What is the Historical Analysis of the Distributed Natural Gas-Fueled Generation Market Size?
The distributed natural gas-fueled generation market has seen considerable growth due to a variety of factors.
•The market size for distributed generation powered by natural gas has seen significant expansion in the past few years. Predicted to increase from $33.27 billion in 2024 to $36.88 billion in 2025, it is expected to register a compound annual growth rate (CAGR) of 10.8%.
Factors like concerns over energy security, economic feasibility, resilience and dependability of power grid, energy self-sufficiency, and environmental factors have been critical in driving growth during the historic period.
What is the Forecasted Growth of the Distributed Natural Gas-Fueled Generation Market Size?
The distributed natural gas-fueled generation market is expected to maintain its strong growth trajectory in upcoming years.
• The market for distributed natural gas-fueled generation is anticipated to experience substantial expansion in the coming years, aiming to reach a market value of $57.82 billion in 2029, reflecting a compound annual growth rate (CAGR) of 11.9%.
The growth in projected period could be a result of the integration of renewable natural gas, the implementation of grid decentralization, the incorporation of energy storage, government benefits and strategies, and planning for resilience. The predominant trends during this period are expected to be technological breakthroughs in microgrids, advancements in the field of gas turbine technology, progress in technology, integration with renewable energy sources, and considerations regarding the environment.
What Are The Key Drivers Fueling Growth In The Distributed Natural Gas-Fueled Generation Market?
The distributed natural gas-fueled generation market is anticipated to witness significant growth due to the increasing utilization of natural gas. This naturally occurring combustible gas serves as a fuel or an energy resource for several applications such as heating, cooking, transportation, and power generation. Natural gas is primarily harnessed for heating and power production purposes, and is also utilized in various consumer sectors for different functions. It plays a crucial role in the fueled generation process to produce valuable heat and electricity. For instance, the International Energy Agency (IEA), a French intergovernmental body, reported in July 2022 that global need for natural gas is forecasted to ascend by 140 billion cubic meters between 2021 and 2025. This escalating application of natural gas is stimulating the expansion of the distributed natural gas-fueled generation market.
What Are The Principal Market Segments In The Global Distributed Natural Gas-Fueled Generation Industry?
The distributed natural gas-fueled generation market covered in this report is segmented –
1) By Technology: Natural Gas Gensets, Micro Turbine, Stationary Fuel Cells
2) By Scale: Microgeneration, Small-Scale Generation, Medium-Scale Generation, Large-Scale Generation
3) By End User: Residential, Commercial And Industrial, Building And Institutional
Subsegments:
1) By Natural Gas Gensets: Spark Ignition Gensets, Compression Ignition Gensets
2) By Micro Turbine: Small Micro Turbines, Medium Micro Turbines
3) By Stationary Fuel Cells: Proton Exchange Membrane Fuel Cells, Solid Oxide Fuel Cells (SOFC), Molten Carbonate Fuel Cells (MCFC)
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Which Emerging Market Trends Are Altering The Distributed Natural Gas-Fueled Generation Sector?
Advancements in technology are becoming an increasingly popular trend in the distributed natural gas-fueled generation market. Companies in the industry are capitalizing on new technologies to maintain a competitive advantage. As an example, in September 2023, a gas engines company based in Germany, Motoren Werke Mannheim AG, unveiled the TCG 3020 gas engine series along with retrofit kits specifically designed for hydrogen operation. This allows an admixture of up to 25 vol% hydrogen, aligning with the increasing demand for sustainable energy and adherence to stricter emission rules. The TCG 3020 engines have the ability to operate with a hydrogen blend of up to 25 vol% without the need for any technical alterations. This exceptional feature improves their adaptability, letting operators shift to more environmentally friendly energy sources while preserving operational efficiency.
Who Are the Key Players in the Distributed Natural Gas-Fueled Generation Market?
Major companies operating in the distributed natural gas-fueled generation market include:
• General Electric Company
• MWM GmbH
• ABB Group
• Cummins Inc.
• Shandong Lvhuan Power Equipment Co. Ltd.
• Redox Power Systems
• Caterpillar Inc.
• Generac Power Systems
• Mitsubishi Heavy Industries Ltd.
• Kohler Co. Inc.
• MTU Onsite Energy GmbH
• Mahindra Powerol Ltd.
• Yanmar Co. Ltd.
• Coopercorp Generators
• Siemens AG
• Rolls-Royce Holdings PLC
• Wärtsilä Corporation
• MAN Energy Solutions SE
• Kawasaki Heavy Industries Ltd.
• Sinopec
• British Petroleum Company p.l.c
• Chevron Corporation
• Lukoil
• Occidental Petroleum Corporation
• ExxonMobil Corporation
• Dakota Gasification Company
• NRG Energy Inc.
• Baker Hughes Company
• Halliburton
• Honeywell International Inc.
• Royal Dutch Shell
• Calix Limited
What are the Regional Insights into the Distributed Natural Gas-Fueled Generation Market?
North America was the largest region in the distributed natural gas-fueled generation market in 2024.Asia-Pacific is expected to be the fastest-growing region in the global distributed natural gas-fueled generation market report during the forecast period. The regions covered in the distributed natural gas-fueled generation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
