According to our latest study on "Gas Engine Market Size and Forecast (2021-2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Fuel Type, Power Output, End User, and Geography," the gas engine market size was valued at US$ 5.29 billion in 2024 and is anticipated to reach US$ 8.09 billion by 2031. The gas engine market is estimated to record a CAGR of 6.4% from 2025 to 2031.

Technological Advancement in Gas Engine to Boost Gas Engine Market Growth During Forecast Period

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. For instance, in June 2024, Weichai officially launched its new generation of NG-4.0 gas-powered engines, available in 13L, 15L, and 17L models. As a leading name in the internal combustion engine sector, Weichai remains at the forefront of industry trends, consistently advancing core technologies to offer customers products that excel in quality, innovation, and cost-effectiveness. The introduction of these next-generation gas engines marks a significant step for Weichai as it enters the Gas Power 4.0 era, representing a major milestone in the development of green logistics and transportation solutions.

Kawasaki Heavy Industries, a pioneer in Japan, revealed on March 16, 2022, that it has become the first gas engine manufacturer in the country to develop combustion technology that enables stable operation through mixed combustion of natural gas and up to 30% hydrogen in large gas engines with a power generation output of 5 MW or more. This development underscores the ongoing transformation in the gas engine market, which is shifting toward cleaner, more sustainable energy sources. As the global demand for environmentally friendly and efficient transportation solutions grows, the innovations introduced by companies such as Weichai and Kawasaki are expected to drive significant future growth in the gas engine market, paving the way for cleaner energy solutions and advancements in engine technology that will shape the future of industries such as logistics, power generation, and transportation.

Gas Engine Market Report: Key Findings

The gas engine market analysis is based on segmental assessment. Based on fuel type, the market is bifurcated into natural gas and special gas. Based on power output, the gas engine market is segmented as 100-300 kW, 300-500 kW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-15 MW. On the basis of end user, the market is categorized into remote power generation, midstream oil and gas, heavy industries, light manufacturing, utilities, biogas, data centers, MUSH, and commercial. The remote power generation segment is further sub segmented into drilling, mining, and others. The market for the heavy industries segment is further sub segmented into chemicals, paper, metals, food and beverages, and others. The utilities segment is further sub segmented into a grid, IPP, and others. On the basis of region, the gas engine market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.

The gas engine market in South & Central America is segmented into Brazil, Argentina, and the Rest of South & Central America. Industrialization has been growing at a significant rate, which has contributed a considerable share of the region's economic growth. Growth in manufacturing, oil & gas, transportation, and power generation industries is positively affecting the gas engine market. The increasing focus of governments on emission standards has created a growth opportunity for the natural gas-fueled engines market. Brazil focuses on zero-emission goals with a specific perspective, while Argentina, Chile, and other countries are still lagging in imposing stringent regulations for diesel and petrol engine pollution control. The market has considerable growth in the region as renewable energy-sourced electricity generation is very limited or low. Further, the increasing demand for electricity due to the growing population is creating a substantial opportunity for the market. As stated by the US Energy Information Administration, Argentina's crude oil and natural gas production are approaching record levels, largely driven by growing output from the Vaca Muerta shale formation, which is compensating for the decline in production from conventional oil and gas fields. Between January 2021 and September 2024, crude oil production in Argentina surged by 50%, while natural gas production increased by 27%, bringing both fuels close to the record highs seen in the early 2000s, according to data from the Secretar