Natural Gas Generator Market – Global Industry Analysis and Forecast (2023-2029)

Natural gas generator market was valued at US $ 7.85 Bn. in 2022, and it is expected to reach US $ 15.05 Bn. by 2029 with a CAGR of 10.2 % during the forecast period.
Overview of the Natural Gas Generator Market :
A Natural Gas Generator is a type of generator that uses natural gas rather than gasoline or diesel to operate. It ignites fuel gas to produce natural gas and other high-calorie gases. These generators are more cost-effective, efficient to operate, and environmentally friendly than other fossil-fuel generators. However, these generators are less versatile than other types of generators and may not be the ideal option for every application.



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Natural Gas Generator Market Key Trends:
To meet energy demand, natural gas production must be exponentially increased

Natural gas, which burns cleaner than other conventional fuels, plays an important role in reducing greenhouse gas emissions. Natural gas production has increased in recent years as a result of strong policies promoting sustainable development. Based on the shale gas revolution, the United States is the world's leading producer and a net exporter of natural gas. Furthermore, China is constantly increasing its capital expenditure on clean energy fuels to reduce carbon emissions. Also, to support clean energy policies, many European countries are converting traditional coal-fired power plants into gas-fired generators. Following this trend, natural gas-powered generators are expected to offer profitable growth over the forecast period.

Concerns about environmental degradation are growing

Several energy policies have been changed to encourage the clean energy movement and reduce carbon emissions, which could help the  grow Natural Gas Generator Market. Global warming is expected to exceed 1.5 degrees Celsius between 2030 and 2052, according to a report published by the Intergovernmental Panel on Climate Change in 2018. Human activities and industries have brought a serious threat to the ecosystem, resulting in regular natural disasters. By developing sophisticated and clean energy technology, the government and private sectors formed a venture together to limit the effects of global warming. This is expected to drive the growth of the Natural Gas Generator Market over the forecast period.
Natural Gas Generator Market Dynamics:
Thanks to significant economic growth, a request for an uninterrupted electricity supply has been raised.

The development of various industrial sectors, combined with an increasing population, is expected to raise the demand for a stable and continuous power supply. As information and communication technology are playing a critical role in shaping the scope of the market every data center requires a generator to avoid power outages. Also, gas-fired generators are frequently used to meet the rising demand for electricity in various commercial and industrial applications. As a result, the natural gas generator market is expected to grow at a CAGR of xx% rapidly during the forecast period.

Huge investment in the development of sustainable energy sources

The world's economic development is dependent on energy. However, the increasing usage of fossil fuels has caused serious environmental danger, including deforestation, rising sea levels, and global warming. International regulatory and government organizations have taken the lead in reducing pollution severity by implementing sustainable energy development programs. The programs intends to evolve the global economy by investing in eco-friendly and sustainable sources of energy. As a result, favorable government policies and community awareness of global warming are expected to provide a profitable market for natural gas generators and drive the market growth over the forecast period respectively.

Rising investment in renewable energy technology

The scope of the market is anticipated to be limited as the trend swings toward embracing clean and environmentally friendly energy sources such as solar, wind, and biogas. To fulfill the increased need for electricity, European governments are aggressively investing in solar and wind projects. In terms of capacity, the United States, China, Germany, and India continue to spend heavily on wind power installations. Furthermore, natural disasters such as earthquakes, tsunamis, floods, and tornadoes are common, creating a risk to pipeline infrastructure and disturbing natural gas supplies. These issues are expected to hamper the growth of the natural gas generator market over the forecast period.
Natural Gas Generator Market Segment Analysis:
Based on Type, the global natural gas generator market is segmented into two types as follows, Standby, and Prime. Standby generators are used in a variety of scenarios, like residential, commercial, and industrial. The natural gas generator is permanently installed in both circumstances and is fed by the local utility company. During power interruptions, the standby generator automatically switches on. It is only meant to be used for a short period during an emergency, as running a backup generator for longer than it's designed might lead to faults and the need for more regular repairs.

When there is no local utility, prime power generators are used since the generated electricity is the sole source of power accessible. Since most residences can't easily connect to a natural gas line this type of natural gas generator is less popular, especially for residential use. Natural gas must be delivered by truck if there is no natural gas connection to a utility line. Backup generators have a shorter operating period and can't manage as much power as prime power generators.

Based on Power, the global natural gas generator market is segmented into seven types as follows, below 20 KW, 20 KW to 100 KW, 101 KW to 500 KW, 501 KW to 1 MW, 1 MW to 2 MW, 2 MW to 5 MW, and above 5 MW. In 2022, the 501 KW to 1MW segment was dominant and held xx% of the overall market share in terms of revenue. Thanks to increasing need for backup power systems that use clean fuel in developing nations such as China, India, and Brazil for commercial and industrial applications is a primary driver for this segment.

Based on End-use, the global natural gas generator market is segmented into three types as follows, Commercial, Industrial, and Residential. In 2022, the commercial segment was dominant and held xx% of the overall market share in terms of revenue. In Asia Pacific's developing economies, commercial sectors have seen rapid growth. IT, telecommunications, and retail are some of the primary sectors that are quickly growing in developing countries, resulting in a strong demand for natural gas generators, which are essential for backup power in these facilities.
Natural Gas Generator Market Regional Insights:
North America is expected to dominate the market.

The natural gas sector in North America has experienced remarkable changes, with natural gas consumption increasing by 25% in the last ten years and the availability of enormous natural gas supplies thanks to hydraulic fracturing success in shale regions. In 2022, natural gas represented 41.20% of North America's operating power-producing capacity, displacing coal as the primary energy source.

As a result, higher natural gas usage for electricity generation supports market growth. The well-established but aging power transmission network in the United States has been disrupted by frequent hurricanes and thunderstorms, increasing demand for gas generators. As air emission regulations in the United States become more rigorous, coupled with the environmental benefits, demand for gas generators is expected to rise, compared to diesel generators, which are rated more polluting.

The United States has one of the most advanced gas-grid systems in the world, ensuring a consistent supply of fuel. The use of natural gas in the residential sector is expected to rise as the cost of natural gas falls. As a result, the natural gas generators market in the residential sector for backup power applications is anticipated to develop over the forecast period.
Recent Advancements:
1. In October 2019, Innio introduced a high-capacity natural gas generator for data centers that can deliver output in under 45 seconds, making it ideal for information and communication centers. This cutting-edge technology cuts NOx emissions by up to 90% and CO2 emissions by up to 25%.

2. In March 2019, Cummins unveiled the HSK78G natural gas generator, which features cutting-edge technology and is expected to power the next generation of power. The 78L engine provides up to 2 MW of power, and the generator is built to withstand harsh atmospheric conditions and provide a reliable power source.

The objective of the report is to present a comprehensive analysis of the global natural gas generator market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the global natural gas generator market dynamics, structure by analyzing the market segments and project the global Natural Gas Generator market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global natural gas generator market make the report investor’s guide.
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 Natural Gas Generator Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US$ 7.85 Bn.


Forecast Period 2023 to 2029 CAGR:
10.2%
Market Size in 2029:
US$ 15.05 Bn.


 Segments Covered:
by Type
Standby
Prime


by Power
Below 20 KW
20 KW to 100 KW
101 KW to 500 KW
501 KW to 1 MW
1 MW to 2 MW
2 MW to 5 MW
Above 5 MW


by End-use
Commercial
Industrial
Residential


by Power Rating
Low Power Gensets
Medium Power Gensets
High Power Gensets



Natural Gas Generator Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Natural Gas Generator Market Key Players
1.Caterpillar
2. GE Energy
3. Cummins
4.Ingersoll-Rand
5. Generac
6. Kohler
7. MTU Onsite Energy
6. Himoinsa
7. Rolls-Royce Systems
8. Mitsubishi Corporation
9. Ettes Power
10. Multiquip
11. Jinan Diesel Engine Co. Ltd.
12. Shandong Naipute Gas Power Co. Ltd.
13. Zibo Diesel Engine
14. Atlas Copco
15. Kirloskar Electric Co. Ltd.
16. Pramac
17. Inmesol S.L.U
18. John Deere
19. Others

Frequently Asked Questions:

1. Which region has the largest share in Global Natural Gas Generator Market?
Ans: North America region holds the highest share in 2022.

2. What is the growth rate of Global Natural Gas Generator Market?
Ans: The Global Natural Gas Generator Market is growing at a CAGR of 10.2% during forecasting period 2023-2029.

3. What is scope of the Global Natural Gas Generator market report?
Ans: Global Natural Gas Generator Market report helps with the PESTEL, PORTER, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Natural Gas Generator market?
Ans: The important key players in the Global Natural Gas Generator Market are – Caterpillar, GE Energy, Cummins, Ingersoll-Rand, Generac, Kohler, MTU Onsite Energy, Himoinsa, Rolls-Royce Systems, Mitsubishi Corporation and Others

5. What is the study period of this market?
Ans: The Global Natural Gas Generator Market is studied from 2022 to 2029.