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New Areas of Demand Increase Growth Potential of the Global Diesel Gensets Market - Gensets companies are making a number of strategic alterations as market dynamics begin to shift
New Areas of Demand Increase Growth Potential of the Global Diesel Gensets Market

 

NewswireToday - /newswire/ - London, United Kingdom, 2008/11/17 - Gensets companies are making a number of strategic alterations as market dynamics begin to shift.

   
 
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Greater focus is being placed on developing regions, where the bulk of new opportunities will be concentrated, as well as on providing gensets that comply with current and impending emission regulations.

The increasing emphasis on eco-friendly power generation means diesel genset market participants are entering a challenging period. However, it is one which also offers gensets manufacturers the opportunity to establish themselves as reputable providers of quality, ‘built to comply’ diesel gensets, as well as allows them to focus on market penetration strategy for some of the world’s unregulated markets.

New analysis from Frost & Sullivan (power.frost.com), Global Growth Opportunities in the Diesel Gensets Market, finds that the earned revenues of $7.16 billion in 2007 and estimates this to reach $10.28 billion by 2014. Frost & Sullivan finds that gensets below 60 KW were the dominant market driver, worth $2.1 billion in 2007 and forecast to reach $3.8 billion in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the global growth opportunities in the diesel gensets market, then send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

“North America and Europe are both mature markets, and the bulk of new opportunities will come from emerging markets in Asia, the Middle East and Latin America,” notes Frost & Sullivan Research Analyst Nathan Laryea. “As countries in these regions modernise and develop, there will be a significant increase in the demand for gensets.”

The European and North American gensets markets are dominated by established international companies with a vast and loyal customer base. In contrast, brand loyalty is very low in the developing world and companies armed with quality products and an effective marketing strategy will have a chance of achieving market penetration. In addition, countries in regions such as Asia and Latin America are recording economic growth far in excess of most Western nations, and the demand for power has increased considerably as a result. Moreover, the global financial turmoil is expected to have a lower impact on these regions as compared to the developed European and North American economies.

In the longer term, gensets participants will face the challenge of complying with emission regulations and, more broadly, the task of surviving in a market that will be increasingly inhospitable for so called ‘old’ energy companies. In such a climate, diesel gensets face the threat of being substituted by more energy-efficient forms of power generation.

“In the United States, stringent regulations relating to stationery power equipment already exist, while in Europe genset participants are preparing for Stage 3A regulation, which will render some of their product portfolio redundant,” notes Laryea. “The market conditions will become very favourable for engines running on natural gas and bio fuels, while fuel cells are also anticipated to eat into the market share of diesels.”

Gensets manufacturers must understand that the demand for diesel-powered gensets will continue to be strong, even though the market environment may appear less hospitable. Diesel remains an excellent means of power generation, and the market for ‘built to comply’ gensets will be lucrative.

“Companies that demonstrate technological innovation in producing ‘built to comply’ engines with similar levels of performance will continue to experience growth,” concludes Laryea. “Moreover, there are still a number of unregulated markets, most notably China, where companies can still distribute some of their old product portfolio.”

Global Growth Opportunities in the Diesel Gensets Market is part of the is part of the Energy & Power Growth Partnership Services Programme, which also includes research in the following markets: European Diesel Gensets Market Forecast, North American Generator Sets Market and Southeast Asia Generator Sets Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

Global Growth Opportunities in the Diesel Gensets Market
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New Areas of Demand Increase Growth Potential of the Global Diesel Gensets Market

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Publisher Contact: Chiara Carella 
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