Natural Gas Generator Market Expected to Reach $10.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Natural Gas Generator Market," The natural gas generator market size was valued at $5.5 billion in 2021, and is estimated to reach $10.4 billion by 2031, growing at a CAGR of 6.6% from 2022 to 2031.

Natural gas generators use natural gas to create electricity. They work similar to gas generators, but these generators use gas fuel instead of liquid. To create electricity in a natural gas generator, a mixture of fuel and air is inserted into a combustion chamber, where a piston compresses it. A spark plug ignites the fuel by forcing the piston down and turning the crankshaft.

Generators harness mechanical energy, fueled by natural gas, to create electricity. Natural gas generators use fuels such as propane or natural gas, drawn either from a direct line piped in by utility suppliers or via a tank, to generate the cleanest fossil fuel electricity possible. Natural gas-powered generators provide energy for other appliances through the following steps:

Injection: The internal combustion engine injects fuel and air into the combustion chamber, where the mixture gets compressed by the piston.

Ignition: After the piston compresses the air and fuel combination, the spark plug ignites the fuel with a small but powerful spark. The spark ignites an explosion in the chamber that the Rest of the generator turns into mechanical energy.

Electricity generation: Ignition causes the gases to expand, pushing the piston down with enough force to turn the crankshaft, which then spins the rotor. When the rotor spins, the stator wires conduct electricity and combine into a single large electrical current that, if large enough, can power appliances and buildings.

Natural gas is one of the cleanest-burning fossil fuels, releasing fewer toxins into the atmosphere than other generator fuels. However, rise in pollution concern across the globe may act as the major driving factor for the market. In addition, rather than having to refill a fuel tank repeatedly, natural gas generator can be connected by local gas pipeline for a near-unlimited fuel supply, barring any major disasters or utility failures. Diesel generators require extra time and expense to polish the fuel to remove contaminants. Diesel’s limited shelf life in storage means it requires extra planning and expense, with natural gas. However, high fuel supply of natural gas generator characteristic is projected to create ample amount of natural gas generator market opportunities. 

The natural gas generator market is segmented on the basis of application, power rating, end user, and region. On the basis of application, the market is categorized into stand-by and continuous. On the basis of power rating, it is divided into Less than 75 kVA, 75-375 kVA and Above 375 kVA. On the basis of end user, it is classified into commercial, residential and industrial. Region wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.

The global natural gas generator market analysis covers in-depth information about the major industry participants. The key players operating and profiled in the report include Weichai Group (China), Kohler Co. (US), Atlas Copco (Sweden), Denyo (Japan), Wacker Neuson (Germany), Doosan (South Korea), Greaves Cotton Limited (India), Kirloskar Oil Engines Ltd. (India), Siemens (Germany), Aksa Energy (Turkey), Wärtsilä (Finland), Honda (Japan), Briggs & Stratton (US), ABB (Germany) and Yanmar (Japan).

The global natural gas generator market forecast is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021-2031. The report includes the study of the market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the natural gas generator market growth.

IMPACT OF COVID-19 ON THE GLOBAL NATURAL GAS GENERATOR MARKET

• The COVID-19 pandemic has curtailed the movement of people, goods and power ratings worldwide, including in most of the regions in which manufacturing of Natural gas generator is on large scale. As part of intensifying efforts to contain the spread of COVID-19, a number of local, state and national governments have imposed various restrictions on the conduct of business and travel, such as stay-at-home orders and quarantines that have led to a significant number of business slowdowns and closures. 
• The manufacturing of Natural gas generator was stopped for a specific period of time due to high peak of the COVID-19 situation which led to highly impact the sales of Natural gas generator.
• COVID-19 impacted almost all industries by hindering various industrial Power ratings and disrupting the supply chain. Maximum companies halted their Power rating due to less workforce. However, there is a sluggish decline in the global natural gas generator market due to impact of COVID-19.

Key findings

• On the basis of application, the continuous segment emerged as the global leader in 2021 and is anticipated to be the largest market during the forecast period.
• On the basis of power rating, the less than 75 kVA segment emerged as the global leader in 2021 and is anticipated to be the largest market during the forecast period.
• On the basis of end users, the commercial segment registered the highest market share and is projected to maintain the same during the forecast period.
• based on region, Asia-Pacific registered the highest natural gas generator market share and is projected to maintain the same during the forecast period.