In the last three years, according to new analysis from Frost & Sullivan, the deployment of gas gensets has risen in prominence in Europe and the United States owing to stricter emission laws and lower gas prices. The shale gas boom in the United States and increasing adoption of biogas in Europe have kept the market in the two regions buoyant, while liberalisation has given a boost to the market in emerging countries. In fact, China and India have become the largest production hubs for gensets with many large manufacturers building their capabilities organically or through tie-ups and alliances.
The new report 'Global Gas Gen-Sets Market' finds that the sales of gas gensets earned revenues of $4.14 billion in 2013, and estimates this to reach $8.59 billion in 2019. The study covers the end-user segments of residential, commercial and industrial.
Gas gensets easily comply with environmental regulations by virtue of their thermal efficiency, particularly in decentralised combined heat and power systems.
"The surge in natural gas availability and improved infrastructure for delivery have lowered the price of gas, greatly assisting the sales of gas gensets in developed regions," said Frost & Sullivan energy industry analyst Pritil Gunjan. "Though technological improvements, such as the automatic control systems, are making gas gensets 50 % more expensive than their diesel counterparts, their reliability and lower lifecycle costs will keep demand high."
This is especially so in emerging countries, which do not have access to adequate reserves of gas and lack the necessary infrastructure to pipe gas from other regions. The widening demand and supply power gap will escalate gas gensets as a source of prime and continuous power. In this scenario, generating units with fast response times can provide utilities with a flexible power generation infrastructure, allowing them to make the most of the high electricity prices during hours of peak demand.
"Gas-fired gensets, with their low-risk technology, favourable capital costs, and higher efficiency have become the technology of choice for intermediate load and increasingly, for base load power generation," noted Gunjan. "Effective policies and regulatory frameworks, natural gas availability, and high consumer awareness will further fuel the growth of the market."
Asia-Pacific will be the fastest growing and largest region for sales of commercial and residential gas gensets. For the industrial segment, participants need to focus on offering hybrid units and fuel flexibility.
For more information email Chiara Carella at chiara.carella@frost.com
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