Saudi Arabia Diesel Generators Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Saudi Arabia Diesel Generators Market Size

• The Saudi Arabia diesel generators market size was valued at USD 1.38 billion in 2024 and is expected to reach USD 2.36 billion by 2032, at a CAGR of 6.9% during the forecast period
• The market growth is largely fuelled by the rising demand for reliable backup power across industrial, commercial, and residential sectors, especially due to increasing infrastructure development and rapid urbanization

Saudi Arabia Diesel Generators Market Analysis

• The market is witnessing a strong surge in demand due to frequent power outages and the need for uninterrupted electricity supply in remote and off-grid locations
• Large-scale construction projects such as NEOM and other Vision 2030 initiatives are driving diesel generator adoption across the country
• The 101 kVA - 500 kVA segment accounted for the largest market revenue share in 2024, owing to its high applicability across commercial establishments, mid-sized industrial facilities, and construction projects. These generators offer a balance between portability and power capacity, making them a preferred choice for varied operational demands, especially in power-deficient zones or temporary installations

Report Scope and Saudi Arabia Diesel Generators Market Segmentation           

Saudi Arabia Diesel Generators Market Trends

Rising Integration of Diesel Generators with Renewable Energy Systems

•  The growing push toward sustainable energy in Saudi Arabia is leading to increased adoption of hybrid power solutions, where diesel generators are integrated with solar and wind systems. These hybrid models offer reliable backup power while minimizing fuel consumption and emissions, aligning with the Kingdom's Vision 2030 sustainability goals
•  The demand for uninterrupted power supply in remote construction sites and off-grid industrial operations is boosting the deployment of hybrid diesel generator systems. These systems ensure operational continuity while addressing environmental compliance and reducing dependency on fuel logistics
•  The ability to optimize generator runtime and reduce maintenance costs is attracting interest from infrastructure developers and energy-intensive sectors. Integration with renewable sources not only supports long-term cost savings but also improves power reliability in fluctuating grid conditions
•  For example, in 2024, several infrastructure projects across NEOM began deploying solar-diesel hybrid generator systems, ensuring continuous power for construction activities while reducing carbon footprints. This trend is expected to gain further momentum across new development zones
•  While the shift toward hybrid models is promising, market growth depends on grid flexibility, technology standardization, and supportive government policies to encourage investments in clean energy-enabled backup power systems

Saudi Arabia Diesel Generators Market Dynamics

Driver

Surging Demand for Backup Power in Commercial and Industrial Sectors

•  The rapid expansion of commercial infrastructure, manufacturing units, and megaprojects in Saudi Arabia is creating significant demand for reliable power backup solutions. Diesel generators remain the preferred choice due to their quick response time, scalability, and operational reliability in harsh environmental conditions
•  Frequent grid instabilities and the need for continuous power in mission-critical operations, such as hospitals, telecom towers, and data centers, are further fueling market demand. Businesses are increasingly investing in high-capacity diesel generators to mitigate operational risks
•  Supportive government initiatives aimed at boosting industrialization and the construction of smart cities are contributing to increased generator installations. Contractors and developers rely on diesel generators during early-stage development before permanent grid connections are established
•  For instance, in 2024, the Red Sea Global project ramped up procurement of diesel gensets to support its coastal infrastructure works, ensuring round-the-clock power for equipment and workforce deployment
•  Although the commercial and industrial segments are driving demand, market players must continue to focus on product efficiency, emission compliance, and robust aftersales support to maintain competitiveness

Restraint/Challenge

Environmental Regulations and Shift Toward Clean Energy Alternatives

•  Stringent government regulations on emissions and fuel efficiency are posing a challenge to the traditional diesel generator market. As Saudi Arabia advances toward its environmental goals, older diesel models face increasing scrutiny, driving demand toward cleaner or hybrid solutions
•  The rising awareness of carbon emissions and public health concerns is also influencing policy decisions. Diesel generators, especially in urban areas, are being limited in use during non-emergency hours to control air pollution levels
•  Advancements in battery storage, fuel cell technologies, and microgrids are emerging as viable alternatives, particularly in smaller applications. These innovations threaten to displace conventional diesel units, especially in commercial sectors with environmental mandates
•  For example, in 2023, authorities in Riyadh issued guidelines encouraging large commercial buildings to phase out outdated diesel gensets and adopt greener power systems, impacting future procurement patterns
•  To overcome this restraint, manufacturers must invest in next-generation diesel technologies that align with emission norms while also exploring hybrid and renewable-powered models to remain relevant in the evolving energy landscape

Saudi Arabia Diesel Generators Market Scope

The market is segmented on the basis of power rating, portability, frequency, application, end user, product offering, and sales channel.

• By Power Rating

On the basis of power rating, the diesel generators market is segmented into 101 kVA - 500 kVA, 30 kVA - 100 kVA, less than 30 kVA, 501 kVA - 1000 kVA, and 1001 kVA - 4000 kVA. The 101 kVA - 500 kVA segment accounted for the largest market revenue share in 2024, owing to its high applicability across commercial establishments, mid-sized industrial facilities, and construction projects. These generators offer a balance between portability and power capacity, making them a preferred choice for varied operational demands, especially in power-deficient zones or temporary installations.

The 1001 kVA - 4000 kVA segment is expected to witness the fastest growth rate from 2025 to 2032, driven by the increasing need for large-scale, uninterrupted power supply in critical infrastructure sectors such as oil and gas, data centers, and mining operations. These high-capacity generators are favored for their ability to support base load operations and grid-independent systems across expansive sites.

• By Portability

On the basis of portability, the market is segmented into stationary and portable. The stationary segment dominated the market in 2024 due to its extensive use in fixed applications such as hospitals, commercial buildings, and industrial plants. These generators are designed for long-term, high-capacity power supply and are often integrated into facility systems for automatic standby response during outages.

The portable segment is expected to witness the fastest growth rate from 2025 to 2032, fueled by its growing adoption in temporary and remote applications such as outdoor events, construction sites, and emergency response units. Compact design, ease of transport, and lower upfront costs make portable generators an attractive solution for short-term or mobile power needs.

• By Frequency

On the basis of frequency, the diesel generators market is segmented into 60Hz and 50Hz. The 50Hz segment held the largest market share in 2024, primarily driven by its dominance in regions such as Asia-Pacific, Europe, and the Middle East and Africa. These generators are widely used in countries with 50Hz grid standards, ensuring equipment compatibility and consistent operational performance across industrial, commercial, and residential applications.

The 60Hz segment is expected to witness the fastest growth rate from 2025 to 2032, particularly in North America and parts of Latin America, where infrastructure is based on 60Hz standards. The demand is also rising due to export needs and the expanding use of 60Hz-compatible appliances and machinery in developing regions.

• By Application

On the basis of application, the market is segmented into standby power, prime or continuous power, peak shaving, and black start. The standby power segment dominated the market in 2024 owing to its widespread use as a backup energy source in residential, commercial, and healthcare settings. These generators ensure minimal downtime during grid failures and are often integrated with automatic transfer switches for immediate activation.

The prime or continuous power segment is expected to witness the fastest growth rate from 2025 to 2032, driven by increasing demand from off-grid industrial operations and remote facilities. These generators are designed for prolonged use and are ideal for base load supply where grid connectivity is absent or unreliable.

• By End User

On the basis of end user, the market is segmented into industrial, commercial, and residential. The industrial segment accounted for the largest revenue share in 2024, supported by the extensive use of diesel generators in manufacturing plants, mining sites, construction projects, and oil and gas facilities. These environments often require uninterrupted power to sustain operations, especially in locations with inconsistent grid supply.

The residential segment is expected to witness the fastest growth rate from 2025 to 2032, due to increasing power outages caused by extreme weather events and rising demand for personal backup solutions. Compact design, low maintenance, and ease of use make diesel generators a viable option for residential backup systems.

• By Product Offering

On the basis of product offering, the market is segmented into new and rental. The new segment dominated the market in 2024 owing to consistent demand for fresh installations in infrastructure projects, industrial expansions, and energy-deficient rural areas. The availability of a wide range of power ratings and technological enhancements continues to drive sales of new diesel generator units.

The rental segment is expected to witness the fastest growth rate from 2025 to 2032, led by demand for short-term, project-based power solutions. Rental diesel generators are popular in construction, event management, and emergency response sectors, providing a cost-effective alternative to purchasing, especially for temporary use.

• By Sales Channel

On the basis of sales channel, the market is segmented into indirect sales and direct sales. The indirect sales segment held the largest market revenue share in 2024 due to the strong presence of third-party distributors, system integrators, and channel partners that cater to diverse customer bases across regions. These channels provide technical support, installation services, and maintenance, enhancing customer confidence and market reach.

The direct sales segment is expected to witness the fastest growth rate from 2025 to 2032, supported by manufacturers’ efforts to establish direct relationships with end users through online platforms and dedicated service teams. Direct engagement helps in better customization, faster delivery, and more competitive pricing, particularly for large-scale or specialized generator needs.

Saudi Arabia Diesel Generators Market Share

The Saudi Arabia Diesel Generators industry is primarily led by well-established companies, including:

•  Abunayyan Trading Company (Saudi Arabia)
•  Fahad S. Al-Tamimi & Partners Co. Ltd. (Saudi Arabia)
•  Altaaqa Alternative Solutions Co. Ltd. (Saudi Arabia)
•  Saudi Diesel Equipment Company Ltd. (Saudi Arabia)
•  Saudi Diesel Generators Co. Ltd. (Saudi Arabia)
•  Ghaddar Machinery Co. (Saudi Arabia)
•  Al-Zamil Heavy Industries Ltd. (Saudi Arabia)
•  Tamgo – Zahid Group (Saudi Arabia)
•  Petroleum & Energy Logistics Solutions (PELS) (Saudi Arabia)
•  Mohammed Al-Rashid Trading & Contracting Co. (Saudi Arabia)
•  General Contracting Company (GCC) (Saudi Arabia)
•  Al Khalaf Group (Saudi Arabia)
•  Al Jeri Transportation Co. (Saudi Arabia)
•  Tas’helat Marketing Company (Saudi Arabia)
•  Ghantoot Gulf General Contracting LLC – KSA Division (Saudi Arabia)

Latest Developments in Saudi Arabia Diesel Generators Market

• In February 2023, the introduction of Volvo Penta's latest D8 Stage II engine, with a power output of 200 kVA, enhances the company's diverse selection of industrial genset engines. This new model offers an impressive up to 8% decrease in fuel consumption per kWh when compared to its predecessor, the D7. The D8 is now offered in four power variations – 200, 253, 303, and 326 kVA at 1,500 rpm (50 Hz) during prime power operation, catering to a range of application configurations. This will help the company to enhance its product portfolio
• In November 2021, Caterpillar announced their nine new Cat GC diesel generator sets, expanding its range of value-engineered power solutions for medium- to large-sized stationary standby applications. These additions comprise three models (1250 to 1500 kVA) for 50 Hz global applications, three models (800 to 1250 kW) for 60 Hz use in North America, and three models (800 to 1250 kW) for 60 Hz applications outside North America. This expansion of Caterpillar diesel generator offerings will enhance the company's competitiveness and market presence

SKU-70421