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Palo Alto, Calif., Oct. 1, 2003 -- End-users of portable generators face possible price increases, precipitated by an increase of equipment costs, generated by refinement of technology to meet new, tough environmental regulations.
New analysis from Frost & Sullivan (www.frost.com), North American Portable Power Markets, reveals this market generated revenues worth $489.3 million in 2002 and is likely to reach $828.4 million by 2009. During this period, the market will continue to be dominated by conventional generator sets .
By 2008, generator sets in all output categories are expected to come under the scope of environmental regulations, until now meant only for larger diesel units. This is posing a greater challenge for manufacturers, as they have to adhere to new emission standards, but cannot afford to significantly raise unit prices.
"As pressure from regulatory bodies such as the Environmental Protection Agency increases, companies need to focus on improving conventional reciprocating engine technology and also accelerate the commercialization of fuel cells, which is touted as 'no emission' technology," says Frost & Sullivan Senior Industry Analyst, Ravi K.
Both developments referred to by the Frost & Sullivan analyst are likely to occur concurrently. Fuel cells have long-term attraction and are conceptually superior to reciprocating engine technology. Many end users in commercial, and telecom segments, might opt for these sophisticated power systems.
However, fuel cells have to demonstrate superior reliability and produce significant cost reductions to prevent end users from shifting to other power storage solutions such as UPS or ultracapacitors.
Driven by the obvious need for backup and prime power supply, and growing concern about grid reliability, the industry has made significant technological advancements in the recent past by introducing invertors, variable speed engines, and dual power and dual frequency generators.
"Companies have to diversify their product range for long-term growth, whereas short-term growth can be achieved by product differentiation," says Ravi.
Meanwhile, there is a compelling need to educate homeowners, who are the largest end-users of portable power generators. This segment has limited awareness about their specific needs and even less product knowledge, often times buying products unsuited for their requirements.
Market participants are focusing on increasing end-users' awareness and technical knowledge. This is expected to increase demand and revenues, and prevent modern energy storage technologies from reducing market share.
This ongoing growth opportunity analysis is part of the Power Generation Equipment and Services Subscription, which includes market insights on North American Fuel Cell Markets, World Hybrid Power Systems Markets, and North American Cogeneration Equipment Markets. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies.
Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. The company's market expertise covers a broad spectrum of industries, while its portfolio of advisory competencies include custom strategic consulting, market intelligence and management training. Its mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff, spans the globe with offices in every major country.
Contact:
Nuha Kadri
Media Relations Executive
P: 210.247.2440
F: 210.348.1003
E: nkadri@frost.com
www.frost.com
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