A gas engine is an internal combustion engine which runs on a gas fuel, such as producer gas, biogas or natural gas. The ecosystem of the global gas engines market starts with the manufacture of basic components, such as crankcases, crank drives, valves, flywheels, starting systems, and pistons. The manufactured parts are then assembled by the OEM (General Electric Company, Warstila Corporation, Caterpillar Inc., and so on) to form a gas engine, which is then tested.
Specifically, the term gas engine refers to a heavy-duty industrial engine capable of running continuously at full load for periods approaching a high fraction of 8,760 hours per year.The significance of gas engines to renewable energy is that customized gas engines can produce power from biogas and producer gas, two gaseous fuels that are produced from renewable sources (organic waste and biomass respectively).
The global gas engines market was valued at USD 3.03 Billion in 2015, and is expected to grow at a CAGR of 6.9% from 2016 to 2021. The increasing demand for electricity, drop in natural gas prices, and growing environmental concerns are major factors driving the gas engines market.
Natural Gas Engines – Global Market Share
The global share for gas engines is at 9% of the total reciprocating engine market. The leading region wherein the sales of gas engine is maximum is North America, followed by Far East region. The split of same is depicted in Exhibit 01.In India amongst the diesel engine market contributes to 13.7% of the total reciprocating engines market share and it is most likely to follow almost the same trend till 2020. The market share will not decline reason being the fillip to the gas pricing and therefore leading to adequate supply of gas thereby pushing demand for gas based engines.
The gas engine market of India is consistently growing and has almost grown by 0.018 million units from 2009-10 levels to 0.07 million units in 2013-14. The growth of diesel engine market on year – on – year (yoy) basis is depicted in Exhibit 03. It is expected that the market would be of 0.07 million units in 2014-15 and is market to show a growth of 0-10% on CAGR basis till 2020 basis distinct regions in the country.
Gas Engine Market by Service Ratings
The gas engine market split of world and India as per service ratings are depicted in Exhibit 04 and Exhibit 05 respectively. It is interesting fact that globally continuous services lead the other two categories . In India, a similar trend is followed as well.
Gas Engine Market by MW Ratings
The diesel engine market by MW ratings globally and in India is dominated by 1 MW- 2 MW range. Nearly 46% of the market globally falls in this category. The split for world and India is depicted in Exhibit 06 & Exhibit 07 respectively.
Current Technology & Trends
The trend currently is in sluggish in India for gas engines in India courtesy following reasons:
- Gas fuel based generators are less preferred across applications segment
- Ambiguity over gas prices and relatively higher price a deterring force for gas engine market in India
- Very limited players are active in this segment and Cummins leads in this segment in India
- 1 -2 MW the most preferred range of gas engines in India. In near future the higher rating segments will grow gradually given consistent power shortage in India
- Gas engines are rendering highest services as continuous power solutions and the trend likely to continue till 2020
- High speed rating engines more preferred in India, i.e. 1,000 rpm and above.
Market Trends of Gas Engine
Trends for Ratings
- Less than 20kVA market constitutes of 74% of the total market size in terms of units
- Fast moving Generator 1 to 5 KVA capacity are used by small retail outlets, shops & small workshops
- Large commercial malls & industrial units use above 40 KVA Generator
- Above 1,000 KVA Generator are used mainly in large Industrial units
- Commercial & industrial segments dominates usage in northern & western region
- 0.5 to 5 KVA usage mainly in commercial retail shops, outlet & small industrial units & workshops
- Major Pockets In Southern region: Hyderabad, Chennai, Coimbatore, Bangalore, Hubli, Pondicherry, Vizag, Cochin
- Major pockets in Northern region: Delhi NCR, Bade, Solan, Hardware, Pantnagar, Jaipur, Ludhiana
- Major pockets in Western region: Mumbai, Pune, Ahmedabad, Vapi, Rajkot, Goa, Indore, Nagpur, Aurangabad, Nasik, Daman, Baroda
- Major pockets in Eastern region: Kolkata & Durgapur