Assessing the UK genset market

A review of the UK genset market up up 750 kVA has been published by AMA Research. The 104 page report analyses the market size, key trends, product mix, market shares, customer groups and distribution channels.

The market in 1997 was estimated at £200 million at manufacturer's prices, an increase of 8 per cent over 1996. The chart shows the market development from 1993 to 1997, with forecast sales up to 2002.

The genset market is influenced by a variety of factors, both at the macro and the micro level. Macro factors include the influence of the major end-use sectors such as water and sewage, oil and gas, marine and industrial. While some sectors are growing, others are stable or declining. Macro factors also include genset integration with computer technology via UPS-linked systems.

Micro factors are favourable in so far as:

Gas engines enable gensets to penetrate new market areas, often through more acceptable emissions levels.

CHP plants - either gas or diesel - enable gensets to penetrate new market areas.

Development of control and remote monitoring systems enhances genset competitiveness.

It is forecast that expansion of the UK genset market will be driven by:

Wider applications of computer control and the need for UPS systems incorporating a standby generator.

Construction activity relating to: the Millenium; renewal of fossil-fuelled power stations; railway projects; commercial construction projects.

Expansion of the market may also be driven by the level of electricity prices.

There is a trend towards greater concentration in the UK genset industry, such as the acquisition of Varity Perkins by Caterpillar. There is also a move towards globalisation and links with competitors to provide partnerships to develop new products and markets.