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ANALYSIS

Increasing infrastructure, emerging manufacturing sector
driving Saudi Arabia's market for power rental.

Saudi Arabia key power rental market in Mideast

MANAMA, December 10, 2014

Increasing infrastructure, emerging manufacturing sector, growing construction activities, high demand for electricity and power requirement in remote areas are the prime factors that are spurring the market for power rental in Saudi Arabia, a report said.

With changing government policies many business houses are foreseeing tremendous growth opportunities in the country, which has resulted into establishment of many new industries in the country in the last few years, added the report entitled Saudi Arabia Power Rental Market (2014–2020) by 6Wresearch, a global market research and consulting firm specialising in niche and emerging markets.

In Saudi Arabia, generators are either used for prime or standby purposes, completely depending upon the grid connectivity. The demand-supply gap in off-grid areas, massive infrastructure development and need in utilities segment have boosted the Saudi Arabia’s power rental market.

According to 6Wresearch, power rental market in Saudi Arabia is projected to grow at a CAGR of 20.3 per cent during 2014-20. In the growth of overall power rental market, diesel generators rental market has accounted for majority of the market revenues.

Easy availability of diesel has poised the growth of diesel generators on rent in the country; however, in the forecast period, a shift in demand is anticipated towards gas powered generators.

Government initiatives towards reducing emission of greenhouse gases are expected to boost the demand for gas generators in the country, thus driving the gas generators rental market. Though, diesel generators rental market would continue to maintain its dominance through the forecast period.

In Saudi Arabia’s power rental market, utilities, oil & gas and industrial & construction applications generated more than 80 per cent of the market revenues in 2013, wherein, eastern, central and western regions contributed significantly in the overall market share.

The key players in Saudi Arabia’s power rental market include Aggreko, Enerco, APR Energy, Hertz, Byrne Investments, Peax, Zahid Tractors, Cummins Olayan Energy and RSS, according to the report. – TradeArabia News Service




Tags: Saudi Arabia |

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