The reciprocating power generating engine market size has grown marginally in recent years. It will grow from $52.64 billion in 2025 to $53.11 billion in 2026 at a compound annual growth rate (CAGR) of 0.9%. The growth in the historic period can be attributed to early reliance on diesel-fired engines, increased demand for industrial backup power, rising use of reciprocating engines in chp systems, adoption in landfill and biogas applications, growth in utility-based distributed power generation.
The reciprocating power generating engine market size is expected to see marginal growth in the next few years. It will grow to $54.68 billion in 2030 at a compound annual growth rate (CAGR) of 0.7%. The growth in the forecast period can be attributed to increasing demand for gas-fired low-emission engines, expansion of renewable-integrated power systems, growth in distributed energy adoption, development of hybrid reciprocating engine solutions, rising need for high-efficiency modular power units. Major trends in the forecast period include adoption of low-emission reciprocating engine technologies, advancement of intelligent engine control platforms, integration of AI-assisted performance optimization, deployment of IoT-enabled engine monitoring, expansion of digital predictive maintenance systems.
The rising electricity demand across commercial and industrial sectors is significantly driving the growth of the reciprocating power-generating engine market. Electricity is the energy source used in these sectors for lighting, manufacturing, and various industrial operations. The increase in electricity usage, driven by the expansion of cogeneration plants, higher private consumption, and the growth of small industries, serves as a major catalyst for market expansion. For example, in July 2024, according to the International Energy Agency, a France-based governmental energy organization, global electricity demand is expected to grow by approximately 4% in 2024, up from 2.5% in 2023. Therefore, the rising electricity demand in commercial and industrial sectors is expected to create opportunities for companies operating in the reciprocating power-generating engine market.
Major companies in the reciprocating power generation engine market are developing innovative products to deliver efficient and environmentally friendly electricity generation solutions for applications ranging from residential to industrial. For instance, in September 2023, Kirloskar Oil Engines Ltd., an India-based engineering company in the power generation equipment industry, launched its CPCB IV+ Compliant Gensets Flexi-Fuel and OptiPrime Range, featuring (1) multi-fuel capability - including diesel, natural gas, and biogas - for enhanced flexibility, (2) IoT-enabled real-time monitoring and analytics for remote diagnostics, and (3) hybrid patented technology designed to optimize load efficiency and reduce fuel consumption.
In June 2024, DEUTZ AG, a Germany-based provider of diesel and gas reciprocating engines, drive systems, and related services, acquired Blue Star Power Systems, Inc. for an undisclosed amount. Through this acquisition, DEUTZ seeks to expand its presence in the decentralized energy generation market and strengthen its portfolio of reciprocating engine-based power solutions in North America. Blue Star Power Systems, Inc. is a U.S.-based manufacturer of diesel and gaseous generator sets ranging from 20 kWe to 2,000 kWe, offering customized power generation systems for commercial and industrial applications.
Major companies operating in the reciprocating power generating engine market are Rolls-Royce, MAN Energy Solutions, Kohler, Kirloskar Oil Engines, Kawasaki Heavy Industries, Deere & Company, Briggs & Stratton, Caterpillar, Cummins, Deutz, Escorts Kubota, Siemens Energy, Wärtsilä, Yanmar, General Electric, Motorenfabrik Hatz, Perkins Engines, MTU Onsite Energy, Doosan Engine, HD HyundAI Heavy Industries, INNIO Jenbacher, Liebherr.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have affected the reciprocating power generation engines market by increasing the cost of imported engine blocks, fuel system components, control electronics, and exhaust after-treatment materials. Industrial, utility, and CHP applications in North America and Europe face the greatest cost pressures due to dependence on globally sourced parts. However, tariffs are also encouraging regional manufacturing, supplier diversification, and innovation in efficient low-emission reciprocating engine designs, strengthening long-term energy resilience.
The reciprocating power generation engines market research report is one of a series of new reports that provides reciprocating power generation engines market statistics, including reciprocating power generation engines industry global market size, regional shares, competitors with reciprocating power generation engines market share, detailed reciprocating power generation engines market segments, market trends and opportunities, and any further data you may need to thrive in the reciprocating power generation engines industry. This reciprocating power generation engines market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
Reciprocating power generation engines are engines that generate heat and utilize one or more pistons to convert pressure into rotary motion. These engines operate by harnessing the expansion of gases to produce power.
The primary types of fuel used in reciprocating power generating engines include gas-fired, diesel-fired, dual fuel, and others. Gas-fired reciprocating power generating engines are employed as fuel for igniting the fire within the engines. While these engines have lower efficiency compared to diesel-fired ones due to their very low compression rates, they offer advantages such as lower initial costs and significant heat recovery potential. Reciprocating power generating engines are categorized by rated power into below 2MW, 2MW-5MW, and above 5MW. These engines find applications in various sectors, including industrial, combined heat and power (CHP), energy and utility, landfill and biogas, among others.North America was the largest region in the reciprocating power generation engine market in 2025. Asia-Pacific is expected to be the fastest-growing region in the reciprocating power generation engine market share during the forecast period. The regions covered in the reciprocating power generating engine market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the reciprocating power generating engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The reciprocating power generation engines market consists of sales of crankshaft, exhaust camshaft, intake camshaft, piston. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 1-3 business days.
The reciprocating power generating engine market size is expected to see marginal growth in the next few years. It will grow to $54.68 billion in 2030 at a compound annual growth rate (CAGR) of 0.7%. The growth in the forecast period can be attributed to increasing demand for gas-fired low-emission engines, expansion of renewable-integrated power systems, growth in distributed energy adoption, development of hybrid reciprocating engine solutions, rising need for high-efficiency modular power units. Major trends in the forecast period include adoption of low-emission reciprocating engine technologies, advancement of intelligent engine control platforms, integration of AI-assisted performance optimization, deployment of IoT-enabled engine monitoring, expansion of digital predictive maintenance systems.
The rising electricity demand across commercial and industrial sectors is significantly driving the growth of the reciprocating power-generating engine market. Electricity is the energy source used in these sectors for lighting, manufacturing, and various industrial operations. The increase in electricity usage, driven by the expansion of cogeneration plants, higher private consumption, and the growth of small industries, serves as a major catalyst for market expansion. For example, in July 2024, according to the International Energy Agency, a France-based governmental energy organization, global electricity demand is expected to grow by approximately 4% in 2024, up from 2.5% in 2023. Therefore, the rising electricity demand in commercial and industrial sectors is expected to create opportunities for companies operating in the reciprocating power-generating engine market.
Major companies in the reciprocating power generation engine market are developing innovative products to deliver efficient and environmentally friendly electricity generation solutions for applications ranging from residential to industrial. For instance, in September 2023, Kirloskar Oil Engines Ltd., an India-based engineering company in the power generation equipment industry, launched its CPCB IV+ Compliant Gensets Flexi-Fuel and OptiPrime Range, featuring (1) multi-fuel capability - including diesel, natural gas, and biogas - for enhanced flexibility, (2) IoT-enabled real-time monitoring and analytics for remote diagnostics, and (3) hybrid patented technology designed to optimize load efficiency and reduce fuel consumption.
In June 2024, DEUTZ AG, a Germany-based provider of diesel and gas reciprocating engines, drive systems, and related services, acquired Blue Star Power Systems, Inc. for an undisclosed amount. Through this acquisition, DEUTZ seeks to expand its presence in the decentralized energy generation market and strengthen its portfolio of reciprocating engine-based power solutions in North America. Blue Star Power Systems, Inc. is a U.S.-based manufacturer of diesel and gaseous generator sets ranging from 20 kWe to 2,000 kWe, offering customized power generation systems for commercial and industrial applications.
Major companies operating in the reciprocating power generating engine market are Rolls-Royce, MAN Energy Solutions, Kohler, Kirloskar Oil Engines, Kawasaki Heavy Industries, Deere & Company, Briggs & Stratton, Caterpillar, Cummins, Deutz, Escorts Kubota, Siemens Energy, Wärtsilä, Yanmar, General Electric, Motorenfabrik Hatz, Perkins Engines, MTU Onsite Energy, Doosan Engine, HD HyundAI Heavy Industries, INNIO Jenbacher, Liebherr.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have affected the reciprocating power generation engines market by increasing the cost of imported engine blocks, fuel system components, control electronics, and exhaust after-treatment materials. Industrial, utility, and CHP applications in North America and Europe face the greatest cost pressures due to dependence on globally sourced parts. However, tariffs are also encouraging regional manufacturing, supplier diversification, and innovation in efficient low-emission reciprocating engine designs, strengthening long-term energy resilience.
The reciprocating power generation engines market research report is one of a series of new reports that provides reciprocating power generation engines market statistics, including reciprocating power generation engines industry global market size, regional shares, competitors with reciprocating power generation engines market share, detailed reciprocating power generation engines market segments, market trends and opportunities, and any further data you may need to thrive in the reciprocating power generation engines industry. This reciprocating power generation engines market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
Reciprocating power generation engines are engines that generate heat and utilize one or more pistons to convert pressure into rotary motion. These engines operate by harnessing the expansion of gases to produce power.
The primary types of fuel used in reciprocating power generating engines include gas-fired, diesel-fired, dual fuel, and others. Gas-fired reciprocating power generating engines are employed as fuel for igniting the fire within the engines. While these engines have lower efficiency compared to diesel-fired ones due to their very low compression rates, they offer advantages such as lower initial costs and significant heat recovery potential. Reciprocating power generating engines are categorized by rated power into below 2MW, 2MW-5MW, and above 5MW. These engines find applications in various sectors, including industrial, combined heat and power (CHP), energy and utility, landfill and biogas, among others.North America was the largest region in the reciprocating power generation engine market in 2025. Asia-Pacific is expected to be the fastest-growing region in the reciprocating power generation engine market share during the forecast period. The regions covered in the reciprocating power generating engine market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the reciprocating power generating engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The reciprocating power generation engines market consists of sales of crankshaft, exhaust camshaft, intake camshaft, piston. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 1-3 business days.
Table of Contents
1. Executive Summary
2. Reciprocating Power Generating Engine Market Characteristics
3. Reciprocating Power Generating Engine Market Supply Chain Analysis
4. Global Reciprocating Power Generating Engine Market Trends and Strategies
5. Reciprocating Power Generating Engine Market Analysis of End Use Industries
7. Global Reciprocating Power Generating Engine Strategic Analysis Framework, Current Market Size, Market Comparisons and Growth Rate Analysis
8. Global Reciprocating Power Generating Engine Total Addressable Market (TAM) Analysis for the Market
9. Reciprocating Power Generating Engine Market Segmentation
10. Reciprocating Power Generating Engine Market Regional and Country Analysis
11. Asia-Pacific Reciprocating Power Generating Engine Market
12. China Reciprocating Power Generating Engine Market
13. India Reciprocating Power Generating Engine Market
14. Japan Reciprocating Power Generating Engine Market
15. Australia Reciprocating Power Generating Engine Market
16. Indonesia Reciprocating Power Generating Engine Market
17. South Korea Reciprocating Power Generating Engine Market
18. Taiwan Reciprocating Power Generating Engine Market
19. South East Asia Reciprocating Power Generating Engine Market
20. Western Europe Reciprocating Power Generating Engine Market
21. UK Reciprocating Power Generating Engine Market
22. Germany Reciprocating Power Generating Engine Market
23. France Reciprocating Power Generating Engine Market
24. Italy Reciprocating Power Generating Engine Market
25. Spain Reciprocating Power Generating Engine Market
26. Eastern Europe Reciprocating Power Generating Engine Market
27. Russia Reciprocating Power Generating Engine Market
28. North America Reciprocating Power Generating Engine Market
29. USA Reciprocating Power Generating Engine Market
30. Canada Reciprocating Power Generating Engine Market
31. South America Reciprocating Power Generating Engine Market
32. Brazil Reciprocating Power Generating Engine Market
33. Middle East Reciprocating Power Generating Engine Market
34. Africa Reciprocating Power Generating Engine Market
36. Reciprocating Power Generating Engine Market Competitive Landscape and Company Profiles
37. Reciprocating Power Generating Engine Market Other Major and Innovative Companies
40. Reciprocating Power Generating Engine Market High Potential Countries, Segments and Strategies
41. Appendix
Executive Summary
Reciprocating Power Generating Engine Market Global Report 2026 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses reciprocating power generating engine market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for reciprocating power generating engine? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The reciprocating power generating engine market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
- The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
- The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
- The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
- The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
- The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
- Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.
Scope
Markets Covered:
1) By Fuel: Gas-Fired; Diesel-Fired; Duel Fuel; Other Fuel2) By Rated Power: Below 2MW; 2MW-5MW; Above 5MW
3) By Application: Industrial; CHP; Energy and Utility; Landfill and Biogas; Other Applications
Subsegments:
1) By Gas-fired: Natural Gas; Biogas; Other Gas Types2) By Diesel-fired: Standard Diesel; Bio-Diesel; Ultra-Low Sulfur Diesel (ULSD)
3) By Dual fuel: Gas Or Diesel Combination; Biogas Or Diesel Combination
4) By Other Fuel: Heavy Fuel Oil (HFO); Renewable Fuels; Waste Oil
Companies Mentioned: Rolls-Royce; MAN Energy Solutions; Kohler; Kirloskar Oil Engines; Kawasaki Heavy Industries; Deere & Company; Briggs & Stratton; Caterpillar; Cummins; Deutz; Escorts Kubota; Siemens Energy; Wärtsilä; Yanmar; General Electric; Motorenfabrik Hatz; Perkins Engines; MTU Onsite Energy; Doosan Engine; HD Hyundai Heavy Industries; INNIO Jenbacher; Liebherr
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: Word, PDF or Interactive Report + Excel Dashboard
Added Benefits:
- Bi-Annual Data Update
- Customisation
- Expert Consultant Support
Companies Mentioned
The companies featured in this Reciprocating Power Generating Engine market report include:- Rolls-Royce
- MAN Energy Solutions
- Kohler
- Kirloskar Oil Engines
- Kawasaki Heavy Industries
- Deere & Company
- Briggs & Stratton
- Caterpillar
- Cummins
- Deutz
- Escorts Kubota
- Siemens Energy
- Wärtsilä
- Yanmar
- General Electric
- Motorenfabrik Hatz
- Perkins Engines
- MTU Onsite Energy
- Doosan Engine
- HD Hyundai Heavy Industries
- INNIO Jenbacher
- Liebherr
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | January 2026 |
| Forecast Period | 2026 - 2030 |
| Estimated Market Value ( USD | $ 53.11 Billion |
| Forecasted Market Value ( USD | $ 54.68 Billion |
| Compound Annual Growth Rate | 0.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 23 |
