by Shane Henson — June 23, 2014—Severe and unpredictable power outages, increased power demand, and unreliable grid infrastructure in North America are prompting the need for generator sets in North America, according to a new report released by Frost & Sullivan, a provider of market analysis, business intelligence, global industry analysis, custom consulting, and growth consulting.
Per the report, Analysis of the North American Generator Set Market, the market received a boost from increased awareness among end users on the features and benefits of backup power systems as well as the best-suited generator sets for personal use. In 2013, the market earned revenues of $3.58 billion, and Frost and Sullivan estimates this will reach $4.96 billion by 2018.
However, because of high initial installation cost, many industrial and residential end users are reluctant to purchase generator sets. This is slowing market development as well as several housing projects. Market participants can attempt to overcome this by making the most of the growing need for backup power in commercial buildings, says Frost & Sullivan.
The intense competition from cogeneration and renewable power generation technologies is yet another hurdle to market expansion, but participants can circumvent it by improving their value proposition and offering complete power generation solutions rather than individual products, the firm advises.
