Analyst Insight: Global Natural Gas Supply Chain

The power sector has gradually shifted away from centralized power generation to different forms of distributed generation (DG). Aging grid infrastructure, rising emissions, and increasing demand for distributed reliable power will likely continue to drive this shift. Diesel generator sets (gensets) are the long-established DG technology and remain the global leaders in installed capacity due to their reliability and low capital costs. However, in the face of tightening emissions regulations, the market is diversifying, and gas technologies are becoming increasingly attractive standby power options.

Distributed natural gas generation (DNGG) technologies are anticipated to play a crucial role in the global supply of reliable power as the energy sector continues to decentralize and decarbonize. Among many benefits, small generating sources located near points of end use help offset investments in central power plants, transmission lines, and distribution systems. DNGG technologies provide a bridge fuel toward a carbon-free economy, and manufacturers are increasingly innovating and incorporating renewable sources into their fleets, with hydrogen in particular set to play a key role in the future of the market.

The Guidehouse Insights report presents global forecasts for three DNGG technologies: natural gas (NG) gensets, stationary fuel cells (SFCs), and microturbines. Markets are segmented by both region and application. Regions are broken down into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The application segment covers residential, commercial, institutional, and industrial applications.