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North American Generator Set Market
Frost & Sullivan, Nov 2007, Pages: 65
Emergence of New End-user Groups Boosts the North American Generator Set Market
The North American generator set market is mature, but far from saturated, as is evident from its dynamic growth in the last few years. However, manufacturers will have to show greater prudence while devising their marketing and distribution strategies and identifying potential growth areas. They will be greatly helped along in their market expansion efforts by the developments in the commercial sector. This end-user group presents lucrative market opportunities due to the increased construction of new telecom and IT offices, buildings, and data centers as well as the booming resource sector.
The high sales figures of small generator sets are indicative of the rapid growth of the computer industry. 'The majority of the telecommunication towers are getting their battery back-up replaced with generator sets, which are an improvement over the former, as batteries tend to add more heat and require more equipment,' says the analyst of this research service. 'IT companies need prompt Internet connectivity and uninterrupted operations, generating demand for back-up power and thereby, sales of generator sets in the low-end range.'
Simplicity in Operations and Maintenance Drives Demand for Generator Sets
The opening up of several new revenue streams should not slacken manufacturers’ focus on factors such as the Environmental Agency’s (EPA’s) present and future regulations regarding emission controls. While these regulations are likely to become more stringent, there will be additional threats from the increasing robustness of the power infrastructure in the region and growing awareness of renewable energy technologies. However, participants can take heart from the fact that many end users still prefer generator sets to alternative power sources for their easy availability, low fuel costs, and simplicity of operations.
In due course, adequate infrastructure and a drop in the prices of fuel will gradually aid the growth of the generator sets market. 'Generator sets are gainful and cost-effective tools for energy-intensive companies and industries for meeting their short-term power requirements as well as decreasing their losses in case of any outages,' notes the analyst. 'Demand has been burgeoning for stand-by applications of generator sets as well as for peak lopping applications during the summer months, when additional power capacity is required.'
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Transmission and distribution
- Power generation
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