Gas Generator Sets Global Market Report 2024

A gas generator is a portable power device comprising a gas engine and an alternator or electric generator. These generator sets find applications in underdeveloped areas without access to the electricity grid and in locations where power outages are frequent or could lead to critical issues. They serve as either a primary energy source or a backup power solution, particularly during peak usage hours.

Gas generators utilize various fuels, with natural gas and biogas being the primary types. A natural gas generator set specifically employs natural gas as its fuel source and is commonly used in critical facilities such as hospitals and nursing homes that require a continuous and reliable power supply. The power rating of these generator sets varies, including categories such as less than 50 kVA, between 51 kVA to 125 kVA, between 126 kVA to 200 kVA, between 201 kVA to 330 kVA, between 331 kVA to 750 kVA, and above 750 kVA. These generators serve standby, peak shaving, and prime/continuous applications across residential, industrial, commercial, power, energy, and various other end-user sectors.

The gas generator sets market research report is one of a series of new reports that provides gas generator sets market statistics, including gas generator sets industry global market size, regional shares, competitors with a gas generator sets market share, detailed gas generator sets market segments, market trends and opportunities, and any further data you may need to thrive in the gas generator sets industry. This gas generator sets market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The gas generator sets market size has grown strongly in recent years. It will grow from $8.58 billion in 2023 to $9.01 billion in 2024 at a compound annual growth rate (CAGR) of 5.0%. The growth observed in the historical period can be attributed to an increased demand for reliable backup power solutions. This demand has been driven by a growing emphasis on energy security and grid resilience. Additionally, the expansion of industrial and commercial infrastructure has played a significant role in this positive trend. The rise in natural gas production and its increased availability has further contributed to the growth, meeting the need for continuous power supply in critical applications.

The gas generator sets market size is expected to see steady growth in the next few years. It will grow to $10.88 billion in 2028 at a compound annual growth rate (CAGR) of 4.8%. The anticipated growth in the forecast period can be attributed to several key factors, including the integration of gas generator sets into hybrid and microgrid systems. There is a growing demand for combined heat and power (CHP) systems, driven by the desire for enhanced energy efficiency. The adoption of low-emission and renewable natural gas sources is another significant contributor to this growth. Additionally, customization of generator sets for specific industrial applications, a focus on decentralized power generation, and the utilization of distributed energy resources all play pivotal roles in driving this positive trend. Major trends expected in the forecast period encompass the development of hybrid and multi-energy systems, the incorporation of smart and remote monitoring capabilities, the rise of high-efficiency combined heat and power (CHP) applications, the increasing use of low-emission and emission-neutral technologies, and advancements in control and synchronization systems. These trends reflect the industry's commitment to innovative and sustainable solutions in the evolving landscape of power generation.

The anticipated increase in global energy consumption is poised to drive the growth of the gas generator sets market. Societal and economic factors, including population growth, urbanization, rising net capital income, and increased industrial activities in both developed and developing economies, have contributed to a significant upswing in electricity consumption worldwide. This surge in electricity demand is expected to fuel the need for gas generator sets as various sectors, including industries, commercial establishments, and residential units, invest in portable power solutions to address frequent power outages. Notably, data from the International Energy Agency (IEA) Electricity Market Report in July 2021 indicates an estimated 5% growth in global electricity demand during 2020-21 and a further 4% growth during 2021-22, with China and India contributing significantly to this growth. This increasing global energy consumption is a major driver for the gas generator sets market.

The growth of the gas generator sets market is further propelled by the surge in crude oil and natural gas production. The substantial increase in the production of both crude oil and natural gas has played a pivotal role in driving the expansion of the market. For instance, as of December 2022, global oil production reached 95.70 million barrels per day in 2021, marking a 1.96% increase from the 93.86 million barrels per day recorded in 2020. The United States, contributing 20% of the total oil produced worldwide, played a significant role in this growth. This surge in crude oil and natural gas production is a key factor fueling the growth of the gas generator sets market.

A notable trend in the gas generator sets market is the emphasis on product innovation. Many companies operating in this market are actively engaged in developing innovative products incorporating advanced technologies to enhance their market positions. In August 2022, Kirloskar Oil Engines Limited, an India-based sustainable and customer-centric solution provider in the gas generator sets market, introduced a range of gas-powered generators. These generators, enabled with Internet of Things (IoT) technology, operate efficiently in extremely cold conditions using Piped Natural Gas (PNG). The generators also feature a digital monitoring system that allows users to remotely monitor essential parameters and real-time performance from any location. Additionally, these generators boast lower noise and emission levels compared to conventional generating sets, showcasing the industry's commitment to product innovation.

Companies in the gas generator sets market are strategically prioritizing technological advancements to enhance their market positions and improve the performance, reliability, and efficiency of their products. A notable example is Caterpillar Inc., a US-based manufacturer of construction and mining equipment, which, in September 2021, announced the provision of customized Cat generator sets designed to run entirely on hydrogen, including green hydrogen. This initiative, initiated in the fourth quarter of 2021, demonstrates Caterpillar Inc.'s commitment to advancing sustainable power solutions. Additionally, the company introduced power generation solutions with capacities ranging from 400 kW to 4.5 MW, adaptable to operate on a combination of natural gas and up to 25% hydrogen. This technological advancement aligns with the industry's focus on cleaner and more sustainable energy solutions.

In September 2022, Fortum Turbine and Generator Services (TGS) completed the acquisition of Generator Service Sweden AB's (GSS) business. The acquisition, executed for an undisclosed amount, positions Fortum to offer full-scope generator services in the northern European market. This strategic move aligns with Fortum's growth strategy for turbine and generator services, providing a comprehensive range of services to meet the evolving needs of the gas generator sets market. Generator Service Sweden AB, a Sweden-based provider of generator stator winding and core stacking services, contributes valuable expertise to Fortum's portfolio, strengthening its position in the industry.

Major companies operating in the gas generator sets market include Cummins Inc., Briggs & Stratton Corporation, Kohler Co., Generac Power Systems Inc., Caterpillar Inc., General Electric Company, Siemens AG, Rolls-Royce Power Systems AG, Wärtsilä Corporation, Doosan Infracore Co. Ltd., Mitsubishi Heavy Industries Ltd., Yanmar Co. Ltd., Himoinsa S.L., Perkins Engines Company Limited, Deutz AG, MAN Energy Solutions SE, INNIO Group, Baudouin, JCB Power Products Ltd., Liebherr Group, Atlas Copco AB, Volvo Penta, John Deere Power Systems, Scania AB, WhisperPower B.V., Mase Generators, FG Wilson (Engineering) Ltd., SDMO Industries SAS, Hitzinger GmbH

North America was the largest region in the gas generator sets market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the gas generator sets market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the gas generator sets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The gas generator sets market consists of revenues earned by entities by providing services such as powering RVs, boats and workshops without electrical wiring. The market value includes the value of related goods sold by the service provider or included within the service offering. The gas generator sets market also includes sales of fossil-fuel energy source generators such as gasoline, diesel fuel, biodiesel, emulsified diesel, and natural energy source generators such as propane gas, and solar generators, hydrogen. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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