Annual installations of diesel generator sets will reach 82 GW of capacity by 2018 according to new research.

Analysts at Pike Research claim that although diesel gensets face increasing competition from natural gas configurations, they are poised for continued growth in most regions of the world.

“Distributed generation has the advantage of going online more quickly than traditional large centralised power stations, reducing demand pressure on the electrical grid and the inefficiencies that are common in centralised power generation, transmission, and distribution,” said research analyst Dexter Gauntlett. 

“Comprising a number of specialised segments spanning power classes, applications, and end-use customers, this market offers a rich ecosystem of opportunities for market participants.”

The report suggests that while the diesel genset market continues to experience steady growth, a boom in unconventional gas resources and tightening regulations targeting stationary generator emissions signal a “turning point in the industry”.

“Many companies are shifting or expanding their focus to natural gas gensets and offer diesel-to-gas conversion kits, reflecting recent fuel cost trends favoring natural gas in the North American market,” states Pike.