Deficiencies In The Grid Power Supply Strengthen Adoption Of Gensets In Brazil, Finds Frost & Sullivan
Key manufacturers expand their portfolio to include large rated power gensets to meet demand
São Paulo Brazil /PRNewswire/ - Undependable grid power supply in Brazil is fuelling genset usage for both stand-by and prime power applications. The concentrated and mature Brazilian genset market will see growth as key manufacturers extend their portfolio to include large rated power gensets in response to requirements in the oil and gas industry and supportive policies for local manufacturing. Meanwhile, demand from the construction and entertainment industries will boost the low and medium rated power segments in the short term.
According to the new study from Frost & Sullivan (http://www.energy.frost.com), Analysis of the Brazilian Genset Market, market revenues are expected to rocket up to reach $1,472.3 million in 2017 from the $835.6 million in 2012.
The electricity system in Brazil is characterized by a high share of hydropower generation, which eventually causes drops in electricity production due to droughts. This leads to a perception of instability in the local power supply, which is fuelling the adoption of gensets for critical applications such as data centers, healthcare and financial services, which require a stable and reliable energy supply.
"With rapid economic growth, industries in Brazil are burgeoning at a faster pace that its electricity infrastructure," said Frost & Sullivan Energy and Power Research Analyst Gustavo Stainoh. "The need to handle the ensuing blackouts spurs the uptake of gensets. During peak hours, however, companies find it more feasible to get electricity from the grid due to the recent reduction in industrial electricity tariffs."
This reduces genset use in peak shaving applications. The introduction of low-cost, low-performance products from Asian manufacturers further affects market profits. The challenge is compounded by the lack of specific guidelines to regulate and certify equipment. Existing environmental regulations for emission control too stall project advancements, and even lead to their cancellation.
"Offering low-emission products, building partnerships with re-sellers, and reducing delivery times will help genset manufacturers overcome these restraints and stay competitive," suggested fellow Frost & Sullivan Research Analyst Paulo Zani. "Given the wide variety of growing end-user markets, competitors must also supply a range of products to cater to diverse needs and sustain growth in the Brazilian genset market."
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Analysis of the Brazilian Genset Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Argentinean and Chilean Stationary Genset Market, GCC Diesel Genset Market (15-2,000 kVA), Russian Genset Market, and Global Gas Genset Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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