Middle East and CIS Power Generator Rental Market Size, Share & COVID-19 Impact Analysis, By Power Rating (Below 75 kVA, 75-375 kVA, 375-750 kVA and Above 750 kVA), By Fuel Type (Diesel, Gas, and Others), By Application (Continuous Load, Standby Load, and Peak Load), By End-user (Telecom, Banking, Mining, Datacenter, Construction, Manufacturing, Tourism, and Others) and Regional Forecast, 2021-2028

The Middle East and CIS power generator rental market size was USD 2.54 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with power generator rentals witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a decline of 11.99% in 2020. The market is projected to grow from USD 2.79 billion in 2021 to USD 4.56 billion in 2028 at a CAGR of 8.7% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Power generator rental, also known as power on hire, is a service providing power generation equipment, such as generators, to all end-users. The rental generators are providing flexibility in the power rating required, negligible maintenance and installation costs, and lower initial costs. The Middle East and CIS power generator rental market is anticipated to grow at a rapid pace, owing to the rising demand from the mining and oil & gas industries. These sectors use temporarily hired generator sets for a specific period.

Demand for Power Generator Rental Solutions Has Declined Significantly amid Covid-19 Pandemic

This market has been intermediately affected by the outbreak of this global health problem. Power generator rental solutions are widely integrated across different sectors to provide extra power to alleviate the chances of outages and maintain operations. Russia, Saudi Arabia, and UAE are among the major countries manufacturing and installing power generation systems owing to the immense investment potential in these countries. Furthermore, these countries have undergone various national level shutdowns of industrial, residential, and commercial operations to contain the spread of this viral infection.

As the global pandemic outbreak has affected all the countries across the world, governments and organizations have introduced significant plans to cope with the ‘new normal’ in the post-COVID-19 world. For instance, on March 20, 2020, Saudi Arabia has announced a set of support packages totaling almost USD 61 billion to fight against the novel coronavirus. The packages include exemptions and the postponement of some government dues packages to support the banking and SME sectors, and a wage subsidy of 60% of Saudi employees’ salaries in the private sector.

LATEST TRENDS

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Increasing Investments in the Middle East for Power Generator to Favor Growth

Saudi Arabia, Qatar, and UAE have emerged as major investment hubs across the Middle Eastern nations. Continuous focus towards tourism and the setting up of key offices by various MNCs have led to a significant increase in construction and commercial sectors in Saudi Arabia. Besides, the Kingdom of Saudi Arabia had also introduced its strategic development framework, Saudi Vision 2030, to create new establishments and transform national infrastructures. In September 2018, the Public Investment Fund (PIF) in the country unveiled its plans to initiate the AMAALA Giga project under the Vision program to turn the kingdom’s northwestern coast into a global tourism destination. The new project targets to build new private villas, a yacht club, an arts academy, and hotels, in over 4,150 km²在土地和t的扩展区域he Mediterranean Sea to deliver a luxury recreational experience.

Furthermore, the country has an abundance of natural resources, such as bulk hydrocarbons and mineral reserves, which can help in expanding its significant growth potential in the power generator rental sector. Improving financial support to explore the huge reservoirs, backed by low drilling and production costs, has also set a favorable outlook for the growth of the market. For instance, in April 2020, the Ministry of Industry and Mineral Resources, Saudi Arabia, assigned around 54 mining reserves in different areas consisting of Asir, Makkah, Hai'l, Riyadh, Najran, and Madinah to propel the energy industry as per its Vision document for 2030. The total area covered by the allocated locations is above 4,000 km2 with various metals & minerals, such as zinc, copper, gold, silver, iron, quartz, molybdenum, lead, tin, and other rare earth metals.

DRIVING FACTORS

Rising Need for Electrification and Continuous Power Supply in the Middle East Region to Boost Market Growth

Increasing faults in transmission & distribution lines, failure in power generation equipment, abrupt grid problems, natural calamities, and several other factors are frequently affecting the power supply across the Middle East countries. Various public and private authorities are readily adopting measures to diminish the power cut durations to enable customers to continue with their operations.

Unexpected power outages have significantly increased consumers’ demand for reliable backup power sources in industrial and commercial sectors, propelling the Middle East and CIS power generator rental market growth. In June 2020, for instance, electricity services were interrupted in cities and villages in Asir, Jazan, Najran, Al Baha, and some governorates in the southwestern part of the Makkah region due to bad weather conditions. As per Saudi Electricity Company (SEC), around 25% of the mobile towers were not functioning as the back-up power supply systems had stopped functioning after power disruptions extended for more than 10 hours.

High Demand for Continuous Power Supply from the Mining Sector to Drive Market Growth

Rental generator sets are mostly used for supplying power in areas with very low grid connectivity. Mining activities are among the key application areas for generators as most of the mining activities are carried out in remote areas, where the power supply through the grid is not available.

Driven by increasing investments, the mining sector in Russia, Kazakhstan, and several other CIS countries are likely to witness noteworthy growth. In addition, new mining projects are anticipated to be launched in Russia, Kazakhstan, and Uzbekistan in the coming years. The factors mentioned above are anticipated to accelerate the demand for power generator rental solutions. For Instance, according to the Australian Trade & Investment Commission, Rio Tinto Group is planning to invest around AUD 100 million into a copper mine in Northern Kazakhstan. The company has formed a 50/50 venture with a national operator of mining assets called Tau-Ken Samruk to explore the mineral resources across the country.

RESTRAINING FACTORS

Stringent Environmental Regulations Governing Emission & Noise Reduction to Hamper Market Growth

The Middle East & Africa and Europe have framed numerous stringent rules to limit carbon emissions from power plant operations. These rules also state the accepted diesel generator noise levels to decrease noise pollution caused bydiesel generatoroperations. Several environmental agencies, such as the Telecommunications Regulatory Authority (TRA), in the UAE, have imposed stringent regulations on diesel power generators. Another crucial factor hampering the adoption of diesel generators is the conversion toward greener alternatives provided by Energy Service Companies (ESCOs).

SEGMENTATION

通过Power Rating Analysis

750 KVA以上段交流counted for the Largest Market Share

Based on power rating, the market is segmented into below 75 kVA, 75-375 kVA, 375-750 kVA, and above 750 kVA. Among these, the above 750 kVA segment dominated the Middle East and CIS power generator rental market share in 2020. It is anticipated that it will maintain its lead during the forecast period owing to the indispensable need for emergency power situations across heavy-duty applications.

The demand for 75-375 kVA generators is also increasing across the region due to the growing setup of small industrial facilities along with rising construction activities, which are set to propel the segment outlook.

The below 75 kVA segment is predicted to observe potential growth owing to various factors, including better fuel efficiency optimization, easy maintenance, low operational expenditure, reliable functions, and others.

通过燃料类型Analysis

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Diesel Segment to Grow at a High Pace

Based on fuel type, the market is classified into diesel, gas, and others. The diesel generators segment dominated the Middle East and CIS power generator rental systems market during the forecast period. Diesel generators do not require spark plugs or wires, thereby reducing their overall maintenance costs. Their lifespan is also longer than that of other types of generators.

The gas generator segment is also a key segment of the market.Natural gas generatorsmake lesser noise and offer lower emissions as compared to other types of generators. However, natural gas is highly flammable and the high operation and maintenance cost of natural gas generators is likely to hinder the segment’s growth.

The others segment comprises fuels such as propane and biogas.

By Application Analysis

Continuous Load Segment to Hold Highest Position

Based on application, the market can be majorly divided into continuous load, peak load, and standby load.

连续加载段预计account for the highest share in the market owing to growing developments across regions that are inaccessible to the grid and are demanding constant power for an unlimited number of hours. Continuous load generators are used as a primary source of power and not for standby power or backup power only. These generators can supply power in situations where there is no utility source available.

Peak shaving load is another significant segment of the Middle East and CIS market as the demand for the variable for load operations is rising.

The standby load segment is projected to grow at a rapid pace due to rapidly changing infrastructures of different verticals, especially to boost tourism activities, demanding 24/7 power accessibility.

By End-user Analysis

Mining Segment to Hold the Highest Position

Based on end-user, the market is segregated into mining, telecom, banking, datacenter, construction, manufacturing, tourism, and others.

The mining segment is one of the major segments of the market. The mining sector is rapidly growing across regions due to the increasing production and export of different minerals & metals to serve the production of different goods.

The construction segment is gaining traction across Middle East countries, such as Saudi Arabia and Kuwait, owing to a large number of upcoming infrastructure development projects.

The telecom segment is growing at a faster rate in the Middle East & CIS region. The Middle East and North Africa region is largely deploying 5G networks. As of 2019, 10 companies had launched 5G services in five GCC Arab States, namely, UAE, Saudi Arabia, Kuwait, Qatar, and Bahrain.

REGIONAL INSIGHTS

The market has been analyzed across two key regions, namely, Middle East and CIS countries. The Middle East region is anticipated to grow at a high pace during the forecast period. The increasing expenditure for revolutionizing the commercial and industrial infrastructure to attract foreign investments & tourists will favor the construction sector landscape in the region. Additionally, the adoption of advanced techniques by regional players to continue their operations in difficult situations, such as the COVID-19 pandemic, is set to further add to the regional growth. For instance, in June 2020, the UAE-based Falcon Eye Drones announced that Saudi Arabia is turning toward the utilization ofUnmanned Aerial Vehicles (UAVs)or drones to monitor projects and ensure safety in dealing with coronavirus outbreaks without discontinuing operations.

The exponential increase in energy demand and the rapidly expanding power generation infrastructure to cater to energy needs are favoring the industry’s competitive landscape.

The vast potential across GCC countries, including Kuwait, Oman, UAE, Qatar, and Bahrain, to explore and produce oil & gas through onshore and offshore assets is set to foster the power generator rental solutions demand.

CIS countries have observed the significant installation of different power generation technologies, such assolar power, wind power, and natural gas power plants, to serve the needs of different commercial and industrial operations. Different sectors involving heavy-duty operations have attracted substantial investments, augmenting the demand for power generator rental solutions. Countries such as Russia, Kazakhstan, and Azerbaijan are striving to hold a significant position in oil & gas exploration activities. The CIS countries are the largest oil-producing locations outside of the Organization of the Petroleum Exporting Countries (OPEC). Furthermore, continuously increasing construction expenditures to fabricate new structures at state and national levels by different nations, along with favorable government policies to stabilize energy security across buildings, are set to complement market growth over the forecast period.

Russia's telecom sector is anticipated to grow at a rapid pace. The country’s largest tower company, TowerCo LLC, built 819 new sites, which include more than 600 new locations, and have added over 1,400 new tenancies in total. Russian Towers now has a total of over 4,000 sites and 7,000 tenants.

KEY INDUSTRY PLAYERS

Aggreko to Focus on Expanding Its Product Line and Utilize Its Channels to Market New Products

Aggreko is a publicly owned company that deals in providing modular energy & power products, services, and solutions to support renewable and non-renewable generation methods. Aggreko serves various industry verticals including agriculture, mining, petrochemical and refining, construction, pharmaceuticals, oil and gas, telecommunications, manufacturing, and many more through a network of over 200 locations spanning all across the globe. The company has a total fleet size of approximately 10,000 MW across the globe.

• In June 2019, Aggreko signed an agreement with Cirque du Soleil to supply temperature control and temporary power generation equipment to the global live entertainment company. The company has supported Cirque du Soleil through four continents and aims to ensure that its shows ran smoothly during 2019 and beyond, especially in cities ranging from Los Angeles to Riyadh.

Overall, the market is highly fragmented, with a large number of key players delivering a wide range of products at local as well as global levels across the value chain. Numerous companies are actively operating across different countries to cater to the specific demands of the customers. Additionally, other key participants operating in the industry include Caterpillar Inc., Atlas Copco, Cummins Inc., Generac Power Systems, Byrne Equipment Rental, and others, leading in providing various rated gensets across different verticals.

LIST OF KEY COMPANIES PROFILED:

• Aggreko(United Kingdom)


• Caterpillar Inc.(United States)


• Atlas Copco (Sweden)


• 康明斯有限公司(美国)


• Generac Power Systems (United States)


• Byrne Equipment Rental LLC(UAE)


• Sudhir Rentals (India)


• U-Power Generation (FZC) (UAE)


• Saudi Diesel Equipment Co., Ltd. (Saudi Arabia)


• Saudi Emarati Electric Power Generators Co. (Saudi Arabia)

KEY INDUSTRY DEVELOPMENTS:

• September 2020 –Caterpillar Inc. introduced Cat DE1100 GC diesel generator set. This newly developed generator ensures reliable operation, providing extensive information regarding power output and engine operation. The DE1100 GC, designed for the Middle East, Africa, and Asia Pacific markets, will be manufactured locally at the Caterpillar facility in Hosur, India.


• May 2020 -Atlas Copco joined forces with a Saudi Arabian power generation and rental equipment provider, Energia MTC. The company also purchased over 105 units of Atlas Copco’s QAS mobile diesel generators to cater to the rising demand across the Middle East & North Africa (MENA) region.

REPORT COVERAGE

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The Middle East and CIS power generator rental market research report presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches have been adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed market analysis and information as per market segments, including power rating, fuel type, application, end-user, and regions, helping our readers to get a comprehensive overview of the Middle East and CIS power industry.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2017-2028
Base Year	2020
Forecast Period	2021-2028
Historical Period	2017-2019
Unit	Value (USD Billion)
Segmentation	通过Power Rating Below 75 kVA 75-375 kVA 375-750 kVA Above 750 kVA
	通过燃料类型 Diesel Gas Others
	By Application Continuous Load Standby Load Peak Load
	By End-user Telecom Banking Mining Datacenter Construction Manufacturing Tourism Others
	By Region The Middle East 通过Power Rating 通过燃料类型 By Application By End-user By Country Saudi Arabia The United Arab Emirates Qatar Kuwait Iraq Iran Yemen Turkey Oman Bahrain Egypt Israel Syria Rest of the Middle East CIS Countries 通过Power Rating 通过燃料类型 By Application By End-user By Country Russia Kazakhstan Azerbaijan Kyrgyzstan Tajikistan Uzbekistan Belarus Rest of CIS Countries