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Analysis of the North American Generator Set Rental Market
Economic Recovery and Increased Industrial Activity Drive Growth
NADD-14 June 2012
4 NADD-14
Executive Summary
5 NADD-14
Executive Summary
The overall North American generator set rental market is mature with the compound
annual growth rate (CAGR) expected to be around 3.7 percent between 2011 and 2017.
The degree of competitiveness is increasing as the market participants try to get a
stronger foothold in the generator set rental market.
The need for continuous power from certain end user segments, including hospitals,
telecom, and oil and gas are identified as the major driving factor for the market.
Economic slow down is hindering the growth of the market in the short term.
The utility and industrial segments are expected to grow more than other end user
segments.
Continuous power is the major revenue generating segment for the generator set rental
market in the application segment.
Aggreko is identified as the market leader with around 36.0 percent market share in the
North American generator set rental market.
With all the products serving the same purpose in terms of applications, it is highly
competitive in product differentiation and uniqueness.
Source: Frost & Sullivan analysis.
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Executive Summary Market Engineering Measurements
Market Stage
Mature
Market Revenue
$773.3 M
(2011)
Market Size at End of Forecast Period
$995.4 M
(2017)
Base Year Market Growth Rate
3.5%
Customer Price Sensitivity
8
(scale: 1 [low] to 10 [High])
Market Concentration
72.0%
Degree of Technical Change
5
(scale: 1 [low] to 10 [High])
Total Generator Set Rental Market: North America, 2011 Market Overview
For a tabular version click here. Stable Increasing Decreasing
(% of market share held by top 3 companies)
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
Compound Annual Growth Rate
3.7%
(CAGR)
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Number of Companies that Exited*
1
(2011)
Number of Companies that Entered*
0
(2011)
Number of Competitors
More than 15
(active market competitors in base year)
Executive Summary Market Engineering Measurements (continued)
Competitor Overview
Stable Increasing Decreasing
Replacement Rate
15 to 20 Years
(average period of unit replacement)
Total Addressable Market
*Companies with revenue of more than $50 M revenue. Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
8 NADD-14
Executive Summary
2 Identifying niche market participants will increase the customer base in certain segments such as oil and gas.
3 It is important to identify potential markets for power rental outside North America.
4 Market participants should include biofuel-based generator sets in the product portfolio.
1 End user segments will benefit from offering more customized products.
Source: Frost & Sullivan analysis.
57 NADD-14
Diesel Generator Set Rental Segment Breakdown
Important Segment Characteristics
Factors Assessment Trend
Opportunity Size ($M) $801.3 M Increasing
Primary Needs Reduced emissions Increasing
Price Sensitivity 7 Stable
Purchase Influencers Efficiency, reliability, availability, and
after-sales service Stable
Distribution Structure Direct sales, manufacturer
representatives, third party rental
suppliers
Stable
Demand for Innovation 5 Stable
Source: Frost & Sullivan analysis.
Key Takeaway: Environmental pressure for enhanced efficiency and reduced emissions drive rental companies to upgrade their generator sets.
62 NADD-14
Gas Generator Set Rental Segment Breakdown
Important Segment Characteristics
Factors Assessment Trend
Opportunity Size ($M) $194.1 M Increasing
Primary Needs Reduced emissions Increasing
Price Sensitivity 7 Stable
Purchase Influencers Efficiency, reliability, availability, and
after-sales service Stable
Distribution Structure Direct sales, manufacturer
representatives, third party rental
suppliers
Stable
Demand for Innovation 6 Stable
Source: Frost & Sullivan analysis.
Key Takeaway: Increase in natural gas availability combined with its low impact on the environment could drive the demand for gas generator sets in North America.
