Gas Engines Market

Analysts at GMI Research estimates that the Gas Engines Market was worth USD 4.5 billion in 2021, and forecast to touch USD 6.3 billion in 2029, growing at a CAGR 4.3% from 2022-2029. The market is estimated to witness a significant growth over the forecast period, due to the growing application of engine in the utility sector and the increasing emphasis on minimizing carbon emissions.

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Key Drivers

Implementation of stricter emission regulations and rising demand for efficient and clean power generation technology are the major factors accelerating the growth of Gas Engines market. With the rising globalization and urbanization, lifestyle and work culture have changed, which has increased the usage of electricity. Thus, the rising demand for electricity and reduction in natural gas prices is expected to drive the growth of the market. For example, in September 2020, the U.S. Energy Information Administration (EIA) estimated that the energy demand will increase by around 50% by 2050, with the total consumption in residential and commercial buildings rising from 91 quadrillion British thermal units (Btu) to 139 quadrillion Btu exhibiting about 65% increase. Moreover, the market is witnessing a huge growth as many car manufacturers are determined to meet stringent emission norms, such as EURO 6, and the ACEA agreement. This downsizing phenomenon is setting up new technical avenue such as biofuels and micro-hybridization, which provides prospects for market growth. Moreover, emission legislation is the key factor for engine downsizing and has boosted the growth of technologies such as gasoline direct injection, engine boosting, and others.

The growing adoption of gas engines across the oil and gas, transportation, power generation, and utilities sector primarily because of their exceptional advantages which include higher thermal efficiency, low operational and maintenance costs, and cost-efficiency, which is expected to boost the market growth. Other factors, which include the increasing application of gas engines in the aerospace industry, easy availability of natural gas, and increasing emphasis toward gas engine-based power plants and distributed power generation, are driving the market growth. However, shortage of natural gas due to the Russian Ukrainian war and outbreak of pandemics, variation in the natural gas prices, and inadequate infrastructure in some regions, is likely to hinder the market growth.

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Fuel Type Segment Analysis

Based on fuel type, the market is segmented into natural gas and special gas. Among these, the natural gas segment is expected to grow at a higher CAGR during the forecast period, attributed to the usage of natural gas in base load power generation and combined heat and power generation. Natural gas is one of the most essential components of gas engine and is abundantly available, which catalyzes the growth of the segment in the market. Natural Gas is one of the cleanest burning fossil fuels and has low carbon emission over other types of fuels like producer gas, biogas, and sewage gas, which is projected to augment the market growth. The absence of particulates matter, which helps in minimizing engine wear and tear has encouraged major end-use industries such as manufacturing, utilities, automotive, and oil & gas. to use natural gas fueling engines. Moreover, growing consumer awareness associated with the advantages of natural gas and the strategic government initiatives is expected to positively impact the natural gas engines market.

Power Output Segment Analysis

Based on the power output segment, the 10 MW-20 MW segment is expected to lead the market over the upcoming years, due to their growing adoption for diesel generators’ power generation. The reduction in natural gas costs, the availability of renewable fuel sources, and an enhanced gas distribution network are likely to boost the segment’s growth.

Application Segment Analysis

The power generation application is expected to witness a faster CAGR over the upcoming years, due to the growing deployment of power engines for power generation by commercial buildings, manufacturing plants, public buildings, and utilities. Increasing investment by the governments of developing nations on the construction of new gas-fired power plants to cater the growing demand for clean energy is fueling the segment’s growth.

End-User Segment Analysis

On the basis of end-user, the market is segmented into utilities, manufacturing, and oil & gas. Among these, the utilities segment is projected to grow at a higher CAGR during the forecast period. Utilities sector operates gas engines generators progressively in order to serve base electrical loads. The use of gas engines across utility sector is beneficial in the absence of reliable supply from centralized power plant has increased the demand for gas engines in utility sector, driving the segment growth. Growing use of gas engines across the utility end-use industry to fulfil the peak load requirements and provide emergency backup options in case the main power plant fails, is expected to strengthen the market growth.

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Regional Analysis

Based on region, Europe is expected to grow at a higher CAGR during the forecast period. Most of the countries in European region have cold climate and require heat for commercial and household spaces, therefore resulting in huge demand for cogeneration applications. The rigorous environmental norms and low prices of natural gas in the European region is expected to boost the market growth.

Asia Pacific is projected to witness a faster CAGR over the global market, due to the growing electricity demand. For example, emerging countries are continually focused on embracing clean energy resources. The growing demand for electricity across regions like India, Japan, and South Korea, are constantly emphasizing on adopting clean and reliable energy sources, which is expected to drive market growth across the region during the forecast period.

Top Market Players

The major players in the market include Caterpillar Inc, Wartsila Corporation, Rolls-Royce Holdings Plc, Cummins Inc, Man SE, General Electric Company, Kawasaki Heavy Industries Ltd, Mitsubishi Heavy Industries Ltd, Liebherr Group, and JFE Engineering Corporation among others.

Key Developments

• • In 2019, Rolls-Royce Holdings PLC and 2G Energy AG a German power plant maketer entered into a contract where FTSE 100 listed Rolls-Royce was supplied with combined heat and power gas generators in 250-550 kilowatt power range. Whereas, 2G would use these generator sets in CHP modules for on-site generation of heat and electrical power.

Segments covered in the Report:

The Gas Engines market has been segmented based on Fuel Type, Power Output, Application, End-User, and key Region. Based on Fuel Type, the market is segmented into Natural Gas, Special Gas, and Others. Based on Power Output, the market is segmented into 0.5–1MW, 1–2MW, 2–5MW, 5–10 MW, and 10–20MW. Based on Application, the market is segmented into Power Generation, Cogeneration, Mechanical Drive and Others. Based on End-User, the market is segmented into Utilities, Manufacturing, Oil & Gas and Others.

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Key questions answered in this research report:

• • At what pace is the Gas Engines market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the Gas Engines market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenue and forecast breakdowns? Which are the major regional revenue pockets for growth in the Gas Engines market?
  • What are the various application areas of the Gas Engines market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Revenues (2021)	USD 4.5 Billion
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Value (USD Billion)
Market Segment	By Fuel Type, By Power Output, By Application, By End-User and By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Caterpillar Inc, Wartsila Corporation, Rolls-Royce Holdings Plc, Cummins Inc, Man SE, General Electric Company, Kawasaki Heavy Industries Ltd, Mitsubishi Heavy Industries Ltd, Liebherr Group, JFE Engineering Corporation
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Gas Engines Market by Fuel Type

• • Natural Gas
  • Special Gas
  • Others (producer gas, coal gas, and propane gas)

Global Gas Engines Market by Power Output

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

Global Gas Engines Market by Application

• • Power Generation
  • Cogeneration
  • Mechanical Drive
  • Others (trigeneration, quad generation, greenhouse operations, and renewable energy)

Global Gas Engines Market by End-User

• • Utilities
  • Oil & Gas
  • Manufacturing
  • Others (commercial complex, hospitals, and greenhouse operators)

Global Gas Engines Market by Region

• • North America Gas Engines Market (Option 1: As a part of the free 25% customization)

• • • By Fuel Type
    • By Power Output
    • By Application
    • By End-User
    • US All-Up Gas Engines Market
    • Canada All-Up Gas Engines Market
  • Europe Gas Engines Market (Option 2: As a part of the free 25% customization)
    • By Fuel Type
    • By Power Output
    • By Application
    • By End-User
    • UK All-Up Gas Engines Market
    • Germany All-Up Gas Engines Market
    • Rest of Europe All-Up Gas Engines Market
  • Asia-Pacific Gas Engines Market (Option 3: As a part of the free 25% customization)
    • By Fuel Type
    • By Power Output
    • By Application
    • By End-User
    • China All-Up Gas Engines Market
    • India All-Up Gas Engines Market
    • Rest of Asia-Pacific All-Up Gas Engines Market
  • RoW Gas Engines Market(Option 4: As a part of the free 25% customization)
    • By Fuel Type
    • By Power Output
    • By Application
    • By End-User
    • U.A.E. All-Up Gas Engines Market
    • Brazil All-Up Gas Engines Market
    • Rest of World (remaining countries on LAMEA) All-Up Gas Engines Market

Leading Market Players (Option 5: As a part of the free 25% customization – Profiles of 5 Additional Companies of your Choice)

• • Caterpillar Inc
  • Wartsila Corporation
  • Rolls-Royce Holdings Plc
  • Cummins Inc
  • Man SE
  • General Electric Company
  • Kawasaki Heavy Industries Ltd
  • Mitsubishi Heavy Industries Ltd
  • Liebherr Group
  • JFE Engineering Corporation