Natural
Gas Genset Market Overview
Market
Research Future (MRFR) believes that the global gas genset market has the potential
to achieve a CAGR of 5.00% during the forecast period (2016-2023).
Primary
Drivers and Key Challenges
Gas
gensets can be described as a reciprocating internal combustion engine, which
is used for distributed power production. These make use of natural gas for
powering generators and producing electricity. At present, diesel gensets enjoy
the highest demand in the gensets market. However, a number of countries now
implement several norms that aim at reducing the high levels of harmful
emissions originating from diesel-powered gensets. This factor is touted to
have a lucrative effect on the global gas gensets market in the years to come.
Rising
demand for gas gensets is the result of the widening electricity demand-supply
gap along with increasing industrialization and surge in carbon emissions. Gas
gensets are used extensively in numerous end-user segments like communication
& transportation systems, pharmaceutical & health care industries, manufacturing
& water treatment facilities, and landfill sites. Gas gensets are used as a
back-up power source when there is a grid failure or a power outage.
The
Natural
Gas Genset Market can also benefit from the rising awareness about
greenhouse gas emissions and volatility within the oil & gas market. As gas
gensets are eco-friendly and are known for lower carbon, sulfur and nitrogen
emissions, their demand is expected to mount in the forthcoming years.
Market
Segmentation
The
global natural gas genset market has been studied considering the
primary segments like fuel, power rating, application and end-user.
Fuel-wise,
the market is split into natural gas, biogas, and others. Natural gas segment is
at the top position in the market with the largest share, primarily due to large-scale
availability of natural gas across various regions in the world.
The
global gas genset market, with respect to the power rating, can be divided into
up to 100 KVA, 100-350 KVA, 350-1000, and Above 1000 KVA.
In
terms of the application, the global gas genset market includes standby, peak
shaving, and continuous. In 2017, the standby
segment had held the biggest share in the gas genset market.
The
global gas genset market, with regard to end-user, includes industrial,
residential, and commercial. Residential segment can attain the highest growth
rate in the global gas genset market in the years ahead.
Regional
Outlook
North
America, the Middle East and Africa, South America, Asia Pacific and Europe are
the primary markets for gas gensets.
North
America can gain traction in the global market at the fastest growth, estimates
MRFR. The fast-paced market growth in the region is in response to the surging production
of natural gas as well as shale gas. The United States (US) is at the vanguard
of the market growth in the region, given the declining prices of natural gas combined
with the carbon emission reduction targets.
APAC
has a strong potential for growth, with most of the developing countries
showing immense promise. Countries like India, Japan, and China are now making
their presence felt in the global arena, which benefits the market as well. Poor
distribution and management of power grids which is leading to power outages in
developing nations can favor the regional market.
Europe
also has a huge share in the global gas gensets market. In the region, gas
gensets are generally used as standby power sources. Renowned players in the
region with expertise in gas gensets, are now focusing on developing advanced
products to expand their position. Moreover, rising use of eco-friendly fuels,
given the increasing restriction and regulations by governments will lead the
gas gensets market to greater heights in the following years.
In
MEA, rising need to power generation via clean energy sources, stringent environmental
regulations, inadequate power infrastructure, and burgeoning pipeline
infrastructure can stimulate growth of the gas genset market.
Leading
Players
The
players that are leading the worldwide gas genset market include ABB, Himoinsa,
Sudhir Power, Siemens AG, GE, Genrac Power Systems, MTU Onsite Energy GmbH,
PARAMAC, Caterpillar, Cummins, Wartsila, among others.
