“Increase in commercial infrastructure projects boosts the demand for power ranges between 75-375 kVA and as the office spaces increase, the need for emergency or back up power will correspondingly increase,” remarks Frost & Sullivan Research Analyst Aarthi Balachandran. “Eventually commercial infrastructure activities will enhance market prospects for stand-by applications as well.”
Western Europe, however, is not witnessing any increase in commercial activities and hence the gen-set market for various power ranges is quite subdued. The lead-time for various components such as alternators and engines is also increasing, directly affecting the manufacturing and delivery time of the gen-sets. However, manufacturers can source alternators and engines at lower rates and try to cut down on the manufacturing costs, which will help in dealing with price-focussed competitors.
Further, manufacturers need to extend their product portfolios to suit changing power ranges as the end-user dynamics differs across the European region.
“Gen-set packagers must concentrate on various factors such as new products and markets, technological developments, end-user trends, product differentiation, distribution strategy and building favourable relationships with component suppliers, while devising strategies to compete in the market,” reiterates Balachandran.
