The global gas engines market size was valued at $4.2 billion in 2021, and projected to reach $6.0 billion by 2031, with a CAGR of 3.8% from 2022 to 2031.
A gas engine is a reciprocating internal combustion engine, which primarily runs on natural gas and other special gas such as shale gas, mine gas, biogas, landfill gas, sewage gas, and syngas. These engines generally achieve more than 90% efficiency due to their high electrical and thermal efficiency, low operating and service costs, and high reliability. They are used for various applications including power generation, cogeneration, mechanical drive, and tri-generation applications, such as district heating schemes, hospitals, universities, or industrial plants.
The construction of new power plants and transmission lines requires massive investment and high maintenance. Most of the government companies prefer to offer cost-effective ways to fulfill electricity demand. According to the World Energy Council (WEC), the global electricity demand is expected to double by 2050. The rise in demand for integrating natural gas in electricity generation mix and improving natural gas associated infrastructure will have positive impact on the market. Gas engines based distributed power generation is fast emerging as an economical solution for government companies which is projected to drive the growth of the market.
Caterpillar Inc. and MAN SE are offering low pollutions engines with fuel type natural gas having ultimate reliability and the highest energy efficiency. Natural gas based engines deliver better functioning than coal plants because they can be turned up and down rapidly. For instance, according to the International Energy Agency (IEA), the total fossil fuel supply is expected to be 80% by 2040, making natural gas based engines the most preferred fuel in the future.
The global gas engines market is segmented on the basis of by power output, fuel type, application, end use and region.
On the basis of power output, it is segmented into 0.5-1MW, 1-2MW, 2-5MW, 5-15MW, and above 15MW. On the basis of fuel type, the market is classified into natural gas, special gas, and others. On the basis of application, the market is categorized into power generation, mechanical drive, cogeneration, and others. In addition, on the basis of end use, the global gas engines market is segmented into marine, utilities, oil & gas, manufacturing, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in this report include Cummins Inc., Caterpillar, Mitsubishi Heavy Industries, Ltd., Rolls-Royce plc, Volkswagen AG, Wärtsilä, Kohler Co., Yanmar Co Ltd., Hyundai Heavy Industries Co., Ltd., China Yuchai International Limited, Siemens, Doosan Corporation, Cooper Corp., INNIO, Kawasaki Heavy Industries, Ltd., Man SE, and JFE Engineering Corporation. Rapid development of industrialization, modernization and spread of information through internet led to the development of demand for data centers, heavy manufacturing industries, and light manufacturing uses industries, which in turn has fuelled the demand for gas engine. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the gas fired power generation systems has led to attain key developments in the global gas engines market trends.
In several countries, the renewable sector is mainly dependent on imports from other regions, primarily China. Around 60% of engines and generation sets are produced in the U.S. and are supplied across the globe. Gas based engines project developers worldwide are worried about project delays due to the slowdown of manufacturing in the U.S. Major suppliers are also observing production delays due to COVID-19, thereby causing a huge backlog for fulfilling orders. These factors hampered the growth of the market in the forecast period.
After the global vaccination the government of various countries has taken initiatives to increase the investment in the renewable energy related industries, especially gas fired power systems. Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to outbreak of pandemic have positive impact on the development of the market during the forecast period.
A gas engine is a reciprocating internal combustion engine, which primarily runs on natural gas and other special gas such as shale gas, mine gas, biogas, landfill gas, sewage gas, and syngas. These engines generally achieve more than 90% efficiency due to their high electrical and thermal efficiency, low operating and service costs, and high reliability. They are used for various applications including power generation, cogeneration, mechanical drive, and tri-generation applications, such as district heating schemes, hospitals, universities, or industrial plants.
The construction of new power plants and transmission lines requires massive investment and high maintenance. Most of the government companies prefer to offer cost-effective ways to fulfill electricity demand. According to the World Energy Council (WEC), the global electricity demand is expected to double by 2050. The rise in demand for integrating natural gas in electricity generation mix and improving natural gas associated infrastructure will have positive impact on the market. Gas engines based distributed power generation is fast emerging as an economical solution for government companies which is projected to drive the growth of the market.
Caterpillar Inc. and MAN SE are offering low pollutions engines with fuel type natural gas having ultimate reliability and the highest energy efficiency. Natural gas based engines deliver better functioning than coal plants because they can be turned up and down rapidly. For instance, according to the International Energy Agency (IEA), the total fossil fuel supply is expected to be 80% by 2040, making natural gas based engines the most preferred fuel in the future.
The global gas engines market is segmented on the basis of by power output, fuel type, application, end use and region.
On the basis of power output, it is segmented into 0.5-1MW, 1-2MW, 2-5MW, 5-15MW, and above 15MW. On the basis of fuel type, the market is classified into natural gas, special gas, and others. On the basis of application, the market is categorized into power generation, mechanical drive, cogeneration, and others. In addition, on the basis of end use, the global gas engines market is segmented into marine, utilities, oil & gas, manufacturing, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in this report include Cummins Inc., Caterpillar, Mitsubishi Heavy Industries, Ltd., Rolls-Royce plc, Volkswagen AG, Wärtsilä, Kohler Co., Yanmar Co Ltd., Hyundai Heavy Industries Co., Ltd., China Yuchai International Limited, Siemens, Doosan Corporation, Cooper Corp., INNIO, Kawasaki Heavy Industries, Ltd., Man SE, and JFE Engineering Corporation. Rapid development of industrialization, modernization and spread of information through internet led to the development of demand for data centers, heavy manufacturing industries, and light manufacturing uses industries, which in turn has fuelled the demand for gas engine. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the gas fired power generation systems has led to attain key developments in the global gas engines market trends.
Covid-19 Analysis
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries, which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for gas engine in most of the countries across the world led to decline in the demand for the gas engine market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.In several countries, the renewable sector is mainly dependent on imports from other regions, primarily China. Around 60% of engines and generation sets are produced in the U.S. and are supplied across the globe. Gas based engines project developers worldwide are worried about project delays due to the slowdown of manufacturing in the U.S. Major suppliers are also observing production delays due to COVID-19, thereby causing a huge backlog for fulfilling orders. These factors hampered the growth of the market in the forecast period.
After the global vaccination the government of various countries has taken initiatives to increase the investment in the renewable energy related industries, especially gas fired power systems. Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to outbreak of pandemic have positive impact on the development of the market during the forecast period.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the gas engine market analysis from 2021 to 2031 to identify the prevailing gas engine market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the gas engine market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global gas engine market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Fuel Type
- Natural Gas
- Special Gas
- Others
By Power Output
- 2-5 MW
- 5-15 MW
- Above 15 MW
- 0.5-1 MW
- 1-2 MW
By Application
- Power Generation
- Mechanical Drive
- Cogeneration
- Others
By End Use
- Marine
- Utilities
- Oil and Gas
- Manufacturing
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Italy
- Spain
- U.K.
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Cummins Inc.
- Caterpillar
- Mitsubishi Heavy Industries, Ltd.
- Rolls-Royce plc
- Volkswagen AG
- Wärtsilä
- Kohler Co.
- Yanmar Co Ltd.
- Hyundai Heavy Industries Co., Ltd.
- China Yuchai International Limited
- Siemens AG
- Doosan Corporation
- Cooper Corp.
- INNIO
- Kawasaki Heavy Industries, Ltd.
- JFE Engineering Corporation
- MAN SE
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: GAS ENGINE MARKET, BY FUEL TYPE
CHAPTER 5: GAS ENGINE MARKET, BY POWER OUTPUT
CHAPTER 6: GAS ENGINE MARKET, BY APPLICATION
CHAPTER 7: GAS ENGINE MARKET, BY END USE
CHAPTER 8: GAS ENGINE MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Gas Engine Market," the gas engine market size was valued at $4.2 billion in 2021, and gas engine industry is estimated to reach $6.0 billion by 2031, growing at a CAGR of 3.8% from 2022 to 2031.A gas engine is a type of heat engine. It is an internal combustion engine, which functions on fuels such as natural gas, landfill gas, biogas, propane. In addition, it also runs on gasoline and diesel. It provides excellent durability and drivability. This engine is more commonly utilized in automotive vehicles. Gas engines have low operating cost as well as low maintenance cost. They are used for applications such as cogeneration, power generation, and mechanical drive.
The demand for gas engines is rising in the power generation industry with new emission control regulations. The industrial sector, including chemicals, metals, and manufacturing industries, is a major contributor to the escalating demand for gas engines. The production of natural gas, which is required for the functioning of gas engines, is growing at a significant rate. For instance, in 2019, according to IEA Natural Gas Information, natural gas production hit a new high of 4,088 billion cubic meters. Gas engines are less expensive, environmentally friendly, reliable, and efficient than engines based on other fuel sources, which is propelling their demand. According to Eurostat, natural gas accounts for ~36% of the EU energy consumption. High use in applications such as heating, electricity generation, and vehicle functioning is bolstering the demand for natural gas engines.
The electric power, automotive, manufacturing, and transportation industries, among others, in developing countries are highly dependent on fossil fuels. Rise in population and the lack of supporting infrastructure for electric technologies are the major factors supporting the gas engines market. Electric motors, electric devices, solar plants, and wind projects are more expensive than gas engines, which is driving the preference of various countries toward gas engines as an environment-friendly solution.
The global gas engine market forecast is segmented on the basis of by power output, fuel type, application, end use and region. On the basis of power output, it is segmented into 0.5-1MW, 1-2MW, 2-5MW, 5-15MW, and above 15MW. On the basis of fuel type, the market is bifurcated into natural gas, special gas, and others. On the basis of application, the market is bifurcated into power generation, mechanical drive, cogeneration, and others. In addition, on the basis of end use, the global gas engines market is segmented into marine, utilities, oil & gas, manufacturing, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest gas engine market share, followed by Europe and Asia-Pacific.
The major companies profiled in this report include Cummins Inc., Caterpillar, Mitsubishi Heavy Industries, Ltd., Rolls-Royce plc, Volkswagen AG, Wärtsilä, Kohler Co., Yanmar Co Ltd., Hyundai Heavy Industries Co., Ltd., China Yuchai International Limited, Siemens, Doosan Corporation, Cooper Corp., INNIO, Kawasaki Heavy Industries, Ltd., Man SE, and JFE Engineering Corporation. Due to rapidly development of industrialisation, modernization and spread of information through internet led to the development of demand for data centers, heavy manufacturing industries, and light manufacturing industries which in-turn has fuelled the demand for gas engine. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the gas fired power generation systems has led to attain key developments in the global gas engine market trends.
Key Findings of the Study
- North America would exhibit CAGR of 3.4% during 2022-2031.
- As per global gas engine market analysis, by fuel type, the natural gas segment accounted for the largest share in 2021.
- By power output, above 15MW type gas engine was the leading segment in 2021.
- By application, power generation segment was the highest revenue contributor in 2021.
- By end-use, utilities segment has largest market share in 2021.
COVID-19 Analysis
- COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries, which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for gas engine in most of the countries across the world led to decline in the demand for the gas engine market opportunities. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.
- In several countries, the renewable sector is mainly dependent on imports from other regions, primarily China. Around 60% of engines and generation sets are produced in the U.S. and are supplied across the globe. Gas based engines project developers worldwide are worried about project delays due to the slowdown of manufacturing in the U.S. Major suppliers are also observing production delays due to COVID-19, thereby causing a huge backlog for fulfilling orders. These factors hampered the gas engine market growth during the forecast period.
- After the global vaccination the government of various countries has taken initiatives to increase the investment in the renewable energy related industries, especially gas fired power systems. Increase in investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to outbreak of pandemic have positive impact on the development of the market during the forecast period.
Companies Mentioned
- Cummins Inc.
- Caterpillar
- Mitsubishi Heavy Industries, Ltd.
- Rolls-Royce plc
- Volkswagen AG
- Wärtsilä
- Kohler Co.
- Yanmar Co Ltd.
- Hyundai Heavy Industries Co. Ltd.
- China Yuchai International Limited
- Siemens AG
- Doosan Corporation
- Cooper Corp.
- Innio
- Kawasaki Heavy Industries, Ltd.
- Jfe Engineering Corporation
- Man Se
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 335 |
| Published | July 2022 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 4.2 billion |
| Forecasted Market Value ( USD | $ 6 billion |
| Compound Annual Growth Rate | 3.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 17 |
