Genset companies are making strides. A number of strategic alterations that place greater focus on developing gensets that comply with current and impending emission regulations are setting the tone for the industry. A new analysis from Frost & Sullivan has found that the global market for diesel gensets earned revenues of $7.16 billion in 2007 and is expected to increase to $10.28 billion by 2014.
However, with the green wave hitting countries, diesel gensets face the threat of being substituted by more energy-efficient forms of power generation.
“In the United States, stringent regulations relating to stationery power equipment already exist, while in Europe genset participants are preparing for Stage 3A regulation, which will render some of their product portfolios redundant,” notes Laryea. “The market conditions will become very favorable for engines running on natural gas and biofuels, while fuel cells are also anticipated to eat into the market share of diesels.”
While diesel gensets might be profitable today, tomorrow is another story as alternative forms of energy and technology continue to rise.