What Fueled The Previous Growth In The Natural Gas Generator Market?
The natural gas generator market has seen considerable growth due to a variety of factors.
•In recent times, the market size for natural gas generators has witnessed a significant surge. The market, which was at $8.13 billion in 2024, is projected to reach $8.87 billion in 2025, expanding at a compound annual growth rate (CAGR) of 9.1%.
This substantial growth during the historic period can be ascribed to the increased focus on clean energy, the assurance and dependability of energy, the shale gas surge, strict emission guidelines, and the requirement for distributed power generation.
What Is The Expected Growth In The Natural Gas Generator Market Size?
The natural gas generator market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the natural gas generator market is anticipated to experience swift expansion in the forthcoming years. It is predicted to escalate to "$13.04 billion by 2029, with a compound annual growth rate (CAGR) of 10.1%.
The expansion during the forecast period is mainly due to the switch to renewable natural gas (RNG), amalgamation with renewable energy, escalating demand for microgrid solutions, government impetus for green energy, and the need for grid resilience and energy security. Key trends for the forecast period comprise the integration of hybrid systems, the adoption of microgrids, technologies for reducing emissions, digitalization, smart controls, and distributed power generation.
What Are the Critical Driver Fuelling the Natural Gas Generator Market's Growth?
The increasing desire for electricity across different sectors is driving growth in the natural gas generator market. Electricity, which powers devices that generate heat and light, is supplied by natural gas generators to multiple sectors due to their cost-efficiency and environmental benefits. The International Energy Agency (IEA), a France-based intergovernmental group offering policy-based advice, analysis, and information about the entire global energy industry, predicts that global electricity demand will expand at an average pace of 3% from 2022 to 2025 based on their 2023 data. Thus, the escalating requirement for electricity from a variety of sectors propels the natural gas generators market forward.
How Is the Natural Gas Generator Market segmented?
The natural gas generator market covered in this report is segmented –
1) By Type: Standby, Prime
2) By Power Rating: Low Power Genset, Medium Power Genset, High Power Genset
3) By Phase: Single Phase, 3 Phase
4) By Material: Aluminum, Composite, Steel
5) By End User: Industrial, Commercial, Residential
Subsegments:
1) By Standby: Automatic Standby Generators, Manual Standby Generators
2) By Prime: Continuous Prime Generators, Variable Load Prime Generators
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What New Trends Are Influencing the Natural Gas Generator Market?
One key trend emerging in the natural gas generators market is that of investments. Major players in this market are focusing on pouring capital into natural gas generator technologies and resources to induce market growth. For example, in February 2023, Cummins Inc., an American manufacturer of power generation goods, invested in 175kW and 200kW natural gas standby generator sets. These generators have a resilient 6-cylinder spark-ignited QSJ8.9G petrol engine that provides reliable power and quickly adapts to load variations, the PowerCommand 2.3 control feature for automating remote starts/stops, accurate frequency and voltage regulation, display of alarm and status messages, and output metering that complies with NFPA 110 Level 1, a reliable cooling package that functions adequately up to 122 degrees F, and a visually pleasant enclosure that includes unique design touches. In another instance, in May 2022, National Pension Service (NPS), a public pension fund based in South Korea, and Korean Teachers’ Credit Union (KTCU), another South Korean public pension fund for teachers, poured $390 million into Calpine Corp., a US-based manufacturer of natural gas generators.
Who Are the Key Players in the Natural Gas Generator Market?
Major companies operating in the natural gas generator market include:
• Caterpillar Inc.
• Generac Power System
• Cummins Inc.
• General Electric Company.
• Kohler Co. Inc.
• Mahindra Powerol
• MTU-onsite Energy GMBH
• Yanmar Co. Ltd.
• Coopercorp Generators
• Mitsubishi Heavy Industries Ltd.
• Aggreko Plc.
• APR Energy Inc.
• Jinan Diesel Engine Co.Ltd.
• Shandong Naipute Gas Power Co.Ltd.
• Zibo Diesel Engine Parent Company
• Himonsa S.L.
• Ettes Power Technology Co. Ltd.
• Wärtsilä Corporation
• Siemens Aktiengesellschaft
• Rolls-Royce Power Systems AG
• Doosan Corporation
• Dresser-Rand Group Inc.
• INNIO Group Holding GmbH
• JFE Engineering Corporation
• MAN Energy Solutions SE
• Kawasaki Heavy Industries Ltd.
• Liebherr-International AG
• Perkins Engines Company Limited
• Atlas Copco AB.
• Briggs & Stratton Corporation
What Is The Most Dominant Region In The Natural Gas Generator Market?
North America was the largest region in the natural gas generators market in 2024.Asia-Pacific is expected to be the fastest-growing region in the global natural gas generator market report during the forecast period. The regions covered in the natural gas generator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
