Saudi Arabia Natural Gas Generators Market Assessment, By Type [Standby, Prime], By Power [Less Than 75 kVA, 75-375 kVA, Above 375 kVA], By End-user [Residential, Commercial, Industrial], By Region, Opportunities and Forecast, 2017-2031F

Saudi Arabia natural gas generators market is projected to witness a CAGR of 3.20% during the forecast period 2024-2031, growing from USD 232.11 million in 2023 to USD 298.63 million in 2031.

Saudi Arabia Natural Gas Generators Market Size, Share & Forecast 2031

Saudi Arabia natural gas generators market is projected to witness a CAGR of 3.20% during the forecast period 2024-2031, growing from USD 232.11 million in 2023 to USD 298.63 million in 2031.
A natural gas generator is a kind of power generation equipment that operates on natural gas as its primary fuel. The demand for natural gas generators in Saudi Arabia is driven by various factors, which include industrial expansion, a shift towards cleaner energy sources, and the need for reliable power across different sectors. The country is making efforts to enter an&nbsp;energy mix that will help to reduce reliance on oil for domestic power generation and support industrial growth by maintaining sustainability. Moreover, commercial and industrial sectors are making efforts towards lowering carbon emissions and maintaining sustainability. At the same time, power generation creates a favorable environment for the adoption of natural gas generator equipment in the market.
Saudi Arabia is making plans for the country&rsquo;s energy transition. The plan involves a rise in the use of natural gas, renewable sources, and other cleaner energy sources to produce power. The country has significant reserves for natural gas, which makes fuel abundant and affordable for power generation. Natural gas is seen as a key transition fuel for power generation as it produces less carbon emission, which makes natural gas generators an attractive option for power generation in the country.
Moreover, the cost of electricity in Saudi Arabia has been rising for industrial and commercial operations, due to which natural gas generators are becoming an attractive alternative for the power source. In addition, residential sectors are adopting fuel-efficient generators or hybrid systems to manage electricity costs effectively, driving the demand for generators in Saudi Arabia. With abundant natural gas resources, supportive government policies, and a focus on energy security, natural gas generators are becoming an essential part of Saudi Arabia&rsquo;s energy landscape.
For instance, since October 2023, Saudi Arabia has been working on attracting investment from developed countries to move towards green energy technologies. The Saudi Arabian government (SAG) will continue its ambitious socio-economic reforms in 2024. The investment will help to expand renewable energy and natural gas-fired electricity generation capacity in the coming years. The opening of new power plants will increase the demand for natural gas generators.
<h2>Uninterrupted Power Demand from Residential and Commercial Sectors to Drive Market Growth</h2>
The residential sector prioritizes energy resilience and maintains continuous power flow during grid disruption. Natural gas generators provide a solution to ensure homes have a constant power supply during disruptions that drive demand in the market. Natural gas generators produce fewer greenhouse gases and comply with local regulations and sustainability goals, which foster its demand in the residential sector.
Moreover, retail, hospitals, and service industries contribute to the rising demand for natural gas generators. The new commercial establishments need uninterrupted power to operate efficiently. Natural gas generators are frequently used to supply reliable electricity for commercial buildings, factories, and other infrastructure projects to ensure the developments proceed without power shortages. Generators ensure businesses continue to serve customers during blackouts. Moreover, small power outages in commercial businesses may result in significant revenue losses. Natural gas generator technology effectively assists in mitigating the losses due to power loss, which is why the demand for natural gas generators is on the rise in the market.
Thus, expanding industries and urbanization in the country will lead to a higher demand for generators to grow at a higher rate.
For instance, according to the report published by the Saudi Electricity Company (SEC) in August 2024, electricity consumption in Saudi Arabia has increased by 6.1% year-on-year, highlighting the robust growth in power demand across the country. The high electricity demand creates the demand for natural generators in the country.
<h2>Focus on Energy Security and Resilience to Expedite Market Size</h2>
Energy systems are becoming more complex and vulnerable to various natural risks. On the contrary, industries and governments are looking for reliable, efficient, and sustainable power generation solutions. Saudi Arabia is investing in the adoption of advanced renewable power generation technologies, which could ensure energy security and resilience against grid failures. The natural gas generator technology ensures an uninterrupted power supply, especially during outages or grid instability, which boosts demand in the market.
Increasing occurrences of natural disasters in the country could create a greater need for disaster-resilient power generation technology, which drives the demand for natural gas generator technology in the market. Moreover, in some situations, the electricity grid faces challenges during periods of peak demand and harsh climate, which natural gas generators could handle. The equipment reduces strain on the grid and prevents blackouts. The role of stabilizing the energy supply during high-demand times makes the technology a valuable tool for residential and large-scale industries.
For instance, in December 2023, Saudi Arabia is looking to shift to the versatility of natural gas power. The country seeks to remove oil from its power grid and looks to pair a growing portfolio of renewables with the versatility of natural gas power. This development will increase the demand for natural gas generators in the market.
<h2>Government Policies to Favor Cleaner Energy Drive the Demand</h2>
The government of Saudi Arabia is looking to reduce carbon emissions and transition to cleaner energy sources in the country. Authorities are introducing various regulatory and financial incentives that support the adoption of natural gas generators over other generators in the market. The government is offering tax credits, subsidies, and financial incentives to encourage residential, commercial, and industries to invest in green energy-efficient technologies, which creates the demand for natural gas generator equipment in the market. The transition leads to lower carbon footprints and helps to fulfill sustainable goals.
Furthermore, the government is promoting decentralized power generation models to enhance energy resilience and reduce the burden on central power grids. Natural gas generator technology is well-suited for distributed generation as technology is easily installed at commercial, industrial, and residential sites. The newly introduced policies encourage decentralized energy systems in the industrial sector, which creates opportunities for natural gas generators in the market.
High authorities and government are making standard emission polices and actively phasing out high-emission fuels such as coal and diesel generators from the market. These policies create an opportunity for natural gas generators as industries are looking to invest in cleaner energy sources that comply with the new regulations. Natural gas generators provide a reliable power source with lower emissions, which makes equipment a preferred choice for different end-users in the market.
Thus, the upcoming government policies favoring the development of a cleaner energy market create numerous opportunities for the natural gas generator market in the forecast period.
For instance, in 2024, Aramco Saudi Arabia decided to boost the country&rsquo;s natural gas production to support decarbonization with significant capital. This development will help to increase the natural gas production in the country and will uplift the natural gas generator market in the coming years.
<h2>Standby Natural Gas Generators to Dominate Saudi Arabia Market Share</h2>
Standby natural gas generators have a high adoption rate and the largest market share in Saudi Arabia natural gas generators market. Standby natural gas generators provide a reliable source of backup power in case of outages and protect against loss of productivity to several businesses, which drives its demand in Saudi Arabia market. For large-scale industries, the power factor is critical in maintaining operations, which prevents revenue loss and avoids damage to the equipment. Standby natural gas generators can manage heavy loads during voltage fluctuations and peak hours, which leads to the adoption of equipment in the market. Moreover, standby natural gas generators produce low carbon footprints and comply with all air quality standards, driving their market demand.
Additionally, the newly designed standby natural gas generators with stricter standards of acceptance in the new laws about environmental regulations, such as lower emissions and fuel consumption, are driving the growth of the standby natural gas generators market in Saudi Arabia.
Riyadh to Dominate the Natural Gas Generators Market Share
Riyadh dominated the natural gas generators market with the highest share and is expected to maintain its dominance during the forecast period. Riyadh continues to grow as a central hub of economic and industrial activities in Saudi Arabia, leading to a high demand for reliable power supply for operations. Riyadh continues to expand its industrial base, including sectors such as manufacturing, logistics, and construction. The large production sector needs a continuous and reliable power supply, driving the region's demand for natural gas generators. Riyadh is investing in green and reliable energy sources, which boosts the natural gas generator market size.
Additionally, the rise in infrastructure investment is expected to be a major factor for the natural gas generator market growth during the forecast period.
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Future Market Scenario (2024 &ndash; 2031F)
<ul>
<li>The country is investing in natural gas pipeline networks to ensure reliable distribution of natural gas to key industrial and urban areas, which creates an opportunity for the market.</li>
<li>As environmental concerns push for more sustainable solutions, there will be a demand for natural gas generator equipment in the market.</li>
<li>The demand for hybrid systems natural gas generators is becoming more popular in residential applications, which will boost its demand in the coming years.</li>
<li>As industries and homeowners continue to seek cleaner, more efficient, and more reliable power solutions, the market is expected to grow continuously in the forecast period.</li>
</ul>
Report Scope
&ldquo;Saudi Arabia Natural Gas Generators Market Assessment, Opportunities and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia natural gas generators market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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2023
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Historical Period
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2017-2022
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Forecast Period
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2024-2031
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Projected Growth Rate
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CAGR of 3.20% between 2024 and 2031
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Revenue Forecast in 2031
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USD 298.63 million
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Segments Covered
</td>
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Type, Power, End-user
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Regions Covered
</td>
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Riyadh, Makkah, Eastern Region, Madinah, and Rest of Saudi Arabia
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Key Companies Profile
</td>
<td width="301">
Generac Power Systems, Inc., Cummins Arabia, Saudi Diesel Equipment Co. Ltd, Teksan Generator Power Industries and Trade Co. Inc., Mitsubishi Power Saudi Arabia Limited, Co., Abdul Latif Jameel Company Ltd&nbsp;
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;Saudi Arabia natural gas generators market&nbsp;has been segmented into the following categories:
<ul>
<li>By Type
<ul>
<li>Standby</li>
<li>Prime</li>
</ul>
</li>
<li>By Power
<ul>
<li>Less Than 75 kVA</li>
<li>75-375 kVA</li>
<li>Above 375 kVA</li>
</ul>
</li>
<li>By End-user
<ul>
<li>Residential</li>
<li>Commercial</li>
<li>Industrial</li>
</ul>
</li>
<li>By Region
<ul>
<li>Riyadh</li>
<li>Makkah</li>
<li>Eastern Region</li>
<li>Madinah</li>
<li>Rest of Saudi Arabia</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
The key players in Saudi Arabia natural gas generators market are continuously developing modern technologies and working on improvements to meet evolving consumer demands, environmental regulations, and technological advancement. Manufacturers are investing heavily in research and development (R&amp;D) to design natural gas generators, which could create more adoption of equipment in different end-user. The upcoming portfolio expansion, collaborations, joint ventures, agreements, and developing technologies are projected to increase competition in this fast-paced market.
For instance, in June 2024, EDGE Group and Cummins Arabia decided to enter a Memorandum of Understanding (MoU), which includes supporting the sales, maintenance, and servicing activities of the electrical equipment. This development will help the company to increase revenue in the coming years.
Key Players Operating in Saudi Arabia Natural Gas Generators Market are:
<ul>
<li>Generac Power Systems, Inc.</li>
<li>Cummins Arabia</li>
<li>Saudi Diesel Equipment Co. Ltd,</li>
<li>Teksan Generator Power Industries and Trade Co. Inc.</li>
<li>Mitsubishi Power Saudi Arabia Limited, Co.</li>
<li>Abdul Latif Jameel Company Ltd</li>
</ul>
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<ul>
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
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Saudi Arabia Natural Gas Generators Market Assessment, Opportunities and Forecast, FY2017-FY2031F

Saudi Arabia natural gas generator market is expected to experience growth due to the rise in demand for reliable sources of power in the commercial and residential sectors. Moreover, upcoming government policies create opportunities for the market. 

Table of Contents
<ol>
<li>Project Scope and Definitions</li>
<li>Research Methodology</li>
<li>Executive Summary</li>
<li>Voice of Customer
<ul>
<li>Product and Market Intelligence</li>
<li>Brand Awareness</li>
<li>Factors Considered in Purchase Decisions
<ul>
<li>Power Rating</li>
<li>Price</li>
</ul>
</li>
</ul>
</li>
</ol>
<ol start="5">
<li>Saudi Arabia Natural Gas Generators Market Outlook, 2017-2031F
<ul>
<li>Market Size Analysis &amp; Forecast
<ul>
<li>By Value</li>
<li>By Volume</li>
</ul>
</li>
<li>Market Share Analysis &amp; Forecast
<ul>
<li>By Type
<ul>
<li>Standby</li>
<li>Prime</li>
</ul>
</li>
<li>By Power
<ul>
<li>Less Than 75 kVA</li>
<li>75-375 kVA</li>
<li>Above 375 kVA</li>
</ul>
</li>
<li>By End-user
<ul>
<li>Residential</li>
<li>Commercial</li>
<li>Industrial</li>
</ul>
</li>
<li>By Region
<ul>
<li>Riyadh</li>
<li>Makkah</li>
<li>Eastern Region</li>
<li>Madinah</li>
<li>Rest of Saudi Arabia</li>
</ul>
</li>
<li>By Company Market Share Analysis (Top 5 Companies and Others &ndash; By Value, (2023F)</li>
</ul>
</li>
<li>Market Map Analysis, 2023F
<ul>
<li>By Type</li>
<li>By Power</li>
<li>By End-user</li>
<li>By Region</li>
</ul>
</li>
</ul>
</li>
</ol>
<ol start="6">
<li>Porter&rsquo;s Five Forces Analysis</li>
<li>PESTLE Analysis</li>
<li>Pricing Analysis</li>
<li>Market Dynamics
<ul>
<li>Market Drivers</li>
<li>Market Challenges</li>
</ul>
</li>
<li>Market Trends and Developments</li>
<li>Competitive Landscape
<ul>
<li>Competition Matrix of Top 5 Market Leaders</li>
<li>SWOT Analysis for Top 5 Players</li>
<li>Key Players Landscape for Top 10 Market Players
<ul>
<li>Generac Power Systems, Inc.
<ul>
<li>Company Details</li>
<li>Key Management Personnel</li>
<li>Products and Services</li>
<li>Financials (As Reported)</li>
<li>Key Market Focus and Geographical Presence</li>
<li>Recent Developments/Collaborations/Partnerships/Mergers and Acquisition</li>
</ul>
</li>
<li>Cummins Arabia</li>
<li>Saudi Diesel Equipment Co. Ltd,</li>
<li>Teksan Generator Power Industries and Trade Co. Inc.</li>
<li>Mitsubishi Power Saudi Arabia Limited, Co.</li>
<li>Abdul Latif Jameel Company Ltd</li>
</ul>
</li>
</ul>
</li>
</ol>
*Companies mentioned above&nbsp;DO NOT&nbsp;hold any order as per market share and can be changed as per information available during research work.
<ol start="12">
<li>Strategic Recommendations</li>
<li>About Us and Disclaimer</li>
</ol>

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