Product category:
Engineering Industry Reports and Surveys
News Release from: Frost and Sullivan
Edited by the Engineeringtalk Editorial
Team on 01 May 2006
Gen-set market trends analysed
A recent study on trends in the European gen-set market reveals that the market is witnessing continued foray of new competitors.
A recent Frost and Sullivan study on trends in the European gen-set market reveals that the market is witnessing continued foray of new competitors As a result, growth will depend on efforts to explore new avenues and expand niche areas
For the purpose of this study, senior and leasing managers of gen-set rental companies in France, Germany, Italy, Spain and the UK were interviewed.
"Gen-set competitors are increasing their focus on the rental sector with enhanced attention towards product and service offerings that offer high growth potential", says Colin O'Hanlon, Programme Manager, Power and Energy at Frost and Sullivan.
"Further, as end-user acceptance of the rental option grows, gen-set rental companies are likely to provide manufacturers with opportunities to significantly expand their sales volumes".
"As major market participants face the challenge of expanding their geographical presence and improving their market share, careful selection of the brand's identified key product strengths to compete against local incumbents will become essential", remarks O'Hanlon.
"In addition, establishing strategic alliances or acquiring local market contenders will prove beneficial".
Low-priced competitors such as Himoinsa and Pramac that traditionally competed in the small-sized gen-set range (below 500kVA) are increasingly posing a threat to established participants in the large-sized ranges of up to 2500kVA.
As a result, participants that hold significant share in their domestic markets such as FG Wilson in the United Kingdom and SDMO in France will do well to offer product differentiation to sustain their market revenues.
Respondents displayed a preference for small and medium-sized gen-sets.
Moreover, with the exception of France, where the proportion of gen-sets leased to the construction industry and the industrial segment is almost equal, six out of ten gen-sets are leased to the construction industry.
In the context of purchasing preferences of gen-set rental companies, the study found that the quality of the product was the most significant criteria followed by the initial cost, product features, service offerings and the lifetime cost.
Moreover, respondents also evaluated reliability, low noise levels, durability, spillage containment and emission levels as the most crucial product attributes that influence their purchase decisions.
The research service revealed that about 78% of companies possessed in-house gen-set service capabilities.
Further, rental companies described emergency field repair capabilities as the most significant after-sales service, followed by routine field as well as fleet maintenance.
Another finding of the Frost and Sullivan study was that about 87% of rental companies purchased gen-sets directly from manufacturers.
The study also revealed that gen-set providers such as Atlas Copco, Caterpillar, SDMO and FG Wilson enjoy a high level of brand awareness in the market.
Despite current efforts to reduce costs and boost profit margins, it will also become essential to ensure a reduction in existing inefficiencies as well as the delivery lead time.
• Frost and Sullivan: contact details and other news
• Email this article to a colleague
• Register for the free Engineeringtalk email newsletter
• Engineeringtalk Home Page
Search the Pro-Talk network of sites
