Further growth hinges on whether important end-user segments such as construction are able to maintain the demand momentum over the forecast period. Eastern Europe is also expected to present significant opportunities over the medium to long term.
New analysis from Frost & Sullivan (energyandpower.frost.com), European Portable Gen-set Market, finds that the market earned revenues of $378 million in 2007 and estimates this to reach $485 million in 2014.
"Rental and construction companies are the most important end users of portable gen-sets and demand from these end users is a major driving factor for this market," notes Frost & Sullivan analyst. "While the smaller power ranges below the 5 kVA usually cater to residential end users, power ranges above 5 kVA are in demand in the rental and construction industries."
By stocking portable gen-sets, mass retail channels are playing a pivotal role in increasing their visibility. This distribution channel has significantly impacted demand from residential end users (home and garden use). Given the low prices at which leading retail outlets stock the units, end users are tempted to buy the product in the eventuality that they will need it in the future. Demand is being driven by an increase in awareness levels, rather than an actual need, especially in the residential end-user segment.
However, changing emission and noise regulations could prove a significant restraint for the market, as they infuse the need to reengineer and redesign the products. The market is also witnessing the influx of low-price products of Asian origin, which are non-branded and cater essentially to home owners. This has heightened price competition in an already competitive market.
"Furthermore, home owners in Western Europe are showing a preference for electric-powered generators over diesel or gasoline sets due to the increased awareness of emissions," says the analyst. "Hence, the availability of other alternative sources of portable power, such as inverters, is likely to affect market prospects."
Given these challenges, manufacturers will need to offer price-competitive products that cater to the exact needs of customers. By incorporating flexibility and robustness in the design, manufacturers will be able to effectively position their products across a variety of end users.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the European portable gen-set market, then send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.
European Portable Gen-set Market is part of the Energy and Power Growth Partnership Service programme, which also includes research in the following markets: Middle East and African Gen-set Markets, Latin American Gen-set Market, European Diesel Gen-set Markets, South East Asian Power Rental Markets, North American Gen-sets, European Power Rental Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting, and Career Best Practices empower clients to create a growth focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 30 offices on six continents.
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