A new report predicts revenues in the global gas generation set market will more than double in the next five years, as Europe and the US utilise more of them and China and India become the leading manufacturers.
According to analysts at consultancy Frost & Sullivan, “the shale gas boom in the United States and increasing adoption of biogas in Europe have kept the gas genset market in the two regions buoyant, while liberalisation has given a leg up to the market in emerging countries”.
And it also states that China and India have already become the largest production hubs for gensets, “with many large manufacturers building their capabilities organically or through tie-ups and alliances”.
Frost & Sullivan energy analyst Pritil Gunjan said: “The surge in natural gas availability and improved infrastructure for delivery have lowered the price of gas, greatly assisting the sales of gas gensets in developed regions.”
Gunjan added that although “technological improvements such as the automatic control system are making gas gensets 50 per cent more expensive than their diesel counterparts, their reliability and lower lifecycle costs will keep demand high”.
Frost & Sullivan said gas gensets are proving particularly attractive to emerging countries, “which do not have access to adequate reserves of gas and lack the necessary infrastructure to pipe gas from other regions”.
Gunjan said: “Gas-fired gensets, with their low-risk technology, favourable capital costs, and higher efficiency have become the technology of choice for intermediate load and increasingly, for base load power generation.”
“Effective policies and regulatory frameworks, natural gas availability, and high consumer awareness will further fuel the growth of the gas gen-set market.”