Market Data: Distributed Natural Gas-Fueled Generation

Distributed Natural Gas Generator Sets, Stationary Fuel Cells,
and Microturbines for Onsite Generation: Global Market Analysis and Forecasts

Distributed natural gas-fueled generation (DNGG) is positioned for growth in the coming decade. The related technologies are placed at the intersection of two of today’s biggest energy trends: the proliferation of distributed energy resources and the growing abundance of cheap oil & gas. Despite a recent slowdown due to volatility in the oil & gas market, growth in DNGG uptake is expected based on key drivers such as demand for reliable power, stricter environmental standards, and the decreasing costs of onsite generation relative to alternatives like grid power.

In the developed world, emissions regulations will help DNGG continue to displace higher-emitting incumbents like diesel generator sets (gensets). Meanwhile, developing nations will incorporate more DNGG to meet reliability requirements and satisfy growing electricity demand. Some threats to DNGG market growth exist, however. For example, fuel cells and microturbines will need substantial cost declines in order to enter the mainstream. In addition, natural gas gensets continue to face stiff competition from diesel gensets, which are especially economical for standby applications. Any concerns, though, will be overcome with the growing global demand for economical, reliable onsite generation. According to Navigant Research, the global market for new DNGG installations is expected to grow from $12.6 billion in annual revenue in 2016 to $35.9 billion by 2025.

This Navigant Research report analyzes the global market for DNGG for residential, commercial, industrial, and utility applications. The study provides an analysis of key market and technology developments and covers natural gas gensets (less than 6 MW), stationary fuel cells, and microturbines. Global market forecasts for capacity and revenue, segmented by technology and region, extend through 2025.

Key Questions Addressed:
  • Which countries will represent the largest markets for distributed natural gas-fueled generation (DNGG) in the coming decade?
  • What are the strengths and weaknesses associated with each of the three DNGG technologies?
  • What are the latest market and policy developments for DNGG around the world?
  • What are the key drivers of DNGG adoption by region and segment?
  • How will natural gas prices affect the demand for DNGG technologies?
Who needs this report?
  • Natural gas generator set vendors
  • Fuel cell vendors
  • Microturbine vendors
  • Large industrial power users
  • Energy developers
  • Utilities and grid operators
  • Investor community

Table of Contents

1. Executive Summary

1.1  Overview

1.2  Demand Drivers and Barriers

1.3  Global Forecast

2. Market Issues

2.1  Introduction

2.2  Market Segments

2.3  Market Drivers

2.3.1  Demand for Reliable Power

2.3.2  Improving Economic Viability: Fuel Prices and Efficiency Gains

2.3.3  Environmental Standards

2.3.4  Other Drivers

2.4  Technology Trends

2.4.1  NG Gensets

2.4.2  Stationary Fuel Cells

2.4.3  Microturbines

3. Market Forecasts

3.1  Overview

3.2  Methodology and Assumptions

3.3  Forecasts by Technology

3.3.1  NG Gensets: Capacity and Revenue by Region

3.3.2  Stationary Fuel Cells: Capacity and Revenue by Region

3.3.3  Microturbines: Capacity and Revenue by Region

3.4  Forecasts by Region

3.4.1  North America: NG Leader Retains No. 2 Spot through Forecast Period

3.4.2  Europe: Slower Growth with Some Bright Spots

3.4.3  Asia Pacific: Current and Future Leader Captures Nearly Half of Global Installs

3.4.4  Rest of World: Opportunities Grow as Infrastructure Expands

3.5  Conclusions and Recommendations

4. Acronym and Abbreviation List
5. Table of Contents
6. Table of Charts and Figures
7. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Annual DNGG Installed Capacity and Revenue by Region, World Markets: 2016-2025
  • Spot Price of Natural Gas by Market, World Markets: 2001-2016
  • Energy and Power Density by Technology: Daily Delivered Energy (MWh) in 1-Acre Footprint, North America: 2016
  • Annual DNGG Installed Capacity by Technology, World Markets: 2016-2025
  • Annual NG Genset Installed Capacity and Revenue by Region, World Markets: 2016-2025
  • Annual Stationary Fuel Cell Installed Capacity and Revenue by Region, World Markets: 2016-2025
  • Annual Microturbine Installed Capacity and Revenue by Region, World Markets: 2016-2025
  • Annual DNGG Installed Capacity by Select Country, World Markets: 2016-2025
  • Annual DNGG Installed Capacity and Revenue by Country, North America: 2016-2025
  • Annual DNGG Installed Capacity and Revenue by Country, Europe: 2016-2025
  • Annual DNGG Installed Capacity and Revenue by Country, Asia Pacific: 2016-2025
  • Annual DNGG Installed Capacity and Revenue by Region and Country, Latin America and the Middle East & Africa: 2016-2025

List of Tables

  • NG Gensets SWOT Analysis
  • Stationary Fuel Cells SWOT Analysis
  • Microturbines SWOT Analysis
  • Annual DNGG Revenue by Region and Country, World Markets: 2016-2025
  • Annual DNGG Installed Capacity by Region and Country, World Markets: 2016-2025
  • Annual Natural Gas Genset Revenue by Region and Country, World Markets: 2016-2025
  • Annual Natural Gas Genset Installed Capacity by Region and Country, World Markets: 2016-2025
  • Annual Stationary Fuel Cell Revenue by Region and Country, World Markets: 2016-2025
  • Annual Stationary Fuel Cell Installed Capacity by Region and Country, World Markets: 2016-2025
  • Annual Microturbine Revenue by Region and Country, World Markets: 2016-2025
  • Annual Microturbine Installed Capacity by Region and Country, World Markets: 2016-2025
  • Spot Price of Natural Gas by Market, World Markets: 2001-2016
  • Energy and Power Density by Technology: Daily Delivered Energy (MWh) in 1-Acre Footprint, North America: 2016
  • Annual DNGG Installed Capacity by Technology, World Markets: 2016-2025
  • Annual DNGG Revenue by Select Country, World Markets: 2016-2025
  • Annual DNGG Installed Capacity by Select Country, World Markets: 2016-2025

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