Generators have been a dependable source of back up for every industry that uses electricity and power in abundance. It is mostly available depending on the power ratings. It is basically a device that requires an internal combustion engine to operate and runs on a fuel source to produce electricity. Most of the generators worldwide run on diesel and gasoline-based generators. The use of diesel and gasoline has created serious concerns about its harmful implications on the environment and climate change. It is the combustion motor used in a typical generator that releases hazardous gases unfit for the environment. In order to curb the effect of emission of harmful gases, multifuel generators come handy.
As the name suggests, it is the type of genset that generates electricity by using more than one type of fuel. The emergence of multifuel generators has a paved path for a sustainable environment. Indubitably, the need for uninterrupted power supply is a basic need for all the commercial and industrial sectors, thereby majorly driving the multifuel generator market.
The infrastructural development, along with the construction sector, provides immense opportunity for the multifuel generator market. Infrastructure is the set of assets that underlines the development of a country and aids in strengthening its economy. The infrastructure development includes every project from the development of highways, bridges, airports, ports, water transportation to power projects, and real estate. The use of musltifuel generator has become an essential part of the construction sector, owing to its continuous usage of electricity and power.
European Union-funded infrastructural projects in Central and Eastern Europe are projected to increase the demand for the multifuel generators in the years to come. Currently, the U.S. infrastructure sector is undergoing repair, expansion, and modernization. The U.S. federal government has planned to invest more than USD 1 trillion through several infrastructural development programs such as Rebuilding America (INFRA), Better Utilizing Investment to Leverage Development (BUILD), and Competitive Highway Bridge Program, among others. With such massive upcoming projects to be achieved, the U.S. will more definitely drive the multifuel generator market.
Furthermore, many of the developing countries, such as India & China, are spending an enormous amount of money on building and improving the infrastructure. To stats an instance, India has increased its infrastructure allocation to USD 230 billion in the union budget 2020–21 and 6,500 projects in several sectors under the National Infrastructure Pipeline. Moreover, the National Development and Reform Commission (NDRC) of China has approved infrastructural 21 projects worth more than USD 110 billion.
The growing demand for the fast-moving consumer goods across various sectors is a key driver for industrial development globally. This demand has catapulted the demand for exports and imports of manufacturing goods since the past couple of decades. Rising globalization and improved supply chain further act as a catalyst for industrialization. Prominent players are setting up new plants to meet the new demands and introduce new goods to exploit the market potential. These factors are aiding in the setting up of new plants that require high amounts of electricity. Generators play a crucial role in keeping the factories up and running during a power cut off. This helps manufacturers avoid any down-time and prevent losses. Hence, the thriving industrialization will subsequently improve the demand for the multifuel generators market in the coming years.
Another crucial factor is the manufacturing exports of goods in the industrial sector. Since the exports from a country is a major contributor to its economy, the government in these developing markets such as China, India, and Africa are taking various initiatives to strengthen the industrialization in their country. According to Indian Brand Equity (IBEF), in 2019, the Union Budget 2019–20, the government of India have allocated USD 540.53 billion to the infrastructure sector, to increase the capacity of the Green Energy Corridor Project along with wind and solar power projects.
Thus, to meet the demand of the rapidly growing industrial sector in both the developing and the developed markets, the builders are in dire need of generators that are not only fuel-efficient but also eco-friendly.
India: A Potential Marketplace for Multifuel Generator
The power shortage has been a dire situation for developing countries like India. India has inefficiencies in its electricity sector that hamper its efforts to eradicate poverty. India has been growing rapidly towards urbanization and modernization. It has made great strides in the expansion of power supply across the nation in recent years, with more than 130 million people joining the power grid in the year 2013. Nevertheless, 178 million people in India were still deprived of access electricity in 2017. The frequent power cuts affect economic production drastically. The Central Electricity Authority in its load generation balancing report stated that during peak hours, 175.52-gigawatt (GW) power was supplied against the demand of 177.02 GW, leading to a deficit of 1.49 GW in the year 2018-19. This has led to high demand for generators and power backup in the country. The multifuel generators have a potential opportunity to penetrate the Indian market owing to its power scarcity.
Trifuel Generator: A Better Back up for the Future
Although the tri-fuel generators are relatively less known amongst end-user, it is estimated to emerge as the next best alternative for dual generators in the future. Unlike a duel fuel generator, a tri-fuel generator can run on three different types of fuel sources like liquified petroleum (LPG), Natural gas (NG), and gasoline. Tri fuel generators will still be able to run as it can use any source of fuel for its functioning. The mere convenience and ease of availability of any of these gases at all times are surely going to nudge the multifuel generator market.
North America Home to the Largest Construction Sectors
North America has the world’s largest construction sector. The U.S. construction industry alone accounts for approximately USD 1,293 billion to the regional market. Post the recession of 2008, the stalled construction projects had started experiencing rapid growth. This can be attributed to the considerable growth in residential construction projects. The rapidly growing residential, as well as the commercial construction sector, has concurrently escalated the demand for the multifuel generators. According to the U.S. Census Bureau, the residential building permits went up 12 years high in the month of December 2019, swelling almost 11.1 % over the year.
Asia-Pacific is also likely to drive the multifuel generator market, owing to construction spree in the developing country like India. The infrastructure sector is a key driver for the Indian economy. According to the department of industrial policy and promotion (DIPP), the foreign direct investment FDI received for construction development from April 2000 to June 2019 was USD 25.12 billion. To run the infrastructure and construction sector, a large number of fuel generators are needed.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|