02/12/2015 | New Survey Reveals Oil and Gas Is a Rapidly Growing Market for Power Generation
The EGSA (Electrical Generating Systems Association), the world’s largest organization exclusively dedicated to On-Site Power Generation, has released a report on its 2014 Power Generation Market Pulse Survey. Perusing it, we were pleased to note their results are closely aligned with our own priorities here at HIPOWER SYSTEMS.
Distributors/dealers—one of our primary customer segments—had the highest percentage of responses among the groups in this survey. If you are a distributor or dealer reading this, we want you to know that your interests and concerns are at the top of our priorities list, in terms of project focus. Now, for the results:
Power Generation Market Growth:
EGSA members expect their 2014 sales to finish above 2013, with only 5% of respondents reporting declining sales. Ninety-five percent of respondents expect growth in 2015, and none of the respondents expect sales to decline.
That’s good news, of course, but what really caught our eye was the change in the ranking of key market segments. Although Data Centers, Other Commercial Facilities and Healthcare still top the list, Oil and Gas made a big leap into fourth place, with 40% of respondents ranking it one of their top three priorities.
Given the talk about a downturn in the petroleum exploration markets due to falling prices, we found this jump in business very encouraging. It suggests that exploration and production firms are looking at this downturn as bump in the road, not a crater that will derail their efforts, and they are making strategic expenditures to ride it out.
We believe these companies are realizing that newer, cleaner and more efficient generators are a key mechanism for reducing power production costs—in good markets or bad.
Environmental Concerns Remain a Factor
The 2015 outlook indicates a continuing shift towards sales of Tier 4 generators (Interim or Final). The percentage of firms that anticipate at least 10% of their power generation sales in Tier 4 models rose 20% (from 37% to 45% of respondents) for 2015 over 2014.
Natural Gas Sales Also Accelerating
The percentage of respondents who predict their natural gas powered generator models will account for at least 10% of sales rose from 66% for the 2014 year to 71% for 2015. That’s a smaller increase than for Tier 4 models, but at 10%, it is still significant. This figure is also roughly in line with a prediction from research firm IHS that natural gas powered generators, which still own a very small market share compared to diesel generators, will experience a compound growth rate of 11.8% between now and 2020.
Overall, the report was very positive, and we believe the future continues to be bright for generator manufacturers, resellers and dealers, and their customers. New technologies, from smart engine controllers with advanced telematics to bi-fuel solutions that expand fuel choice and reduce operating costs, are making on-site power generation more desirable than ever.
Here’s to a great 2015!
Your comment has not been created. Please, try again later
No comments registered
Create a comment