A mature market with well-established competitors, the $183.4 million Russian gen-set market has been growing with exceptional rapidity for the last few years, says a new report by market analysts Frost & Sullivan.
This growth, says the report, has been due to largely unmet demand in a number of applications combined with the emergence of several new growth opportunities but the market is also highly volatile and risky. The market also offers the potential for substantial profits with both unit shipments and revenues poised for strong increases, with a projected total market size of $353.7 million in 2011.
“As the Russian economy continues to grow and develop, the gen-sets market will continue bringing new opportunities, ” remarks Frost & Sullivan research analyst Irina Sidneva. “Yet, further market growth will depend on numerous economic and political variables including increasing electricity prices, deterioration of the energy-generating facilities, government decisions and resultant levels of investor confidence.”
Surging demand coupled with an unreliable grid, high prices and low penetration of alternative power sources have resulted in an average annual revenue growth rate of 13% in the Russian gen-set market over the past three years, says Frost.