Global gas-genset market to double
Driven by recent discoveries of gas reserves in several countries, the global gas-generator set (genset) market is forecast to increase from $3.3 billion in 2013 to $6 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 8.9 percent, says research and consulting firm GlobalData.
According to the company’s latest report, the North American region has the highest share of the global gas-genset market, with 33 percent, followed by Latin America and Asia-Pacific, with respective shares of 30 percent and 20 percent.
The U.S. 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.
“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,” Sayani Roy Nath, GlobalData's analyst covering Power.
“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.
This report gives detailed information on the gas generator market, focusing on the U.S., the UK, India, Brazil, China and Nigeria. Drivers, restraints, revenue forecast, segmentation of revenue by voltage level, end user segmentation and market share analysis are covered at the country level.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.