Market Overview

Global Gas Engines Market size was valued at USD 5.31 Billion in 2023 and is poised to grow from USD 5.71 Billion in 2024 to USD 10.14 Billion by 2032, growing at a CAGR of 7.5 % in the forecast period (2024-2032).

The demand for cleaner is rising, driving the global market for gas engines and cleaner power generation solutions. Natural gas or alternate fuel-fueled gas engines are prime drivers in numerous applications in power generation, industrial processes, and cogeneration. While governments and industries globally aim to lower carbon emissions and achieve environment standards, gas engines are becoming a solutions champion in energy efficiency and sustainability. Gas engines have some key advantages over conventional diesel or coal-fired engines such as reduced pollution, improved fuel efficiency, and reduced operating expenses. One of the key drivers of the worldwide gas engine market is increasingly focused on energy transition and decarbonization. Power generation facilities and industries are increasingly focused on natural gas as a fuel source since it is cleaner than coal and oil. Man is more and more turning to gas engines, which are amazingly efficient in both small and big units, as an attempt to complement the intermittent renewable resources of wind and solar. By providing a safe and flexible back-up to inherently intermittent renewable generation, gas engines are establishing an optimal and secure energy system.

Aside from the power generation industry, gas engines are used in other applications such as the oil and gas industry, the manufacturing industry, and transportation industries to offer a cost-effective and dependable power solution. Gas engines are used in off-grid situations, where they act as an assured off-grid power generation source. They are also used for industrial processes, where they energize processes and machinery and draw on the electric grid less often. The fact that gas engines can be powered by various fuels like natural gas, biogas, and landfill gas is one of the main reasons that make them so versatile and popular.

The second driving force for the market is technology innovation. The producers continuously innovate gas engines with power rating, efficiency, and emission control technology. Turbocharger technology, cooled exhaust gas system, and fuel management technologies have been the major drivers of increased performance and reliability of gas engines, and thereby the continued uptake of gas engines further.

Government policies and initiatives towards the use of cleaner fuels are also contributing significantly to the development of the global gas engine market. In all countries, incentives, tax credits, and other incentives are offered to utilize natural gas and other clean fuels in power generation and manufacturing operations.

Market Drivers

Increasing Demand for Cleaner Energy Solutions

• Increasing demand for cleaner energy sources is one of the primary global drivers of the gas engines market. As climate change, air pollution, and environmental degradation issues gain prominence, governments, industries, and consumers are all beginning to emphasize sustainable energy solutions. Gas engines, powered primarily by natural gas or other clean fuels, offer a cleaner option compared to traditional coal and diesel engines. They release less harmful pollutants, such as carbon dioxide (CO2), nitrogen oxides (NOx), and sulphur dioxide (SO2), and are therefore a better choice for businesses wishing to be compliant with tighter environmental controls.
• The demand for cleaner fuel is also fundamentally linked to international efforts at curbing greenhouse gas emissions and addressing the effects of global warming. Natural gas, which is a major fuel for gas engines, is deemed to be a transit fuel that can indeed diminish carbon emissions compared to coal or oil. Gas engines, therefore, are a fundamental component in the energy mix in moving towards a low-carbon economy. Also, since renewable power sources such as solar and wind are on the rise, gas engines are being used increasingly to offer backup power, allowing a stable and reliable supply of power when renewable generation is intermittent. This complementarity between gas engines and renewable power sources also enhances the transition to cleaner, more sustainable energy systems.

Growing Emphasis on Energy Efficiency and Decarbonization

• The increasing focus on decarbonization and energy efficiency is creating substantial demand for gas engines in various industries. As nations and sectors aim to fulfill global climate objectives and minimize carbon emissions, energy efficiency has been a priority area. Gas engines, especially those fuelled by natural gas, present a more efficient option compared to conventional fossil fuel-based systems with greater thermal efficiency and lower cost of operation. They emit less greenhouse gases than coal or oil-fuelled engines and are thus an integral part of decarbonization plans.
• Decarbonization, aimed at reducing the carbon content of energy generation and industrial processes, is increasingly focusing on those technologies that hold out the promise of balancing economics with sustainability. Gas engines are highly versatile and can be operated on a variety of cleaner fuels, including natural gas, biogas, and hydrogen, contributing to their popularity in maintaining carbon emissions at low levels. For power generation, manufacturing, and transport industries, gas engines are being deployed as part of efforts to wean the world off coal and oil and contribute to a cleaner energy balance.
• While governments increasingly implement stringent environmental standards, embracing efficient technology like gas engines becomes key in reducing emissions goals. With further innovations in engine technology in the form of enhanced fuel economy and minimized pollutant emission, gas engines are key drivers of a cleaner, de-carbonized future energy system on a worldwide level.

Market Opportunities

Growing Demand for Biogas-Powered Engines

• Rise in the applications of biogas-fuelled engines is picking up momentum as per the world trend to adopt clean and sustainable energy. Biogas, generated on the basis of organic wastes such as agricultural residue, food wastes, and sewerage, is a clean energy source to shift from conventional fossil fuels. Biogas is a central theme of the circular economy as it minimizes wastes, greenhouse emissions, and production of energy simultaneously. Biogas-powered gas engines are central to the realization of this renewable power as electricity or heat, and thus well suited to application in power generation, industrial processes, and combined heat and power (CHP) schemes.
• One of the primary incentives for engine take-up on the basis of a biogas is increasing interest in waste-to-energy initiatives. Industrial estates, city governments, and agricultural entities are converting to biogas as a substitute fuel in their search for effective waste management in addition to playing their part towards decreasing carbon levels. Biogas engines become quite valuable for off-grid areas as well as for rural areas because they provide viable as well as eco-friendly solutions. Moreover, the use of biogas engines is in line with global policies and regulations that aim to promote the usage of renewable energy and reduction of carbon emissions, hence making them even more desirable. As more use of biogas production is made and technology in biogas engines keeps improving, their use is set to grow, giving an important opportunity to transition into a greener future for energy.

Market Restraining Factors

Environmental Concerns Related to Methane Emissions

• The release of methane that is causing environmental issues is among the largest in the gas engines market, which involves natural gas being a major source of fuel. Methane has a potent capacity as a greenhouse gas and boasts an even more potent capacity in global warming over the short-term period when compared to carbon dioxide. Despite being less harmful to the environment than petroleum and coal, natural gas can have leakage during production, transportation, and burning. Fugitive emissions or leakage occurs at any supply point while stored, extracted, and transported through pipes. Methane is odourless and colourless, and hence not easily detectable and controllable, and therefore the reason why it is ubiquitous in the environment.
• The threat of methane emission jeopardizes the advantages of natural gas application in gas engines. While the gas engines as such emit fewer carbons than conventional fossil fuel engines, the cumulative environmental benefit can be lost if there are methane leaks throughout the production or distribution cycle. Consequently, the methanation emissions have emerged as a priority concern for regulators, energy producers, and engine makers. Methane emissions reduction efforts are under way to diminish methane leakage in the form of stricter rules, enhanced monitoring tools, and upgraded infrastructure for emission capture and emissions reduction. Notwithstanding such impediments, reduction of methane emissions is necessary for natural gas, and hence for gas engines, to remain as part of a sustainable low-emissions energy future.

Segmentation Analysis

The market scope is segmented because of by Fuel Type, by Process, by Application.

• By Fuel Type

Based on the Fuel Type of the market is segmented into Natural Gas, Special Gas, Others.

Among all the fuel type categories of the world gas engines market, natural gas is the clear market leader. This is due to some main reasons such as the enormous availability of natural gas reserves, lower carbon intensity compared to other fossil fuels, and being inexpensive to utilize in electricity generation. Natural gas is cleaner as well because it releases fewer carbon dioxide, nitrogen oxides (NOx), and sulphur dioxide (SO2) emissions when combusted, and that makes it a wonderful option for businesses and governments attempting to limit their carbon footprint.

natural gas is supported by well-established transport, production, and distribution networks, which has been a vital factor in making it extensively applied. Natural gas supply networks are well developed throughout the majority of the world, particularly North America, Europe, and the Asia-Pacific, and thus is highly available and low-cost to operate in gas engines. The pressure towards cleaner sources of energy worldwide and increased focus on curtailing the level of greenhouse gas emissions have also fuelled natural gas demand as a bridging fuel in the energy portfolio.

• By Power Output

Based on the Power Output of the market is segmented into 0.5-1 MW, 1.1-2 MW, 2.1-5 MW, 5.1-15 MW, above 15 MW.

Among the world gas engines market power output ranges, the 2.1-5 MW range has dominated the market. The range is so favoured due to its versatility and ability to serve a broad spectrum of applications in industrial as well as power generation sectors. 2.1-5 MW gas engines are most suitable for decentralized power generation, cogeneration, and combined heat and power (CHP) applications and offer the best combination of efficiency, power, and scalability.

One of the reasons for the prominence of the 2.1-5 MW range is that it can supply cost-effective, reliable power to medium to large industrial processes, commercial buildings, and municipal power grids. The engines are best applied in manufacturing, oil and gas, and utility uses where high-efficiency, reliable power is needed to operate daily processes. Other than that, the 2.1-5 MW generators also enjoy extensive use where flexible power solutions need to be combined with renewable energy technologies such as wind and solar power in order to be utilized as a backup or to stabilize the grid.

• Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. Amongst all the world gas engines market's regional markets, North America led the market. The reasons for this include the region's infrastructural might, advanced technology, and mounting demand for cleaner energy solutions, especially in the United States and Canada. North America has already taken massive leaps towards the utilization of natural gas as a green fuel in comparison to coal and oil with mammoth natural gas reserves and widening pipeline infrastructure supporting the evolution of the gas engine market. Besides, stringent environmental conservation policies and state incentives focused on energy saving and reduction in emissions have spurred the gas engine market employed in power generation, industry, and cogeneration. The region's established manufacturing sector also supports extensive use of gas engines, especially in distributed generation and reserve use in rural and urban regions.

When it comes to Asia-Pacific's most rapidly growing region, it will probably see rapid growth. The region's high-growing economies, growing industrialization, and rising energy consumption are driving most of the market growth. China and India are spending large amounts of money on clean energy technology and looking for opportunities to cut back on their use of coal-fired electricity generation. Increased environmental concerns and policies in governments that promote the use of natural gas and other alternative fuels are also driving demand for gas engines even further. Furthermore, rapid industrialization in manufacturing and transport industries at a high growth rate is also anticipated to drive the adoption of gas engines in the region as well. Increased power demands of the Asia-Pacific, and the move to cleaner and cleaner power sources for generation, has made it the world's most rapidly expanding gas engine market.

List of Companies Profiled

• Cummins Inc.
• Wärtsilä
• INNIO
• Caterpillar Inc.
• Rolls-Royce PLC
• MAN Energy Solutions
• Mitsubishi Heavy Industries Ltd.
• Kawasaki Heavy Industries, Ltd.
• Siemens Energy
• NINGBO C.S.I. POWER AND MACHINERY GROUP CO., LTD.
• IHI Power Systems Co., Ltd.
• JFE Engineering Corporation
• Hyundai Heavy Industry Co

Key Industry Developments

• A February 2023 deal is signed by Ørsted and Wärtsilä to supply and install ten Wärtsilä 31SG engines for a new natural gas-fired balancing plant in a deal to supply a 290 MW balancing power plant to Denmark. This agreement is aimed at making it easier to integrate renewable energy sources into the Danish power system.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Gas Engines Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Gas Engines Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Gas Engines market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Gas Engines. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Gas Engines companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Gas Engines Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Gas Engines Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase

• To gain insightful analyses of the Gas Engines market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Gas Engines market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Gas Engines market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Gas Engines Market

• Historic year: 2019-2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million

Gas Engines Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: