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The Low and Medium Capacity (LMC) Gas Generator Market size is estimated to grow at a CAGR of 11.22% between 2023 and 2028. The market size is forecast to increase by USD 4,550.39 million. The growth of the market depends on several factors such as the rising preference for gas generators, expanding natural gas pipeline networks and stringent emission regulations for diesel engines. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by end-user (residential, commercial, and industrial), application (stationary and portable), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Low and Medium Capacity Gas Generator Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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 into a compact unit. This helps end-users to plug and switch the equipment on, which can result in low and medium capacity (LMC) gas generator 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 low and medium capacity (LMC) gas generator 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 segment and was valued at USD 2,038.17 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 low and medium capacity gas generator 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 the low and medium capacity gas generator 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. 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 low and medium capacity gas generator market during the forecast period.
The outbreak of the COVID-19 pandemic in the region in 2020 led to a further decline in energy consumption. However, there has been a rise in production activities in various industries, such as manufacturing and automobile, in the region since the beginning of 2021, owing to the vaccination drive. This has led to an increase in the demand for power generation, which had a positive impact on the growth of the low and medium capacity (LMC) gas generator market in North America. Moreover, expanding natural gas pipeline networks and stringent emission regulations for diesel engines are expected to have a positive impact on the growth of the regional low and medium capacity gas generator 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 low and medium capacity gas generator market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Low And Medium Capacity Gas Generator 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 4,550.39 million |
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 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 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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