India Generators Market Assessment, By Type [Standby Generators, Portable Generators, Inverter Generators, Others], By Fuel Type [Diesel, Gas, Hybrid, Others], By Voltage [Below 250 kW, 250 kW to 500 kW, 501 kW to 750 kW, 750 kW to 1 MW, Above 1 MW], By E

India Generators Market Assessment, By Type [Standby Generators, Portable Generators, Inverter Generators, Others], By Fuel Type [Diesel, Gas, Hybrid, Others], By Voltage [Below 250 kW, 250 kW to 500 kW, 501 kW to 750 kW, 750 kW to 1 MW, Above 1 MW], By End-user [Commercial, Industrial, Residential, Others], By Region, Opportunities and Forecast, FY2018-FY2032F

Saudi Arabia generators market is projected to witness a CAGR of 7.92% during the forecast period 2024-2031, growing from USD 1004.13 million in 2023 to USD 1847.59 million in 2031. The demand for generators in Saudi Arabia is driven by various factors which include load shedding, an aging power grid, and the need for reliable power across residential, commercial, and industrial sectors. Unpredictable power outages disrupt business and industrial operations, which makes generators a vital solution for ensuring continuous power supply for different activities.

Several industries are involved in manufacturing, oil and gas, and retail, requiring uninterrupted power supply to operate efficiently. Power outages could lead to significant financial losses and downtime, which prompts large-scale industries to invest in generators. As generators ensure uninterrupted production activities during blackouts, it drive the demand for generators in industrial applications.

Moreover, the cost of electricity in Saudi Arabia has been rising for industrial and commercial operations, which is why generators are becoming an attractive alternative to power sources. In addition, residential sectors are adopting fuel-efficient generators or hybrid systems to manage electricity costs effectively, driving the demand for generators in Saudi Arabia.

Uninterrupted Power Demand from Industrial and Commercial Sector to Drive Market Growth

The country includes a large number of oil exploration, mining, and construction industries, which are located in remote areas. In remote areas, grid connectivity is limited or unreliable, which is why industries rely on independent power solutions, such as diesel generators and hybrid power systems, to maintain continuous operations. To mitigate risks of shutdown of operation due to power cuts, the industries invest in large-scale industrial generators, which ensure no disruption of power supply.

Power outages may lead to production downtime, resulting in significant financial losses to large-scale businesses. As the industrial sector expands in the country, it leads to a rise in demand for consistent power supply. Generators are the best options for maintaining backup for continuous operations during power interruptions.

Moreover, retail, hospitals, and service industries contribute to the rising demand for generators. Shopping malls, restaurants, banks, and other commercial establishments need uninterrupted power to operate efficiently. Generators are frequently used to supply reliable electricity for new commercial buildings, factories, and other infrastructure projects to ensure the developments proceed without being hampered by power shortages. Moreover, small power outages in commercial businesses may result in significant revenue losses. Generators ensure businesses continue to serve customers during blackouts.

Thus, an expansion of industries and urbanization in the country will lead to a rise in demand for generators to grow at a higher rate. For instance, according to the report, published by the Saudi Electricity Company (SEC), in August 2024, electricity consumption in Saudi Arabia increased by 6.1% year-on-year, which showcases the strong growth in power demand across the country.

In September 2024, Saudi Arabia records a 54% surge in industrial investments. The rise in investment leads to an increase in the number of foreign factories, reaching 1,067 units in 2024 from 662 in 2019, which will drive the generators market in the forecast years.

Adoption of Hybrid Power Backup Solutions to Boost Market Growth

Several parts of Saudi Arabia, particularly rural and remote areas, face challenges for stable grid connectivity. Hybrid systems power backup generators are an excellent solution for these regions by combining renewable energy sources with conventional energy sources. Moreover, the country seeks to improve electrification rates in remote areas, which drives the demand for hybrid power systems. This is expected to drive the demand for generators significantly in the forecast period.

Hybrid power systems integrate renewable energy sources, such as solar or wind, with conventional generators powered by gas, diesel, or other fuels. In addition, for the sustainability of the environment, hybrid power backup solutions enable consumers to use renewable energy sources while maintaining power continuity. With increased energy efficiency, less fuel consumption, and decreased running costs, generators are becoming an essential part of hybrid systems in residential and commercial settings. The growing popularity of hybrid systems drives the demand for efficient and suitable generators.

Emissions reduction and increased energy sustainability are becoming more important as governments and businesses invest in clean energy alternatives. Moreover, businesses are under pressure to lower their carbon impact and abide by environmental laws, which creates opportunities for generators in the Saudi Arabian market.

For instance, in 2021, Saudi Arabia decided to strive for net zero greenhouse gas emissions by 2060. The country also decided to adopt clean energy sources for power generation, which would help lower carbon dioxide in the environment.

Standby Generators to Dominate Saudi Arabia Market Share

Standby generators have a high adoption rate, dominating the share of Saudi Arabia generators market. Standby generators provide a reliable source of backup power in case of outages and protect against loss of productivity to businesses, which drives the demand for standby generators in Saudi Arabia market. For many large-scale industries, the power factor is critical in maintaining the operations that work to prevent revenue loss and avoid damage to the equipment. The high demand for electricity often puts a strain on the national grid, leading to power outages or voltage fluctuations. To avoid disruptions during these critical periods, businesses and households are investing in standby generators to ensure a continuous power supply.

Additionally, the newly designed standby generators with stricter standards of acceptance in the new laws pertaining to environmental regulations, such as lower emissions and fuel consumption, are driving the growth of the generators market in Saudi Arabia.

Riyadh to Dominate the Generators Market Share

Riyadh dominated the generators market with the highest share in 2023 and is expected to maintain its dominance during the forecast period. Riyadh continues to grow as a central hub of economic and industrial activities in Saudi Arabia, leading to demand for reliable power supply for the operations. Riyadh continues to expand its industrial base, including sectors such as manufacturing, logistics, and construction. The large production sector, which needs a continuous and reliable power supply, drives the demand for generators in the region. Riyadh is largely investing in reliable energy sectors, which boosts the generators market size in Riyadh. The region is investing in infrastructure, such as hospitals, airports, ports, and data centers, which need uninterrupted power to operate smoothly, resulting in a high demand for generators in the market. Additionally, the rise in investment in infrastructure in the region is expected to be a major factor in market growth during the forecast period.

Future Market Scenario (2024 – 2031F)

Advanced generators will be required for commercial applications, helping to shape the future of generators market.

As environmental concerns push for more sustainable technological solutions for generators, energy-efficient generators will gain significance.

The demand for hybrid systems generators is becoming more popular in residential applications.

As industries and homeowners continue to seek uninterrupted power supply and more reliable power solutions, the demand for generators will continue to grow in the forecast period.

Key Players Landscape and Outlook

The key players in Saudi Arabia generators market are continuously developing new technologies and working on improving the design of generators, which could meet evolving consumer demands, environmental regulations, and technological advancement. As Saudi Arabia aims to integrate renewable energy into its power mix, there will be a growing demand for generators which will support the energy transition. The market is expected to grow steadily, driven by various factors such as increasing demand for power and the government's focus on infrastructure development. Key players are expected to enhance their product offerings and invest in new technologies to meet the evolving market needs. Product launches, acquisition agreements, collaborations, and advancing technologies are expected to increase competition in this fast-paced market.

In September 2023, AFC Energy collaborated with Tamgo, a Saudi seller, to develop its H-Power hydrogen generators. The product is designed to meet various industrial and off-grid power needs.