It is attributed to the surge in demand for prime and backup power sources in central spaces such as retail stores, office spaces, hospitals and hotels. There is a massive demand for medium and large DG sets for power generation in the commercial sector, majorly in mining, oil gas, energy power, and manufacturing industries.

The diesel generators are extensively utilized for global events in the country involving international participation or a vast number of visits. For instance, Expo 2020 conducted in 2021 was a recent global event in Dubai that increased the country's tourism and required an uninterrupted power supply, which was facilitated by the DG sets. Moreover, the rising power outages in the country have increased the demand for power backup sources resulting in the expansion of the market.

The growing requirement of the gensets in the industrial sector leads to the U.A.E. diesel generator set market. The manufacturing, oil gas production, and power generation industries massively require gensets for power supply reliability to carry out uninterrupted processes. For instance, construction sites having no or unreliable grid access depend on gensets for power supply. Similarly, the oil gas industry depends on gensets for power supply to refineries, production sites, and distribution infrastructures such as gas stations and pipelines.

The DG sets with a capacity of 376–750 kVA dominate the U.A.E. diesel generator set market, acquiring more than 40% revenue share in 2021. The rise in the installation of diesel generator sets in commercial spaces such as manufacturing facilities, healthcare facilities, hotels, restaurants, shops and others for power backup penetrates the market. The surge in demand for DG sets in the region is attributed to their low cost and easy availability.

Get More Insights: U.A.E. Diesel Generator Set Market Revenue Estimation and Growth Forecast Report

The key players are focusing on launching new products to strengthen their presence and remain ahead of their competitors in the U.A.E. diesel generator set market. For instance, Kohler Co. launched diesel gensets named KD series diesel-powered generator sets with 4000 kVA and 4,500 kVA (50 Hz) or 3,500 kW and 4,000 kW (60Hz) capacity in November 2020. Similarly, Caterpillar Inc. launched Cat GC diesel gensets in October 2021.

Thus, the increasing industrial development and construction activities with no reliable power supply in the region lead to market expansion.