Low and Medium Capacity Gas Generator Market is growing rapidly due to expansion of natural gas pipeline network

 A steady growth in demand for gas generators in different application areas is seen as they run on a clean source of fuel such as natural gas, compressed natural gas (CNG), and liquefied petroleum gas (LPG). Gas generators generate gas and are refilled using gas pipelines. Most of the developed countries (U.S., Germany) have a well-planned gas pipeline infrastructure that supplies natural gas used for refilling gas generators. Manufacturers are focusing on developing less expensive low and medium capacity gas generators which can meet the requirement of 10 second startup for backup power systems. In addition, the use of gear-on-gear powertrains and other engine advances have enhanced the overall performance and power of a gas generator. Design upgrade such as the use of sturdier and robust engine parts, (hardened seats and valves), have contributed to the better performance of low and medium capacity gas generators. 

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Low and Medium Capacity Gas Generator Market –Competitive Landscape

market share low and medium capacity gas generator market

Camda New Energy Equipment Co., Ltd.

Founded in 1998, Camda New Energy Equipment Co., Ltd. is headquartered in Dongguan, China. The company is involved in the designing and manufacturing of generator sets for various kinds of fuel including natural gas, diesel, bio-gas, and coal bed methane etc. It is the leading manufacturer and supplier of diesel and gas generator sets in China.

Kohler Co.

Incorporated in 1873 Kohler Co .is based in Kohler, Wisconsin, the U.S. The American multinational company has expertise in manufacturing plumbing products, furniture, cabinetry, engines, tiles, and generators.

Generac Power Systems

Established in 1959, Generac Power Systems is based in Waukesha, Wisconsin, the U.S. It is specialized in developing home standby generators and home backup generators. Its product portfolio includes a wide range of power products including portable, residential, commercial as well as industrial generators. The company is also specialized in designing and manufacturing manual and fully automatic transfer switches along with accessories that are used for power backup applications up to 2 MW.

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Cummins Inc.

Founded in 1919, Cummins Inc. is based in Columbus, Indiana, the U.S. The company has expertise in the designing, manufacturing, sale, and post-sale service of diesel and natural gas engines along with powertrain-related technologies, including fuel systems, filtration, controls, emission, air handing, solutions and electrical power generation systems. Cummins Inc. operates through the following segments: engine, components, distribution, and power generation.

Caterpillar Inc.

Incorporated in 1925, Caterpillar Inc. is based in Deerfield, Illinois, the U.S. The company engages in the manufacture of industrial gas turbines, construction and mining equipment, diesel and natural gas engines, and diesel-electric locomotives. Caterpillar Inc. operates through the following segments: energy and transportation, resource industries, construction industries, financial products, and all other.

Some of the other significant players in the low and medium capacity gas generator market are APR Energy Limited, Guangdong Honny Power-Tech Co., Ltd., HIMOINSA S.L., and F.G. Wilson (Engineering).

Low and Medium Capacity Gas Generator Market - Dynamics

Expansion of Natural Gas Pipeline Network

Natural gas pipeline networks are expanding extensively in developed as well as in developing economies due to increasing production and consumption of natural gas. The emerging trend of cross-country and multi-country pipeline infrastructure is expected to increase the demand for natural gas in the coming years. These pipelines with various sizes supply natural gas domestically as well as internationally. In developing countries such as India, a number of natural gas pipeline projects are estimated to increase in the coming years and this leads to increase in adoption of natural gas for generators to generate power backup. Manufacturers have started production of low and medium capacity gas generators to meet this increasing demand for gas generators, and as a result, the market is likely to grow at an impressive pace in the near future.

Fluctuation in Diesel Prices Hamper the Adoption Rate of Low and Medium Capacity Gas Generators

Generally, higher power output based generators run on diesel as fuel. Thus, any fluctuation in diesel prices creates a challenge for diesel generator owners. In the past few years, a growth in demand for generators on rent or on a lease basis among users is observed. It is a cost efficient alternative for users instead of purchasing the generator, especially in a short term basis. Hence, diesel price fluctuation and growth in demand for generators on rent are expected to adversely impact sales and this is estimated to hamper the growth of the market in the near future.

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