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Infrastructure Development and Power Demand Spike Provide Positive Momentum for the Middle East Diesel Genset Market Finds Frost & Sullivan - The Middle East diesel genset market has reached the maturity stage, and will continue to project stable growth rates in the future
Infrastructure Development and Power Demand Spike Provide Positive Momentum for the Middle East Diesel Genset Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Dubai, UAE, United Arab Emirates, 2010/01/04 - The Middle East diesel genset market has reached the maturity stage, and will continue to project stable growth rates in the future.

   
 
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Currently, the market is highly concentrated in industrialized countries including Saudi Arabia and the UAE. Going forward, developing nations such as Lebanon, Iraq, and Egypt are emerging as the key focus areas. Power shortage in the Middle East region and the inadequate transmission and distribution networks have resulted in a hike in demand for diesel gensets. Besides, the expected revival of the construction industry will be a prominent driver for diesel generator sales in this region.

New analysis from Frost & Sullivan (energy.frost.com), Middle East Diesel Genset Market (15-2,000 kVA): Year 2008, finds that the market earned revenues of over $885.0 million in 2008 and estimates this to reach $1.60 billion in 2015.

If you are interested in more information on this study, send an email to Tanu Chopra/ Nimisha Iyer, Corporate Communications, at tanu.chopra[.]frost.com / niyer[.]frost.com , with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

"Increasing per capita power consumption, rapid industrialization, and supply shortages in the power sector are the key drivers for the growth of the diesel genset market in the Middle East region," says Frost & Sullivan Research Analyst Hemanth Nayak. "Projected high growth in infrastructure, commercial and retail segments are expected to drive the demand for standby and prime power gensets."

Massive investment in infrastructure projects in the Middle East has triggered greater uptake of gensets, especially for reconstruction activities in Iraq and infrastructure projects in the UAE and Saudi Arabia.

During the first half of 2008, diesel genset prices witnessed robust growth rate of about 10 percent, owing to input costs and high demand. However, the economic downturn and financial crisis had negatively impacted the sale of diesel gensets, and many ongoing projects in the construction and oil and gas industries were put on hold, precipitating a fall in the demand for diesel gensets.

Along with the slump in demand came the decrease in price increment rate. In 2009, an increment of about 3 percent is expected in the prices of gensets; however, recovery is expected only from mid 2011.

Another factor that will accelerate the decline in demand for diesel gensets is the anticipated investment in power generation capacity addition by all the Middle East countries. Alternate energy sources for standby and peak power demand, such as uninterrupted power systems (UPS) and solar panels are gaining strong traction, posing a challenge for diesel gensets.

As far as the competitive landscape goes, the market is dominated by major participants, and their brands are expected to remain popular as they have established a reputation for good quality. Other genset manufacturers are also in the fray, expanding their market share, particularly for gensets up to 375kVA. The degree of competition is expected to intensify in the future as the market is poised to witness a large influx of diesel genset suppliers from India and China. Participants in this space must strive to expedite product advancement to secure a firm foothold in the market.

"Demand for diesel gensets of medium range up to 1,000 kVA need to be better positioned over alternate systems of power sources by making them more efficient and reliable with shorter start up time," says Nayak. "Effective pricing and short delivery times are expected to play a very important role in making diesel genset units more attractive compared to other alternate sources."

Middle East Diesel Genset Market (15-2,000 kVA): Year 2008 is part of the Energy and Power Growth Partnership Services program, which also includes research in the following markets: Middle East UPS Markets, Strategic Analysis of the Middle East Renewable Energy Sector, and India LV & MV Switchgear market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Middle East Diesel Genset Market (15-2,000 kVA): Year 2008 / P2B1

 
 
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Infrastructure Development and Power Demand Spike Provide Positive Momentum for the Middle East Diesel Genset Market Finds Frost & Sullivan

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