Client’s Goals

Our client, a leading portable generator manufacturer and service provider, engaged MarketsandMarkets to grow revenues. Our team defined and solved a series of problems to identify opportunities and blind spots arising out of interconnections in client’s clients’ and their clients’ ecosystems. We offered a comprehensive view of opportunities for smart solutions and portable generators in Latin America and Australia. Few of the key questions answered during the engagement were:

• Understanding of major power range, fuel type, and end-use industries to focus on
• Country-level insights for prioritization
• Build value proposition

Our Approach

Our team identified key disruptive technology trends that were changing the revenue mix of our client’s clients and their clients in end-use industries such as residential, and commercial segments through our AI-driven market intelligence platform, KnowledgeStore. We also interviewed a host of potential customers, manufactures, distributors, and consumers in these end-use industries to understand their unmet needs, possible use cases and benefits from these generators and what they looked for in a service provider. Our analyst hours were used to understand the market potential and high impact use cases of various types such as pump natural gas, diesel, gasoline to form smart solution across these end-use industries. Further, we also helped the client with insights into the competitive landscape, varying business models & strategies of different players in portable generator manufacturing. With recommendations from our client services team, the client was able to devise a differentiated product offering and forge suitable alliances to win in this market.

Revenue Shifts Identified

Renewable energy is gearing up in Latin America with significant investments to meet the increasing demand for electricity.  In many countries, several governments are incentivizing renewable energy deployment by implementing technology-specific auctioning (land auctioning, day-time slot auctioning, project auctioning etc.). These auctioning systems are being used to reduce the cost of renewable energy development and promote price transparency. According to a report “Future of Solar Photovoltaic” published by IRENA’s on December 2019 the region’s solar energy capacity alone could grow by a factor of 40 by 2050 to more than 280 gigawatts (GW). Furthermore, the growth of renewable energy in Latin America is also driven owing to the aim to reduce environmental concerns such as reduction in emission of greenhouse gases.

Interconnections

We suggested that the revenues streams of companies providing portable generators in the Latin American and Australian market are impacted by generator sales, power rental market, battery energy storage, concentrated solar power, thermal energy storage etc.

Unknowns Identified

The adoption of 2 kW to 5 kW portable generators are increasing in Latin America and Australia. These range of portable ranges are mostly used by residential and commercial end users because of its increasing reliability. Growth of portable generators is driven by increase in duration of blackouts across the countries in Latin America. The increase in blackouts is majorly due to the losses in T&D networks and aging grid infrastructure. Furthermore, the SAIFI (System Average Interruption Frequency Index), a system index of the average frequency of interruptions in power supply and SAIDI (System Average Interruption Frequency Index), the average duration of interruptions per consumers during the year have also increased. Such factors are expected to be additional revenue source for the client.

Revenue Impact (RI)

Our insights helped the client to tap into ~USD 150 Mn market with a revenue impact of USD 20 Mn by identifying and prioritizing end-use segments and potential opportunities in the market.