Impact of COVID-19 on the Global Gas Engines Market
The COVID-19 outbreak has negatively affected the global economy as the operations of various sectors have come to a standstill. Some of the major industries using gas engines include oil & gas, manufacturing, and power generation. In the power generation sector, companies are dealing with several challenges due to a decline in demand for electricity post-COVID-19. Furthermore, industries such as construction and manufacturing have stopped operations completely, which has drastically impacted the gas engine market globally. Most companies in the gas engine supply chain have stopped operations to ensure the safety of employees. However, some companies are operating at minimum capacity to support essential industries, such as power generation companies and manufacturing. Numerous utilities across the globe are dependent on gas engines for power generation. As the demand for electricity has declined globally, the demand for new gas engines has also declined.
FIGURE: DECLINE IN DEMAND FOR ELECTRICITY IN MAJOR ECONOMIES SINCE THE LOCKDOWN
Furthermore, the revenue generation for numerous manufacturing companies across the globe has declined due to the reduced demand for manufactured goods. Manufacturing companies across the globe have shut down operations and are facing numerous difficulties in restarting business operations. Some of the common difficulties faced by manufacturing companies across the globe include disruptions in the supply chain, low revenue generation due to low sales, inability to operate at 100% due to social distancing norms, and lack of human resources. The decline in demand for manufactured goods and electricity has directly impacted the demand for gas engines. However, as economies are planning to resume business to increase revenue generation gradually, the demand for the gas engines is expected to resume its average growth rate by early 2021.
Source: Primary Experts, Secondary Sources, and MRFR Analysis