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Residential Generator Demand Increases
Mar 30, 2007
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New analysis from Frost & Sullivan, a global consulting company, states that residential generators are increasingly becoming necessities among small households in the U.S. Apart from increasing power outages and rising power demand, recent weather disruptions have also made these generators indispensable while declining prices and a smaller size are further improving their attractiveness. Manufacturers are not only beginning to expand their capacities, but are also working on building profitable relationships with electrical and system contractors, particularly in critical or emergency power applications.

The new analysis, North American Residential Stationary Generator Set Market, reveals that revenues in this market totaled U.S. $210 million in 2005, and expects them to reach $640.1 million in 2012.
  
 Rising energy costs, the impact of the 'Energy Bill,' and a renewed
interest in energy efficiency and conservation drives the demand for
residential generators. Residential electricity prices are expected to
increase due to rising fuel costs, and retail electricity price caps have recently been relaxed in some states due to the restructuring of electricity markets.

Notwithstanding these positives, market participants are facing
increased competition from the portable generator industry. The global supply of portable generator sets has nearly quadrupled between 1995 and 2005. These sets are popular as they are attractively priced and can be used in a wider range of activities due to their portable nature.


 

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