MOUNTAIN VIEW, Calif., June 19, 2014 /PRNewswire/ -- Severe and unpredictable power outages, increased power demand, and unreliable grid infrastructure in North America are prompting the need for generator sets in the region. The market received a boost from increased awareness among end users on the features and benefits of backup power systems as well as the best-suited generator sets for personal use.
New analysis from Frost & Sullivan, Analysis of the North American Generator Set Market, finds that the market earned revenues of $3.58 billion in 2013 and estimates this will reach $4.96 billion by 2018.
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"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 Frost & Sullivan Energy & Environment Research Manager Lucrecia Gomez. "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. This is slowing market development as well as several housing projects. Market participants can attempt to overcome this 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 market expansion, but participants 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," noted Gomez. "Sales support and a strong brand image will compliment these efforts and strengthen their presence in the North American generator set market."
Analysis of the North American Generator Set Market is part of the Energy & Power (http://www.energy.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of the Global Diesel Generator Set Market, Global Gas Gen-Sets Market, Dual Fuel Generator Sets Outlook, and Analysis of the Global Data Center Uninterruptible Power Supplies Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of the North American Generator Set Market
Corporate Communications – North America
SOURCE Frost & Sullivan