The North America gas generator market is expected to grow at a CAGR of more than 4.93% during the forecast period of 2020-2025. Factors, such as increasing awareness regarding natural gas as a clean and reliable fuel, increased concerns over diesel maintenance and refueling issues, decreasing natural gas fuel prices, and the general desire to be more environmentally responsible, have supplemented the demand for gas generators. However, the lack of gas grid connectivity via pipeline, resulting in hindered fuel supply, is expected to act as a challenging factor for the gas generators market in the coming years.

  • Below 75 kVA capacity generators are estimated to have the largest market share during the forecast period, supported by the increase in demand from telecom, retail, and other commercial buildings and residential sectors.
  • The commercial and industrial sectors, the residential sector of the region, and the increasing need for power in defense operations are expected to create significant opportunities for market participants in the near future.
  • The United States is expected to be the largest market during the forecast period for gas generators. With the falling cost of natural gas, the usage of natural gas across the residential sector and commercial sectors is expected to increase, in turn, driving the demand for natural gas generators during the forecast period.



Key Market Trends

Below 75 kVA Capacity Gas Generator to Dominate the Market

  • Less than or equal to 75 kVA gas generators are used in the telecommunication sector, commercial complexes, small restaurants, small-scale industries, and petrol stations, among others, primarily as backup power in grid-connected areas and as the main power source in off-grid areas.
  • The demand for less than or equal to 75 kVA gas generators is expected to increase, with the change in the landscape for small businesses, especially in the rural part of the countries. As power failure is common in most parts of these regions, most of the households and shops prefer portable and affordable small generators.
  • The natural gas industry in North America has changed unprecedented magnitude and pace, with the natural gas consumption witnessing a 25% increase over the past 10 years. This increase in natural gas consumption can be attributed to the availability of abundant natural gas resources with hydraulic fracturing successes across shale regions.



United States to Dominate the Market

  • In 2018, 33.7% of the operating electricity generating capacity in North America was contributed by natural gas, replacing coal as a prime source of energy supply. Hence, the increased use of natural gas for electricity generation bolsters market growth in the United States.
  • As the air emission norms are becoming more stringent in the United States, coupled with the environmental benefits, the demand for gas generators is expected to witness a significant increase, as compared to diesel generators, which are considered more polluting.
  • The United States enjoys one of the most developed gas-grid infrastructures in the world that ensures steady fuel supply. With the falling cost of natural gas, the usage of natural gas across the residential sector is expected to increase. This, in turn, is expected to drive the gas generators market in the residential sector for back-up power applications in the coming years.



Competitive Landscape

The North America gas generator market is moderately fragmented. Some of the key players in this market include Caterpillar Inc, Kohler Co, Cummins Inc, Generac Holdings Inc, General Electric Company.

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