture a larger market share and address specific customer needs more effectively.
Top Industry Players in MEA Generator Market
In April 2024
Cummins Power Generation introduced two new generator sets as part of their acclaimed CentumTM Series, powered by Cummins Inc.'s robust QSK78 engine. In response to high market demand, the new models, C2750D6E and C3000D6EB, deliver power outputs of 2750kW and 3000kW, respectively. These generators have been specifically engineered for critical applications such as data centers, healthcare facilities, and wastewater treatment plants.
In April 2024
Rolls-Royce has provided eight mtu containerized gas generator sets and four additional mtu 20V 4000 L64 FNER engines for a gas-fired power plant at a major oil and gas production site in Oman. With a total of 12 gensets, each generating 2 MW of power, the new plant ensures an efficient and uninterrupted power supply to meet the facility's demands.
In March 2022
Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., a division of the Mitsubishi Heavy Industries (MHI) Group, has launched the MGS-R Series of diesel generator sets. Engineered to meet the expanding demands of the digital economy, the series primarily caters to data centers in Asian and Middle Eastern markets. Additionally, it serves as a dependable back-up power solution for commercial establishments like shopping malls and office buildings.
|
Attributes |
Details |
|
Forecast Period |
2024 to 2031 |
|
Historical Data Available for |
2018 to 2023 |
|
Market Analysis |
US$ Bn for Value |
|
Key Countries Covered |
|
|
Key Market Segments Covered |
|
|
Key Companies Profiled in the Report |
|
|
Report Coverage |
|
|
Customization & Pricing |
Available upon request |
By Fuel Type
By Power Rating
By Application
By End User
By Country
To know more about delivery timeline for this report Contact Sales
Growing demand from industries like telecommunications and data centers need uninterrupted power for critical operations, leading to increased investment in back-up generators for continuous service provision.
Some of the key players operating in the market are Caterpillar Inc., Cummins Inc., Kohler Co., Generac Power Systems, Inc., Rolls-Royce plc, and Mitsubishi Heavy Industries, Ltd.
The diesel segment recorded the significant market share.
The increasing demand for generators powered by renewable energy sources or incorporating advanced fuel efficiency technologies presents opportunities for market players.
GCC to account for the significant share of the market.
