Sign in Subscribe
News agencies

Natural Gas Generator Sets Poised for Rapid Growth Despite Market Volatility

Strategic Insights

— 1 min read

The natural gas (NG) genset market is expected to experience healthy growth over the next 10 years, driven by the increasing demand for emergency standby, prime, peaking, or continuous power in markets where inexpensive NG is widely available. However, the market is facing a short-term slowdown due to volatility in the oil & gas market. Dual-fuel gensets, which offer the performance of diesel while taking advantage of the low price and low emissions of NG, are gaining popularity and are poised to become a major player in the market.

Key Takeaways:

  • The NG genset market is expected to show healthy growth during the next 10 years, with annual installations reaching 27.2 GW by 2024 and generating $146.8 billion in cumulative revenue between 2015 and 2024 (Navigant Research).
  • The market is driven by the increasing demand for emergency standby, prime, peaking, or continuous power in markets where inexpensive NG is widely available.
  • Dual-fuel gensets, which offer the performance of diesel while taking advantage of the low price and low emissions of NG, are gaining popularity and are poised to become a major player in the market.
  • The key industry players in the NG genset market include natural gas (NG) generator set (genset) OEMs, reciprocating engine distributors and technicians, genset packagers and installers, building owners, utilities, government agencies, and the investor community.
  • The NG genset market is expected to experience growth in emerging economies, despite a lack of adequate NG infrastructure, due to the increasing popularity of dual-fuel gensets.
  • The global market for NG gensets is expected to reach 27.2 GW by 2024, with cumulative revenue of $146.8 billion between 2015 and 2024.

Statistics:

  • International Energy Agency (IEA) expects global gas capacity to reach 658 billion cubic meters by 2024 (IEA, 2020).
  • The global natural gas demand is expected to increase by 33% by 2024, reaching 136 trillion cubic meters (BP, 2020).
  • The majority of the growth in the NG genset market is expected to come from emerging economies, including Asia, Latin America, and Africa (Navigant Research, 2015).

Sources:

  • "Natural Gas Generator Sets Reciprocating Internal Combustion Engines for Continuous, Prime, and Standby/Backup Power Global Market Analysis and Forecasts" report by Navigant Research.
  • International Energy Agency (IEA) report, 2020.
  • BP report, 2020.

Read more