Market Trends of Europe Gas Generator Industry
Industrial Sector to Dominate the Market
- Gas generators are used in various industrial applications such as electric power utilities, coal mins, agricultural, food processing industries, refineries, district heating systems, wastewater treatment plants, steel industry, and others. Natural gas generators can reliably support the operations associated with mining minerals such as copper, iron ore, gold, and silver without a reliable centralized electric utility.
- The steel industry significantly utilizes gas generators, and the increasing utilization of steel further increases the demand for gas generators in the market. According to European Steel Association (EUROFER), in 2022, Europe was the world's second-largest steel production region, contributing a share of 14.1% of the total steel production. Germany, Italy, Spain, France, Poland, Austria, and others are major European steel-producing countries. In 2022, steel produced by the European Union (EU27) was around 136.32 million metric tonnes, of which Germany produced around 36.8 million metric tonnes.
- In addition to the applications mentioned above, the construction industry, where diesel and gasoline generators dominate the market, is slowly being replaced with portable gas generators, particularly in the major economies. Construction projects in developing countries that require low-emission norms per local or national standards and less noise opt for a gas generator for their construction power requirements.
- The industrial sector is the dominant market for gas generators due to the rapid industrialization and urbanization in the region; for growing manufacturing industries, a continuous power supply is required. Therefore, industrial sectors mainly depend on electricity generated from generators during power outages and in regions with limited grid access.
- Falling gas prices also make gas generators attractive as the project economics improve. The growth of power storage is also expected to increase gas generator sales as the demand for hybrid generators increases.
- The strengthening of the gas pipeline infrastructure and storage network across Europe is leading to the increasing uptake of gas generators in prime power and backup power applications in the industrial sector.
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Germany to Dominate the Market
- To reduce emissions, Germany is rapidly adopting gas-based generators, due to which the gas generators market is expected to dominate during the forecast period.
- The gas generator market is being driven by increasing renewable power generation, which creates the need for flexible baseload power to compensate for the intermittent nature of renewable energy, as well as the gas availability in Germany is encouraging countries to move towards more gas-based power.
- According to IRENA. Germany has a total renewable installed capacity of 148.37 GW in 2022, with a growth rate of 7.08% from the previoius year.
- As the air emission norms are becoming more stringent in Germany, coupled with the environmental benefits, the demand for gas generators is expected to increase significantly compared to diesel generators.
- Growing adoption of gas generators as backup power sources across hospitals, IT and financial service firms, and other commercial spaces in Germany is expected to influence the industry landscape positively.
- Over the period, installed capacity is increasing. This, in turn, is expected to drive the German gas generators market during the forecast period.
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