Natural Gas Engine Market to exceed US$ 5,762.46 Million by 2031

Published on 07-Oct-2025
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Report : Natural Gas Engine Market Report: Size, Share and Outlook by 2031

According to our latest study on "Global Natural Gas Engine Market Size and Forecasts (2021 - 2031), Regional Share, Trends, and Growth Opportunity Analysis - by Power Output, and End-User," the Global Natural Gas Engine Market size was valued at US$ 3,727.08 million in 2024 and is expected to reach US$ 5,762.46 million by 2031; it is estimated to record a CAGR of 6.56%% from 2025 to 2031.

The global natural gas engine market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and South America.

Technological innovations are revolutionizing natural gas engines, boosting both power output and fuel efficiency for evolving applications. Industries such as power generation, combined heat and power (CHP), biogas plants, and utilities are increasingly adopting advanced natural gas engines to maximize energy efficiency and comply with strict regulatory standards. The shift toward renewable gases such as biogas supports greener operations, with manufacturers introducing flexible engines for diverse needs. Based on end user, the natural gas engine market is segmented into remote, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, datacenters, MUSH (Municipalities, Universities, Schools, and Hospitals), and commercial.

Natural gas engines are a preferred solution for generating reliable electricity, power, and cooling in remote or off-grid locations where access to traditional utility grids is limited. Their high efficiency and low emission capabilities align with sustainability goals, making them ideal for regions with challenging environments and stringent requirements. These engines facilitate simultaneous production of electricity, steam, and heat, meeting multiple energy needs in isolated settings. Leading manufacturers such as Caterpillar and MAN Energy Solutions supply specialized engines for remote operations, ensuring a resilient, continuous power supply. Government agencies such as the US Department of Energy emphasize the importance of dependable power for rural development and critical infrastructure, further boosting the adoption of natural gas engines in the remote segment.

Key Findings of Global Natural gas engine market Study:

The natural gas engine market is segmented on the basis of power output and end-user. Based on power output, the market is segmented into 100-300 kW, 300-500 kW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-20 MW. Based on end-user, the market is bifurcated into remote, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, datacenters, MUSH (Municipalities, Universities, Schools, and Hospitals), and commercial.

Heavy industries are progressively embracing natural gas engines for both heat and power generation, aiming for improved energy efficiency, lower emissions, and greater reliability compared to traditional diesel solutions. As heavy industries-spanning chemicals, metals, paper, food and beverages, and more-require stable, high-capacity power, grid unreliability or outages can impede productivity. Natural gas engines from leading manufacturers such as Siemens, Rolls-Royce, and Caterpillar offer robust backup and primary power solutions, supporting industrial expansion and continuity. Their adoption is fueled by stricter environmental regulations and a strong push toward green energy, as government agencies encourage implementation of clean, low-emission technologies. The ongoing industrialization and segmented growth across diverse industries create substantial opportunities for deploying advanced natural gas engines, driving the market toward sustainable production standards.

Based on power output, the global natural gas engine market is segmented into 100-300 kW, 300-500 kW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-20 MW. The 5-10 MW segment registered highest market share in 2024 and is anticipated to fuel the market growth from 2025 to 2031.

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 are among the key players profiled in the global natural gas engine market report. Several other major players were studied and analyzed during the global natural gas engine market analysis to get a holistic view of the market and its ecosystem. The global natural gas engine market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current global natural gas engine market trends and their foreseeable impact during the forecast period.

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