Natural Gas Generator Market Size

Global Natural Gas Generator Market size was valued at USD 4.5 billion in 2023 and is poised to grow from USD 4.76 billion in 2024 to USD 7.41 billion by 2032, growing at a CAGR of 5.7% during the forecast period (2025-2032). 

The global natural gas generator market growth is attributed to the increasing demand for reliable power supply in the aftermath of frequent outages, along with stringent environmental laws to encourage cleaner forms of energy. For instance, Cummins Inc. launched a new range of high-efficiency natural gas generators in the Indian market in January 2025, where recurrent power outages and strict emission norms have created immediate demand for cleaner, more reliable backup power. The gensets meet Bharat Stage VI emissions norms and are designed for commercial as well as industrial customers with lower operating costs and better fuel efficiency.

Moreover, the rising frequency of power outages and power supply shortfall everywhere across the globe, couples with the restrictions levied on diesel gensets by virtue of being high carbon-polluting ones, is fueling the requirement for natural gas generators globally. Furthermore, enhancing technology with high efficiency and quality, along with growing industrialization and commercial activities, also assumes a significant responsibility in fulfilling growing energy needs.

How are Hybrid Generators Meeting Industrial Energy Demands?

As part of an attempt to offer more environmentally friendly and cost-effective power alternatives, manufacturers continue to design more hybrid systems involving solar photovoltaic (PV) and battery storage combined with natural gas engines. As a means to maximize fuel economy, minimize running costs, and restrict emissions, hybrid systems distribute power sources wisely. By seamlessly transitioning between sources of energy, the system ensures a seamless power backup during a blackout or during peak demand times. Microgrids, off-grid industrial facilities, and commercial structures seeking energy sustainability and reliability will find this technology especially useful.

• For instance, the CAT Hybrid Energy Solution that integrates gas generators with lithium-ion batteries and solar integration was unveiled by Caterpillar Inc. in February 2025 as a microgrid and commercial site solution for North America and Southeast Asia.

How Startups are Fueling Hybrid Natural Gas Generator Innovation?

With hybrid energy solutions, companies such as Enervenue and Watts Battery are revolutionizing the global natural gas generator market. These firms address the increasing demand for cleaner backup systems globally by providing efficient, flexible, and renewable power solutions for off-grid and industrial applications by combining gas gensets with battery backup and solar power.

• Enervenue (2020): Established in 2020 and working on metal-hydrogen battery technology, Enervenue currently offers hybrid energy solutions by integrating their battery systems that are compatible with hydrogen and natural gas generators. To introduce clean backup solutions with the use of gas gensets and durable battery storage, the company collaborated with microgrid developers at the close of 2024. Such systems have the capability of bringing low-emission and cost-friendly alternatives for industrial units and utilities in cases of grid instability. The technology from Enervenue plays a pivotal role in getting the natural gas generator industry nearer to sustainability and reliability.

• Watts Battery (2016): Through the integration of solar panels, batteries, and natural gas generators in plug-and-play modules, Watts Battery set the pace for hybrid power system miniaturization. Watts Battery systems were specifically designed for light commercial and residential use when grid dependability is a concern. Their scalable and affordable backup energy alternatives have helped their off-grid compliance solutions establish momentum in the Middle East and Africa. With its low-emission, flexible energy solutions and easy-to-use technology, Watts Battery is making a name for itself in the natural gas generator market.