Gas Engine Market

Market Overview:

The global gas engine market size reached US$ 5.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 8.0 Billion by 2032, exhibiting a growth rate (CAGR) of 4% during 2024-2032. The increasing use of hybrid systems that combine gas engines with renewable sources, rising need for uninterrupted power supply, and the growing number of data centers are some of the major factors propelling the market.

A gas engine is a type of internal combustion engine that operates on gaseous fuels, such as natural gas or propane, as compared to liquid fuels like gasoline or diesel. It consists of various components, such as cylinder block, piston, spark plug, valves, and crankshaft. It is often praised for its fuel efficiency and lower emissions as compared to traditional gasoline or diesel engines. It requires less maintenance due to cleaner burning fuel, which leads to fewer deposits and less wear and tear on engine parts.

The increasing use of hybrid systems that combine gas engines with renewable sources like wind or solar is driving the appeal of gas engines in modern energy solutions around the world. Moreover, the rising need for uninterrupted power supply is catalyzing the use of gas engines as backup systems in hospitals and other critical facilities. In addition, the growing number of data centers that require reliable and efficient power, which makes gas engines a suitable choice is influencing the market positively. Apart from this, the increasing need for dependable power in remote or combat zones is favoring the growth of the market. Furthermore, the rising adoption of gas engines in co-generation systems, which produce heat and power, is propelling the growth of the market.

Gas Engine Market Trends/Drivers:

Increase in industrialization

One of the primary factors driving the demand for gas engines is the rapid pace of industrialization worldwide. As developing countries seek to modernize, their energy requirements are surging. Gas engines, known for their reliability and efficiency, are often the go-to solution for power generation in industrial settings. They offer a robust and flexible way to meet fluctuating energy needs. Moreover, gas engines can run on a variety of fuels, including natural gas, making them a versatile choice for diverse industries, such as manufacturing, petrochemicals, and textiles.

Rise in environmental concerns

With the growing awareness about climate change, there is an increase in the shift towards cleaner energy options. Gas engines emit fewer greenhouse gases as compared to traditional coal-fired or oil-based power generation systems. This makes them a more environment friendly choice for meeting energy needs. The adoption of strict emission regulations by governments worldwide further pushes industries and power plants toward gas engines, boosting their demand.

Growing energy security

Dependence on a single source or type of energy can pose risks to a country’s energy security. Gas engines offer an alternative to diversify the energy mix, which reduces reliance on imported oil or centralized power grids. Natural gas is abundant and can be sourced domestically or regionally, which contributes to energy security and stability. This has led to increased investment in gas engine technologies, further driving demand.

• Natural Gas
• Special Gas
• Others
   

Natural gas dominates the market

The report has provided a detailed breakup and analysis of the market based on the fuel type. This includes natural gas, special gas, and others. According to the report, natural gas represented the largest segment. It is one of the commonly used fuels for gas engines. Composed primarily of methane, it is a naturally occurring fossil fuel that is extracted from underground reserves. Natural gas engines are known for their efficiency and reduced emissions as compared to engines running on gasoline or diesel.

Special gases refer to non-conventional or processed gases used to fuel gas engines. They can include biogas, landfill gas, and syngas, among others. Special gas engines are designed to run on these alternative fuels, often with modifications to handle the specific properties of the gas, such as lower energy density or higher corrosiveness.

Breakup by Power Output:

• 0.5-1 MW
• 1-2 MW
• 2-5 MW
• 5-10 MW
• 10-20 MW
   

1-2 MW holds the largest share in the market

A detailed breakup and analysis of the market based on the power output has also been provided in the report. This includes 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-20 MW. According to the report, 1-2 MW accounted for the largest market share. Engines with a power output of 1-2 MW are used in applications that require a moderate amount of power. These are commonly found in medium-sized manufacturing facilities, large commercial buildings, and small-scale power plants. They are versatile and can be used either as the main power source or as a backup.

Gas engines in the 0.5-1 MW range are generally considered low-power engines. They are typically used in decentralized power generation, commercial backup power systems, and smaller industrial applications. They can also serve as a reliable power source for remote locations wherein the electrical grid may not be accessible.

Breakup by Application:

• Mechanical Drive
• Power Generation
• Cogeneration
• Others
   

Power generation dominates the market

The report has provided a detailed breakup and analysis of the market based on the age group. This includes mechanical drive, power generation, cogeneration, and others. According to the report, power generation represented the largest segment. One of the most common applications of gas engines is in power generation. These engines are used to generate electricity, either as the main power source or as backup generators for commercial buildings, industrial facilities, and residential areas. Gas engines are especially valuable for decentralized power generation, wherein electricity is generated at or near the point of use, reducing transmission losses and enhancing energy security. They range in size and power output, which makes them versatile enough to meet the electricity needs of diverse settings.

Gas engines used for mechanical drive applications are essentially designed to convert fuel into mechanical energy. These engines are often used to power a variety of industrial equipment such as pumps, compressors, and conveyors. They can be used in mining operations to power machinery used in extraction processes. Their efficiency and ease of maintenance make them a preferred choice for many mechanical drive applications.

Breakup by Industry Vertical:

• Utilities
• Manufacturing
• Oil and Gas
• Mining
• Others
   

Utilities dominate the market

A detailed breakup and analysis of the market based on the industry vertical has also been provided in the report. This includes utilities, manufacturing, oil and gas, mining, and others. According to the report, utilities represented the largest segment. In the utilities sector, gas engines play a pivotal role in power generation. They are commonly used in both centralized and decentralized energy systems. Smaller engines may serve as backup generators for residential and commercial buildings, while larger engines with outputs in the megawatt range can be employed in utility-scale power plants. Gas engines are valued for their efficiency, lower emissions, and capability to quickly ramp up or down based on energy demand.

The manufacturing sector often requires reliable, constant power for various processes, including assembly lines, quality control, and logistics. Gas engines are utilized both for mechanical drive applications, where they power machinery and equipment, and for in-house power generation. Their efficiency and lower maintenance costs make them a suitable choice for manufacturing units looking to optimize operational costs.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest gas engine market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

The increasing extraction of shale gas represents one of the primary factors driving the demand for gas engines in the North American region. Moreover, the rising environmental awareness and stricter governmental policies on emissions are driving the demand for cleaner energy solutions like gas engines in the region. Besides this, the growing demand for reliable and efficient power is influencing the market positively.

Asia Pacific is estimated to witness stable growth, owing to ongoing large-scale infrastructure projects, government incentives, extensive research and development (R&D) activities, etc.

Competitive Landscape:

The leading companies are integrating turbochargers that allow for more air to be compressed and mixed with fuel, which leads to more powerful combustion and results in higher power output from a smaller engine size, effectively improving fuel efficiency. They are also equipped with advanced electronic control units (ECUs) that offer precise control over various engine parameters like fuel injection, air-to-fuel ratio, and ignition timing and improve performance, reduce fuel consumption, and enable easier diagnostics and maintenance. Moreover, key players are developing hybrid gas engines that are designed to work in tandem with renewable energy sources, such as solar or wind power. These hybrid systems can switch between power sources as needed, which ensures constant energy supply while reducing the overall carbon footprint.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Caterpillar Inc.
• China Yuchai International Limited
• Cummins Inc.
• Doosan Corporation
• General Electric Company
• Hyundai Heavy Industries Co. Ltd.
• JFE Holdings Inc.
• Kawasaki Heavy Industries Ltd.
• Mitsubishi Heavy Industries Ltd.
• Rolls-Royce plc
• Siemens AG
• Volkswagen AG
• Wärtsilä Oyj Abp

Recent Developments:

• In 2020, Doosan Corporation developed a new ‘Euro 6’ electronic engine to target commercial vehicles. The launch helps the company increase the sales by the production of new products in the market.
• In 2022, Wärtsilä Oyj Abp announced to receive order for two 34SG gas engines by the Tamilnadu Petroproducts Limited (TPL) for 15.5 MW captive power plant in Chennai, India.

Gas Engine Market Report Scope:

Key Questions Answered in This Report:

• How has the global gas engine market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the global gas engine market?
• What are the key regional markets?
• What is the breakup of the market based on the fuel type?
• What is the breakup of the market based on the power output?
• What is the breakup of the market based on the application?
• What is the breakup of the market based on the industry vertical?
• What are the various stages in the value chain of the industry?
• What are the key driving factors and challenges in the industry?
• What is the structure of the global gas engine market and who are the key players?
• What is the degree of competition in the industry?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the gas engine market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global gas engine market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the gas engine industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.