As there are numerous established companies operating in the Kuwait diesel gensets market, the competition among the players is relatively high, reports Transparency Market Research in a new study. The competitive rivalry in the Kuwait diesel gensets market is further expected to intensify owing to the diverse range of products offered by the players and the strong brand placement. The three leading players in the market, Caterpillar, Cummins, Inc., and FG Wilson, held a combined share of 48% in the Kuwait diesel gensets market in 2013.
The Kuwait diesel gensets market was valued at US$53.6 mn in 2016 and is projected to rise to a market worth US$79.7 mn in 2023. The market is anticipated to expand at a 5.0% CAGR between 2014 and 2023. Rental gensets is likely to emerge as the key application segment in terms of consumption with an overall share of 64.12% in 2023. Owing to the numerous infrastructure projects being implemented in the country, the demand for rental gensets is likely to rise in the forecast period of 2014-2023. Rental gensets are extensively preferred by foreign companies undertaking infrastructure projects in Kuwait due to the maximum capacity of 1250 kVA offered by them.
On the basis of capacity, 500-2000 kVA gensets are likely to witness strong growth due to the mass adoption of high power diesel gensets in the country. The 500-2000 kVA gensets segment is expected to account for 60.08% of the overall share in 2023 in the Kuwait diesel gensets market. Large commercial complexes, refineries, other infrastructure facilities prefer the purchase of 500-2000 kVA gensets over renting them due to their high power needs.
Shortage of Efficient Power Resources Indicate Lucrative Future Market for Diesel Gensets in Kuwait
To meet its power generation necessities, Kuwait extensively depends on fossil fuels. Presently, Kuwait is suffering from an extreme shortage of natural gas reserves; as a result, numerous power plants operating on natural gas fuel are looking for alternate solutions. Furthermore, the per capita consumption in the country is significantly high due to the subsidy provided by the government to lower the price of electricity. According to a TMR analyst, “The mounting consumption of electricity and lack of proper power generation have impelled consumers to shift towards power backup options.” Henceforth, the imbalance between demand and supply of electricity is likely to drive the demand for diesel gensets in the country.
Moreover, the easy availability of diesel at lower rates is further expected to augment the adoption of diesel gensets in Kuwait owing to the heavy subsidized rates of refined products such as diesel and kerosene.
Deployment of Renewable Energy Resources to Hinder Adoption of Diesel Fuelled Gensets
To meet the high power requirements of Kuwait, the government announced the addition of installed power generating capacity plants in the country. As a result of this, a large number of oil and gas power plants are likely to be set up over the next couple of years. With the construction of these high power plants, the gap between demand and supply of energy is likely to decrease in Kuwait. The first phase of the country’s energy development project of a 70 MW solar energy park is scheduled for completion by the end of 2016. Hence, the requirement for backup solutions will decrease leading to a shortage of demand for diesel gensets in the region.
Advent of New Technologically Advanced Gensets to Provide Lucrative Opportunities to Manufacturers
To increase their consumer base, many manufacturers of diesel gensets are investing in research and development projects for the development of technologically advanced gensets. Due to the extensive ongoing research, the introduction of hybrid gensets is likely to be an attractive potential energy solution for meeting high power demands. As hybrid gensets as designed to run on solar as well as diesel power, they are efficient in reducing the actual runtime of the conventional diesel gensets. Such advances are likely to present manufacturers with potential opportunities to capitalize on in future. The leading players are also entering into strategic acquisitions in order to lower the initial cost and produce advanced gensets.
The review is based on the findings of a TMR report titled, “Kuwait Diesel Gensets Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014–2023.”
Kuwait Diesel Gensets Market: Type Analysis
Kuwait Diesel Gensets Market: Capacity Analysis
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