Natural Gas Generator Sets

Reciprocating Internal Combustion Engines for Continuous, Prime,
and Standby/Backup Power: Global Market Analysis and Forecasts

Natural gas (NG) generator sets (gensets) are reciprocating internal combustion engines that are used worldwide for distributed power production. Despite a short-term slowdown due to volatility in the oil & gas market, the NG genset market is expected to show healthy growth during the next 10 years. As a source of emergency standby, prime, peaking, or continuous power, NG-fueled gensets are poised for rapid growth, particularly in markets where inexpensive NG is widely available.

Yet, NG gensets cannot match the performance or convenience of diesel gensets since diesel has a higher energy content and is easier to transport than NG. Today, though, the line between NG and diesel gensets is becoming blurred with the increasing popularity of dual-fuel gensets, which offer the performance of diesel while taking advantage of the low price and low emissions of NG. In emerging economies, the key obstacle to the spread of NG gensets is a lack of adequate NG infrastructure. Once again, dual-fuel gensets provide an interesting middle ground, and they are seeing growth markets in developing countries where the NG infrastructure is expected to follow. According to Navigant Research, annual NG genset installations are expected to reach 27.2 GW by 2024 and generate $146.8 billion in cumulative revenue between 2015 and 2024.

This Navigant Research report analyzes the global market for NG gensets from less than 15 kW to 20 MW for residential, commercial, industrial, and utility applications. The study includes in-depth assessments of global regions for NG genset capacity installations, a breakdown of market segments by power class, an analysis of global gas resource development, and profiles of the key industry players engaged in this market. Global market forecasts that project the capacity and revenue of NG gensets in the 15 kW–6 MW size range, segmented by region and country, extend through 2024.

Key Questions Addressed:
  • What is the size of the global market opportunity for natural gas (NG) generator sets (gensets)?
  • What are the market drivers and barriers for NG gensets?
  • What does the market landscape for NG gensets look like?
  • What is the emerging role of dual-fuel gensets?
  • How will combined heat and power (CHP) adoption affect the NG genset market?
  • How will the boom in unconventional gas resources affect the NG genset market?
  • How are emissions regulations affecting demand for diesel and NG gensets?
  • Which countries are the largest growth markets for NG gensets?
Who needs this report?
  • Natural gas (NG) generator set (genset) OEMs
  • Reciprocating engine distributors and technicians
  • Genset packagers and installers
  • Building owners
  • Utilities
  • Government agencies
  • Investor community

Table of Contents

1. Executive Summary                

1.1  Overview

1.2  Demand Drivers and Barriers

1.3  Market Forecasts

2. Market Issues

2.1  Overview

2.1.1   NG Generation Technologies

2.1.2   Gensets as a DG Resource

   2.1.2.1  Reciprocating Engine Speeds

2.1.3   DG in the Global Context

2.1.4   Report Scope

2.2  Global Genset Market

2.2.1   Reciprocating Engine-Based Genset Shipments

2.2.2   NG Genset Market Share

2.2.3   Portable versus Skid-Mounted NG Gensets

2.3  Reciprocating Engine-Based Genset Applications

2.3.1   Standby Power

2.3.2   Prime Power

2.3.3   Peak Shaving

2.3.4   Grid Support

2.3.5   CHP

2.4  Reciprocating Engine-Based Genset Markets

2.4.1   Residential/Portable Market Opportunities

2.4.2   Small C&I Market Opportunities

2.4.3   Large C&I Market Opportunities

2.4.4   Utility Market Opportunities

2.4.5   Market Opportunity Examples

2.5  NG Genset Advantages

2.5.1   Fuel Security

2.5.2   Reduced Emissions

2.5.3   Performance, Reliability, and Convenience

2.5.4   Low Cost

2.6  Market Drivers

2.6.1   Competitive Fuel Cost

2.6.2   Emissions Regulations

2.6.3   CHP Policies

   2.6.3.1  United States

   2.6.3.2  Germany

   2.6.3.3  Russia

   2.6.3.4  China

2.6.4   Greater Adoption of Renewables

2.6.5   Increase in Catastrophic Power Outages

2.6.6   Rural Electrification

2.7  Market Barriers

2.7.1   Gas Infrastructure

2.7.2   Interconnection and Utility Barriers

2.7.3   Maintenance Challenges

2.7.4   Energy Content

3. Natural Gas Market Issues 

3.1  Overview

3.2  NG Supply

3.3  NG Demand

3.4  LNG Trade

3.5  China

3.6  NG Industry Structure

3.6.1   Upstream Segment

   3.6.1.1  Gas Mining

3.6.2   Midstream Segment

3.6.3   Downstream Segment

3.7  NG Pricing

4. Technology Issues

4.1  Overview

4.2  Chemical Characteristics of NG

4.2.1   Pipeline NG

4.2.2   Propane (LPG)

4.3  NG Genset Costs

4.3.1   Installed Cost of NG-Fueled Reciprocating Engine System

4.3.2   Installed Cost of Typical NG-Fueled Reciprocating Engine CHP System

4.4  Genset Applications by Power Rating

4.4.1   Continuous Power

4.4.2   Prime Power

4.4.3   Standby/Backup Power

4.5  NG Genset Technology Development

4.5.1   Fuel Efficiency Improvements

   4.5.1.1  Rich-Burn versus Lean-Burn

   4.5.1.2  Advanced Reciprocating Engine Systems Program

4.5.2   Ignition Improvements

   4.5.2.1  Dual-Fuel Systems

   4.5.2.2  Laser Ignition

4.5.3   Monitoring Systems and Software

4.5.4   Low-Btu Reciprocating Gensets

5. Key Industry Players  

5.1  Competitive Landscape

5.1.1   2G CENERGY

5.1.2   Aegis Energy Services

5.1.3   Briggs & Stratton

5.1.4   Caterpillar

5.1.5   Cummins Power Generation

5.1.6   Depco Power Systems

5.1.7   Dresser-Rand (Guascor)

5.1.8   Eaton

5.1.9   E.ON

5.1.10   GE Digital Energy

5.1.11   GE Energy

   5.1.11.1   Jenbacher

5.1.12   Generac Power Systems

5.1.13   Kohler Power Systems

5.1.14   MTU Onsite Energy Systems

5.1.15   MWM (Caterpillar)

5.1.16   Schneider Electric

5.1.17   Tecogen, Inc.

5.1.18   Wärtsilä

6. Market Forecasts   

6.1  Methodology

6.2  Key Flex Points

6.3  NG Genset Installations Forecast

6.4  Forecasts by Region

6.4.1   North America

6.4.2   Western Europe

6.4.3   Eastern Europe

6.4.4   Asia Pacific

6.4.5   Latin America

6.4.6   Middle East

6.4.7   Africa

6.5  NG Genset Revenue Forecast

6.5.1   Forecast by Region

6.6  Conclusions and Recommendations

7. Company Directory
8. Acronym and Abbreviation List
9. Table of Contents
10. Table of Charts and Figures
11. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Distributed Generation Installed Capacity Additions and Market Share by Region, World Markets: 2014
  • Distributed Generation Installed Capacity Additions and Market Share by Technology, World Markets: 2014
  • Genset Units Shipped by Power Class, North America: 2011-2014
  • Genset Capacity Shipped by Power Class, North America: 2011-2014
  • Commercial CHP Installed Capacity by Region, World Markets: 2015-2024
  • Diesel vs. Natural Gas Prices by Date, United States: 2007-2014
  • Share of Natural Gas Consumption by Region and Country, World Markets: 2013
  • Top 10 Consumers of Gross Natural Gas per Capita by Country, World Markets: 2012
  • Spot Price of Natural Gas by Market, World Markets: 2001-2014
  • Estimated Capital Cost for Typical Natural Gas Reciprocating Engine Genset, United States: 2003
  • Estimated Cost Breakdown of Typical Natural Gas Genset-Based CHP System: World Markets: 2013
  • Forward Cost Reduction Estimates for Natural Gas Reciprocating Engine Genset by CHP Application, World Markets: 2003-2030
  • Annual Natural Gas Genset Installed Capacity by Region, World Markets: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, North America: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, Western Europe: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, Eastern Europe: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, Asia Pacific: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, Latin America: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, Middle East: 2015-2024
  • Annual Natural Gas Genset Installed Capacity by Country, Africa: 2015-2024
  • Annual Natural Gas Genset Revenue by Region, World Markets: 2015-2024
  • Market Share of Cumulative Natural Gas Genset Revenue by Region, World Markets: 2024

List of Tables     

  • Applications and Markets for Gas-Fired DG Technologies
  • Reciprocating Engine Types by Speed Classification (Available MW Ratings)
  • Estimated Genset Market Share by Power Class and Fuel, United States: 2014
  • Reciprocating Engine Genset Market Overview
  • Example Emerging Opportunities for Natural Gas Gensets
  • Availabilities and Outage Rates for Natural Gas Engines by Metric, United States: 2004
  • Historical Outage Data by Year, United States: 2008-2014
  • Estimated Losses per Hour of Grid Failure by Operations/Industry
  • Electricity Access, Regional Aggregates: 2012
  • Major Constituents of Gaseous Fuels
  • Comparison of Installed Costs by Distributed Generation Technology, World Markets: 2014
  • Snapshot of Natural Gas Genset OEM Market
  • Commercial CHP Installed Capacity by Region, World Markets: 2015-2024
  • Diesel vs. Natural Gas Prices by Date, United States: 2007-2014
  • Share of Natural Gas Consumption by Region and Country, World Markets: 2013
  • Distributed Generation Installed Capacity Additions and Market Share by Region, World Markets: 2014
  • Distributed Generation Installed Capacity Additions and Market Share by Technology, World Markets: 2014
  • Genset Units Shipped by Power Class, North America: 2011-2014
  • Genset Capacity Shipped by Power Class, North America: 2011-2014
  • Top 10 Consumers of Gross Natural Gas per Capita by Country, World Markets: 2012
  • Spot Price of Natural Gas by Market, World Markets: 2001-2014
  • Estimated Capital Cost for Typical Natural Gas Reciprocating Engine Genset, United States: 2003
  • Annual Natural Gas Genset Installed Capacity by Region and Country, World Markets: 2015-2024
  • Estimated Capital Cost for Typical Natural Gas Reciprocating Engine Genset in Grid-Connected CHP Applications, United States: 2013
  • Forward Cost Reduction Estimates for Natural Gas Reciprocating Engine Genset by CHP Application, World Markets: 2003-2030
  • Annual Natural Gas Genset Installed Capacity by Region, World Markets: 2015-2024
  • Annual Natural Gas Genset Revenue by Region and Country, World Markets: 2015-2024
  • Annual Natural Gas Genset Revenue by Region, World Markets: 2015-2024

Report Details

  • Pages: 99
  • Tables, Charts,
    Figures:
    50
  • Release Date: 2Q 2015
  • Release File(s): PDF* and Excel *Indicates primary report file.

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