Global Gas Engines Market Report and Forecast 2024-2032

Global Gas Engines Market Size

The global gas engines market value reached an approximate value of USD 5.04 billion in 2023. The global gas engines market is expected to grow at a CAGR of 5.8% in the forecast period of 2024-2032, reaching a value of USD 8.35 billion by 2032.

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Global Gas Engines Market Growth

The growth of the gas engines market is driven by the rising application of the product in cogeneration systems owing to the growing need to conserve energy. There are higher energy demands from the industrial and commercial sectors, owing to the rising population and increasing disposable income.

The market for gas engines is anticipated to be augmented by increasing urbanisation, industrialisation, and growing demand for gas engines in the utility industry. In addition, the growing adoption of LNG-fuelled vessels is likely to provide impetus to the global market for gas engines.

Global Gas Engines Market Analysis

Natural gas is lighter than most fuels, which makes it easily transportable via ships, tankers, or pipes. Over the forecast period, stringent government regulations aimed at curbing environmental pollution are likely to propel the demand for natural gas. Natural gas is a cleaner-burning fuel, emitting 30% less carbon dioxide compared to oil and 45% less than coal. Consequently, its lower environmental impact is propelling the demand in the gas engines market.

Global Gas Engines Industry Outlook

In 2022, the United States consumed about 135.73 billion gallons of petrol, including 134.55 billion gallons of finished motor gasoline (around 368.63 million gallons per day) and approximately 0.19 billion gallons of finished aviation petrol, as per the U.S. Energy Information Administration (EIA). Motor gasoline, a key product from American oil refineries, is one of the most widely used fuels in the country. Approximately 10% of the motor gasoline sold for automobiles in the US contains fuel ethanol by volume, thereby increasing the gas engines industry revenue.

In mid-2023, the global oil and gas power plant capacity in development exhibited notable changes compared to mid-2022, with distinct variations across different project stages. According to Global Energy Monitor, announced capacity rose slightly from around 250 GW in 2022 to approximately 260 GW in 2023. Pre-construction capacity displayed a substantial increase, climbing from roughly 150 GW to 200 GW. Conversely, capacity in the construction phase decreased marginally, from around 175 GW in 2022 to 160 GW in 2023.

China leads globally with a substantial increase of 71.3 GW in planned oil and gas capacity from mid-2022 to mid-2023, as reported by Global Energy Monitor. Iraq follows with a notable addition of 16.3 GW, while Brazil and Bangladesh report increases of 15.9 GW and 12.9 GW respectively. The Philippines and Taiwan both exhibit significant growth, each adding 11.8 GW.

The growth of the gas engines industry is also driven by Saudi Arabia that added 8.5 GW, and Syria increasing its capacity by 6.1 GW. Meanwhile, Israel and Malaysia exhibit smaller growths, with 5.1 GW and 4.8 GW respectively.

Market Competition in the Global Gas Engines Market

The global gas engines market is fiercely competitive, with major players like Caterpillar Inc., Rolls-Royce Holdings plc, Cummins Corporation, Siemens AG, and Hyundai Heavy Industries Co., Ltd. driving innovation and gas engines market opportunities.

These companies focus on R&D, sustainability, digital solutions, and strategic partnerships to enhance their market positions. They continuously evolve to meet stringent emission standards, diversify their product offerings, and expand their global reach, ensuring they remain at the forefront of the industry amidst increasing demand for efficient and sustainable energy solutions enhancing the gas engines market growth.

Gas engines provide efficient power generation across industrial, residential, and commercial sectors, driving gas engines industry growth.

• Gas engines emit fewer pollutants like nitrogen oxides and particulate matter compared to diesel engines, meeting stringent environmental standards.

• They can use natural gas, biogas, and landfill gas, offering resilience against fuel price fluctuations and promoting sustainability.

Higher upfront costs relative to diesel engines may deter adoption in cost-sensitive markets initially.

• Dependency on gas supply infrastructure limits deployment in remote areas.

• Gas engine operations require specialized maintenance, potentially increasing operational costs.

Increasing global electricity needs and demand for cleaner energy solutions drive gas engines market opportunities in decentralized power generation.

• Advancements in biogas and synthetic natural gas create new growth prospects in sustainable energy applications.

• Shift toward lower-carbon and renewable energy sources boosts demand for flexible power solutions like gas engines, enhancing grid stability.

Diesel engines, renewables, and grid solutions pose competitive challenges.

• Evolving emissions and fuel standards could impact market dynamics.

• Vulnerabilities in component and fuel supply chains may disrupt production and deployment timelines.

Key Players in the Global Gas Engines Market and Their Strategic Initiatives

Caterpillar Inc.

• Developed advanced gas engines for power generation and industrial applications. 

• Focused on sustainability with engines designed for lower emissions. 

• Expanded product line to include biogas and landfill gas solutions.

Rolls-Royce Holdings plc

• Innovated high-efficiency gas engines for marine and power sectors. 

• Strengthened market presence in Asia and the Middle East. 

• Rolls-Royce has invested in hybrid and sustainable energy technologies to mee the gas engines market demand.

Cummins Corporation

• Launched next-gen gas engines with improved fuel efficiency.

• Prioritised R&D in alternative fuel engines. 

• Expanded manufacturing capabilities in key regions.

Siemens AG

• Introduced high-performance gas engines for distributed energy systems.

• Invested in hydrogen-compatible gas engine technology. 

• Expanded strategic alliances for global market penetration.

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Global Gas Engines Industry Segmentation

“Global Gas Engines Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Fuel Type 

• Natural Gas

• Special Gas

• Others

Market Breakup by Power Output

• 0.5-1 MW

• 1-2 MW

• 2-5 MW

• 5-10 MW

• 10-20 MW

Market Breakup by Applications

• Power Generation

• Cogeneration

• Mechanical Drive

• Others

Market Breakup by End Users

• Utilities

• Manufacturing

• Oil and Gas

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

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Gas Engines Market Share

The natural gas sector commands a significant market share and is expected to experience substantial growth in the forecast period, thereby boosting the growth of the gas engines market. The market's size for natural gas is driven by its abundance and its role as a primary energy source on Earth.

Leading Companies in the Gas engines Market

The companies are global engineering firms acclaimed for their expertise in aerospace, defence, and power systems. They excel in producing high-performance engines for aircraft, marine, and industrial uses.

• Caterpillar Inc.

• Rolls-Royce Holdings plc

• Cummins Corporation

• Siemens AG

• Hyundai Heavy Industries Co., Ltd.

Key Highlights of the Report

Gas Engines Market Report Snapshots

Gas Engines Market Size

Gas Engines Market Growth

Gas Engines Market Analysis

Gas Engines Market Share

Gas Engines Companies