Strong client relationships, hybrid genset products, and
R&D efforts will multiply growth opportunities, finds Frost
& Sullivan's Power Generation team
LONDON, May 23, 2017
/PRNewswire/ -- While low economic growth is expected to keep
the diesel generator set (genset) market subdued until 2020,
several factors are sustaining market potential. These include the
growth of data centres, rising infrastructure investments, low
diesel prices due to falling oil prices, and capacity market
auctions in the United
Kingdom. Environmental and emission regulations in
Europe are expected to play
a key role in the future usage of diesel gensets. This will cause
industries to move toward cleaner burning power generation such as
renewables and gas. Companies that focus on client relationships,
and offer newer, high-quality, reduced diesel fuel emission
products like hybrid gensets, are positioned for growth.
European Diesel Generator Set (Genset) Market, Forecast to
2020, new analysis from Frost & Sullivan's Power
Generation Growth Partnership Service program, includes an
in-depth analysis of the European diesel genset market with a
specific focus on drivers and restraints, opportunities, challenges
faced by industry participants, applications, and competitive
landscape for key market players such as Caterpillar,
Cummins, SDMO, Himoinsa,
MTU, Pramac, and Euro Diesel.
"The diesel genset of 1MW power range segment is set to benefit
as demand intensifies from data centres, with their high-power
requirements and need for solutions with quick start-up times and
maximum reliability," explained Frost & Sullivan Energy &
Environment Industry Analyst Manoj
Shankar. "Data centre networks across Europe are witnessing increasing investment
from technology companies, such as Apple, Salesforce.com, IBM,
Google and Amazon, to tackle intensive data creation,
tougher data protection laws, and the expansion of banks and
technology companies within Europe."
For complimentary access to more information on this
analysis, or to talk to us, please email Anna Zanchi, Corporate Communications:
anna.zanchi@frost.com
Regional developments and trends positively impacting the
European diesel genset market include:
- Increasing construction and commercial activity in
Eastern Europe and the
Nordic region;
- Capacity auctions and increased usage of diesel as backup power
for data centres in the United
Kingdom. Industrial investments will also increase once
post-Brexit trade tariffs with the European Union are
negotiated;
- Diesel genset market growth in France due to an expected industrial
revival;
- Demand for diesel gensets from new applications like grid
support in Germany, where
gensets are used in parallel with solar photovoltaic;
- Economic growth in Ireland and Spain;
- Rising construction sector will aid development of the genset
market in Western Europe, while
intense competition from Asian participants, especially
Turkey and China, will keep prices low in Southern
and Eastern Europe;
- Market in Italy is
growing slowly with 20 small and medium active participants;
and
- High data centre activities concentrated on financial centres
in Belgium and
Netherlands, making these
countries genset market hotspots.
"With nearly 40 per cent operational cost saving expected
from hybrid gensets due to low diesel fuel consumption and
reduced maintenance visits, adoption and customer preference are
expected to grow at a high rate in Europe in the near future," noted Shankar.
"Companies should invest in research and development to create
innovative products to support sustainable long-term market
growth."
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Contact:
Anna
Zanchi
Corporate Communications – Europe
P: +39.02.4851 6133
E: anna.zanchi@frost.com
http://www.frost.com