New analysis from Frost & Sullivan finds that the global market for diesel generator sets earned $11.22 billion in 2013, and will grow to $15.72 billion by 2018. The study examined the residential, industrial commercial, and institutional end-user segments of the market.
A growing world population and increased need for electricity is fueling the demand. Investments in infrastructure like roads, railways, and airports will spur further market growth, especially in Russia, China, and India.
“Lack of reliable grid infrastructure in several regions encourages the uptake of diesel generator sets,” said Frost & Sullivan Energy and Environmental Industry Analyst Rajalingam Chinnasamy. “Natural disasters and terrorist attacks have highlighted the need for emergency backup power solutions, widening the scope for diesel generator set manufacturers around the world.”
This growth will be tempered by the availability of cheap gas, which will lead end users to opt for gas generators over diesel ones. Additionally, consumer environmental concerns are also driving end uses to pay closer attention to alternative power sources like solar and fuel cells.
Frost & Sullivan concludes that there are ways to sustain growth in the diesel genset market, including:
· Introducing dual-fuel generators which might appeal to a larger consumer base
· Offering customized servicing packages to attract cross-segment consumers
· Offering one-stop solutions in higher output ranges to develop customer loyalty
· Fostering inorganic growth, which is the best strategy for penetrating markets in Latin America, India, and China
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