The global gas generator sets market has been gaining steady impetus due to the increased demand of backup power generation to ensure uninterrupted power supply. Facilities like hospitals and data centers, as a rule, require 24/7 emergency electric supply. But many other commercial and industrial facilities like shopping malls, restaurants, refineries, district heating and cooling plants, office buildings, high rises, universities etc., have also come to fulfill the requirement of uninterrupted supply of electricity to be safe, expand business and perform operations efficiently.
U.S. Gas Generator Sets Market Size, By End Use, 2018 & 2025 (USD Million)
Generator sets have therefore always been in demand and over the last few decades, onslaught of technology has made them even more inevitable by infusing the need of electricity everywhere. Worsening weather conditions and natural catastrophe due to climate change have threatened longer power cuts which has urged residential, commercial and industrial establishments to add power generators as an essential amenity. Government regulations demanding increased ecofriendly products have provided an added boost to the global gas generator sets market which is expected to surpass $9 billion by 2025.
Keeping pace with such trends, global gas generator sets industry participants are introducing new products in the market that provide enhanced performance, are more cost efficient and ecofriendly. For instance, Mahindra Powerol, a business unit of the Mahindra Group entered the global gas generator sets market with its 6-cylinder 125 kVA gas generator set in Delhi. The gas generator set was approved by India’s Central Pollution Control Board Stage 2 Emission Norms (CPCB-II) and boasted of zero-particulate matter emission thus causing negligible pollution.
The gas generator set is also more advantageous than diesel powered generator sets as it offers 45% lower operating costs. While Mahindra is positioned to attract customers from Delhi, Gujarat, NE States and Maharashtra, states with easy availability of CNG and natural gas, other players in the global gas generator sets industry are also stepping up their game.
Caterpillar Energy Solutions is one such global gas generator sets industry participant which launched its Cat® CG132B-16 generator set that is touted for its optimized lube oil management with high power density and price-performance. The generator set was designed to provide customers with faster payback due to lower investment costs. Technological advances in gas generator sets due to increased R&D activities by industry players has augmented the growth for global gas generator sets market. Therefore gas generator sets have overcome such typical obstacles as only considered for applications below 150 KW and are now equally as reliable as diesel generators.
Advantages of gas generator sets include the uninterrupted delivery of natural gas during the times of disaster. 60 to 70 percent of all power outages each year can be attributed to weather disturbances, and in cases of extreme damage, residents might be left without power for several days. This can turn out to be life-threatening in case of extremely hot or cold weather or if individuals have health conditions that require medical devices to continue operating. As natural gas is delivered through a network of underground pipes and storage stations and are therefore more than 90% reliable. This is definitely more reliable than diesel delivery which depends on roadways and an available tanker to deliver additional fuel once the 72-hour worth of onsite fuel runs out. Also the upfront cost of purchasing natural gas generator is dropping which has added impetus to the global gas generator sets market.
Consumers are becoming more dependent on power as it increasingly comes to eclipse every aspect of everyday lives. As generators now come in a range of sizes, more residents are preferring to either invest in smaller units that are priced under $2,000 that provide power to specific, essential circuits to keep refrigerator, HVAC and certain appliances and lights running or even installing a unit that will power an entire home.
The abundance of natural gas in the U.S. has also played a major role in the boosting the global gas generator sets market. Upstream players in the U.S. shale industry are preparing for double-digit annual production growth due to increased activities in the key basins during the next decade as the shale boom is experiencing a burst of fresh growth. The U.S. is slated to be the third-biggest exporter of LNG globally by 2020. Due to the shale revolution in the country, gas generator sets are witnessing increased adoption and the U.S. gas generator sets market size is set to exceed USD 1.7 billion by 2025.
With an increased leaning towards the use of natural gas over fossil fuel and governments around the world tightening regulations around emission levels, the global gas generator sets market is slated to amass considerable profit over 2019-2025.