Continuously rising electricity prices will promote demand for on-site power. This, together with the general trend towards expanding the share of natural and non-natural gas in the power generation fuel mix, will strongly drive market development in the European Union.
Although the market has already reached maturity, it still presents opportunities. However, companies will need to confront challenges such as increasing competition and changes in market structure. An evolving landscape of end-user groups and applications will create new niches that market participants can leverage.
“Despite gas gen-sets gaining increasing interest from market participants as well as existing and potential customers, their price and the price of natural gas will continue as the main barriers to market enlargement,” cautions Stepien. “At the same time, since modern equipment offers ever greater flexibility in terms of fuel, these applications are becoming more competitive than diesel gen-sets.”
Technology providers need to enhance their portfolios in terms of advanced product offerings which present the fastest growth rates, besides focusing on fuel flexibility. They must also understand changing customer preferences. Evolving end-user segmentation, new market segments as well as the increasing number of replacement units in the total market should be considered while designing an appropriate market strategy.
