A Strong Distributor Network Promotes Growth in the European Diesel Generator Set Market, Says Frost & Sullivan

LONDON, July 15, 2010 - One of the key factors driving the European diesel generator set market
is the presence of a strong distributor network. Local distributors are more
able to adequately judge the needs of the European market, which is essential
to map end-user dynamics and gain repeat business. Additionally, a strong
network provides customers with timely and efficient service in case of
repairs.

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New analysis from Frost & Sullivan (www.energy.frost.com),
European Diesel Generator Set Market, finds that the market earned revenues
of US$1057.8 million in 2009 and estimates this to reach US$1125.6 million in
2016. The end-users covered in this research service include residential,
commercial, industrial and infrastructure/public.

"A well developed distributor network coupled with a need to upgrade
engines to meet new emission norms is set to be a growth impetus for diesel
generators in Europe," says Frost & Sullivan Research Analyst Rajanand Rao.

However, the generator set market in Europe did not escape the negative
repercussions of the global economic downturn. Having experienced a decrease
in demand, the market is expected to struggle to gain new orders and achieve
growth in the short-term. In response, companies should capitalise on their
distributor networks to sustain themselves, especially when the demand is
low.

"The market for diesel generators, especially in Western Europe is
approaching maturity largely due to the stabilisation of grid infrastructure
and a drop in construction activity," says Rajanand. "Additionally, recurring
fuel and maintenance costs translate to higher expenditures for the end
users."

Market participants should focus on the developing Eastern European
markets, while providing value-added services, such as project funding, to
attract customers and generate revenues.

"Eastern Europe, as a region, was relatively unscathed by the economic
crisis compared to Western Europe. A case in point is Poland, where a vibrant
construction industry, which grew over the last few years, sustained a
positive although reduced gross domestic product (GDP)," concludes Rajanand.
"These countries provide growth opportunities for equipment suppliers."

If you are interested in a complimentary brochure on this study, please
send an e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city and country.

European Diesel Generator Set Market is part of the Energy & Power Growth
Partnership Services programme, which also includes research in the following
markets: Cogeneration/CHP, Power Plant Equipment and Utilities. All research
services included in subscriptions provide detailed market opportunities and
industry trends that have been evaluated following extensive interviews with
market participants.

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European Diesel Generator Set Market

M56C

    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44-0-20-7343-8314
    M: +44-0-753-3017689
    E: chiara.carella@frost.com

    www.frost.com

Chiara Carella, Corporate Communications - Europe of Frost & Sullivan, +44-0-20-7343-8314, Mobile, +44-0-753-3017689, chiara.carella at frost.com