Simple Operation and Maintenance Drives Demand for North American Generator Sets

PALO ALTO, Calif.--(Business Wire)--Developments in the commercial domain reveal lucrative market
opportunities for generator sets for standby and base power
application. In areas where renewable energy technologies are not
viable, generator sets continue as the power source of choice because
of their simple operating mechanism and easy installation.

New analysis from Frost & Sullivan (http://www.energy.frost.com),
North American Generator Set Markets, finds that the market earned
revenues of $2.98 billion in 2006 and expects to reach $4.29 billion
in 2013.

If you are interested in a virtual brochure, which provides
manufacturers, end users, and other industry participants with an
overview of the North American generator set markets, then send an
e-mail to Johanna Haynes, Corporate Communications, at
johanna.haynes@frost.com, with the following information: your full
name, company name, title, telephone number, e-mail address, city,
state, and country. We will send you the information via e-mail upon
receipt of the above information.

The North American generator set market is mature, but far from
saturated, as is evident from its dynamic growth in the last few
years. The commercial sector end-user group contributes heavily to
this growth due to increased construction of new telecom and IT
offices, buildings and data centers, as well as the booming resource
sector. The high sales figures of small generator sets are indicative
of the rapid growth of the computer industry.

"Telecommunication towers are increasingly upgraded from battery
back-up to generator sets, which are an improvement over the former,
as batteries tend to add more heat and require more equipment," says
Frost & Sullivan Director of Energy and Power Systems, Roberta Gamble.
"IT companies need prompt Internet connectivity and uninterrupted
operations, generating demand for back-up power and also increasing
sales of generator sets in the low-end range."

The opening of several new revenue streams should not slacken
manufacturers' focus on factors such as the Environmental Agency's
(EPA) present and future regulations regarding emission controls.
While these regulations are likely to be more stringent, there will be
additional threats from increased robustness of power infrastructure
in the region and growing awareness of renewable energy technologies.

"North America is notorious for its greenhouse gas emissions and
there is pressure on generator set end users to periodically improve
and renew their fleet with the changes in engine technology and
emission laws," observes Gamble. "Gradually, the market may also see a
shift toward renewable energy technologies that are deemed more
environmentally friendly and may also carry reduced operation and
maintenance costs.

"To prevent this situation, original equipment manufacturers
(OEMs) and generator dealers must show greater prudence while devising
their marketing and distribution strategies. They have to highlight
their products' benefits of standby application, quick generation of
power for peak shaving purposes and cost effectiveness in case of
blackouts to compete effectively with new technologies on more than
just price."

However many end users still prefer generator sets to alternative
power sources for their easy availability, lower capital expense and
simplicity of operations.

"Generator sets are gainful and cost-effective tools for
energy-intensive companies and industries to meet their short-term
power requirements as well as decrease their losses in case of
outages," notes Gamble. "Demand has been burgeoning for standby
applications of generator sets, as well as peak shaving applications
during summer months, when additional power capacity is required."

North American Generator Set Markets is part of the Energy & Power
Growth Partnership Service program, which also includes research in
the following markets: North American wind power, North American
residential and non-residential solar power, as well as North American
fuel cells. All research services included in subscriptions provide
detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.
Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners
with clients to accelerate their growth. The company's Growth
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empower clients to create a growth focused culture that generates,
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companies, emerging businesses and the investment community from more
than 30 offices on six continents. For more information about Frost &
Sullivan's Growth Partnerships, visit http://www.frost.com.

North American Generator Set Markets

N2A9

Frost & Sullivan
Corporate Communications - North America
Johanna Haynes, 210-247-3870
F: 210-348-1003
johanna.haynes@frost.com
or
Corporate Communications - Europe
Chiara Carella, +44 (0) 20 7343 8314
chiara.carella@frost.com
or
Corporate Communications - Southeast Asia
Donna Jeremiah, +603 6304 5832
F: +603 6201 7402
djeremiah@frost.com
or
Corporate Communications - South Asia, Middle East
Ravinder Kaur, +91 44 42044515
F: +91 44 24314264
ravinder.kaur@frost.com
or
Corporate Communications - Latin America
Jose Maria Jantus, + 54-11-4777- 9951
F: + 54-11-4777-0071
jose.jantus@frost.com
or
Corporate Communications - China
Bo Zhang, +86 21 5407 5780-86 ext 8611
F: +86 21 5407 5825
bo.zhang@frost.com
or
Corporate Communications - Australia & New Zealand
Sharmin Jassal, +61 2 8247 8900
F: +61 2 9252 8066
sharmin.jassal@frost.com
or
Corporate Communications - Africa
Patrick Cairns, +27 21 680 3274
F: +27 21 680 3296
patrick.cairns@frost.com
http://www.frost.com

Copyright Business Wire 2008