Driven by recent discoveries of gas reserves, the global gas-generator set (genset) market is forecast to increase from US$ 3.3 billion in 2013 to US$ 6 billion in 2020, at an annual growth rate of 8.9%.
According to the latest data from research firm GlobalData, the North American region has the highest share of the global gas-genset market, with 33%, followed by Latin America with 30% and Asia-Pacific with 20%.
The US will remain the key player during the period up to 2020, thanks to the discovery of shale gas reserves with has helped lower gas prices which in turn has further driven the market for gas-gensets.
GlobalData analyst Sayani Roy Nath, explained: ““From a long-term perspective, gas-gensets are more economical compared to diesel-gensets, but even so, they are still not the preferable option for all end consumers. Global consumers need to be made more aware of the benefits of using gas-gensets, including the fact that they help in the reduction of greenhouse gas emissions. Moreover, governments need to take more assertive action in terms of infrastructural development for gas networks”.
Another factor that is driving the market is the implementation of strict emission rules for regulating the level of harmful emissions from diesel-gensets, put into practice by a number of countries.
However, most countries do not have proper gas infrastructure, which means gas cannot be transported to distant locations due to the absence of pipelines. The investment required for laying such pipelines is also considerable, which acts as a limiting factor.
Consequently, end consumers are finding it increasingly expensive to opt for gas-gensets, which could restrict any further market growth.
Adapted from press release by Katie Woodward
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