ID: MRFR/E&P/2394-CR | February 2020 | Region: Global | 165 pages
A gas engine is a reciprocating internal combustion engine, which runs on gaseous fuels such as natural gas, biogas, landfill gas, and syngas. Gas engines are highly reliable and provide efficiency with low operating and maintenance costs. These gas engines are used for various applications, including power generation, cogeneration, trigeneration, mechanical drive, and others.
The factors driving the growth of the gas engines market are the shift towards gas-fired power generation and the increasing focus on reducing carbon emissions. According to the BP Statistical Review of World Energy 2019, global natural gas production grew from 3,677.7 billion cubic meters (BCM) in 2017 to 3,867.9 BCM in 2018. Moreover, as per the data from the report mentioned above, the demand for natural gas as a fuel generation source increased from 5952.8 Terawatt-hours (TWh) in 2017 to 6182.8 TWh in 2018. The growth in the production of natural gas can be attributed to the increasing use of natural gas for power generation. Gas engines used in gas-fired power plants supply power to drive the generator to produce electricity and supply power to various utilities and end-use industries. Gas engines used in power plants also provide additional benefits such as quick start-up, high operational rate, and flexible load efficiency as per the power demand. Such factors are expected to increase the establishment of gas-fired power plants. Many countries across the world, including India and Germany, are focusing on the development of gas-fired power generation plants. In India, as per the National Electricity Plan, 2018, the Indian government is focusing on developing gas-fired power plants. For instance, it plans to construct 38 MW powered gas-based power plants and 34.88 MW gas-based power plants in Andhra Pradesh and Telangana, respectively.
The rising awareness regarding greenhouse gas emissions and the introduction of environmental regulations, such as the Kyoto Protocol and Paris Agreement, is expected to increase the focus on reducing carbon emissions worldwide. Several major countries, including India, Canada, Saudi Arabia, Brazil, Japan, and China, aims to reduce the carbon emission to limit the impact of pollution and global warming on the environment. For instance, as per the Intended Nationally Determined Contributions (INDC), Canada aims to reduce its greenhouse gas emissions by 30% below the level of 2005 by 2030. As per Brazil’s INDC report 2015, by 2025, Brazil committed to reducing its greenhouse gas emissions 37% below the level of 2005. Moreover, Saudi Arabia aims to reduce its CO2 emissions by 130 million tons below business as usual (BAU) by 2030 from that of 2005. As per the Japan ministry of economy, trade and industry (METI), the country has set up a target to reduce CO2 emissions by 21.9% by 2030. Such factors lead to an increase in the installation of gas engines in power plants as these engines produce lower carbon emissions compared to coal and diesel engines. Stakeholders in the power generation industry aim to reduce their carbon footprint by increasing the share of various energy sources such as solar, wind, biogas, and natural gas in the total power generation mix. Gas-powered engines used in power plants emit lower amounts of carbon dioxide compared to thermal power plants. Therefore, the increasing focus on reducing carbon emissions is expected to drive the growth of the global gas engines market during the forecast period.
Segmentation: Global Gas Engines Market
The Global Gas Engines Market is segmented based on Fuel Type, Power Output, Horsepower, Application, End-Use, and Region. By fuel type, the global market is segmented into natural gas, special gas, and others. By power output, the global market is segmented into Up to 1 MW, 1-2 MW, 2–5 MW, 5–10 MW, and 10–20 MW. On the basis of horsepower, the global market has been segmented into up to 1000 HP, 1000–2000 HP, and above 2000 HP. On the basis of application, the global market has been segmented into power generation, cogeneration, mechanical drive, and others. On the basis of end-use, the global gas engines market has been segmented into utilities, manufacturing, oil & gas, mining, and others.
Geographically, the global gas engines market is segmented as Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Europe is poised to hold a majority of the share of the market during the forecast period, owing to the growing demand for uninterrupted power supply, increasing focus on reduction in carbon emission, and the development of gas-fired power plants. According to MDPI Journal published in 2017, Europe is estimated to register a power consumption of 104TWh by 2020. This shows the growing demand for gas engines for continuous power supply in the region. Moreover, the countries in Europe have set up a target to reduce greenhouse emission by 20% by 2020 and by 40% by 2040 as compared to the level in 1990. Hence, the rising concerns for greenhouse gas emissions and developments in gas-fired power plants are expected to propel the demand for gas engines in Europe during the forecast period.
The Prominent Players in the Global Gas Engines Market are Cummins Inc. (US), Caterpillar (US), Mitsubishi Heavy Industries, Ltd. (Japan), Rolls-Royce plc (UK), Volkswagen AG (Germany), Wärtsilä (Finland), Kohler Co. (US), Yanmar Co Ltd. (Japan), Hyundai Heavy Industries Co., Ltd. (South Korea), China Yuchai International Limited (Singapore), Siemens (Germany), Doosan Corporation (South Korea), Cooper Corp. (India), and INNIO (Austria).
The report for the global gas engines market by Market Research Future research covers extensive primary research. This is accompanied by a detailed analysis of qualitative and quantitative aspects by various industry experts and key opinion leaders to gain deeper insights into the market and industry performance. The report gives a clear picture of the current market scenario, which includes the historic and forecasted market size, in terms of value and volume, technological advancement, macroeconomic, and governing factors of the market. The report provides comprehensive information about the strategies of the top companies in the industry, along with a broad study of the different market segments and regions.
Frequently Asked Questions (FAQ) :
The gas engines market can surge at 7% CAGR by 2023.
By 2023, the gas engines market can attain a lucrative valuation.
Kawasaki Heavy Industries, Ltd. (Japan), Doosan Infracore (South Korea), Deutz AG (Germany), Mitsubishi Heavy Industries, Ltd. (Japan), and Yanmar Co., Ltd. (Japan) are some reputed names in the gas engines market.
The cost-effectiveness of gas engines can support their global market expansion.
The presence of cash-rich automobile industry in the APAC region can bolster the regional gas engines market growth.