HomeIndustry SectorsGenerationIncrease foreseen in global gas generator market

Increase foreseen in global gas generator market

Discoveries of gas reserves in several countries means the global gas-generator set (genset) market is forecast to increase from US$3.3 billion in 2013 to US$6 billion in 2020, at a compound annual growth rate (CAGR) of 8.9%, says research and consulting firm GlobalData. The north American region has the highest share of the global gas-genset market, with 33%, followed by Latin America and Asia-Pacific, with respective shares of 30% and 20%.

The US will continue to be the dominant player during the forecast period, since the discovery of shale gas reserves in the country, along with its commercial exploitation of these reserves, have helped lower gas prices and therefore further driven the market for gas-gensets. Sayani Roy Nath, GlobalData’s analyst covering power, says, “From a long-term perspective, gas-gensets are more economical compared to diesel-gensets, but even so, they are still not the preferable option for all end consumers. Global consumers need to be made more aware of the benefits of using gas-gensets, including the fact that they help in the reduction of greenhouse gas emissions. Moreover, governments need to take more assertive action in terms of infrastructural development for gas networks.”

Another key market driver is the fact that many countries have implemented strict emission norms for regulating the level of harmful emissions from diesel-gensets, which will boost the adoption of gas-gensets. However, most countries, both developed and developing, do not have proper gas infrastructure. As a result, even if gas is available in a particular country, it cannot be transported to distant locations due to the absence of gas pipelines. Furthermore, the investment required for laying pipelines is also high.

Due to these limiting factors, end consumers often find it relatively more expensive to opt for gas-gensets, which could therefore restrict any further market growth.