Market Data: Distributed Natural Gas-Fueled Generation

Market Data: Distributed Natural Gas-Fueled Generation
Summary
Distributed natural gas-fueled generation (DNGG) is positioned for growth in the coming decade. The related technologies are placed at the intersection of two of today?s biggest energy trends: the proliferation of distributed energy resources and the growing abundance of cheap oil And gas. Despite a recent slowdown due to volatility in the oil And gas market, growth in DNGG uptake is expected based on key drivers such as demand for reliable power, stricter environmental standards, and the decreasing costs of onsite generation relative to alternatives like grid power.
In the developed world, emissions regulations will help DNGG continue to displace higher-emitting incumbents like diesel generator sets (gensets). Meanwhile, developing nations will incorporate more DNGG to meet reliability requirements and satisfy growing electricity demand. Some threats to DNGG market growth exist, however. For example, fuel cells and microturbines will need substantial cost declines in order to enter the mainstream. In addition, natural gas gensets continue to face stiff competition from diesel gensets, which are especially economical for standby applications. Any concerns, though, will be overcome with the growing global demand for economical, reliable onsite generation. According to Navigant Research, the global market for new DNGG installations is expected to grow from $12.6 billion in annual revenue in 2016 to $35.9 billion by 2025.
This Navigant Research report analyzes the global market for DNGG for residential, commercial, industrial, and utility applications. The study provides an analysis of key market and technology developments and covers natural gas gensets (less than 6 MW), stationary fuel cells, and microturbines. Global market forecasts for capacity and revenue, segmented by technology and region, extend through 2025.