$4450
$3560
The Natural Gas Engine Market size is projected to reach US$ 5,762.46 million by 2031 from US$ 3,727.08 million in 2024. The market is expected to register a CAGR of 6.56% during 2025–2031.
Natural Gas Engine Market Analysis
The gas engine sector is witnessing a drastic transformation mainly due to the incorporation of natural gas engines and innovations to help meet emission targets. The demand for such engines that are low on emissions and fuel efficient has gone up significantly. Besides, biogas-powered engines with improved electric efficiency and low emissions are building up considerable growth potential for the market players, as the gas engine manufacturers are providing better and technologically advanced products to fulfil the need for high power outputs, as well as achieving diesel engine standards.
Natural Gas Engine Market Overview
A gas engine is an internal combustion engine that converts natural gas or any other gaseous fuel (like biogas or hydrogen) into mechanical power or electricity. Such machines work on the principle of combining the fuel with air in a controlled manner inside the cylinders, thus releasing energy, which can be either a piston or a turbine. Usually, gas stirrups are used for the generation of electricity, in the industrial sector or for transportation purposes.
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Natural Gas Engine Market: Strategic Insights
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Natural Gas Engine Market Drivers and Opportunities
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Natural Gas Engine Market: Strategic Insights
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Market Drivers:
Increasing Demand for Cleaner Energy Solutions
Natural gas engines produce fewer pollutants than conventional fossil fuels, which further supports the government's emission reduction targets and environmental regulations
Growing Stringency of Government Regulation
Authorities across the globe are imposing energy transitions and emissions reduction, motivating industries to deploy natural gas engines for compliance and sustainability
Technological Advancements in Engine Efficiency
Innovations boosting engine reliability, efficiency, and performance are accelerating adoption across power generation, transportation, and industrial segments.
Market Opportunities:
Integration with Renewable Energy Sources
Natural gas engines can be combine with renewables energy sources such as solar, wind and hydropower for grid stabilization and supplying reliable backup power.
Distributed Power Generation and Microgrids
Adoption in decentralized and microgrid energy systems offers localized, efficient power solutions for urban, metro and remote regions.
Expansion of Combined Heat and Power (CHP) Systems
Natural gas engines can be used in CHP applications for municipal, commercial, and industrial usage, due to their high efficiency and requirement of reduced requirements.
Natural Gas Engine Market Report Segmentation Analysis
The Natural Gas Engine market is divided into different segments to give a clearer view of how it works, its growth potential, and the latest trends. Below is the standard segmentation approach used in most industry reports:
By Power Output:
100-300 KW:
Gas engines with the power output of 100–300 kW are extensively installed in high-rise buildings as well as in industries.300 to 500 kW:
These gas engines are used to cover the industrial and commercial load requirements and to generate enough energy for machine equipment.500 kW to 1 MW
Gas engines with power output from 0.5 to 1 MW are generally applied to industrial applications.1 MW to 2 MW:
This segment addresses the needs of medium-to-large-scale operations; thus, it is the solution that fills the gap between smaller systems and large industrial power (above 2 MW).2 MW to 5 MW:
Power output in the 2-5 MW range allows industrial users to have access to the advantages of high power output and increased efficiency.5 MW-10MW:
The segment is being positively influenced by the growth of demand for high power and improved fuel efficiency.10 MW to 15 MW
Gas engines in the 10–15 MW range are meant for industrial plants at a large scale, utilities, and large district energy systems.
By End User:
- Remote
- Mid-Stream Oil and Gas
- Heavy Industries
- Light Manufacturing
- Utilities
- Biogas
- Datacenters
- MUSH
- Commercial
By Geography:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
The Natural Gas Engine market in the Asia Pacific is expected to witness the fastest growth.
Natural Gas Engine Market Report ScopeNatural Gas Engine Market Share Analysis by Geography
Asia Pacific is projected to grow notably during the forecast period.
The Natural Gas Engine market has different potential and growth in each region. This is owing to factors such as technological advancements, government regulations and automation adoption.
Below is a summary of market share and trends by region:
1. North America
Market Share:
Holds a substantial share of the global marketKey Drivers:
- Owing to abundant natural gas production, the power generation sector is growing in the region.
Trends:
Continuous research and development activities
2. Europe
Market Share:
Accounted for the largest market share globally.Key Drivers:
- Utilities, remote sectors, and industrial equipment have notably adopted gas engines; as a result, the demand for gas engines market expected to be multifold in the region.
Trends:
Product development and partnership activities by gas engine manufacturers
3. Asia Pacific
Market Share:
second largest market share with the fastest growth rateKey Drivers:
- China features among the top gas engine manufacturers in the Asia-Pacific region. The growing population in countries, especially in India and China.
Trends:
Increasing demand for power generation applications
4. South and Central America
Market Share:
Growing market with steady progressKey Drivers:
- Rapid Industrialization has contributed a considerable share of the region’s economic growth. As a result, the demand for energy has increased in the manufacturing, oil & gas, and transportation sectors.
Trends:
Carbon emissions norms set by the government for 2030
5. Middle East and Africa
Market Share:
Although small, but growing quicklyKey Drivers:
- The Gulf countries are economically advanced, while the countries in Africa still have to balance to match the Gulf countries’ economic conditions due to the lack of supporting infrastructure.
Trends:
Investments in the manufacturing sector
Natural Gas Engine Market Players Density: Understanding Its Impact on Business Dynamics
High Market Density and Competition
Competition is strong due to the presence of established players such as Harmonic Drive Systems Inc., Nidec Corporation, WITTENSTEIN SE, GAM Enterprises, Inc. Regional and niche providers like STÖBER Antriebstechnik GmbH + Co. KG, DieQua Corporation, and Neugart GmbH are also adding to the competitive landscape across different regions.
This high level of competition urges companies to stand out by offering:
- Advanced product features such as efficient fuel consumption, low emissions of nitrogen oxides and multiple fuel options (biogas, liquefied natural gas, compressed natural gas).
- Value creation services embracing remote monitoring, on-the-spot diagnostics, predictive maintenance, and power plant, as well as distributed generation unit lifecycle support contracts.
- Custom solutions with seamless integration options for combined heat and power (CHP) applications, microgrid controls and compatibility with hydrogen fuels.
Opportunities and Strategic Moves
- Manufacturers are collaborating with EPC companies, distributed energy providers, and industrial automation firms to co-develop sector-specific solutions.
- Industry leaders are investing heavily in the development of modular engine prototypes and digitization, thus encouraging retrofitting, rapid upgrades, and API/IoT-enabled connectivity with distributed energy resources and grid management software.
- The increase in local manufacturing and product customization, compliance with local emission standards (Euro VI, EPA Tier 4, China VI), use of local service networks.
Other companies analysed during the course of research:
- General Electric Company (GE)
- Siemens Energy AG
- JFE Engineering Corporation
- Hyundai Heavy Industries Co. Ltd.
- Deutz AG
- Yanmar Co., Ltd.
- Kirloskar Oil Engines Ltd. (India)
- Doosan Infracore Co. Ltd.
- Arrow Engine Company (USA)
- Power Solutions International (PSI) (USA)
- Isotta Fraschini Motori S.p.A. (Italy)
- Perkins Engines Company Limited (UK)
- Scania CV AB (Sweden)
Natural Gas Engine Market News and Recent Developments
Cummins launched their new engine
Cummins Inc. announced DNV Approval in Principle (AIP) for its methanol-ready QSK60 IMO II and IMO III engines, available from 2000 - 2700 hp (1491 - 2013 kW). Received in June 2024, the AIP validates Cummins's retrofittable methanol dual-fuel solution for the global marine market, ensuring it meets the highest standards of safety and performance.INNIO Group announced the market launch of the new
engine platform
INNIO Group announced the market launch of the new, even more efficient Generation F for its Jenbacher Type 2 engine platform. Compared to the previous version, the new eight-cylinder J208 F engine achieves up to 3 percentage points higher efficiency at 41.8%, with electrical output increased by 9% to as much as 360 kW.INNIO Group announced its acquisition of Souer Co., Ltd
INNIO Group announced its acquisition of Souer Co., Ltd., a specialist in engine-based technology and customer-centric services within the midstream and power generation industries.
Natural Gas Engine Market Report Coverage and Deliverables
The "Natural Gas Engine Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Natural Gas Engine Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Natural Gas Engine Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Natural 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 Natural Gas Engine Market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The market is primarily driven by: The demand for gas engines has gone up considerably in the power generation sector after new emission standards were put in place. The growth in chemicals, metals, and manufacturing industries is driving the rising demand for gas engines.
These are still not considered clean energy sources or technologies that do not emit any gases.
Major players 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.; and Rolls-Royce Holdings Plc.
The Natural Gas Engine Market size is projected to reach US$ 5,762.46 million by 2031 from US$ 3,727.08 million in 2024. The market is expected to register a CAGR of 6.56% during 2025–2031.
The heavy industries segment is anticipated to gain traction in the market.
The segment is being positively influenced by the growth of demand for high power and improved fuel efficiency which are among the main advantages of gas engines in the 5–10 MW power range.
Asia Pacific is the fastest-growing market due to rapid industrialization in China, India, and Southeast Asia.
The List of Companies - Natural Gas Engine Market
- Innio Jenbacher GmbH and Co
- Caterpillar Inc
- Cummins Inc
- Fairbanks Morse Defense
- Kawasaki Heavy Industries, Ltd.
- Liebherr-International AG
- Mitsubishi Heavy Industries, Ltd
- R Schmitt Enertec GmbH
- Wartsila Corporation
- 2G Energy AG
- Siemens Energy
- Rolls-Royce Holdings Plc
- MAN Energy Solutions
- Ningbo C.S.I. Power & Machinery Group Co., Ltd.
- IHI Power Systems, Co. Ltd.
- Power Solution International
- Guascor Energy
- Doosan Infracore Co. Ltd.
- Arrow Engine Company (USA)
- Power Solutions International (PSI) (USA)
- Isotta Fraschini Motori S.p.A. (Italy)
- Perkins Engines Company Limited (UK)
- Scania CV AB (Sweden)
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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