Market Data: Dual-Fuel Generator Sets

Market Data: Dual-Fuel Generator Sets
Summary
Dual-fuel generator sets (DFGSs) are defined as compression-ignited diesel units that can also run on some proportion of natural gas (NG). Today, they are positioned to take a growing share of the global generator set (genset) market. Despite a major slowdown since 2014 with the fall of both diesel prices and oil And gas (OAndG) production, several persistent trends are opening opportunities for this technology. These include requirements for emissions reductions, demand for fuel flexibility to extend runtime, and the high and often volatile spread between NG and diesel prices.
Customers in developed countries are embracing DFGS technology to cut fuel costs and in some cases limit emissions, while demand in the developing world is often driven by volatility in the price or supply of fuel. With the recent slowdown in OAndG, DFGS companies have the opportunity to capture anticipatory market share, as less capitalized participants may close up shop or be purchased. Another area for partnerships will be gas companies, especially smaller-scale liquefied NG (LNG) sellers that are looking for new markets for their products. Further education is needed on the benefits of DFGSs, so targeted marketing to facility owners and specifying engineers will open new opportunities. According to Navigant Research, the global market for DFGS installations and retrofits is expected to grow from nearly 1.1 GW in 2016 to more than 2.0 GW annually by 2025.
This Navigant Research report analyzes the global market for DFGSs for commodity extraction, commercial and industrial (CAndI), and utility applications. The study provides an analysis of key market and technology developments related to DFGSs. Global market forecasts for capacity and revenue, broken out by segment and region, extend through 2025. The report also examines the key demand drivers and market challenges associated with DFGSs, as well as the competitive landscape.