Gas enginemarket is anticipated to grow at a significant CAGR of 14.6% during the forecast period (2024-2031).The growth of the gas enginemarket is attributed to increasing demand for gas engines in applications such as industrial machinery, power generation, and automobiles driving the growth of the market.Gas engines can supply local facilities with heat and power, increasing resilience and energy efficiency in distributed energy systems, such as CHP applications. Continuous developments in gas engine technology, such as enhanced dependability, efficiency, and pollution control, have raised the attraction and competitiveness of these engines across a range of industries.

Market Dynamics

Improves Efficiency of Gas Engine

The improved efficiency of gas engines includes advancements in combustion technologies, design optimizations, and the integration of digital solutions for better monitoring and controlby using higher compression ratios, optimizing fuel injection timing and fuel-air ratio, and using advanced ignition systems.Modern gasoline engines have a maximum thermal efficiency of more than 50.0%, but most road-legal cars use only about 20.0% to 40.0% when used to power a car. Many engines would be capable of running at higher thermal efficiency but at the cost of higher wear and emissions.Many types of gaseous fuels can power gas engines. Customers and the global community benefit from gas engines differently depending on their application. Gas engines can provide or support the following, depending on the configuration, gas, and application as well as the current energy mix for the local electrical grid.

Increasing Adoption of Hybridization and Electrification

The growing adoption of gas engines in hybrid powertrains includes applications such as marine propulsion, off-road vehicles, and stationary power generation. Hybrid-electric propulsion systems, which combine fuel-burning engines with electric motors and batteries, create opportunities to significantly improve aircraft fuel efficiency and lower carbon dioxide emissions, while also offering potential reductions in maintenance costs. Market players offer integrated systems that combine motors, controllers, and power for aircraft that need more range, 500-kilowatt turbogenerator combines the rugged, flight-proven engine with two miniaturized generators to feed motors or high-capacity batteries.

Market Segmentation

Our in-depth analysis of the global gas engine market includes the following segments fuel type,power output, application,and end-users.

• Based onfuel type, the market is sub-segmented intonatural gas and special gas.

• Based on power output,the market is sub-segmented into 0.5-15 MW and above 15 MW.

• Based on application,the market is sub-segmented into power generation, co-generation, and mechanical drive.

• Based on end-users, the market is sub-segmented into utilities, manufacturing, oil & gas, and marine.

Mechanical Driveis Projected to Emerge as the Largest Segment

Based on theapplication,the global gas engine market is sub-segmented into power generation, co-generation, and mechanical drive.Among these mechanical drives, the sub-segment is expected to hold the largest share of the market. The primary factors supporting the segment's growth include increasing application in industries mechanical drive for powering compressors, pumps, and other essential equipment used in extraction, processing, and transportation operations.For powering these essential pieces of equipment, gas engines provide a dependable and affordable option that minimizes running expenses while supplying the required power. Furthermore, with natural adaptability, gas engines may operate well in a wide range of mechanical drive applications, meeting different operating conditions and load requirements. The use of gas engines for mechanical drive applications is also being fueled by the rising demand for natural gas as a greener substitute for conventional fuels in industrial operations. Gas engines are widely utilized for mechanical drive applications in a variety of sectors owing to their demonstrated performance, adaptability, and environmental advantages.

0.5-15 MWSub-segment to Hold a Considerable Market Share

Based onthe power output,the global gas enginemarket is sub-segmented into0.5-15 MW and Above 15 MW.Among these, the 0.5-15 MW sub-segment is expected to hold a considerable share of the market. The increasing demand for 0.5-15 MW ranges in a wide range of applications across various industries, including industrial, commercial, and utility sectors. Gas engines with a power output of 0.5-15 MW are suitable for medium-sized facilities and operations, including data centers, manufacturing plants, and district heating systems, among others. Furthermore, improvements in gas engine technology have raised the power range's engines' economy, dependability, and performance, which has increased their appeal to end users looking for affordable and environmentally friendly power sources. Furthermore, end customers favor0.5-15 MW gas engines owing to their superior economics, which include cheaper installation and operating costs than bigger capacity engines.

Regional Outlook

The globalgas engine market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Increasing Gas Engine Adoptionin Europe

• In Europe, rapid economic expansion and urbanization in nations such as the UK, Germany, and France are driving a surge in energy consumption. Gas engines are used to meet the growing demand for electricity and heat.

• Many countries in the region are turning to natural gas as a cleaner, more environmentally friendly fuel source to produce electricity. This transition has led to the adoption of gas engines that can run on natural gas or LNG (liquefied natural gas).

Global Gas Engine Market Growth by Region 2024-2031

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to numerous prominent companies and gas engine providers.The growth is attributed to the increasing expansion of industrialization and infrastructure development with increasing demand for power generation in various industries such as manufacturing, oil and gas, and mining driving the growth of the gas engine market in the region. Motor gasoline is one of the most consumed fuels in the US and the main product that US oil refineries produce. Most of the finished motor gasoline sold for vehicles in the US is about 10.0% fuel ethanol by volume. For instance, in August 2023, US Energy Information Administration, In 2022, Americans used about 135.73 billion gallons of gasoline, including 134.55 billion gallons of finished motor gasoline (about 368.63 million gallons per day) and about 0.19 billion gallons of finished aviation gasoline.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global gas enginemarket include Caterpillar Inc., Doosan Corp., General Electric Company, Kawasaki Heavy Industries, Ltd., and Siemens AG, among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in August 2023,Cummins Inc. and Chevron U.S.A. Inc.a subsidiary of Chevron Corp., collaborated on a broad portfolio of engine-based solutions that reduce greenhouse gas and other emissions. The two companies’ previous strategic collaboration on hydrogen and renewable natural gas and is expected to encompass other liquid renewable fuels, such as renewable gasoline blends, biodiesel, and renewable diesel.

Recent Development

• In March 2024, MITSUI E&S Co. Ltd. announced that it had successfully tested a 50-bore MAN B&W two-stroke engine with up to 100.0% load at its Tamano facility while running on hydrogen, a first for the maritime industry. Adapted ME-GI gas engine runs on hydrogen up to 100.0% load. In collaboration with MAN Energy Solutions, MITSUI converted one of the four cylinders of a MAN B&W ME-GI (-Gas Injection) engine to hydrogen operation.

• In March 2024, MWM launched a 60 Hz Variant of TCG 3020 V20 Gas Engines. The company offers TCG 3020 V20 gas generator sets in a 60 Hz variant. Apart from expanding its product range, the 60 Hz variant of the TCG 3020 V20 gas engine enables MWM to address additional markets.

• In December 2023, Kawasaki Heavy Industries, Ltd. introduced a gas-engine hybrid propulsion system for use on a bulk carrier. By using a pure gas engine fueled only by natural gas as the main propulsion, the system cuts down CO2 emissions during operation by approximately 24.0% compared with a conventional heavy-fuel-oil engine used in the same vessel type.

• In March 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. introduced SGP M2000, a new natural gas engine cogeneration system with a generation output of 2,000kW. The new package encloses a 16-cylinder natural gas-fired engine modeledG16NB that boasts electrical efficiency of 44.3%, the highest level for a 2,000kW-class and makes a cogeneration system(Note1) in compact packaging.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global gas engine market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.