Gas Engines Market Size, Share & Trends Analysis 2032

Gas Engines Market Outlook

According to the report by Expert Market Research (EMR), the global gas engines market size reached a value of USD 5.04 billion in 2023. Aided by the increasing demand for clean and efficient energy solutions, the market is projected to further grow at a CAGR of 5.8% between 2024 and 2032 to reach a value of USD 8.35 billion by 2032.

Gas engines, which operate on various types of gas fuels such as natural gas, biogas, and syngas, are widely used in power generation, cogeneration, and mechanical drive applications. These engines are preferred for their cost-effectiveness, efficiency, and lower environmental impact compared to conventional diesel engines.

Stricter global emissions standards are pushing industries toward cleaner energy sources, making gas engines a favourable option due to their lower emissions of CO2, NOx, and particulate matter compared to diesel engines, consequently driving up the gas engines market share.

The growing emphasis on energy efficiency in industrial operations has bolstered the adoption of gas engines, which are capable of high efficiency and can be used in combined heat and power (CHP) systems to achieve even greater energy utilisation rates.

Technological improvements have significantly enhanced the performance, reliability, and fuel flexibility of gas engines, expanding their applicability across various sectors, leading to gas engines market expansion.

The widespread availability and declining prices of natural gas, partly due to the global expansion of liquefied natural gas (LNG) infrastructure, have made gas engines more attractive for both new installations and conversions from diesel. Additionally, there is an increasing trend towards decentralised power generation, where gas engines play a critical role due to their scalability and ease of integration with local grid systems.

As per the gas engines market analysis, the small engines segment in the global market for construction is expected to play a significant role in the overall market growth. This can be attributed to the increasing number of residential and commercial construction projects that require small gas engines for outdoor power equipment such as concrete mixers.

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Additionally, the growth of the construction sector in major emerging countries, driven by factors like rising disposable incomes, industrialization, and urbanisation, is positively impacting the market growth of small gas engines. Furthermore, the affordability of maintenance and rental costs, along with low product costs, has led to frequent renting of outdoor power equipment by contractors, thereby driving the gas engines market growth.

North America currently leads the global market, driven by the abundant availability of natural gas and well-established gas infrastructure. Europe follows closely, supported by stringent environmental policies and high adoption rates of energy-efficient technologies.

The Asia-Pacific region is projected to witness the fastest growth in the gas engines market, fuelled by rapid industrialisation, expanding power generation capacity, and increasing environmental awareness in countries such as China, India, and Southeast Asia.

Gas Engines Market Segmentation

The market can be divided based on the fuel type, power output, application, end user, and region.

Market Breakup by Fuel Type

• Natural Gas
• Special Gas
• Others

Market Breakup by Power Output

• 5-1 MW
• 1-2 MW
• 2-5 MW
• 5-10 MW
• 10-20 MW

Market Breakup by Application

• Power Generation
• Cogeneration
• Mechanical Drive
• Others

Market Breakup by End User

• Utilities
• Manufacturing
• Oil and Gas
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in global gas engines market. Some of the major players explored in the report by Expert Market Research are as follows:

• Caterpillar Inc.
• Rolls-Royce Holdings plc
• Cummins Corporation
• Siemens AG
• Hyundai Heavy Industries Co., Ltd.
• Others