Gains in industrial production and nonresidential building activity, as well as higher input prices, will fuel higher demand and prices for auxiliary generators over the next three years; however, import competition will keep price growth in check
Los Angeles, CA (PRWEB) October 09, 2014
Auxiliary generators have a buyer power score of 3.0 out of 5. This score indicates a mixed power balance between buyers and suppliers, albeit with a slight advantage to buyers.
“Over the past three years, the price of auxiliary generators has risen at an annualized rate of 2.5%, thanks to a postrecession pickup in demand in industrial production and nonresidential building activity,” according to IBISWorld business research analyst Sean Windle. New buildings, such as hospitals, power plants and industrial manufacturing facilities, spur demand for auxiliary generators, which are used to provide emergency power for these and other structures. Also diminishing buyer power is the limited availability of substitute products. Portable generators and inverters, while providing a reasonable alternative for limited residential situations, are not equipped to handle the large power requirements of commercial and industrial applications.
Despite steady price growth and higher demand over the past three years, and despite the absence of any reasonable substitute products, buyers enjoy a range of favorable negotiating conditions. First, market share concentration among the supplier base is low, giving buyers a variety of options from which to choose. The market for auxiliary generator suppliers has a low level of concentration, with the top four suppliers (Eaton Corportation, General Electric, ABB Ltd. and Siemens AG) accounting for just under 30.0% of total market revenue. The low level of concentration among auxiliary generator manufacturers and wholesalers reflects the fragmented nature of the market. Overall, there are about 9,771 auxiliary generator suppliers in the United States. In addition, rising imports have brought more comparable, lower-price foreign goods into the US market. Not only have increasing imports given buyers another supplier choice, they have constrained price growth among US vendors, which now have to compete with lower-cost imports.
“Over the next three years, the average price paid for auxiliary generators is forecast to increase at an annualized rate of 2.7%. While the pace of price growth will quicken, rising imports will largely keep this growth in check. This stable growth enables buyers to better plan and budget future expenses,” Windle says. For more information, visit IBISWorld’s Auxiliary Generators procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of auxiliary generators. Auxiliary generators are used as an emergency power supply, and to store energy. This report includes auxiliary generators that run on propane, natural gas, diesel or renewable energy sources; however, it does not include portable generators. Suppliers include manufacturers, wholesalers and retailers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.