Demand for cleaner power sources boosts gas genset sales, finds Frost & Sullivan
LONDON, Feb. 25, 2020 /PRNewswire/ -- Stringent environmental regulations, declining gas prices, and increasing demand for flexible transmission of renewable power have sparked a growing interest in gas-powered generator sets in Europe. A recent analysis by Frost & Sullivan shows that the market revenue for gas gensets in Europe is expected to expand at a CAGR of 5.3%, from $307.2 million in 2018 to $441.6 million by 2025, while unit sales are set to increase at a CAGR of 3.2%, reaching 2,034 units by 2025.
"As Europe moves towards meeting its emission reductions targets by 2030, the gas gensets market is positioned for fairly good growth in the near future," said Jonathan Robinson, Global Energy Program Lead at Frost & Sullivan. "Gas gensets are expected to gain market share among end-user segments that were dominated by diesel gensets as the region moves towards lower-emission fuel sources."
Frost & Sullivan's latest research, European Gas Generator Set (Genset) Market, Forecast to 2025, addresses the major challenges faced by participants in a dynamic gas-powered genset industry in Europe. The report examines the competitive forces driving the market in Europe, highlights present market opportunities, offers additional information on the regions to look at for future investment, and includes growth strategies. Market metrics for all major European regions are also provided.
For further information on this analysis, please visit: http://frost.ly/40d
The strengthening of the gas pipeline infrastructure and storage network across Europe is leading to the increasing uptake of gas gensets in prime power and back-up power applications. The dominance of diesel gensets in back-up power applications is also being disrupted by gas gensets as a result of stringent environmental emission regulations and declining natural gas prices. The replacement market for gas gensets presents strong growth prospects as customers move towards the latest generation of gensets to power their operations.
"The growth of power storage is also expected to play a role in increasing gas gensets sales, as the demand for hybrid gensets with power storage capabilities rises," noted Robinson. "Furthermore, expansion of product lines and product differentiation through acquisitions or new product introductions by establishing partnerships and new channels will expand customer reach."
Market participants can also leverage the opportunities for growth in:
- Optimizing operations to reduce costs and generate higher revenues.
- Introducing new product lines to extend consumer reach.
- Integrating gas gensets with power storage capabilities for better product differentiation.
- Incorporating active emission control measures to meet new norms.
European Gas Generator Set (Genset) Market, Forecast to 2025, is a part of Frost & Sullivan's Energy and Environment Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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European Gas Generator Set (Genset) Market, Forecast to 2025
SOURCE Frost & Sullivan