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Data Centre Applications Drive Growth of Diesel Gensets in an Otherwise Declining Market
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The slowing economic and industrial conditions in Europe are expected to play a significant role in the diesel genset market in the coming years. A steady decline in revenues is expected in the market with recovery likely from 2018. The market is mainly driven by growth in standby applications for data centres used by banks and technology companies. Infrastructure investment in Europe, mainly Eastern Europe and Spain, is expected to aid in the development of the market for diesel gensets. High growth is expected in higher power gensets above 1 MW, mainly driven by growth in data centres, while high growth in medium power gensets in the range of 150–300 KW is expected due to continued infrastructure and commercial investments in Europe. Capacity markets auctions in the UK are also key drivers for the diesel genset market in the continent, but could face opposition, as environmental concerns could limit future growth. The market is also expected to face headwinds in the form of competition from other sources of power, mainly gas-based and renewable energy generation. Moreover, the image of diesel as a polluting source of power generation is expected to be a challenge for the market in the future. The market is expected to garner a revenue of EUR 1.47 billion by 2020. Market trends have been analysed for the study period between 2014 and 2020, with the base year being 2015. The study covers all countries in continental Europe including Norway and Switzerland. The standby power segment is expected to dominate the market during the forecast period.The study assesses genset companies across Europe and discusses the market shares held by the companies in this market. Fierce competition is expected, especially in Eastern Europe, from Chinese and Turkish participants that compete with cheaper products. Some companies that have been considered for this study are Caterpillar, SDMO, Cummins, MTU, Himoinsa, Pramac, Atlas Copco, Visa, and so on. The following are the key questions this study will answer. 1) Is the market growing, how long will it continue to grow, and at what rate?2) What are the key drivers and restraints for the diesel genset market within Europe?3) How does the market vary between various power ranges for different countries?4) How do prices vary between various power ranges?5) What are the key applications for the gas genset market in Europe in various countries?6) Are competitors from Asian regions trying to gain a market share in the European market? If so, where are they concentrated?
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