Middle East & Africa Small Internal Combustion Engine (ICE) Market

Market Introduction

MEA is projected to witness a swift growth in new technology adoption and industrialization, further improving diverse industries. The Gulf countries are economically advanced, while the African countries still have to balance to match the economic condition of Gulf countries, such as the UAE and Saudi Arabia, due to lack of supporting infrastructure. At present, the Gulf countries are on the verge of adopting advanced engine technologies. Several factors, such as growing population, rising middle-class income, and increasing efforts to motivate businesses other than oil & gas industries, are likely to provide ample growth opportunities to the market players in MEA. Such improvements in the economic conditions help promote the growth of the natural gas consumption for engine applications. At present, the demand for small IC engine is low in the region; however, the demand would increase with growing investments in construction and power generation sector in the coming years. At present, various countries in the region are identifying the potentials of small IC engines in various industries in a bid to enhance the air quality of the countries. Small engine manufacturing companies are expanding their footprint in the region to improve their support for the customers. For instance, in September, 2020, Yanmar Co., Ltd., a Japan based company, has expanded their reach for Middle Eastern countries by establishing new office at the UAE, near Dubai Airport. Similarly, in March 2018, DEUTZ company has showcased their advanced gensets solution equipped with internal combustion engine ranging from 13kVA to 1,250 kVA at Middle East Electricity in Dubai exhibition. The engine manufacturing companies are targeting the Middle East and African region owing to potential opportunities for low priced small IC engines present in the market.

To reduce the impact of COVID–19, the governments in the MEA region have adopted contingency plans such as complete lockdown and a 24-hour sterilization program. The introduction of lockdowns has resulted in a halt of manufacturing and transportation activities in the region. The slowdown in manufacturing and transportation activities in the region has directly impacted small ICE sales in the region. Also, most businesses in the region have come to a halt and are expected to continue slower than the usual pace. The countries are taking significant containment measures to reduce the number of infected patients. COVID-19 pandemic outbreak, which has severely affected the manufacturing and transportation industry and oil & gas industry projects, resulted in the declining sales of the small ICE in the Middle East and Africa. Several giants in the African oil & gas industry, such as ExxonMobil, Total SE, BP, and Royal Dutch, reduced their CAPEX by more than 20% in 2020. It has resulted in getting upcoming projects delayed or stalled. The decline in FDI flows across the region. However, positive demand has been noticed from ongoing renewable energy projects in the MEA region

Market Overview and Dynamics

The small ice market in MEA is expected to grow from US$ 209.98 million in 2020 to US$ 289.39 million by 2027; it is estimated to grow at a CAGR of 4.7% from 2020 to 2027. Rise in Adoption of Small Off-Road Internal Combustion Engines Small internal combustion engines have dominated the transportation industry. Their dominance is further increasing with the new emission controlling regulations. Small internal combustion engines are gaining major demand from off-road applications—such as construction machinery, home power generators, and lawn and gardening machineries—which is mounting the market growth. Market players are introducing new advancements in engines for improved performance and efficiency. For instance, in April 2019, Honda Motor Europe Ltd. introduced a new range of premium HRX lawn mowers. The specifically designed lawn mowers are equipped with small engines having power output below 5 kW. These new engines provide reliability and improved fuel efficiency with enhanced power capabilities. Companies are even running customer awareness campaigns to educate customers about new engine technologies. For instance, in May 2018, Briggs & Stratton Corporation, a manufacturer of small engines used by lawn and garden industry, launched an awareness advertising campaign to inform customers about its new engine technology. According to a survey conducted by the company on 500 lawn mower buyers, around 20% of them are upgrading the machine for new technology not due to maintenance problems or breakdowns. Such low ratio has made the Briggs & Stratton Corporation to run an awareness campaign to educate the customers about its new engines. Also, in August 2020, Generac Power Systems, Inc. launched a new robust 24 kilowatts generator for home use.  This is bolstering the growth of the small ice market.

Key Market Segments

In terms of by End-Use Industry type, the Transportation segment accounted for the largest share of the MEA small ice market in 2019. In terms of End-Use Industry type, the Manufacturing segment is the fastest growing segment of the small ice market in 2019.

Major Sources and Companies Listed

A few major primary and secondary sources referred to for preparing this report on the MEA small ice market are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report Caterpillar Inc., Kawasaki Heavy Industries, Ltd., MITSUBISHI HEAVY INDUSTRIES, LTD, Liebherr, YANMAR HOLDINGS CO., LTD., Cummins, Inc, INNIO, Wärtsilä Corporation, Rolls-Royce Holdings plc

Reasons to buy report

• To understand the MEA small ice market landscape and identify market segments that are most likely to guarantee a strong return
• Stay ahead of the race by comprehending the ever-changing competitive landscape for MEA small ice market
• Efficiently plan M&A and partnership deals in MEA small ice market by identifying market segments with the most promising probable sales
• Helps to take knowledgeable business decisions from perceptive and comprehensive analysis of market performance of various segment form MEA small ice market
• Obtain market revenue forecast for market by various segments from 2020-2027 in MEA region.

MEA Small ICE Market Segmentation

Small ICE Market – By Fuel Type

• Gasoline
• Diesel
• Gas

Small ICE Market – By Gas Type

• CNG
• LPG
• LNG

Small ICE Market – By Cylinder

• 1
• 2
• 3
• 4

Small ICE Market – By Power Output

• 1-5 kW
•  6-10 kW
• 11-20 kW

Small ICE Market – By End-Use Industry

• Power Generation
• Manufacturing
• Oil and Gas
• Transportation
• Others

Small ICE Market – By Country

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Small ICE Market -Companies Mentioned

• Caterpillar Inc.
• Kawasaki Heavy Industries, Ltd.
• MITSUBISHI HEAVY INDUSTRIES, LTD
• Liebherr
• YANMAR HOLDINGS CO., LTD.
• Cummins, Inc
• INNIO
• Wärtsilä Corporation
• Rolls-Royce Holdings plc

Middle East & Africa Small Internal Combustion Engine (ICE) Market Strategic Insights

Middle East & Africa Small Internal Combustion Engine (ICE) Market Segmentation Analysis

Middle East & Africa Small Internal Combustion Engine (ICE) Market Report Highlights

Middle East & Africa Small Internal Combustion Engine (ICE) Report Scope

Middle East & Africa Small Internal Combustion Engine (ICE) Market Country and Regional Insights