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Generator Set Market Prepares for Expansion Fuelled by Greater Power Demand, Power Outages and Customer Awareness


News provided by

Frost & Sullivan

17 May, 2017, 12:05 GMT

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Comprehensive product offerings will accelerate growth opportunities in a fiercely competitive ecosystem, finds Frost & Sullivan's Power Generation team

SANTA CLARA, California, May 17, 2017 /PRNewswire/ -- Severe power outages, increased awareness among customers, fragile power grid systems, and greater power demand are key factors set to drive the North American generator set market. Since the market is both fiercely competitive and highly consolidated, original equipment manufacturers (OEMs) will engage in strategic moves to expand their operations. Companies that have the ability to integrate the power products into midstream activities and provide a complete solution are positioned for growth.

North American Generator Set Market, Forecast to 2021, recent analysis from Frost & Sullivan's Power Generation Growth Partnership Service program, finds that the North American generator set market revenues will reach $3.77 billion by 2021. The study includes an in-depth analysis of the market with a specific focus on drivers and restraints, opportunities, challenges faced by industry participants, applications, and competitive landscapes for key market players such as Caterpillar, Cummings, Generac Power Systems, Kohler, etc.

To learn more about Frost & Sullivan's findings and to sign up for our Growth Strategy Dialogue, a complimentary one-hour interactive session with Frost & Sullivan's thought leaders, please click here.

"Generator OEMs will need to look toward high-growth end-user segments, such as hospitals, data centers, office buildings, oil and gas, and residential, to drive product-line and customer-base expansion," said Frost & Sullivan Energy & Environment Research Director Lucrecia Gomez. "Channel and partnership initiatives can be advanced by leveraging acquisitions and building profitable relationships with electrical and system contractors."

Developments and trends driving growth in the North American generator set market include:

  • Booming stand-by 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
  • 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
  • Growing demand for gas generator sets from specific end-user segments like residential, data centers, office buildings, oil and gas, and mission-critical applications, including hospitals
  • Growing popularity of mobile generators as they offer lower prices and multi-use capacity that better suit certain end-user requirements
  • OEMs will invest in innovative marketing tools, advanced sales tools, distribution strategies, and training to streamline operations, minimize price impact, aid efficiency and productivity, and build market share

"With an increase in commercial activities and a favorable regulatory framework for the oil and gas midstream industry, the industrial and commercial segments are likely to drive growth in the total generator set market," noted Gomez. "However, increasing penetration in the medium generator set segment, with a good level of customization, will be critical to success."

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

North American Generator Set Market, Forecast to 2021
K145-14

Contact:
Jaylon Brinkley 
Corporate Communications – North America 
P: (210) 247.2481
F: (210) 348.1003 
E: jaylon.brinkley@frost.com

www.frost.com 
@FrostSullivanEE

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