Large Gensets Generating Interest

Industry observers are forecasting a rebound in the market for large generator sets, especially among commercial buyers interested in backup power. Orders for several large original-equipment manufacturers began increasing in late 2003, with a number reporting that previously stalled projects are restarting, according to “North American Large Generator Set Market,” a new report from Palo Alto, Calif.-based consultant Frost & Sullivan.

Researchers note that the manufacturing sector appears to be saturated, but that commercial users, who increasingly require 24×7 availability of information and services, are driving the demand. Natural-gas models are outpacing diesels, the report notes, recalling a preference pattern that held through the 1990s but was interrupted by economic recession in 2001.

The seeming recovery of telecommunications and Internet-related businesses is helping to boost interest among commercial customers, says the report. In addition, a couple of harsh Northeast winters and a recent California earthquake, along with continued security concerns, have raised interest in onsite-power options, researchers say.

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