Gas Generating Systems Market

Gas Generating Systems Market Outlook (2023 to 2033)

The global gas generating systems market size is expected to surpass a valuation of US$ 20.8 billion by 2033. The market is estimated to witness a CAGR of 9.4% in the next ten years from 2023 to 2033. It is projected to elevate in 2023 by reaching a valuation of US$ 8.5 billion.

Several businesses and individuals are seeking ways to reduce their dependence on the traditional power grid and achieve energy independence. Gas generating systems such as natural gas or biogas generators, allow users to generate their own electricity on-site. They ability to provide a reliable and independent source of power is expected to drive demand.

Gas generators offer a reliable source of power, especially in areas prone to frequent power outages or in remote locations where access to the grid is limited. Urgent need for backup power during emergencies and demand for continuous operations for critical infrastructure, businesses, & households would further push sales.

Gas generators are generally considered to be more environmentally friendly compared to diesel or gasoline generators. Natural gas, for instance, produces lower emissions of greenhouse gases and pollutants, resulting in reduced environmental impact. Growing use of biogas generators to promote the utilization of renewable energy sources and reduce reliance on fossil fuels would hence bolster sales.

Cost of natural gas has been relatively low compared to other fossil fuels, making gas-generating systems an economically viable option for power generation. Moreover, advancements in technology have improved the efficiency of gas generators. Ongoing technological advancements are set to help reduce fuel consumption and operating costs over time, further augmenting demand.

Gas generating systems find widespread use in various industrial sectors such as manufacturing, construction, agriculture, and oil & gas. As these sectors require a reliable power source for running equipment, machinery, and processes, their demand is likely to expand. These systems also help in increasing productivity and operational efficiency across the aforementioned sectors.

In various regions, governments are promoting the adoption of cleaner and more sustainable energy solutions. This includes offering incentives, tax breaks, or subsidies for businesses and individuals who invest in gas generating systems. Such support is anticipated to encourage growth in the market and drive up demand.

A few other factors pushing gas generating system demand are:

• Expansion of off-grid and remote infrastructure is expected to drive demand.
• Increased focus on energy efficiency and reduced carbon footprint from industrial manufacturing operations is likely to aid demand.
• Integration of gas generators with renewable energy systems or hybrid systems is projected to bolster growth.
• Growing demand for clean and reliable power in data centers is anticipated to accelerate sales.
• Need for uninterrupted power supply in healthcare facilities is a key factor pushing demand.
• Rising demand for natural gas as a cleaner alternative to coal is expected to bode well for the market.
• Enhanced grid stability through the use of gas-powered peaker plants is anticipated to aid demand.
• Government regulations incentivizing the use of cleaner energy sources are likely to foster sales.

How Will Sales of Gas Generating Systems between 2018 and 2022 Outpace Demand from 2023 to 2033?

The global gas generating systems market witnessed a decent CAGR of 11.4% from 2018 to 2022. It is set to expand at a moderate CAGR of 9.4% in the estimated time frame.

Advancements in gas generator technology improved their efficiency, reliability, and performance. These developments made gas generators more appealing to consumers, as they offered better fuel economy, reduced maintenance requirements, and enhanced operational capabilities. This factor helped to raise gas generating system demand in the last 5 years.

Increasing development of advanced healthcare facilities in both developed and developing nations is set to drive the market by 2033. Modern healthcare facilities heavily rely on a wide range of sophisticated medical equipment, including ventilators, anesthesia machines, diagnostic devices, imaging systems, and life-support systems.

These devices often require a consistent and high-quality power source to operate effectively. Gas generators provide an essential backup power solution to ensure that critical medical equipment remains functional during power outages or grid failures. These are hence projected to find extensive usage in these modern facilities.

Healthcare facilities also play a crucial role in providing emergency medical services such as trauma care, surgical procedures, and emergency room operations. In emergency situations, power continuity is of utmost importance to sustain life-saving interventions, support patient monitoring, and facilitate critical procedures.

Gas generators would be able to act as a reliable backup power source in such situations. These would further enable healthcare professionals to continue delivering vital services during emergencies, thereby pushing growth.

Vital Dynamics in the Gas Generating Systems Market Listed by Future Market Insights (FMI)

• Growing Demand for Backup Power in Commercial Sector

Commercial establishments such as offices, retail stores, banks, and restaurants, heavily rely on a consistent power supply to maintain their operations. Power outages can result in financial losses, disrupt productivity, and inconvenience customers.

Gas-generating systems deliver a reliable backup power solution, ensuring uninterrupted operations during blackouts or grid failures. This helps businesses maintain continuity, preserve revenue streams, and uphold customer satisfaction, further pushing demand.

Multiple commercial businesses prioritize customer service and safety. Power outages can negatively impact these aspects, causing inconvenience, potential security risks, and compromised safety measures.

Gas generators help maintain essential services, lighting, security systems, and emergency response systems. These can ensure a safe and comfortable environment for customers and employees, thereby propelling demand.

• Ongoing Expansion of the Construction Sector

Construction sites require a reliable and independent power source to support various activities and equipment. Gas-generating systems offer a portable and flexible solution for powering tools, machinery, lighting, and temporary facilities at construction sites.

They also provide the necessary energy to operate equipment such as cranes, welding machines, concrete mixers, and power tools. Hence, their ability to ensure uninterrupted productivity and efficient construction operations is set to drive growth.

Construction projects often take place in remote or off-grid locations where access to the electricity grid is limited or nonexistent. Gas-generating systems can provide a viable power solution for such projects, enabling construction activities to proceed without relying on grid infrastructure.

They allow contractors and construction companies to set up temporary power stations and establish a reliable source of electricity. This helps in ensuring smooth operations and timely completion of projects in challenging environments, further augmenting demand.

• Rising Number of Data Centers and Server Farms

The digital age has led to a surging data-intensive applications and services, driving the need for robust computing infrastructure. Data centers and server farms serve as the backbone of this infrastructure, housing numerous servers, networking equipment, and storage systems. These facilities require a reliable and continuous power supply to ensure uninterrupted operation and data accessibility.

Data centers and server farms are characterized by high power density, with racks of servers consuming significant amounts of electricity. They operate mission-critical systems that must be operational 24/7, making power continuity a top priority.

Gas-generating systems offer a scalable and efficient solution to meet the power demands of data centers. These help in providing the necessary redundancy and backup power capabilities to ensure uninterrupted operations, thereby supporting sales.

Energy efficiency is a crucial aspect of data center operations. Gas generating systems offer more efficient energy conversion compared to traditional diesel generators, resulting in lower energy consumption and reduced operational costs.

Nikhil Kaitwade

Principal Consultant

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Which Factors Might Obstruct Gas Generating System Sales Worldwide?

• Emphasis on renewable energy sources such as solar and wind power could lead to reduced gas generating system demand as countries prioritize clean energy alternatives.
• Changes in government policies such as reduced incentives or stricter emissions regulations, could impact gas generating system sales.
• Improved grid infrastructure in certain regions might reduce the need for standalone power generation systems, including gas generators.
• Development of more efficient and cost-effective battery storage technologies could provide an alternative solution, reducing the need for gas generating systems.
• Fluctuations in the cost of natural gas or other fuel sources might affect the cost competitiveness of gas generators, which can limit sales.

Country-wise Insights

Why Are Gas Generating Systems Showcasing High Demand in the United States?

Portable Generator Fuel Tanks to Witness High Demand in the United States with Need for Constant Power Supply

The United States gas generating systems industry is projected to witness a CAGR of 9.3% from 2023 to 2033. It is estimated to top a valuation of US$ 3.8 billion by 2033.

The United States experiences frequent weather events such as hurricanes, storms, and wildfires, which can cause power outages and grid failures. Ability of gas generating systems to deliver a reliable backup power solution, ensuring uninterrupted electricity supply during these disruptions would aid sales. This is particularly crucial for critical infrastructure, businesses, and households that require continuous power for essential operations and safety.

The United States has abundant natural gas reserves and a well-developed natural gas infrastructure. Gas generating systems would offer energy independence by utilizing domestically available natural gas resources as a fuel source. This would help reduce dependence on external energy sources and mitigate the risks associated with fluctuating fuel prices or supply disruptions, thereby accelerating demand.

Would the United Kingdom be a Significant Hub for Gas Generating System Manufacturers?

Favorable Policies in the United Kingdom to Fuel Sales of Nitrogen Compressor Machines

The United Kingdom gas generating system market is anticipated to cross a value of US$ 815.4 million by 2033. It is estimated to create an absolute dollar growth opportunity of US$ 471.8 million in the evaluation period.

The United Kingdom has a well-developed energy sector and infrastructure, including a reliable natural gas supply network. It has a diverse energy mix, with natural gas playing a significant role in the country's electricity generation. This is set to create a favorable environment for gas generating system manufacturers to thrive and cater to the domestic market, as well as export opportunities.

The United Kingdom government has implemented policies and initiatives to support transition toward a low-carbon economy. While there is a growing emphasis on renewable energy sources, there is still a need for flexible and reliable backup power solutions.

Gas generating systems can complement renewable energy technologies and contribute to the country's energy security. The government's support and incentives for energy diversification and security might create opportunities for manufacturers in the gas generation sector.

Why Would China Exhibit Immense Popularity of Gas Generating Systems by 2033?

Inclination toward Natural Gas in China to Accelerate Demand for Biogas Generators

China has been actively pursuing a clean energy transition to reduce its reliance on coal and mitigate environmental pollution. Gas generating systems, especially those running on natural gas, are considered a cleaner alternative to coal-fired power plants.

They produce lower emissions, including reduced greenhouse gases and air pollutants. These hence align with China's goals for environmental protection and sustainable development, thereby propelling demand.

China's rapid economic growth and industrialization have increased its energy demand. Gas generating systems would offer a reliable and secure power source, ensuring uninterrupted electricity supply for critical infrastructure, industrial facilities, and residential areas. This might enhance energy security and reduce dependence on imported energy sources, contributing to China's strategic objectives.

As per the report, China gas generating systems industry witnessed a CAGR of 11.2% in the historical period. It is projected to showcase 9.2% CAGR in the assessment period.

Category-wise Insights

Which is the Most Preferred Power Rating?

Less than 75 kVA Micro Gas Turbine Generator for Home to Gain Traction Globally

Based on power rating, the less than 75 kVA segment is estimated to remain at the forefront. It is likely to record a CAGR of 9.2% in the forecast period. It witnessed a CAGR of 11.2% from 2018 to 2022.

Gas generators in this power range are often designed to be compact, lightweight, and portable. They can be easily transported and deployed in various locations, making them highly versatile for a wide range of applications. Whether it's powering small businesses, events, construction sites, or backup power for residential use, these generators are expected to offer convenience and flexibility.

Gas generators with a power rating of less than 75 kVA are suitable for providing backup power to individual homes or small residential complexes. They are capable of supplying electricity during power outages.

They are capable of ensuring that essential appliances and systems such as lights, refrigeration, heating, & communication devices, can continue to function. This is particularly important for homeowners who prioritize uninterrupted power supply and the comfort & safety of their families. Increasing number of smart homes worldwide would hence push sales.

Who is the Dominant End User of Gas Generating Systems?

Need for High Efficiency in Industrial Sectors to Augment Demand for Hot Air Generators

Based on end user, the industrial segment is anticipated to witness a CAGR of 9.1% in the forecast period. From 2018 to 2022, it registered a CAGR of 11.0%.

Industrial sectors such as manufacturing, mining, and oil & gas, often have high energy demands. Gas generators offer the capacity to meet these demands efficiently. They can power heavy machinery, equipment, and processes, providing the necessary energy for industrial operations. It is hence expected to propel their demand in the next ten years.

Gas generating systems can be tailored to meet specific power requirements of industrial applications. They are available in numerous capacities and can be easily scaled up or down to match the energy needs of different industrial operations. This scalability and flexibility would soon make them suitable for diverse industrial settings and power loads.

Industrial sectors often face increasing pressure to reduce their carbon footprint and mitigate environmental impact. Gas generating systems, particularly those running on cleaner fuels such as natural gas or biogas, emit lower levels of greenhouse gases and air pollutants compared to traditional fossil fuel generators.

It would align with sustainability goals and regulatory requirements. Hence, gas generators are set to be considered an attractive choice for environmentally conscious sectors.

Competitive Landscape

Manufacturers are expanding their product portfolios to offer a wide range of gas generating systems with varying capacities, specifications, and features. This allows them to cater to diverse customer requirements across different sectors and applications.

Continuous research and development efforts are focused on improving the efficiency, performance, and reliability of gas generating systems. Manufacturers are incorporating advanced technologies such as electronic control systems, improved engine designs, intelligent monitoring & diagnostic capabilities, and remote management features. They are aiming to enhance user experience and optimize system performance.

A few other companies are designing their products to be fuel-flexible, capable of running on different types of gases such as natural gas, propane, or biogas. This flexibility enables users to adapt to the availability and pricing of various fuel sources, providing greater versatility and cost-effectiveness.

For instance:

• In January 2020, the Generac PWRcell system was launched by Generac Power Systems. It is a leading manufacturer of backup power generation products and solutions. Since its launch, Generac has continued to enhance and expand the PWRcell product line to meet growing demand for residential energy storage solutions.

Scope of the Report

Gas Generating Systems Market Outlook by Category

By Power Rating:

• Less than 75 kVA
• 75-375 kVA
• Above 375 kVA

By End User:

• Industrial
• Commercial
• Residential

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa