14 FROST & SULLIVAN: REPORT
The genset market is a safe investment, research indicates
US$3.77 billion high projected for the generator market in 2021: how is this figure being influenced?
Research from Global Market
Insights suggests that growing demand for continuous and reliable power supply, driven by inadequacy of electrical grid infrastructure, will stimulate the global generator sets market size. The industry is primarily driven by
rapid industrialization, expanding population base and rising frequency of chronic power shortages. According to the International
Energy Agency (IEA), electrical grid supply is reported to be unavailable for over 540 hours per year across the sub-Saharan Africa region. Growing digitization
accompanied by exponential expansion across the data centre infrastructure will drive the generator sets market growth. Rapid deployment of gensets as backup source of power across the financial services firms, insurance companies, and IT services will posi- tively impact the business scenario. Ability to effectively backup power interruptions including electrical outages or voltage fluctuations will accelerate the deployment of generator sets. The DC generators sets market is
predicted to expand over 6% by 2024. Simple design and construc- tion, optimum fuel efficiency, and ease of parallel operation are some of the defining features supporting the industry growth. Operational ability to provide integrated power solutions with renewables including wind and solar power will further boost the product penetration. AC generator sets market will
witness robust growth on account of increasing customer awareness toward continuous power supply owing to unreliable grid infrastruc- ture. These gensets find predominant applications across res- idential installations on account of their operational suitability.
Worldwide Independent Power June 2018 North American Generator Set
Market, Forecast to 2021, from Frost & Sullivan indicates that revenues in the North American generator set market will reach US$3.77 billion by 2021. “Generator OEMs will need to look
toward high-growth end-user segments, such as hospitals, data centres, office buildings, oil and gas, and residential, to drive product-line and customer-base expansion,” explains Lucrecia Gomez, Frost & Sullivan’s Energy & Environment Research Director . “Channel and partnership initiatives can be advanced by leveraging acquisitions and building profitable relationships with electrical and system contractors.” Essentially, this 68-page report by Frost
& Sullivan examines North America’s key generator market and concludes: “Commercial and industrial segments will thrive despite intense competition within the Rental and Mobile Space and High Operation sector, and with the scale of maintenance costs’. Contributing elements to this
conclusion include increased awareness among customers, higher power demand, unreliable grid infrastructure, and more severe and unpredictable power outages, These factors are likely to drive the demand for generator sets during the next 5 years, says Frost & Sullivan. The future and present market opportunities in North America (United States and Canada) are also discussed as well as the challenges faced by industry participants in a rapidly changing environment. The current market size is provided for
each segment and forecasted until 2021. Forecasts by competitive revenues and
• Growing demand for gas generator
sets from specific end-user segments like residential, data centers, office buildings, and mission-critical applications including hospitals • Booming standby generator sales; in 2016, this segment accounted for the majority of total gas and diesel generator set revenues at almost 80 percent • The 150 to 300kW range will be the fastest growing segment in the next four years for units sold • The growing popularity of mobile generators as they offer lower prices.
www.gmp.uk.com
shipments for natural gas generators and diesel generators are also provided, says the analyst. Revenue and units are tracked and
forecasted in the power range which includes <30kW; 30.1-60kW; 60.1-150kW; 150.1-300kW; 300.1-500kW; 500.1- 1000kW; and 1000.1-3000kW gensets. End user segments including
commercial gensets, industrial gensets, and residential gensets are covered; additionally, revenue is predicted by application including peak shaving, prime power, and stand-by. Market share is provided for the leading competitors, which include Caterpillar, Cummins, Generac Power Systems, and Kohler, among others. Developments and trends driving
growth in the North American generator set market include: • Small diesel generators; this segment will continue to be highly competitive, while the medium and large segments will be dominated by global OEMs due to their technical know-how and competitive pricing capabilities
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