Kuwait Diesel Gensets Market
Kuwait Diesel Gensets Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014 - 2023
Press Release :
The construction industry in Kuwait is booming with a series of new projects to be completed during the forecast period. As a result, demand for diesel gensets is likely to rise in the near future. Apart from being a reliable source for standby power, diesel gensets are also used to provide continuous power during working and completion of large construction projects. According to the ‘Government of Kuwait’s five-year development plan (2015–2020), several large-scale construction projects are to be completed during the forecast period. This development plan will majorly drive investments in the Kuwait diesel gensets market within the forecast period. The oil industry is the economic backbone of Kuwait and uninterrupted power supply is critical to ensure upstream and downstream operations can be carried out efficiently and without interruption. The price of diesel in Kuwait is also significantly low as compared to the global average, thereby resulting in faster adoption of diesel fuel for the purpose of power generation. While smaller variants of diesel gensets are preferred for prime power purposes, higher capacity diesel gensets may also be utilized in large facilities for backup power. Though numerous power projects are in development stages, the country’s reliance on diesel gensets for power supply is likely to remain high until these are commissioned.
The diesel gensets market in Kuwait is categorized into two basic segments: rental diesel gensets and new diesel gensets. Rental gensets are majorly used during construction activities for continuous power generation. On the other hand, new diesel gensets are usually installed for back-up power generation during emergency situations. The construction and infrastructure industries in Kuwait are the major consumer segments for rental diesel gensets. With many public private partnership projects planned by the government of Kuwait, the market for rental diesel gensets is anticipated to grow at a substantial pace in the near future. The monthly rent for a genset generally encompasses various services including generator repairs, and filter and oil changes. Rental contracts are generally done on a monthly basis, and comprise numerous services, which trumps purchasing new generators owing to the convenience offered. Rental contracts significantly reduce the responsibilities of the contractor. For projects spanning durations well over five years, it might be justified to purchase a new genset upfront instead of renting. For government projects ranging between 15 to 20 years, the general preference is to purchase gensets rather than rent. Facilities such as large commercial complexes and hospitals purchase diesel gensets for backup power purposes.
The Kuwait diesel gensets market is also segmented on the basis of capacity as: 0–75 kVA, 75–500 kVA, 500–2000 kVA, and above 2000 kVA. The 0–75 kVA segment of diesel gensets is the most lucrative one in the new diesel gensets market for Kuwait, in terms of units installed. This category of diesel gensets is preferred by both renters as well as purchasers of new diesel gensets. The 0–75 kVA class of diesel gensets are also frequently used in commercial establishments such as malls, building complexes, and hospitals. The telecommunication industry is also a major consumer segment of this category of gensets. On the basis of revenue, the 500–2000 kVA class of diesel gensets is a major segment of the new diesel gensets market in Kuwait. The large petrochemical projects and port expansion projects to be constructed during the forecast period will further enhance investments in this class of diesel gensets. The rental market for diesel gensets in the over 2000 kVA category is non-existent. The over 2000 kVA market for diesel gensets in Kuwait exists only for new generator purchases. Large refineries complexes and other major establishments such as airports and commercial complexes are likely to be the primary consumers of this segment of diesel gensets.
The Kuwait diesel gensets market is majorly dominated by the top five market players operating in this industry. The market share of the major players such as Caterpillar, Inc., FG Wilson, and Cummins, Inc. is based on the performance of their regional distribution companies. Though the rental gensets market in Kuwait accounts for the major market share in terms of revenue, all the major players do not have rental divisions. The distribution companies that have rental divisions enjoy an additional advantage over their rivals. Rapid development of the infrastructure sector in Kuwait is also attracting many Chinese and Indian companies to focus on the Kuwait diesel gensets market.
Kuwait New Diesel Gensets Market, volume share by capacity, 2013 and 2023
This research is designed to estimate, analyze, and forecast the Kuwait diesel gensets market. The overall market has been estimated on the basis of revenue, which has been calculated on a year-on-year basis. The market for new diesel gensets in Kuwait has been analyzed separately in terms of both volume and revenue. The research provides in-depth analysis of players in the Kuwait diesel gensets industry, who are involved in the business at various levels of the value chain. The research encompasses type and capacity segments of the Kuwait diesel gensets market. It includes detailed analysis, historical data, and statistically refined forecast for the segments covered. In Kuwait, the rental market is very prominent and industries that require diesel gensets for a short span of time usually prefer the renting option. On the other hand, end-user industries that use diesel gensets as a long-term backup source generally prefer to purchase new gensets. As a result, the market and market size for diesel gensets in Kuwait varies depending on the need and preference of the end-user industries. This report includes the major drivers, restraints and opportunities for the Kuwait diesel gensets market. Porter’s five force analysis and value chain analysis has been provided to get a better overview of the market. Market attractiveness for both new and rental diesel gensets have been included in this report to provide a robust understanding regarding the underlying factors in each market. The market attractiveness segment was analyzed on the basis of capacity ranges available in Kuwait gensets market.
The type analysis for Kuwait diesel gensets was estimated, keeping in mind the major construction and expansion projects planned by the government of the nation. It was estimated that during construction phases, project developers generally prefer renting diesel gensets. Post-construction however, operators prefer buying new diesel gensets, as these are used a source of backup power. While conducting the study, we took into consideration the key construction projects planned till 2023 such as metro-rail, silk city project, and expansion of the Kuwait International Airport. The total market for diesel gensets in Kuwait was estimated only in terms of revenue. The total market was segmented as the rental market and the new gensets market. The new gensets market was analyzed further in detail and sub-segmented into four categories in terms of capacity. These are 0–75 kVA, 75–500 kVA, 500–2000 kVA, and over 2000 kVA. The market for new gensets was analyzed both in terms of revenue and units. However, while analyzing the market for rental gensets, we found it feasible to do so in terms of revenue. All the market volume and revenue figures provided are on a year-on-year basis and were not done cumulatively. We have considered 2013 as the base year for this study, while all forecasts have been done for 2014–2023.
The capacity analysis for Kuwait diesel gensets market was estimated according to consumer preferences for various capacity segments. It was assumed that the small and mid-size capacity diesel gensets are employed at project sites for continuous power generation. Small capacity gensets were estimated to be used as backup power sources in commercial and domestic sectors. Large capacity gensets were assumed to be used in projects with high power requirements and in refinery operations. Detailed primary interviews and extensive secondary research were conducted for validating the approximate units of diesel gensets installed, and costs for each capacity segment of diesel gensets. Qualitative analysis such as historical installation trends, major planned projects, and investment by oil and gas operators were considered while computing the revenue market size for diesel gensets in Kuwait. The report for Kuwait diesel gensets has been segmented as follows:
Kuwait Diesel Gensets Market: Type Analysis
- Rental Gensets
- New Gensets
Kuwait Diesel Gensets Market: Capacity Analysis
- 0–75 kVA
- 75–500 kVA
- 500–2000 kVA
- Over 2000 kVA