Saudi Arabia Industrial Engine Market Research Report, 2029

The industrial engine market in Saudi Arabia has progressed in line with the country’s swift industrialization, primarily fueled by its leading oil and gas sector, an expanding manufacturing base, and robust infrastructure development. As the largest economy in the Middle East, Saudi Arabia’s demand for industrial engines extends across various industries such as construction, oil and gas, power generation, mining, and manufacturing. Saudi Arabia's industrial engine market is predominantly occupied by diesel engines, which are favored for heavy-duty machinery and power generation because of their fuel efficiency, dependability, and capacity to conduct demanding operations. Diesel engines are frequently utilized in construction equipment (like cranes, bulldozers, and excavators), mining machinery, generators, and oil extraction machinery. The oil and gas sector, in particular, significantly influences engine demand, powering drilling rigs, compressors, pumps, and other critical apparatus in the extraction and processing of crude oil and natural gas. In recent years, there has been increasing interest in cleaner technologies such as gas engines and hybrid systems to achieve global sustainability targets and local environmental regulations. Saudi Arabia’s Vision 2030, which seeks to diversify the economy away from oil dependence, has further catalyzed the transition toward renewable energy solutions, generating new opportunities for electric engines and enhanced energy-efficient technologies in industrial operations. The history of Saudi Arabia's industrial engine market traces back to the 1950s when the country began advancing its oil industry. The discovery of extensive oil reserves in the region prompted a swift industrial boom, necessitating dependable, high-power engines in the oil extraction and power generation domains. Over the ensuing decades, as Saudi Arabia developed its infrastructure projects, particularly in construction, the demand for industrial engines increased markedly. In the 1980s and 1990s, the market continued to develop with the expansion of heavy industries, such as petrochemicals, manufacturing, and steel production. According to the research report, "Saudi Arabia industrial engine Market Research Report, 2029," published by Actual Market Research, the Saudi Arabia industrial engine market is anticipated to add to more than USD 460 million by 2024–29. The industrial engine market in Saudi Arabia has faced both obstacles and possibilities in recent years, shaped by economic elements, technological advancements, and global incidents such as the COVID-19 pandemic. Being the largest economy in the Middle East, Saudi Arabia's industrial engine market is crucial to industries like oil and gas, construction, manufacturing, and power generation. Numerous challenges have affected the industrial engine market in Saudi Arabia. The Saudi economy is significantly dependent on oil exports, and variations in global oil prices can influence the demand for industrial engines, particularly in the oil and gas sector. Decreased oil prices in recent years have resulted in project delays and a cutback in capital expenditure. With Saudi Arabia prioritizing sustainability and the shift toward greener energy alternatives under Vision 2030, industries are under growing pressure to adopt energy-efficient, low-emission technologies. This has resulted in increased expenses for upgrading existing infrastructure to comply with more stringent environmental regulations. The COVID-19 pandemic interrupted global supply chains, impacting the availability of parts and machinery, as well as causing delays in production and equipment delivery. This resulted in bottlenecks for sectors dependent on industrial engines. In spite of these hurdles, the Saudi market offers various opportunities. The initiative for economic diversification away from oil dependence opens avenues in sectors like renewable energy, manufacturing, and infrastructure development, all of which necessitate industrial engines. The shift towards more energy-efficient and sustainable technologies presents a growing market for electric engines and hybrid systems. Major construction and infrastructure initiatives, are increasing the demand for industrial engines in construction and power generation. The COVID-19 pandemic significantly impacted the market by hindering industrial activities, leading to delays in construction and manufacturing. However, the oil and gas sector experienced a rise in demand for backup generators and power solutions as companies required dependable energy during the crisis. The industrial engine market in Saudi Arabia caters to numerous sectors, with each requiring engines that are customized to meet their particular demands. These engines are vital for uses in oil and gas, power generation, construction, manufacturing, and agriculture, among other fields. Below is a detailed Research Report of the applications of industrial engines in Saudi Arabia. The oil and gas sector stands as the primary force behind industrial engine demand in Saudi Arabia. Engines within this sector are employed across a broad array of applications, such as drilling rigs, pumps, compressors, and offshore platforms. Diesel engines and gas turbines become the leading options, as they deliver the substantial power required for extraction and processing activities. These engines are essential for powering heavy-duty apparatus in isolated and extreme environments, guaranteeing the ongoing functioning of oil fields. Industrial engines play a pivotal role in power generation for both grid-connected and off-grid applications. Diesel and gas engines are utilized to produce electricity in power plants and as standby power systems for vital infrastructure. Additionally, these engines serve remote regions where linking to the grid is impractical. With Saudi Arabia’s escalating commitment to renewable energy under Vision 2030, there is an increasing requirement for more energy-efficient and eco-friendly engine options within this domain. In general manufacturing, industrial engines drive equipment such as pumps, conveyors, machinery, and production lines. The demand for engines in this sector has surged owing to Saudi Arabia's initiatives to diversify its economy and broaden its industrial foundation. Engines employed in this sector typically comprise electric motors for automation and diesel engines for heavy-duty machinery within factories. The construction industry in Saudi Arabia, propelled by extensive infrastructure initiatives, relies heavily on industrial engines. These engines power cranes, excavators, bulldozers, and various other heavy equipment. Diesel engines hold a particularly dominant position in this sector owing to their power generation and fuel efficiency in strenuous conditions.

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The industrial engine market in Saudi Arabia is subdivided into several power categories, ranging from 50 HP to 500 HP, 500 HP to 10,000 HP, and above 10,000 HP. Each power category is tailored to particular industries and uses, from smaller machinery to extensive industrial operations. Engines within the 50 HP to 500 HP category are frequently employed for light to medium-duty tasks. These engines are widely utilized in agriculture, small-scale construction equipment, and general manufacturing. For instance, tractors, pumps, generators, irrigation systems, and small-scale construction machines like backhoes and forklifts often depend on engines in this power bracket. Diesel engines are the favored option due to their fuel efficiency, dependability, and low operating costs. In Saudi Arabia, this category is also employed in off-road vehicles, particularly for logistics and mining operations, where engines must withstand challenging terrain and heavy workloads. The 500 HP to 10,000 HP category caters to medium to large industrial uses, including power generation, oil and gas activities, and construction equipment. Engines in this category are typically located in generators, pumps, compressors, heavy-duty mining trucks, cranes, and large excavators. Within the oil and gas field, engines in this capacity drive drilling rigs, production plants, and offshore platforms. Gas turbines and large diesel engines are prevalent in this segment, providing the required high torque and consistent power essential for such applications. The increasing demand for backup power solutions and energy security in industrial fields also enhances the necessity for engines in this power segment. Engines rated at over 10,000 HP are generally deployed in mega-scale operations, such as large power facilities, offshore installations, and marine vessels. These engines are primarily gas turbines or large diesel engines engineered to produce substantial amounts of power for electricity production and oil and gas extraction. In Saudi Arabia, gas turbines are often utilized in combined-cycle power plants, where they aid in both base-load power generation and peak-load solutions. The industrial engine market in Saudi Arabia is mainly propelled by diesel and gasoline engines, which find applications in various industries such as oil and gas, construction, power generation, manufacturing, and agriculture. The selection of fuel type is determined by aspects like power requirements, fuel efficiency, operational costs, and application-specific needs. Diesel engines lead the industrial engine market in Saudi Arabia owing to their fuel efficiency, high torque, and durability under substantial loads. They are the favored option for large-scale industrial operations and heavy machinery. Within the oil and gas sector, diesel engines are extensively employed in drilling rigs, pumps, compressors, and offshore platforms, as they provide the reliability needed for challenging, isolated environments. Likewise, in the construction industry, diesel engines power excavators, bulldozers, cranes, and additional heavy machinery utilized in major infrastructure ventures. Diesel engines also play a vital role in power generation, delivering backup power and off-grid solutions for both industrial sites and remote regions. The effectiveness of diesel engines renders them economically viable for high-power uses, offering prolonged operational hours without the requirement for frequent refueling. This is particularly significant in Saudi Arabia’s vast desert regions where fuel delivery services are limited. Furthermore, diesel engines are favored for agriculture and off-road vehicles employed in logistics, mining, and construction due to their performance in harsh terrains. Although gasoline engines are less prevalent in large-scale industrial uses, they are still utilized in light machinery and smaller equipment. Gasoline engines are commonly found in portable generators, small pumps, lawnmowers, and agricultural tools. These engines are selected for lower initial costs, lighter weight, and ease of maintenance when compared to diesel engines. They are generally employed for tasks that do not demand the heavy power output of diesel engines and are frequently found in small-scale manufacturing and personal equipments. The industrial engine market in Saudi Arabia showcases a range of engine types, with 2-stroke and 4-stroke engines being the most significant across various sectors. Each engine type presents specific benefits that depend on the application, fuel efficiency, and maintenance needs. 2-stroke engines are not as frequently utilized in large-scale industrial settings in Saudi Arabia; however, they still have a role in certain sectors. These engines accomplish a power cycle in merely two strokes of the piston, delivering a higher power output relative to their size. 2-stroke engines are commonly employed in smaller machinery, portable equipment, and off-road vehicles that necessitate compactness, mobility, and elevated power-to-weight ratios. In Saudi Arabia, 2-stroke engines can be found in small-scale generators, pumps, and agricultural machinery such as lawnmowers and chainsaws. They are also utilized in marine applications, including small boats and outboard motors, due to their lightweight design and simplicity. Furthermore, 2-stroke engines are applied in some off-road vehicles within the construction and mining sectors, where portability and power are critical. Although these engines are preferred for their lower initial cost, they come with the downside of possessing lower fuel efficiency and higher emissions in comparison to 4-stroke engines. Consequently, their application in large-scale industrial environments, particularly those subject to strict environmental regulations, is restricted. 4-Stroke Engines:4-stroke engines dominate the industrial engine landscape in Saudi Arabia, particularly within heavy-duty industrial and construction settings. These engines finish a power cycle in four strokes of the piston, offering improved fuel efficiency, reduced emissions, and extended operational lifespans. Within Saudi Arabia, 4-stroke engines are extensively utilized in heavy machinery for construction (such as excavators, bulldozers, and cranes), power generation (like large diesel generators), and the oil and gas industry (including drilling rigs, compressors, and pumps). They are also employed in the mining and manufacturing sectors where dependable, continuous power is essential.

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Kripa Shah

Senior Analyst

Considered in this report • Geography: Global • Historic Year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Global Industrial Engine Market with its value and forecast along with its segments • Region & country wise Industrial Engine market analysis • Application wise Industrial Engine distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Application • Oil & Gas • Power Generation • General Manufacturing • Construction • Mining & Metallurgy • Agriculture/Off-road vehicles • Others (Marine, Healthcare, etc.)

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By Power Output • 50HP - 500HP • 500HP - 10,000HP • Above 10,000HP By Fuel Type • Diesel • Gasoline By Engine Type • 2-Stroke Engines • 4-Stroke Engines The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.