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The gas engine market size is expected to reach US$ 8,095.93 million by 2031 from US$ 5,298.16 million in 2024. The market is estimated to register a CAGR of 6.4% during 2025–2031. The rising energy demand worldwide is likely to bring new trends to the market in the coming years.
Gas Engine Market Analysis
Increasing focus on the development of efficient fuel engines is one of the key factors driving the growth of the global gas engine market. In addition, rising product of natural gas and exploration and production activities across the globe is anticipated to further boost the demand for gas engines during the analyzed timeframe. Moreover, growing government incentives for clean energy transition across the globe is further projected to create opportunities for the key players operating in market.
Gas Engine Market Overview
The gas engine manufacturing industry is evolving with innovations in natural gas engine offerings to support emission targets. The rising demand for low-emission, fuel-efficient engines to reduce air pollution and the advent of special gas engines in the manufacturing, utilities, and remote generation application sectors propel the gas engine market growth. Also, biogas-powered engines with improved electric efficiency and low emissions are creating substantial growth opportunities for the market players. The gas engine manufacturers are focusing on offering advanced products to address the rising demand for high power outputs, meeting diesel engine standards. Major heavy industries, remote power plants, and manufacturing companies are selecting high-power gas engines due to enhanced electric efficiency and reduced fuel costs. The use of natural gas in gas engine combustion technology can resolve the emission problems, along with assisting customers in meeting new regulatory norms. There is an increase in the adoption of gas engines in South America, Africa, and Asia, while North America and Europe are focusing on adopting solar and wind energy during the forecast period. The increasing adoption of natural gas for power generation in commercial, industrial, and construction sectors is supporting the gas engine market growth.
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Gas Engine Market: Strategic Insights
Market Size Value in US$ 3,930.0 Million in 2020 Market Size Value by US$ 6,354.4 Million by 2028 Growth rate CAGR of 6.6% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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Gas Engine Market: Strategic Insights
| Market Size Value in | US$ 3,930.0 Million in 2020 |
| Market Size Value by | US$ 6,354.4 Million by 2028 |
| Growth rate | CAGR of 6.6% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Gas Engine Market Drivers and Opportunities
Increasing Focus on Development of Efficient Fuel Engines
Several governments are imposing regulations to control the emissions of diesel and petrol engines, compelling engine manufacturers to opt for alternative fuel solutions such as natural gas. Gas engines release less emissions as compared to other types of engine to generate a sufficient amount of power. The emission monitoring and regulatory bodies are imposing stringent regulations on the use of diesel engines and generators. Various industries are deploying gas engines and generators for power generation to meet these regulatory standards.
Cummins Inc. and Liberty Energy Inc. announced the launch of the industry’s first natural gas variable-speed, large-displacement engine to power Liberty’s digiPrime hydraulic fracturing platform, set for deployment in the first half of 2025. This follows the strategic partnership between the two companies in June 2024, aimed at jointly developing innovative technology for the completions and services market. The Cummins HSK78G natural gas engine, initially introduced in March 2019 as part of a fixed-speed generator set for the power generation sector, has demonstrated exceptional reliability in providing consistent power across varying natural gas sources and operational environments. The recent advancements in Liberty’s digiPrime platform utilize the HSK78G engine and enhance its response time and load acceptance. This collaboration highlights a significant step in the ongoing growth of the gas engine market, which continues to innovate in areas of efficiency and operational performance, particularly within sectors such as hydraulic fracturing and energy production. Thus, the rise in the development of efficient fuel engines, owing to stringent regulations related to gas engines, is propelling the market growth.
Government Incentives for Clean Energy Transition
Governments are increasingly supporting the transition to cleaner energy sources as part of their broader environmental sustainability goals. This is crucial for the global push for decarbonization and the reduction of greenhouse gas emissions. Various incentives, subsidies, and tax breaks are provided by the governments to encourage the adoption of cleaner and more energy-efficient technologies. Gas engines, being a cleaner alternative to coal and oil, are well-positioned to benefit from these supportive policies. For instance, the growing emphasis on clean, energy-efficient solutions in transportation has led to the development of several government grant programs aimed at supporting the transition of transit fleets to sustainable technologies. The Federal Transit Administration (FTA) has played a significant role through its Low-No Emission and Bus Facilities Grants. These grants are specifically designed to aid transit agencies in transitioning their fleets to cleaner, more energy-efficient alternatives such as renewable natural gas (RNG). Since 2022, the FTA has awarded over US$ 500 million to fund various natural gas projects, significantly offsetting capital expenditures for agencies and facilitating the adoption of clean energy technologies. These federal grants, particularly in the transportation sector, promote the use of natural gas-powered buses and vehicles, which are increasingly viewed as a viable and environmentally friendly alternative to diesel and gasoline-powered options.
Gas Engine Market Report Segmentation Analysis
Key segments that contributed to the derivation of the gas engine market analysis are fuel type, power output, end user, and application.
- In terms of fuel type, the market is categorized into natural gas and special gas. The natural gas segment dominated the gas engine market share in 2024.
- By power type, the market is categorized 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 dominated the market in 2024.
- Based on end user, the market is divided into remote power generation, midstream oil and gas, heavy industries, light manufacturing, utilities, biogas, data centers, MUSH, and commercial. The heavy industries segment dominated the market in 2024.
Gas Engine Market Share Analysis by Geography
The gas engine market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South and Central America (SAM). Europe dominated the market in 2024, followed by Asia Pacific and North America.
The gas engine market in Europe is segmented into Germany, France, the UK, Russia, and Italy. Europe has been a leader in the adoption of renewable energy solutions, and the shift toward cleaner energy sources is significantly boosting the gas engine market. Countries such as Germany, Italy, and the UK are transitioning to more sustainable energy solutions, integrating natural gas and hydrogen as part of their green energy strategies. MWM’s recent launch of the TCG 3020 series engine, capable of using a hydrogen admixture, reflects the continent’s focus on hydrogen and natural gas as future energy sources. Additionally, the UK’s commitment to carbon neutrality by 2050 and its investments in gas engine technology demonstrate the growing demand for energy-efficient, low-emission technologies. The European Union’s ambitious targets for reducing emissions by 2030 further fuel the demand for natural gas engines in power generation, transportation, and industrial applications.
Gas Engine Market Report Scope
Gas Engine Market News and Recent Developments
The gas engine market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the gas engine market are listed below:
- INNIO Group announces its newest Waukesha VHP P9390X engine upgrade designed for simpler operation and increased reliability. The VHP P9390X upgrade offers operators the latest engine technology, extending the life of the equipment by 60% while lowering downtime and reducing emissions across various operating conditions. (Source: INNIO Group, Press Release, September 2024)
- Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a part of Mitsubishi Heavy Industries (MHI) Group, launched SGP M2000, a new natural gas engine cogeneration system with a generation output of 2,000 kW. The new package encloses a 16-cylinder natural gas-fired engine, modeled G16NB, that boasts an electrical efficiency of 44.3%, the highest level in the world for a 2,000 kW-class engine and makes a cogeneration system in compact packaging. (Source: Mitsubishi Heavy Industries, Press Release, March 2023)
Gas Engine Market Report Coverage and Deliverables
The "Gas Engine Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Gas engine market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Gas engine market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Gas engine market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the gas engine market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Fuel Type , Power Output (100
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Increasing focus on the development of efficient fuel engines and rising production of natural gas are the driving factors impacting the global gas engine market.
The global gas engine market was valued at US$ 5.29 billion in 2024 and is projected to reach US$ 8.09 billion by 2031; it is expected to grow at a CAGR of 6.3% during 2025–2031.
The Europe held the largest market share in 2024, followed by APAC and North America.
The global gas engine market is expected to reach US$ 8.09 billion in the year 2031.
Technological advancement in gas engine is the future trends of the global gas engine market.
The List of Companies - Gas Engine Market
- INNIO
- Caterpillar Inc
- Cummins Inc
- Fairbanks Morse, LLC
- Kawasaki Heavy Industries Ltd
- Liebherr
- MAN Energy Solutions SE
- Mitsubishi Heavy Industries Ltd
- R Schmitt Enertec GmbH
- Wartsila Corp
- 2G ENERGY AG
- IHI Corp
- Guascor Energy S.A.U.
- Ningbo C.S.I. Power & Machinery Group Co., Ltd.
- Rolls-Royce Holdings Plc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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