The gas engine sector was valued at approximately US$ 3,930.0 million in 2020, with projections indicating a growth rate of 6.6% CAGR from 2021 to 2028, potentially reaching US$ 6,354.4 million by 2028.
This industry is undergoing significant transformation, driven by innovations in natural gas engine technologies aimed at meeting stringent emission standards. The increasing demand for engines that are both fuel-efficient and low in emissions is a primary factor contributing to the expansion of the gas engine market. Additionally, the introduction of specialized gas engines tailored for sectors such as manufacturing, utilities, and remote generation applications is further fueling this growth. The emergence of biogas-powered engines, which offer enhanced electrical efficiency and reduced emissions, is also creating considerable opportunities for market participants.
Manufacturers in the gas engine sector are concentrating on developing advanced products to satisfy the growing need for high power outputs that can compete with diesel engines. Industries such as heavy manufacturing, remote power generation, and large-scale production facilities are increasingly opting for high-capacity gas engines due to their superior electrical efficiency and lower fuel expenses. Utilizing natural gas in combustion technology for gas engines can effectively address emission challenges while helping clients comply with new regulatory requirements. There is a notable rise in the adoption of gas engines across regions like South America, Africa, and Asia, whereas North America and Europe are leaning towards renewable energy sources such as solar and wind.
The COVID-19 pandemic has had a profound impact on the global economy, leading many businesses to scale back operations due to government-imposed lockdowns. These restrictions resulted in the temporary closure of offices, educational institutions, entertainment venues, and manufacturing facilities, adversely affecting the gas engine market. For example, the International Energy Agency (IEA) reported a 2.5% decline in global electricity demand during the first quarter of 2020. However, as lockdown measures were eased in the latter half of 2020, demand surged again, driven by the adoption of advanced technologies in power generation to ensure a stable electricity supply.
The global gas engine market is categorized based on fuel type, power output, and end-user applications. In terms of fuel type, the market is divided into natural gas and special gas. The power output segmentation includes ranges such as 100-300 kW, 300-500 kW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-20 MW. The end-user segmentation encompasses various sectors, including remote, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, datacenters, MUSH (Municipal, University, School, and Hospital), and commercial applications. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).
Several prominent players in the global gas engine market include INNIO Jenbacher GmbH & Co OG, Caterpillar Inc., Cummins Inc., Fairbanks Morse, LLC, Kawasaki Heavy Industries, Ltd., Liebherr, MAN SE, Mitsubishi Heavy Industries, Ltd., R Schmitt Enertec GmbH, W?rtsil? Corporation, MTU (Rolls-Royce Power Systems AG), and 2G ENERGY AG, among others.
The overall size of the global gas engine market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide a comprehensive overview and forecast of the gas engine market across all segments. Furthermore, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the gas engine sector.