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Gas engines Market Research Report Information By Fuel Type (Natural Gas, Special Gas, and Others), Application (Power Generation, Cogeneration, Mechanical Drive, and others), End-Use (Utilities, Manufacturing, Oil & Gas, Mining, and others), and By Region (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa) -Global Forecast to 2030

ID: MRFR/E&P/2394-CR | 128 Pages | Author: Priya Nagrale| February 2024

Global Gas engines Market Overview

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.

Global Gas engines Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Gas engines Market Trends

  • Rising Shift Towards Gas-Fired Power Generation

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.

Gas engines Market Segment Insights

Gas engines by Type Insights

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.

Gas engines by Application Insights

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)

Gas engines Regional Insights

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.

Gas engines Key Market Players & Competitive Insights

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.

Key Companies in the Gas engines Market includes:

  • Cummins Inc.

  • Caterpillar

  • Mitsubishi Heavy Industries

  • Ltd, Rolls-Royce plc,

  • Volkswagen AG

  • Wärtsilä

  • Kohler Co.

  • Yanmar Holdings Co.Ltd

  • Hyundai Heavy Industries Co., Ltd

  • China Yuchai International Limited

  • Siemens

  • Doosan Corporation

  • Cooper Corp

  • Innio

Gas Engines Industry Developments

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.

July 2023:Carmakers Geely and Renaulthave disclosed a joint venture to develop engines for hybrid and gasoline-powered vehicles, with the partners investing a maximum of €7 billion ($7.7 billion) in total. Renault stated on July 23rd that, along with its Chinese counterpart, it planned to produce a new company that focused on producing nearly five million internal combustion, hybrid, and plug-in hybrid engines and transmissions a year. 

The brand-new company focuses on becoming the leader in next-generation hybrid and favorably efficient powertrain solutions to fulfill worldwide demand for the years to come, as per the statement by Renault. "Powertrain" refers to the absolute mechanism, including the engine, that allows a vehicle to move. Geely and Renault expect the new organization to supply engines and other components to various global auto brands, including Mitsubishi, Nissan, and Volvo, as well as for their cars. The company, anticipated to deploy 19,000 people, will have 17 factories and five research and development centers covering three continents, Renault said.

The Chinese and French automakers will invest up to €7 billion in the new company, as per thefiling by Geely with the Hong Kong stock exchange. The investment is anticipated to be finished before the end of the year, Renault said, adding that Saudi Aramco, the world's largest oil producer, was also contemplating investing in the joint venture.Renault said that Saudi Aramco's investment would assist the new company grow and fund research into synthetic and hydrogen fuels, both of which are crucial to decarbonizing the automotive sector, including cars with internal combustion engines.

Gas engines Market Segmentation

Gas engines Fuel Type Outlook

  • Natural Gas

  • Special Gas

  • Others

Gas engines Application Outlook

  • Power Generation

  • Cogeneration

  • Mechanical Drive

  • Others

Gas engines End Use Outlook

  • Utilities

  • Manufacturing

  • Oil & Gas

  • Mining

  • Others

Gas engines Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • India

    • Japan

    • South Korea

    • Rest of Asia-Pacific

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

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

Frequently Asked Questions (FAQ) :

USD 4,140.8 million in 2022


North America

Cummins Inc., Caterpillar, Wärtsilä, Siemens, Doosan Corporation, Innio , and others.

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