Gas engines Market Size was valued at USD 4,140.8 Million in 2022. The Gas engines Market industry is projected to grow from USD 4,285.2 million in 2023 to USD 6,483.3 million by 2030, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2023 - 2030). The Gas engines Market is expected to be driven by growing demand for continuous power supply. The Gas engines Market is also being influenced by a greater emphasis on lowering carbon emissions. With increased environmental concerns and different worldwide attempts to aggressively reduce global carbon emissions, the sector is implementing a variety of steps to boost its greener alternative adoption. Gas engines emit much fewer emissions per unit than other fuel-based engines, resulting in increased global market demand for gas engines.
Yet, the presence of geopolitical instability causes pipeline projects to be paused or cancelled, resulting in a lesser number of petrol engines being acquired. Moreover, the existence of political upheaval, particularly in nations providing and heavily exporting natural gas or other fuel sources, causes a slowdown in the market owing to high fuel costs or a lack of supply. Nonetheless, the gas engines market is likely to thrive throughout the forecast period because to the increasing prevalence of distribution generation.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
According to the BP Statistical Review of World Energy 2022, global natural gas production grew from 3,861.5 billion cubic meters (BCM) in 2020 to 4,036.9 BCM in 2021. Moreover, as per the data from the report mentioned above, the demand for natural gas as a fuel generation source increased from 6,371.7 Terawatt-hours (TWh) in 2020 to 6,518.5 TWh in 2021. The growth in the production of natural gas can be attributed to the increasing use of natural gas for power generation. The figure below depicts the rise in the global production of natural gas from 2017–2021.
Gas engines in gas-fired power plants provide the power to drive the generator, which produces electricity and distributes it to different utilities and end-use businesses. Gas engines used in power plants also provide other advantages such as rapid start-up, high operating rate, and variable load efficiency based on power demand. Such variables are projected to boost the number of gas-fired power plant being established. Many countries across the world, including China, Japan, Greece and Germany. In 2020, Stadtwerke Kiel, German municipal utility, launched one of Europe's most modern and adaptable gas engine-based combined heat and power (CHP) facilities on the eastern coast of the Kieler Förde inlet in northern Germany. While to meet expected electricity shortages, Japan hopes to involve private enterprises in a scheme that would increase the country's natural gas-fired power capacity by the equivalent of seven or eight power plants. The Ministry of Commerce, Trade, and Industry expects 6,000 megawatts to be operational by fiscal 2030. Also, new gas-fired power plant construction is underway in Alexandro polis, northern Greece, an initiative to support potential of electricity exports from Greece. Furthermore, according to International Energy Agency (IEA), despite ongoing high petrol costs in the second half of the year, global gas-fired power output climbed by over 3% in 2021.While, as per the New Policies Scenario of International Energy Agency (IEA) globally, approximately 1,510 GW of gas-fired power plants will be needed by 2040. Such developments increase the establishment of gas-fired power plants worldwide, which will consequently increase the demand for gas engines. Thus, the shift towards gas-fired power generation is expected to drive the Gas engines Market during the forecast period.
The Gas engines Market segmentation, based on type has been segmented as Natural Gas, Special Gas and Others. The fuel used to power gas engines produces lower amounts of greenhouse gas emissions compared to diesel engines. Furthermore, the transport of gases has become easier due to the development of pipelines and special cargo ships.
Based on Application, the Gas engines Market is segmented as power generation, cogeneration, mechanical drive, others (trigeneration, quad generation, greenhouse operation, and renewable energy).
In 2021, the power generation segment held the largest market share and is expected to maintain its position in the global market throughout the forecast period.
Figure 1: Gas engines Regional Insights, 2022 (Usd Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study segments the Gas engines market into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The Europe market accounted for a comparatively significant revenue share in 2022.
The Gas engines Market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. Rapid advancements in processes, manufacturing and the growing application of Gas engines in end-use industries are the key factors that affect global market growth. The vendors compete based on cost, product quality, availability, and reliability of the products. The vendors must provide cost-effective and high-quality Gas engines to compete in the market. The competitive scenario is fragmented between tier-1 and tier-2 companies.
The growth of the market vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Cummins Inc., Caterpillar, Wärtsilä, Siemens, Doosan Corporation and Innio are some of the major players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They are primarily focused on product development as their key strategy in the global gas engine market. Although the international players are dominating the market, regional and foreign players with small market shares also have a significant presence. The international players may strengthen their presence in the global market by heavily investing in product development during the forecast period.
Cummins:Cummins strategizes to expand its geographic presence and improve its operational efficiency. For instance, in September 2019, the company supplied its L9N Near Zero emission natural gas engine to Chile, South America. Furthermore, it also heavily invests in research & development to manufacture advanced diesel generators, which can further increase the applications of the generators. For instance, in October 2019, it introduced its L9N natural gas bus engine to lower carbon emission. The core strategy of the company is to maintain its position in the market while upgrading its product portfolio. The company thrives in the global market due to its engine development and production capabilities. For instance, in November 2018, the company launched the Stage V B6.7 engine for the agricultural sector. It plans to take advantage of the market dynamics by exploring strengths and competencies, which aids in leveraging its position in the market.
Caterpillar:Caterpillar primarily focuses on enhancing its operational efficiency, enhancing its portfolio, and providing quality services for achieving sustainable growth. It strategizes to develop innovative products with economical fuel use, increased torque, and a high-speed range. This also helps ensure reliable operation and improved efficiency in its gas engines. The company also strengthens itself by managing the decisions critical to optimizing its business output and increasing its revenue.
April 2023:Cummins announces investments of more than $1 billion across u.s. manufacturing network. The investment will provide upgrades to those facilities to support the industry’s first fuel agnostic engine platforms that will run on low carbon fuels, including natural gas, diesel and eventually hydrogen, helping decarbonize the nation’s truck fleets.
February 2023:Cummins next-generation 2026 x10 engine and 2024 x15n natural gas complete powertrain equipped with the latest digital technologies on display for first time at tmc annual meeting.
October 2019:Cummins introduced the L9N natural gas bus engine for applications in bus transportation. This development enabled the company to manufacture zero-emission engines.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 4,140.8 million |
| Market Size 2023 | USD 4,285.2 million |
| Market Size 2030 | USD 6,483.3 million |
| Compound Annual Growth Rate (CAGR) | 5.80 % (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By on Feedstock, type, application, and region, and By Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | US, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, South Korea, Saudi Arabia, UAE, South Africa, Brazil, Argentina |
| Key Companies Profiled | Cummins Inc., Caterpillar, Wärtsilä, Siemens, Doosan Corporation, Innio |
| Key Market Opportunities | Rising Shift Towards Gas-Fired Power Generation |
| Key Market Dynamics | Growing Prevalence Of Distributed Generation |
Gas Engines Market Highlights:
Frequently Asked Questions (FAQ) :
USD 4,140.8 million in 2022
5.80%
North America
Cummins Inc., Caterpillar, Wärtsilä, Siemens, Doosan Corporation, Innio , and others.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
