The diesel genset rental market in Saudi Arabia is forecast to grow at a compound annual growth rate (CAGR) of 3.7% from 2017 through to 2022, according to 6Wresearch.
The key factors spurring the growth are public infrastructure, government support of industry and the need to supply power in off-grid and remote areas.
The diesel genset rental market declined by 60% during 2015 and 2016 as a result of the slump in equipment spending following in line with oil prices and its impact on public finance and projects.
However, the report suggests that the market has bottomed out and should rise out of it slump.
The shift in Saudi government policy in favour of diversifying the country’s revenue into non-oil sectors will also drive the growth of rental market in Saudi Arabia.
Rajat Kharbanda, senior consultant at 6Wresearch, said: “Medium to high rating diesel gensets have dominated the rental market in 2016, owing to high demand from utilities and oil and gas sector.
“Diesel gensets are the prime source of power backup in utilities due to the readily availability and ease of storage of diesel compared to natural gas.”
Around 50 major players are currently operating in the market, according to 6Wresearch, with five to eight players operating a primary power business model.
Major players in Saudi Arabia’s rental market include: Altaaqa, Peax, Aggreko, Energy Equipment Rental, Rental Solutions & Services (RSS), Hertz and Byrne.
The remaining players, 6W research noted, have 30- to 40-unit fleets, are renting individual units, and are contributing to a healthy competition in the market.
The full report gives further insights into the competitive landscape, including the market’s opportunities and constraints.
