by Brianna Crandall — January 16, 2017 — A new report from Navigant Research examines the global market for dual-fuel generator sets (DFGSs), covering both installations and retrofits for commodity extraction, commercial and industrial (C&I), and utility applications, providing an analysis of key market and technology developments, with global market forecasts for capacity and revenue through 2025.
Dual-fuel generator sets 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 production, several persistent trends are opening opportunities for this technology, including: requirements for emissions reductions, demand for fuel flexibility to extend runtime, and the high and often volatile spread between natural gas and diesel prices.
According to the report, the global market for DFGS installations and retrofits is expected to grow from nearly 1.1 gigawatts (GW) in 2016 to more than 2.0 GW annually by 2025. Further education is needed on the benefits of dual-fuel generator sets, so targeted marketing to facilities owners and managers and specifying engineers will open new opportunities, note the researchers.
Adam Forni, senior research analyst with Navigant Research, pointed out:
Thanks to cheap natural gas, dual-fuel genset adoption surged with the North American oil and gas boom. Growth is now spreading into more segments and geographies, thanks to the lowered emissions, fuel redundancy, and cost savings offered by these products.
Customers in developed countries are embracing DFGS technology to cut fuel costs or limit emissions, while demand in the developing world is often driven by volatility in the price or supply of fuel, according to the report. Of all the major world regions, North America is expected to add the most capacity during the decade, with 4.2 GW.
The report, Market Data: Dual-Fuel Generator Sets, available for purchase on the Navigant Research site, analyzes the global market for DFGSs for commodity extraction, commercial and industrial, 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. An Executive Summary of the report is available for free download on the Navigant Research Web site.
