LONDON--(BUSINESS WIRE)--Technavio’s latest report on the global industrial gas generator market provides an analysis on the most important trends expected to impact the market outlook from 2015-2019. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Anju Ajaykumar, a lead analyst at Technavio for power industry, says, “The need for an uninterrupted power supply during power outages caused by natural calamities or faults in electric networks has boosted the adoption of gas generators in the industrial sector. For instance, natural disasters in the US and Japan in the last four years left many industrial end users without an electricity supply for several days, causing inconvenience and loss of revenue.”
The top three emerging trends driving the global industrial gas generator market according to Technavio energy research analysts are:
- Remote monitoring system in power generators
- End users focusing more on renting generator services
- Energy delivery being revolutionized by bi-fuel technology
Remote monitoring system in power generators
According to Technavio analysts, remote monitoring system in power generators is one of the fast-trending factors in the global industrial gas generator market. For instance, HMS Industrial Networks, a Swedish company pioneering in industrial communication, has developed Netbiter, a remote management solution for power generators. Some of the basic features of this remote management solution are:
- Monitoring health and readiness
- Remote control as well as operation
- Alarm management
- Generator fleet management
- Configuration of generator controllers remotely
End users focusing more on renting generator services
Industrial end users often resort to the adoption of rental services rather than owning large gas generators. This is more evident in industries set up in developing nations where total cost of ownership is an important aspect of the total revenue earned. The market that handles this rental service is known as the power rental market. Revenue earned is evaluated in terms of revenue earned either by renting power backup equipment or from a temporary power plant. The power rental market, as expected by Technavio, will be valued at USD 21.10 billion by 2020, growing at a CAGR of over 12%.
“The main aspect that is driving the power rental market is the unavailability of continuous power supply by the electric utilities due to faults or breakdown in the network. As per World Energy Outlook, approximately 1.3 billion people in the world are unable to access electricity in 2014,” says Anju.
Energy delivery being revolutionized by bi-fuel technology
A significant portion of the operating cost for many industries, such as the oil and gas industry, is represented by the fuel used in generators. With the increasing price of diesel over the years, industrial users are looking for a cheaper alternative, which serves the purpose and is cost effective as well. The price of CNG is quite affordable and cheaper than diesel. According to US Energy Information Administration, national average price for CNG and diesel between April 1 and April 15, 2015 were:
- Natural gas (CNG): USD 2.09/GGE
- Diesel: USD 3.06/gallon
Small-sized generators using natural gas as the fuel source are also quite affordable. However, when it comes to generators with higher capacities (above 30 kW), diesel generators are priced more cheaply. End users owning diesel generators have been trying to find a cheaper alternative fuel rather than buying a new one. Thus many vendors have now come up with engines that run both on diesel and CNG.
Browse Related Reports:
- Global Industrial Diesel Generator Market 2015-2019
- Global Portable Generator Market in Construction Industry 2015-2019
- Global Stationary Generator Market 2015-2019
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