Wind, rain, wildfires, hurricanes, tornadoes, floods, earthquakes, heavy snowfalls, ice and falling trees are all potential causes of unpredictable and often prolonged power outages. Combine these more frequently occurring natural events with increased demand for electric power and unreliable grid infrastructure, and it is easy to understand why there is an increased demand for generator sets.
A new study from the global research firm Frost and Sullivan, “Analysis of the North American Generator Set Market,” found that the market earned revenues of $3.58 billion in 2013 and is estimated to reach $4.96 billion by 2018.
“With the active involvement of the [Environmental Protection Agency] in enforcing regulations in North America, the demand for natural gas generator sets expects to increase consistently in the region,” said Lucrecia Gomez, Frost and Sullivan energy and environment research manager. “The adoption of diesel generator sets is also likely to rise, owing to the continuous investments in infrastructure-related projects.”
However, due to high initial installation cost, many industrial and residential end-users are reluctant to purchase generator sets, slowing market development. Market participants can attempt to overcome this, however, by making the most of the growing need for backup power in commercial buildings.
The intense competition from cogeneration and renewable-power generation technologies is yet another hurdle to gen-set market expansion, but participants, such as electrical contractors, can circumvent it by improving their value proposition and offering complete power-generation solutions rather than individual products.
“Market participants are revamping their product lines and choosing strategic distribution channels to increase affordability,” Gomez said. “Sales support and a strong brand image will compliment these efforts and strengthen their presence in the North American generator set market.”