The Middle East power rental market was valued at more than $500 million in 2014 and is expected to continue to grow significantly according to a report by market research firm Verify Markets. The market for power rental is divided essentially into two parts: project business and commercial power rental business. A high percentage of power projects are in Saudi Arabia, with smaller numbers of projects in other Gulf Cooperation Council countries.
The power generation rental markets in the GCC countries are primarily driven by demand from utilities and the construction industry, the Verify report said. Saudi Arabia emerged as the largest power rental market constituting the vast majority of the Middle Eastern power rental market. Power-project business, or temporary power plants, accounted for more than half of the total Middle Eastern power rental market in 2014. However, Verify Markets predicts, the power-project business will decrease in the next seven years because of the integration of the grid between the GCC countries and grid expansion in Saudi Arabia.
Also, Saudi Arabia and other FCC countries will likely increase their power generation capacities during the next seven years. Kuwait’s power rental market is mostly driven by demand from the oil-and-gas industry. The power rental market in Bahrain will slow its growth rate in the coming years.
Diesel is the primary fuel in GCC countries, with a few cases of natural gas-based operations. Solar energy-based power rental is expected to hold a promising future in the GCC countries, although the growth rate of the market is expected to be slow during the next seven years. While only a few companies operate in this niche market currently, some of the major players in the power rental market in the GCC countries are expected to start their operations in the solar-energy-based power rental market.
Increased technology use for remote monitoring and access to generators and associated equipment is expected to increase within the forecast period as well, Verify said.
The report provides revenue projections through 2021. Companies featured include Al Faris Equipment Rentals; Aggreko; Mohamed Abdulrahman Al-Bahar Cat; Altaaqa Alternative Solutions; Rental Solutions and Services; Smart Energy Solutions; Jassim Transport & Stevedoring; Byrne Equipment Rental; Cummins Olayan Energy; Enerwhere Sustainable Energy; Atlas Copco Rental; and Hertz Equipment Rentals, among others. The report covers Saudi Arabia, Oman, Kuwait, United Arab Emirates, Qatar and Bahrain.
For more information or to obtain a copy, visit: http://www.verifymarkets.com.