Global Natural Gas Generator Market By Power Rating (Medium Power Genset, High Power Genset, and Low Power Genset), By Application (Commercial, Industrial, and Residential), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Natural Gas Generator Market Overview

The global Natural Gas Generator market was valued at USD 7.29 Billion in 2021. This growth rate will be 8.2% in the forecast period.

The future of natural gas is driven by economic growth, policies that reduce air pollution, and increased energy consumption. European countries have taken the initiative to reduce pollution by switching their coal-fired power plants to natural gas. To ensure reliable and uninterrupted natural gas supply, there are natural gas pipeline projects in North America as well as Europe. These projects amount to billions of dollars.

Global Natural Gas Generator Market Analysis

Power Rating Analysis

The market for low-power gensets was valued at US$ 2,900 million in 2021. For residential and commercial power backup, low-power gensets are very popular. Many electrical appliances are used in modern homes. These appliances need more power to work than washing machines. While they might use 750 watts of electricity to start, washing machines can only consume about 2500. A lot of households have an 80 KW generator installed as a backup power source.

The market share for medium power gensets was the second largest in 2021. It is predicted to expand at the highest CAGR during the forecast period. The demand for medium power generation sets from emerging countries like Brazil, India, and China is driving the market for them. 350 KW rating generators can power heavy machinery and large equipment. High-power generators are used in high-tech manufacturing plants and power plants. Additionally, they can be used in remote areas for power generation or distribution that are not connected to the grid.

Application Analysis

The market is divided into three types based on the use of natural gas gensets. The market for natural gas generators in the commercial sector was high in 2021. The forecast period will show the highest projected CAGR of 9% for the commercial segment. This is due to the increasing demand for cleaner and more environmentally-friendly fuel-fired generation sets for commercial applications.

Strong growth has been seen in the commercial sectors of developing countries in the Asia Pacific. Information technology, telecom, and retail are the main sectors in the Asia Pacific that are expanding rapidly. This is resulting in high demand for natural gas gensets because they are vital for providing backup power for these facilities. Hospitals and medical centers are the major contributors to the market for natural gas gensets. The critical power of emergency gensets sets is crucial for hospitals and communities. In the forecast period, the rising demand for gensets by healthcare facilities will drive the natural gas gensets demand commercially.

Key Market Segments

By Power Rating

• Medium Power Genset
• High Power Genset
• Low Power Genset

By Application

• Commercial
• Industrial
• Residential

Market Dynamics

The global demand for natural gas gensets is being driven by the rising incidence of power outages worldwide and the strict regulations regarding diesel gensets. However, the natural gas generator’s high capital costs and limited natural gas reserves are expected to limit its growth.

The U.S. natural generator market was the largest in North America in 2021. This is due to increasing concerns over carbon emissions and the availability of natural gas for generators. The U.S. is seeing a rise in commercial and industrial facilities such as high rises, shopping malls, and universities, as well as district heating and cooling plants, offices, refineries, and other buildings. This drives the demand to have an uninterrupted electricity supply for expansion and efficient operations.

Natural disasters, and severe weather conditions caused by climate change, have led to extended power outages. This has driven demand for generator sets as an essential amenity in commercial, residential, industrial, and other buildings. Due to the abundant supply of natural gas in America and the developed infrastructure for transporting it within the nation, generator sets have been in great demand in the United States.

Regional Analysis

North America’s market accounted for the largest revenue share of 35%, in 2021. The U.S. was a major contributor to this natural gas generator market. The North American natural gas generator market has been driven by prominent OEMs and EPC companies, large shale oil reserves, and a well-developed infrastructure for transporting natural gas. The U.S. held the largest share of North America’s natural gas generator set market in 2021. This is due to a variety of factors, including the increased government focus on renewable energy and the existence of large shale oil reserves. Asia Pacific is the fastest-growing region, with a CAGR of 9.2% over the forecast period.

The Asia Pacific is driven by the requirement for an efficient backup power system. The demand for industrial generator sets has increased due to the high growth of the industry sector in China and India, Japan, South Korea, and Japan. India’s government has taken steps to encourage the establishment of industrial enterprises. This will increase demand for gas generator sets in industrial applications.

India’s generator-set industry prefers diesel as a source of raw material. The demand for natural gas generators is expected to rise due to the changing focus of the government toward cleaner power sources and governmental regulations to reduce carbon emissions.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Inorganic and organic growth strategies are being used by key players in the industry to increase their service portfolios and gain market share. The U.S. Environmental Protection Agency (EPA) awarded Kohler Co. Inc. the Green Power Leadership Award. This voluntary program, run by U.S. EPA, aims to improve the use of green energy across the U.S. Kohler Co. Inc. purchased 425,000,000 units of renewable energy annually under this program to offset its electricity use in the U.S. and Canada. The company also acquired Selmec. It was involved in the design and manufacture of diesel generators from 10 kW through 2,750 kW and natural-gas generators from 30 kW upwards.

Market Key Players:

• Caterpillar Inc.
• Generac Power System
• Cummins Inc.
• General Electric
• Kohler Co. Inc.
• Mahindra Powerol
• MTU-onsite Energy GMBH
• Yanmar Co. Ltd.
• Other Key Players

For the Natural Gas Generator Market research study, the following years have been considered to estimate the market size: