Gas Engine Market Size to Reach $8.09 billion, Globally, by 2031 at 6.4% CAGR: The Insight Partners

The report runs an in-depth analysis of market trends, key players, and future opportunities. The Gas Engine Market analysis focuses on a vast array of applications that are expected to determine market strength in the coming years.

/EIN News/ -- US & Canada, May 14, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the global Gas Engine Market is observing significant growth owing to growing demand from energy industry.

The gas engine market is witnessing steady growth due to rising demand for clean and efficient power generation. These engines, running on natural gas, biogas, or other gaseous fuels, are widely used in utilities, manufacturing, and transportation. Major players include Wärtsilä, Caterpillar, and Rolls-Royce. Challenges include fluctuating fuel prices and competition from renewable energy sources.

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Overview of Report Findings

1. Market Growth: The Gas Engine Market was valued at US$ 5,298.2 million in 2024 and is projected to reach US$ 8,095.3 million by 2031; it is expected to register a CAGR of 6.4% during 2025–2031. The gas engine manufacturing industry is evolving with innovations in natural gas engine offerings to support emission targets. Rising demand for low-emission, fuel-efficient engines to reduce air pollution and the advent of special gas engines in the manufacturing, utilities, and remote generation application sectors propels the gas engine market growth. Also, biogas-powered engines with improved electric efficiency and low emissions are creating substantial growth opportunities for the market players. The gas engine manufacturers are focusing on offering advanced products to address the rising demand for high power outputs, meeting diesel engine standards. Major heavy industries, remote power plants, and manufacturing companies are selecting high-power gas engines due to enhanced electric efficiency and reduced fuel costs. The use of natural gas in gas engine combustion technology can resolve the emission problems, along with assisting customers in meeting new regulatory norms. There is an increase in the adoption of gas engines in South America, Africa, and Asia, while North America and Europe are focusing on adopting solar and wind energy during the forecast period. The increasing adoption of natural gas for power generation in commercial, industrial, and construction sectors is supporting the gas engine market growth.
   
2. Increasing Focus on the Development of Efficient Fuel Engines: Several governments are imposing regulations to control the emissions of diesel and petrol engines, compelling engine manufacturers to opt for alternative fuel solutions such as natural gases. Gas engines release less emissions to generate a sufficient amount of power. The emission monitoring and regulatory bodies are imposing stringent regulations on using diesel engines and generators. Various industries are deploying gas engines and generators for power generation to meet these regulatory standards. Cummins Inc. and Liberty Energy Inc. announced the launch of the industry’s first natural gas variable-speed, large displacement engine to power Liberty’s digiPrime hydraulic fracturing platform, set for deployment in the first half of 2025. This follows the strategic partnership formed between the two companies in June 2024, aimed at jointly developing innovative technology for the completions services market. The Cummins HSK78G natural gas engine, initially introduced in March 2019 as part of a fixed-speed generator set for the power generation sector, has demonstrated exceptional reliability in providing consistent power across varying natural gas sources and operational environments. The recent advancements for Liberty’s digiPrime platform build for the HSK78G engine to enhance its response time and load acceptance. This collaboration highlights a significant step in the ongoing growth of the gas engine market, which continues to innovate in areas of efficiency and operational performance, particularly within sectors such as hydraulic fracturing and energy production. Thus, the rise in such development of efficient fuel engines owing to stringent regulations related to gas engines is propelling the market growth.
   
3. Government Incentives for Clean Energy Transition: Governments are increasingly supporting the transition to cleaner energy sources as part of their broader environmental sustainability goals. This is crucial for the global push for decarbonization and the reduction of greenhouse gas emissions. Various incentives, subsidies, and tax breaks are provided by the governments to encourage the adoption of cleaner and more energy-efficient technologies. Gas engines, being a cleaner alternative to coal and oil, are well-positioned to benefit from these supportive policies. For instance, the growing emphasis on clean, energy-efficient solutions in transportation has led to the development of several government grant programs aimed at supporting the transition of transit fleets to sustainable technologies. The Federal Transit Administration (FTA) has played a significant role through its Low-No Emission and Bus Facilities Grants. These grants are specifically designed to aid transit agencies in transitioning their fleets to cleaner, more energy-efficient alternatives such as renewable natural gas (RNG). Since 2022, the FTA has awarded over US$ 500 million to fund various natural gas projects, significantly offsetting capital expenditures for agencies and facilitating the adoption of clean energy technologies. These federal grants, particularly in the transportation sector, promote the use of natural gas-powered buses and vehicles, which are increasingly viewed as a viable and environmentally friendly alternative to diesel and gasoline-powered options.
   
4. Geographical Insights: In 2024, Europe led the market with a substantial revenue share, followed by Asia Pacific and North America. Further, Asia Pacific is expected to register the highest CAGR during the forecast period.
   
   

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Market Segmentation

• Based on fuel type, the market is categorized into natural gas and special gas. The natural gas segment dominated the market in 2024.
• Based on power output, the market is categorized into 100–300 kW, 300–500 kW, 0.5–1 MW, 1–2 MW, 2–5 MW, 5–10 MW, and 10–15 MW. The combined heat and power segment dominated the market in 2024.
• Based on end-user, the market is divided into remote power generation, midstream oil and gas, heavy industries, light manufacturing, utilities, biogas, data centers, MUSH, and commercial. The heavy industries segment dominated the market in 2024.
• The Gas Engine Market is segmented into five major regions: North America, Europe, APAC, Middle East and Africa, and South America.

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Competitive Strategy and Development

• Key Players: A few major companies operating in the Gas Engine Market are INNIO; Caterpillar Inc; Cummins Inc; Fairbanks Morse, LLC; Kawasaki Heavy Industries Ltd; Liebherr; MAN Energy Solutions SE; Mitsubishi Heavy Industries Ltd; R Schmitt Enertec GmbH; Wartsila Corp; 2G ENERGY AG; IHI Corp; Guascor Energy S.A.U.; Ningbo C.S.I. Power & Machinery Group Co., Ltd.; and Rolls-Royce Holdings Plc.
• Trending Topics: Green Hydrogen, Renewable Energy

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Global Headlines on Gas Engine

• INNIO Group announced its acquisition of Souer Co., Ltd., a specialist in engine-based technology and customer-centric services within the midstream and power generation industries.
• Rolls-Royce has commissioned ten mtu gas gensets in the Beheira province in northern Egypt to supply the Egyptian Wood Technology Company's (WOTECH) production plant with electricity.

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Conclusion

The gas engine market is experiencing significant technological advancements as companies push the boundaries of innovation to meet the growing demand for cleaner and more efficient energy solutions. With environmental concerns and the shift toward sustainability driving change across industries, major players in the internal combustion engine sector are introducing cutting-edge technologies to enhance performance, reduce emissions, and improve fuel efficiency. In addition, Governments are increasingly supporting the transition to cleaner energy sources as part of their broader environmental sustainability goals. This is crucial for the global push for decarbonization and the reduction of greenhouse gas emissions. Various incentives, subsidies, and tax breaks are provided by the governments to encourage the adoption of cleaner and more energy-efficient technologies. Gas engines, being a cleaner alternative to coal and oil, are well-positioned to benefit from these supportive policies. The report from The Insight Partners, therefore, provides several stakeholders—including component providers, system technology integrators, system manufacturers, and others—with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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