According to The Insight Partners' research, the South & Central America gas engine market was valued at US$ 223.24 million in 2024 and is expected to reach US$ 297.12 million by 2031, registering a CAGR of 4.3% from 2025 to 2031. Rising production of natural gas and increasing focus on the development of efficient fuel engines are among the critical factors attributed to drive the South & Central America gas engine market.
The demand for gas engines is rising in the power generation industry with new emission control regulations. The industrial sector, including chemicals, metals, and manufacturing industries, is a major contributor to the escalating demand for gas engines. The production of natural gas, which is required for the functioning of gas engines, is growing at a significant rate. For instance, in October 2024, according to the International Energy Agency (IEA), global demand for natural gas is projected to grow at a faster rate in 2024 compared to the previous two years, which were significantly impacted by the global energy crisis. The IEA forecasts a global gas demand increase of over 2.5% in 2024, with similar growth expected in 2025. The increase in demand further emphasizes the importance of advanced gas engine technologies to optimize operations and ensure reliable energy delivery.
In 2024, Brazil's natural gas production averaged 151 million cubic meters/day. This represented a 1% growth compared to 2023. Rio de Janeiro was responsible for 74% of the country's output, producing 113 million cubic meters/day. Additionally, proven natural gas reserves experienced a significant increase of 46% in 2023, reaching a total of 517 billion cubic meters, with Rio de Janeiro holding 72% of these reserves. The increased supply of natural gas boosts demand for more efficient and advanced engine technologies. The development of robust gas engine solutions is critical to meeting the rising production levels and ensuring that energy generation and industrial applications can effectively utilize the growing natural gas output. Thus, a continuous surge in demand from developing and developed countries drives gas engine market growth.
On the contrary, escalating popularity of renewable energy alternatives and technological drawbacks in several countries hamper the growth of South & Central America gas engine market.
Based on fuel type, the South & Central America gas engine market is bifurcated into natural gas and special gas. The natural gas segment held 70.1% market share of South & Central America gas engine market in 2024, amassing US$ 156.55 million. It is projected to garner US$ 211.05 million by 2031 to register 4.5% CAGR during 2025-2031.
By power output, the South & Central America gas engine market is segmented into 100-300 KW, 300-500 KW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-15 MW. The 5-10 MW segment held 21.1% share of South & Central America gas engine market in 2024, amassing US$ 47.13 million. It is projected to garner US$ 65.09 million by 2031 to expand at 4.8% CAGR from 2025 to 2031.
Based on end user, the South & Central America gas engine market is segmented into remote, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, datacenters, mush, and commercial. The mid-stream oil and gas segment held 20.1% market share of South & Central America gas engine market in 2024, amassing US$ 44.91 million. It is projected to garner US$ 57.68 million by 2031 to register 3.7% CAGR during 2025-2031. Further, the heavy industries are subdivided into chemicals, paper, metals, food and beverages, and others.
Based on country, the South & Central America gas engine market is categorized into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that Brazil captured 53.2% share of South & Central America gas engine market in 2024. It was assessed at US$ 118.75 million in 2024 and is likely to hit US$ 159.79 million by 2031, registering a CAGR of 4.4% during 2025 to 2031.
Key players operating in the gas engine market are INNIO Jenbacher GmbH & Co, Caterpillar Inc, Cummins Inc, Fairbanks Morse, LLC, Kawasaki Heavy Industries Ltd, Liebherr, Mitsubishi Heavy Industries Ltd, R Schmitt Enertec GmbH, Wartsila Corp, 2G ENERGY AG, MAN Energy Solutions SE, IHI Corp, Guascor Energy S.A.U., Ningbo C.S.I. Power & Machinery Group Co. Ltd., and Rolls-Royce Holdings Plc, among others.
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