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The Low and Medium Capacity Gas Generator Market size is estimated to grow by USD 4.55 billion, at a CAGR of 11.22% between 2023 and 2028. This growth is driven by several factors, including the increasing popularity of gas generators, the expansion of natural gas pipeline networks, and strict emission regulations for diesel engines. The rising preference for gas generators reflects a shift towards cleaner and more efficient energy sources. The expansion of natural gas pipeline networks indicates a growing infrastructure to support gas-powered equipment. Additionally, stringent emission regulations for diesel engines emphasize the need for cleaner alternatives, further driving the demand for gas generators. These factors collectively contribute to the growth of the market, reflecting a trend towards more sustainable and environmentally friendly energy solutions.
Market Forecast 2024-2028
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The market is advancing rapidly, driven by diverse applications across industries. SUAVs are utilized for Natural gas generator and Diesel gensets inspections, reducing Carbon emissions in Industrial and commercial facilities. They aid in disaster management during Natural disasters and contribute to monitoring Climate change effects. SUAVs enhance safety and efficiency in Residential and commercial buildings, inspecting Electrical appliances and managing Medium power gensets. In Emerging economies, SUAVs are crucial for monitoring High power gensets and supporting sectors like IT and Retail. They are utilized for surveillance in Healthcare facilities and monitoring Shale gas reserves. SUAVs also play a role in ensuring Food safety and the adoption of Laboratory gas generators. The market is expanding into Hydrogen gas and Helium gas applications, benefiting industries like Life sciences and Chemical and petrochemical. With the legalization of Medical cannabis, SUAVs are increasingly used for Cannabis testing in the Medical cannabis industry.
The production and consumption of natural gas are increasing. The emergence of cross-country and multi-country pipelines will increase the demand for natural gas during the forecast period. Pipelines of various sizes are used to transfer gas domestically and internationally. The number of natural gas pipeline projects is increasing, especially in developing countries such as India. By 2022, India plans to double its natural gas production and associated pipeline infrastructure. Globally, countries such as the US, China, and Russia will lead in terms of investments in the construction of natural gas pipelines. This will be closely followed by other countries such as Canada, China, Nigeria, and India.
In addition, the completion of the planned projects in these key countries will lead to the development of more natural gas pipeline projects. This will be driven by the demand for natural gas and the focus on the adoption of natural gas for power generation for prime and backup power generation. This is expected to drive the low and medium-capacity gas generator market during the forecast period.
Traditionally, generators were the most popular backup power equipment. However, fuel and equipment costs, maintenance costs, storage and facility costs, and emission regulations have been fueling the demand for alternative backup solutions. Especially, for residential consumers, alternative backup solutions that use battery power packs or inverter technology are cost-effective and environment-friendly. Traditionally, smaller power packs were commercially available. However, they were applicable only for small residential uses. However, with advances in battery technology, small and sealed DC batteries are powerful enough to be coupled with onboard inverters that generate enough AC voltage supply for apartments or commercial spaces.
Currently, power pack manufacturers, including Luminous, Amaron, and Microtek, have improved their engineering design. Their new power packs house both Low Voltage (LV) diesel generators and other components into a compact unit. This integration helps end-users to plug and switch the equipment on, which can result in market expansion. Power packs are ideal for residential uses and are expected to grow, which, in turn, is anticipated to propel the growth of the global low and medium-capacity gas generator market in focus during the forecast period.
The growth of the renewable energy sector, especially the solar energy and wind energy sectors, is a major challenge for the market. The demand for electricity generation over the last few years has increased due to the growth in population, urbanization, and industrialization. With this rise in demand for electricity and concerns about environmental pollution, the governments of various countries have started switching to renewable energy production. By 2040, the installed power generation capacity in the country is expected to be 3,188 GW, out of which the share of renewables is expected to become 57.1%. China is followed by the US and India. China is also the global leader when it comes to global solar power installations and is followed by the US, India, and Japan.
Moreover, the country aims at reducing the proportion of coal-powered plants and promoting more renewable power projects. The giant solar projects in the country are just pathways for future projects. Thus, the growing adoption of renewable energy is expected to hamper the adoption of low and medium-capacity gas generators, which, in turn, is anticipated to restrict the market growth. Such factors are expected to hinder the market growth during the forecast period.
The residential segment is estimated to witness significant growth during the forecast period. Natural gas is currently the most common fuel source for home backup generators. It is readily available in almost every well-developed municipality as this fuel is largely used for cooking and heating in the residential sector. In the event of a power outage, low and medium-capacity gas generators power the entire power distribution panel inside the house, which then supplies the necessary power for household appliances.
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The residential segment was the largest and was valued at USD 2.04 billion in 2018. Almost all parts of the world are witnessing growth in the residential sector. Certain factors that impact the supply of electric power in developed and developing economies are natural calamities disrupting normal utility supply, excessive load on the utility network leading to faults and interruptions, demand for electric power exceeding generation and supply of electricity, and age-old network infrastructure or insufficient network infrastructure leads to an inefficient power supply to meet the market demand Therefore, the demand for backup power to ensure efficient operation of appliances, lights, fans, heating, ventilation, air conditioning systems, and other systems despite power outages will rise. Such factors are expected to fuel the growth of the segment which in turn will drive the market growth during the forecast period.
Based on application, the market has been segmented into stationary and portable. The stationary segment will account for the largest share of this segment.?Stationary generators are generally hardwired to the main power distribution unit panel. Operation of the generator can be either manual or automatic (using an automatic transfer switch) in case of any power outage. Stationary generators can cater to high power requirements that can extend up to several kilowatts for extended periods. At present, the residential sector is experiencing the construction of huge apartments in almost all major cities. Urbanization and globalization encourage and influence the construction of new commercial spaces. Moreover, developing nations like China and India are home to several small and medium-scale enterprises which creates an opportunity for market expansion. Such factors are expected to drive the growth of the stationary segment of the market during the forecast period.
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APAC is estimated to contribute 33% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The easy availability of natural gas and discoveries of shale gas in the US has resulted in a decrease in initial investments required for the supply infrastructure of natural gas. This has helped the region witness a growth in demand for low and medium-capacity gas generators. This is expected to continue during the forecast period. As compared with the gas prices in 2008, gas prices in 2022 onwards have declined notably. This is a major driver for the market. Gas generators are gaining traction in this region, with residential and commercial consumers forming the main contributors to this trend.
In addition, the US has more than 110 operational LNG facilities, some of which export natural gas, while others provide natural gas to the interstate pipeline system and local distribution companies. Some LNG facilities store the fuel to service peak demand. Also, certain facilities produce LNG for vehicular and industrial use. All such factors are expected to drive the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Atlas Copco AB, AVK-SEG (UK) Ltd. - The company offers low and medium capacity gas generators such as AtlasCopco OGP 2-200 PSA oxygen generator, OGP+ 3-30 PSA oxygen generator, NGMs 1-3 nitrogen generator and many more.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Atlas Copco AB, AVK-SEG (UK) Ltd., Briggs and Stratton LLC, Caterpillar Inc., Champion Power Equipment Inc., Cummins Inc., DuroMax Power Equipment, Generac Holdings Inc., Honda Motor Co. Ltd., J C Bamford Excavators Ltd., Kohler Co., Meidensha Corp., PERIN GENERATORS GROUP, Pulsar Products Inc., Rolls Royce Holdings Plc, WEN Products, Yamaha Motor Co. Ltd., Yanmar Holdings Co. Ltd., Genesal Energy, and Westinghouse Electric Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is influenced by various factors, including Natural gas reserves availability and the demand from industries such as IT and retail, which rely heavily on uninterrupted power supply. Food safety concerns drive the need for reliable power sources, leading to interest in Refurbished products like refurbished laboratory gas generators. Companies offering these products cater to diverse industries, including the life sciences, chemical, and petrochemical sectors. The market includes a range of gas generators like Hydrogen, Nitrogen, Zero air, Purge, and TOC gas generators, essential for applications like Gas chromatography and Liquid chromatography mass spectrometry.
Furthermore, with a focus on energy source diversity, including Biogas, Sewage gas, and Landfill gases, the market addresses power generation needs while considering environmental impact. Ensuring Maximum electrical output during Blackouts and Brownouts, these generators play a crucial role in meeting Global electricity demand while maintaining acceptance rates and adhering to energy regulations. In the IT and retail sectors, as well as the life sciences and chemical/petrochemical industries, companies offering refurbished products rely on various generators like hydrogen, nitrogen, zero air, and purge gas generators, along with gas analyzers and gensets, to meet acceptance rate standards and ensure reliable power gas generation.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.22% |
Market Growth 2024-2028 |
USD 4.55 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.85 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atlas Copco AB, AVK-SEG (UK) Ltd., Briggs and Stratton LLC, Caterpillar Inc., Champion Power Equipment Inc., Cummins Inc., DuroMax Power Equipment, Generac Holdings Inc., Honda Motor Co. Ltd., J C Bamford Excavators Ltd., Kohler Co., Meidensha Corp., PERIN GENERATORS GROUP, Pulsar Products Inc., Rolls Royce Holdings Plc, WEN Products, Yamaha Motor Co. Ltd., Yanmar Holdings Co. Ltd., Genesal Energy, and Westinghouse Electric Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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