What Has Driven the Growth of the Gas Engines Market in Recent Years?
The gas engines market has seen considerable growth due to a variety of factors.
• In the past years, the market size for gas engines has shown significant growth, projecting an increase from $5.19 billion in 2024 to $5.46 billion in 2025 with a compound annual growth rate (CAGR) of 5.1%. Factors such as increasing energy needs, abundant natural gas, environmental regulations, the move towards decentralized energy generation, industrial uses, coupled with its flexibility and quick start-up features, have all contributed to the growth observed in the historical period.
How Will the Gas Engines Market?
The Gas Engines market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of gas engines is predicted to witness robust expansion in the upcoming years, anticipated to rise to $6.8 billion in 2029, with a compound annual growth rate (CAGR) of 5.6%.
Factors driving growth during the estimated period include the shift towards renewable energy, heightened attention on distributed generation, cost-effectiveness, rural electricity provisions, cogeneration in commercial structures, and revamping of existing infrastructure. Prominent trends projected during this period include the integration of digitalization and smart controls, cutting-edge emission reduction technologies, LNG-powered engines, the incorporation of energy storage, and the use of hydrogen-powered gas engines.
Which Factors Are Boosting Growth In The Gas Engines Market?
The escalating use of natural gas for the creation of electricity is set to advance the gas engine market's growth. Power creation refers to electricity made via a host of elements such as fossil fuels, nuclear power plants, and hydropower, which includes electricity produced at combined heat and power and electricity-only facilities. Gas engines' modularity and cost-effectiveness offer an exemplary solution for consistent power needs. Consequently, the ascending use of natural gas for power creation escalates the demand for the gas engine market. For example, in December 2023, the International Energy Agency, a France-based energy authority, reported that natural gas furnished more than half of U.S. electricity demand for the first time on August 28, 2023, with its percentage of the summer power mix escalating from 40% to 45% over the précising two years. Hence, the increasing use of natural gas for power creation propels the gas engine market.
What Key Areas Define The Segmentation Of The Global Gas Engines Market?
The gas engines market covered in this report is segmented –
1) By Fuel Type: Natural Gas, Special Gas, Other Fuel Type
2) By Power Output: 1-2 MW, 2-5 MW, 5-15 MW, Above 15 MW
3) By Application: Power Generation, Mechanical Drive, Cogenerations, Other Applications
4) By End User: Utilities, Marine, Oil And Gas, Manufacturing, Other End Users
Subsegments:
1) By Natural Gas: Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG)
2) By Special Gas: Biogas, Landfill Gas, Synthesis Gas
3) By Other Fuel Types: Propane, Hydrogen
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How Are Emerging Trends Reshaping The Dynamics Of The Gas Engines Market?
The role of technological innovation is a leading trend emerging in the gas engine market. The primary market players are turning their attention towards the utilization of advanced technologies to escalate the performance potential of gas engines, in order to align with contemporary power and energy requirements. Taking an example, in November 2022, The Weichai Group, an organization originating from China that produces diesel and gas engines, introduced its commercial natural gas engine to the market; a world-first that boasted a brake thermal efficiency (BTE) rate of 54.16%, built on Westport's high-pressure direct injection (HPDI) technology. The novelty of this particular natural gas engine lies in its technical adaptions, combining low friction and high thermal efficiency processes typically found in diesel engines.
Who Are the Key Players In The Gas Engines Market?
Major companies operating in the gas engines market include:
• Caterpillar Inc.
• Cummins Inc.
• Wartsila Oyj Abp
• Mitsubishi Heavy Industries Ltd.
• Hyundai Heavy Industries Co. Ltd.
• Maschinenfabrik Augsburg-Nürnberg AG
• General Electric Company
• Kawasaki Heavy Industries Ltd.
• Liebherr-International AG
• Kohler Co.
• Yanmar Co. Ltd.
• Perkins Engines Company Limited
• Doosan Group
• INNIO Jenbacher GmbH & Co. OG
• Deutz AG
• Guascor Power
• Dresser-Rand
• Motoren- und Turbinen-Union Friedrichshafen GmbH
• Fairbanks Morse LLC
• Jinan Lvneng Power Machinery Equipment Co. Ltd.
• Ningbo C.S.I. Power & Machinery Group Co. Ltd.
• Baudouin
• CNPC Jichai Power Complex
• Googol Engine Tech Co. Ltd.
• Liquid Combustion Technology LLC
• Lombardini Srl
• Chongqing Winyou Power Co Ltd.
• Briggs & Stratton Corporation
• Honda Motor Co Ltd.
• Yamaha Motor Corporation
• KUBOTA Corporation
• Generac Power Systems Inc.
What Is The Most Dominant Region In The Gas Engines Market?
North America was the largest region in the gas engines market in 2024. The regions covered in the gas engines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
