European market is both stable and fast rising1 September 2007
The commercial and public infrastructure sectors are creating enhanced market prospects in the European diesel gensets market, according to new analysis by Frost & Sullivan.
New analysis from Frost & Sullivan (http://www.energy.frost.com), contained in its report European diesel gen-sets market – power range, end-user and competitive analysis, finds that the market earned revenues of USD958.2 million in 2006 and estimates this to reach USD1195 million in 2013. But the different countries of Europe provide quite different opportunities for diesel genset vendors. While the market in western Europe is relatively mature, the eastern Europe market is, in the words of F&S, ‘brimming with promise’ as rapid industrialisation and commercialisation create new opportunities. Although the western European market has been subdued, diesel gensets continue to be the mainstay of distributed power generation in Europe, especially for standby applications.
Increased construction activities in office space, retail outlets, and malls and public/ infrastructure development such as revamping of the transport infrastructure in eastern Europe are all expected to instigate growth in the prime power application sector.
“The increase in commercial infrastructure projects boosts the demand for power ranges between 75 and 375 kVA, and as the office spaces increase, the need for emergency or back up power will correspondingly increase” according to F&S research analyst Aarthi Balachandran. “Eventually commercial infrastructure activities will enhance market prospects for stand-by applications as well.”
Western Europe, however, is not witnessing any increase in commercial activities and hence its genset market in various power ranges is relatively subdued.
The lead-time for components such as alternators and engines is also increasing, directly affecting the manufacturing and delivery time of the gensets to which they are fittel. However, manufacturers can source alternators and engines at lower rates and try to cut down on manufacturing costs, which can be expected to help in dealing with price-focused competitors.
Further, manufacturers need to extend their product portfolios to suit changing power ranges as the end-user dynamics differ across the European region.
“Gen-set packagers must concentrate on various factors such as new products and markets, technological developments, end-user trends, product differentiation, distribution strategy and building favourable relationships with component suppliers, while devising strategies to compete in the market” says Balachandran. While it is essential to provide total maintenance, technical and after-sales support to customers, it seems that meeting customised demand is also an important factor in capturing market share.
An e-brochure containing an overview of the report European diesel gensets market - power range, end-user and competitive analysis is available by email from Chiara Carella, at [email protected], on receipt of an email with name and full company contact details.