Natural Gas Generator Market Size, Market Research and Industry Forecast Report 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Natural Gas Generator Market


The global natural gas generator market size was valued at USD 5.30 billion in 2018 and is projected to grow at a CAGR of 10.7% over the forecast period. Rising occurrence of power outrage and deficit power supply globally coupled with regulation imposed on usage of diesel generators owing to the high level of carbon emission is driving the market demand for natural gas generator globally. However, high capital cost of natural gas generator as compared to diesel generator coupled with limited natural gas reserves is expected to restrict the growth of the business.

U.S. natural gas generator market accounted for the largest market share in 2018 in North American Market, and the trend is projected to continue over the forecast period, on account of growing concern for carbon emission caused by diesel generator and availability of natural gas as a fuel for generator. Moreover, growing industrial and commercial facilities such as shopping malls, high rises, universities, restaurants, district heating and cooling plants, refineries, office buildings, and others in the U.S. are driving the demand for uninterrupted electricity supply to expand businesses and perform operations efficiently, which propels the demand for natural gas generator.

Natural calamities and worsening weather conditions due to climate change have resulted in prolonged power cuts, which is driving the demand for back-up power as an essential amenity in commercial, residential, and industrial establishments.

The abundance of natural gas in the U.S. coupled with developed infrastructure for transportation of it within the country has played a vital role in driving the demand for generator sets in the U.S. Gas generator sets are witnessing an increased adoption compared to diesel generators on account of shale gas revolution in the country and this trend is projected to continue over the coming years.

Power Ratings insights

Low power generator segment was valued at USD 2.30 billion in 2018. Low power generator are popular for residential and commercial power backup application. Nowadays, people use various electrical appliances in their home such as geysers, water pumps, AC units, water purifiers, and others. These appliances require more power to function like in case of washing machines, it might consume 750 Watts but need about 2500 watt to start. Owing to which households usually opt to have not more than 80 KW generator set as a durable standby power source.

Medium power generator segment accounted for the second largest market share of natural gas generator in 2018 and is anticipated to grow at highest CAGR during the forecast period. Increasing demand for medium power generator from emerging economies such as China, India and Brazil for back -up power system which uses clean fuel, for commercial and industrial application are a major driver for medium power generators. 350 KW and above rating generator are capable of powering heavy machines and large equipment.

Rapid industrialization in emerging economies including India, China, and Brazil is expected to drive the demand for medium and high power generators. High power generators are majorly installed in large manufacturing facilities, power plants, and in marine industry where a continuous power supply is crucial. Moreover, they are also installed in remote location for power generation and distribution where there is no grid connection.

Application insights

Based on the application of natural gas generators, the market is segmented into residential, commercial and industrial segments. Commercial segment was estimated as the largest natural gas genset market globally with an estimated value of USD 2,381.8 million in 2018. The commercial segment is projected to grow at highest CAGR during the forecast period owing to the growing demand for cleaner and greener fuel fired generator for commercial application.

Developing economies in Asia Pacific have witnessed strong growth in commercial sectors. IT, telecom, and retail are some of the major sectors that are growing rapidly in developing countries of Asia Pacific, resulting in a high demand for natural gas generators as they are crucial for back-up power in these facilities.

Hospitals and medial institutes are one of the contributors to commercial segment of the natural gas generator market. Medical facilities, along with the communities they support, depend heavily on emergency generator sets for critical power. The growing demand for generator from healthcare facilities is expected to drive the demand for natural gas generator for commercial application during the forecast period.

Regional insights

The market in North America was valued at USD 1,680.8 million in 2018, wherein U.S. was the major contributor to the natural gas genset market in the region. The presence of prominent gas generator OEMs and EPC players, large shale gas reserves, and developed infrastructure for transportation of natural gas have emerged as the primary driving factors for North America natural gas generator market.

The U.S. accounted for the largest share of North America market for natural gas generator in 2018 and is anticipated to progress at the fastest growth rate in North America over the forecast period owing to various factors such as the presence of shale gas reserves and increasing government focus on developing clean energy sources.
Asia Pacific is estimated to be the fastest-growing region with a CAGR of more than 13.0% over the forecast period. Asia Pacific market for natural gas generator is driven by the need for efficient back-up power systems. High growth of industrial sector in China, India, Japan, and South Korea has triggered the demand for industrial generator sets in the region.

In India, government initiatives are encouraging industrial establishments in the country, which is anticipated to drive the demand for gas generator sets for industrial applications over the forecast period. Generator set industry in India is inclined toward diesel as a raw material. However, governmental regulations to curb carbon emissions caused by burning of diesel coupled with shifting focus of the government toward the use of cleaner sources for power generation are expected to drive the demand for natural gas generators over the forecast period.

Market Share Insights of Natural Gas Generator Market

Key market players in natural gas generator industry include Cummins Inc., Caterpillar Inc., Kohler co. Inc., Mitsubishi Heavy Industries, Ltd., MTU Onsite Energy, Generac Power Systems, Inc., Cooper Corp., General Electric, Yanmar Co., Ltd, Mahindra Powerol and others. Key companies in the industry are adopting various organic and inorganic growth strategies with a view to expand their service portfolio and gain market share.
In June 2018, Generac Power System completed the acquisition of Selmec. Selmec is involved in the designing and manufacturing of diesel generators in the range of 10 kW to 2,750 kW and natural gas generators in the range of 30 kW to 400 kW.

In April 2018, Mahindra Powerol entered gas-powered generator business by introducing CNG/NG generators in India. These gas generators are manufactured at its manufacturing facility located in Pune, India. These gas generators have 40% less operating cost and lower noise level than conventional generators.

p2 Segments covered in the report

This report forecasts revenue and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For this study, this market research report has segmented the global natural gas generator market based on power rating, application, and region.

Power Rating Outlook (Revenue, USD Million; 2014 - 2025)

  
Low Power Generator
  
Medium Power Generator
  
High Power Generator

Application Outlook (Revenue, USD Million; 2014 - 2025)

  
Industrial
  
Commercial
  
Residential