Distributed Natural Gas-Fueled Generation Market Report

Distributed Natural Gas-Fueled Generation Market Analysis By Technology (Natural Gas Gensets, Stationary Fuel Cells, Micro Turbines), By End-Use (Residential, Building & Institutional, Commercial & Industrial) And Segment Forecast To 2024

Published: October 2016  |  92 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-156-6

"Rising renewable energy usage coupled with natural gas benefits has led to DNGG development"

The global distributed natural gas-fueled generation market size was USD 11.20 billion in 2015. Factors such as stringent environmental standards to reduce carbon footprint, demand for reliable power, and decreasing costs of onsite generation relative to alternatives like grid power is expected to fuel market growth in future. DNGG technology is cleaner than diesel or coal-fueled generation and unlike renewable, does not depend on the wind or solar energy for the production of power.

Countries with policies that encourage clean energy are most likely to have rising fuel cell markets. In the U.S., various Department of Energy (DOE) initiatives sustain the growth of fuel cell technologies, with an objective of making them price competitive.

The distributed natural gas-fueled generation market is anticipated to witness an upsurge in the adoption of fuel cell technologies, owing to rising usage of cleanest fossil-fueled natural gas in the power generation sectors. The increasing use of DNGG in gas fields will raise the future market over the forecast period.

Owing to lower efficiencies and higher cost as compared to other distributed power technologies, fuel cells need additional technical and commercial advances to become more competitive. Companies are highly involved in advanced fuel cell technologies to sustain in the market and to produce clean power which is of high demand in power sector and can cater to future market demand. For instance, Bloom Energy Solution Company created a fuel cell technology where they produce the clean power of digital quality and reliability for over 100 fortune companies. 

U.S. Distributed Natural Gas-Fueled Generation Market Revenue By Technology, 2014 - 2024 (USD Million)

U.S. Distributed Natural Gas-Fueled Generation Market

"Natural gas gensets were the leading technology segment"

NG gensets technology dominated the global demand accounting for over 75% of the total revenue in 2015. High growth of this segment can be attributed to suitability for remote areas coupled with their effective solution for growing energy demand and tackling power shortages.

Microturbines are expected to emerge as one of the fastest growing segment and reach a net worth of USD 2.05 billion by 2024. R&D in this segment will improve efficiency, reduce capital costs and is therefore expected to increase adoption particularly in residential and building & institutions to make them more competitive as distributed power generation technology.

"Industrial sector was the leading end-use segment"

Commercial & industrial segment dominated the global demand accounting for over 67.1% of the total revenue in 2015. Industries are in need of continuous power supply to maintain the flow of the process. Power voltage and outages drop not only affect the pace of work but also lead to malfunctioning of equipment which leads to operational and monetary loss. Hence, fueled generators are used in such industries to support specific equipment.

Building & institutional segment is anticipated to emerge as fastest growing segment and reach a net worth of USD 8.41 billion by 2024 owing to the expansion of cities, particularly in emerging economies.

"Europe was the leading regional segment"

Asia Pacific regional market dominated the global demand and is expected to grow at a CAGR of 13.1% over the forecast period. Infrastructure development in China and India coupled with favorable regulatory policies to adopt DNGG and is likely to augment demand in the near future.

Europe regional market accounted for over 35% of global demand in 2015. Regulations such as the announcement of The Energy Efficiency Directive (2012/27/EU), that aims at achieving 20% efficiency target by 2020 is anticipated to force power generation players at the domestic level to employ these generators in future.

In addition, The European Commission framed Horizon 2020 Strategy in 2007, which aims to reduce greenhouse emissions and utilize sustainable methods. Another regulation, Clean Development Mechanism has been introduced particularly for the manufacturing sector to reduce global warming potential. These crucial factors are anticipated to favor market growth in the region.

"Innovative product development to drive industry competitiveness"

The companies are trying hard to get cleaner energy from a compact fuel-cell generator, at costs cheaper than power from the grid. Companies like Redox Power Systems are involved in rising fuel cells that feed on diesel, propane, or natural gas. Players in the market are investing in improvements to their electrical systems, utilizing existing technologies coupled with making smart policy decisions. Key players operating in the market include General Electric, MWM GmbH, ABB Group, Cummins Inc, Plug Power System, Shandong Lvhuan Power Equipment Co., Ltd.

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