Gas Engine Market

According to Stratistics MRC, the Global Gas Engine Market is accounted for $5.84 billion in 2024 and is expected to reach $7.26 billion by 2030 growing at a CAGR of 4.5% during the forecast period. A gas engine, also known as an internal combustion engine, operates by burning a mixture of fuel and air within a combustion chamber to produce mechanical energy. This energy is harnessed to power vehicles, machinery, or generators. They work on the principle of converting the chemical energy stored in the fuel into mechanical energy through controlled combustion. They are widely used in various applications due to their efficiency and versatility in converting fuel into usable power.

According to global energy monitor, over 600 gigawatts of natural gas power plants are in the development stage worldwide as of 2022, of which 160 gigawatts have already been constructed.

Market Dynamics: 

Driver: 

Rising energy demand

Gas engines offer a versatile and cost-effective means to meet this demand, particularly in industries requiring continuous and stable power supply, such as manufacturing, utilities, and telecommunications. Their ability to operate on various fuels like natural gas and diesel makes them adaptable to diverse energy needs worldwide. Additionally, advancements in engine technology continue to improve their efficiency and environmental performance, further boosting their appeal in meeting growing energy demands globally.

Restraint:

Environmental concerns

Environmental concerns in gas engines primarily stem from their emissions of pollutants such as nitrogen oxides (NOx), particulate matter, and carbon dioxide (CO2). Despite advancements in emissions control technology, these pollutants contribute to air pollution and climate change. Stricter environmental regulations globally impose limits on emissions, increasing compliance costs for manufacturers and potentially limiting market expansion. These factors collectively pose challenges to the growth of the gas engine market.

Opportunity:

Growing industrialization

Gas engines offer efficient and flexible power generation capabilities suitable for diverse industrial applications. They provide continuous power supply, crucial for operations that rely on uninterrupted production. Additionally, industrial growth often occurs in regions where grid infrastructure may be insufficient or unreliable, further driving the need for decentralized power solutions likes gas engines. Their ability to operate on various fuels and adapt to different industrial environments enhances their attractiveness amidst expanding industrialization worldwide.

Threat:

Competition from electric vehicles

EVs appeal to consumers and industries seeking to reduce carbon footprints and comply with stricter emissions regulations. The growing infrastructure for EV charging further supports their adoption. As EV technology advances, their range, performance, and affordability improve, narrowing the traditional advantages of gas engines in terms of fuel efficiency and operating costs. This competitive pressure encourages industries and consumers to shift towards electric propulsion, dampening demand for conventional gas engines in automotive and related sectors.

Covid-19 Impact

The covid-19 pandemic initially disrupted the gas engine market, causing supply chain disruptions, reduced industrial activity, and declining demand for new equipment. However, recovery began as economies reopened, with increased focus on resilience and reliable power generation. The pandemic accelerated trends towards remote working and decentralized energy solutions, bolstering demand for gas engines in sectors requiring continuous power supply, such as healthcare facilities, data centers, and essential industries.

The spark ignited engines segment is expected to be the largest during the forecast period

The spark ignited engines segment is estimated to have a lucrative growth. Spark ignited engines, also known as gasoline engines, use a spark plug to ignite a fuel-air mixture within the combustion chamber. They are commonly used in automobiles, small vehicles, and portable equipment due to their efficiency and lower emissions compared to diesel engines. They typically run on gasoline or alternative fuels like ethanol and natural gas. They offer versatility and are favoured in applications where emissions regulations and fuel availability are considerations.

The power generation segment is expected to have the highest CAGR during the forecast period

The power generation segment is anticipated to witness the highest CAGR growth during the forecast period, due to their efficiency, reliability, and flexibility. They can run on natural gas, biogas, or diesel, making them suitable for various energy sources. Gas engines are often deployed in decentralized power generation settings, providing electricity for industries, commercial buildings, and remote locations. Their quick start-up capabilities and ability to operate in parallel with the grid or as standalone units enhance their utility in ensuring stable power supply.

Region with largest share:

The Asia-Pacific gas engine market is experiencing robust growth driven by industrialization, urbanization, and increasing energy demands across countries like China, India, Japan, and South Korea. Key factors driving market expansion include rising electricity consumption, favourable government policies promoting clean energy, and advancements in gas engine technology. The region's focus on reducing carbon emissions and enhancing energy efficiency further stimulates market growth. 

Region with highest CAGR:

The North American gas engine market is robust and diverse, encompassing a wide range of applications including automotive, industrial, and power generation sectors. Key players in the region focus on developing engines that meet environmental standards while improving performance and reliability. Additionally, a growing emphasis on sustainable energy sources like natural gas further boosts market expansion. The North American gas engine market continues to evolve with innovations aimed at enhancing efficiency and reducing environmental impact.

Key players in the market

Some of the key players profiled in the Gas Engine Market include General Electric (GE), Cummins Inc., Caterpillar Inc., Wartsila Corporation, MAN Energy Solutions, Rolls-Royce Power Systems AG, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Yanmar Corporation, Siemens Energy, INNIO Jenbacher, Liebherr Group, Doosan Infracore, JFE Engineering Corporation, Volkswagen, Hyundai Heavy Industries, Kohler Corporation, Deutz AG, Kubota Corporation and Fairbanks Morse.

Key Developments:

In June 2024, Wärtsilä has launched the world’s first large-scale 100% hydrogen-ready engine power plant, to enable the net-zero power systems. The new engine power plant is a significant step beyond existing technology, which can run on natural gas and 25 vol% hydrogen blends. The concept based on the Wärtsilä 31 engine platform has been certified by TÜV SÜD, demonstrating a commitment to quality and safety.

In February 2023, Cummins Inc. launched the next engine in the fuel-agnostic series, the X10, in North America. This engine, named as part of the X engine family, is uniquely positioned to replace both the L9 and the X12 with the versatility to serve both medium and heavy-duty applications. It will be compliant with U.S. EPA’s 2027 regulations a full year early.

Engine Types Covered:
• Spark Ignited Engines
• Dual-Fuel Engines
• Lean Burn Engines
• Other Engine Types

Fuel Types Covered:
• Natural Gas
• Biogas
• Landfill Gas
• Sewage Gas
• Propane
• Other Fuel Types

Technologies Covered:
• Internal Combustion Engines (ICE)
• Combined Heat & Power (CHP) Engines
• Micro CHP Engines
• Other Technologies

Applications Covered:
• Power Generation
• Cogeneration (CHP)
• Mechanical Drive
• Other Applications

End Users Covered:
• Utilities
• Manufacturing
• Oil & Gas
• Commercial Complexes
• Residential
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances