Small Gas Engine Market Report 2025

This Small Gas Engine report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The small gas engine market size has grown steadily in recent years. It will grow from $2.96 billion in 2024 to $3.09 billion in 2025 at a compound annual growth rate (CAGR) of 4.5%. The growth in the historic period can be attributed to rise in outdoor power equipment demand, growing construction industry, residential lawn maintenance, agricultural applications.

The small gas engine market size is expected to see steady growth in the next few years. It will grow to $3.72 billion in 2029 at a compound annual growth rate (CAGR) of 4.8%. The growth in the forecast period can be attributed to rising demand for portable generators, focus on green and sustainable solutions, expansion of the construction sector, increasing adoption in emerging markets. Major trends in the forecast period include shift towards electric alternatives, smart technology integration, emphasis on lightweight and compact designs, eco-friendly solutions, innovations in fuel technology, diversification of applications.

The upswing in the construction industry is a driving force behind the growth of the small gas engine market. The surge in demand for outdoor power equipment for diverse construction services, landscaping, and property maintenance is directly impacting the need for small gas engines. Builders and homeowners are increasingly acquiring these outdoor-powered tools for projects such as building construction, landscaping services, or maintaining lawns and gardens. Projections from the Global Construction 2030 report indicate an anticipated 85% growth in construction output volume, reaching $15. 5 trillion by 2030, with major contributions from countries like China, India, and the USA. This robust growth in the construction sector is expected to propel the small gas engine market.

The increasing demand from the landscaping and gardening industries is expected to drive the growth of the small gas engine market in the future. The landscaping and gardening industry encompasses a variety of activities related to the design, installation, and upkeep of outdoor spaces, including residential gardens, parks, commercial landscapes, and public green areas. Essential tools for landscaping and gardening, such as lawn mowers and trimmers, are powered by small gas engines, fueling the demand for these engines. Small gas engines are also used in leaf blowers and garden vacuums, which are vital for keeping outdoor spaces clean and tidy. For example, according to the National Gardening Survey 2023 Report by the National Gardening Association, a US-based nonprofit organization, the average household spent $616 on lawn and gardening activities in 2022, an increase of $74 from 2021. Additionally, in 2022, participation in lawn and gardening activities reached its highest level in five years, with 80% of households involved in such activities. Thus, the rising demand from the landscaping and gardening industries is driving the growth of the small gas engine market.

Leading companies in the small gas engine market are actively engaged in developing innovative solutions to enhance their market presence. Initiatives such as the New-Tech Small Turbine Engine Program focus on advancing small turbine engines with new technologies to meet the specific requirements of the military, particularly for unmanned aerial vehicles and reconnaissance aircraft. Rolls-Royce, a UK-based engineering company, launched this program in June 2023, aiming to provide compact, powerful, and reliable engines for smaller platforms.

Leading companies in the small gas engine market are focusing on developing new technologies, such as turbocharged charge-air-cooled engines, to boost their profitability. Turbocharged charge-air-cooled small engines are compact power units designed to enhance performance and efficiency by using a turbocharger to increase air intake, while the charge-air cooling system lowers the temperature of the compressed air. This results in better combustion and lower emissions. For example, in December 2022, US-based manufacturing company Kohler Co. introduced a new range of compact diesel engines available in naturally aspirated, turbocharged, and turbocharged charge-air-cooled variants to meet global exhaust emissions regulations. The new Kohler Small Displacement (KSD) engines are three-cylinder units with bore and stroke measurements of 81 x 90 mm and a total displacement of 1.391 liters. The naturally aspirated models offer power ratings of 24.6 hp (18.4 kW) at 2,200 rpm and a maximum torque of 66 lb-ft (90 Nm) at 1,800 rpm.

In September 2024, Yanmar Energy System Co., Ltd., a Japan-based industrial equipment manufacturer, acquired TEDOM Group for an undisclosed amount. The acquisition aims to strengthen Yanmar's presence in the energy sector by combining TEDOM's expertise in cogeneration and energy services with Yanmar's global reach and innovative technologies, fostering sustainable growth and innovative solutions for customers. TEDOM Group, based in the Czech Republic, specializes in the development and production of combined heat and power (CHP) units and energy solutions.

Major companies operating in the small gas engine market include Briggs and Stratton Corporation, Kohler Co., Honda Motor Co. Ltd, Yamaha Motor Corp., Kawasaki Heavy Industries, Kubota Corporation, Kipor Power, Champion Power Equipment, Generac Power Systems Inc., Fuji Heavy Industries Ltd., Fuzhou Launtop M&E Co. Ltd., Liquid Combustion Technology LLC, Lifan Power USA, Zongshen Power, Subaru Corporation, Sinoquip Power, Chongqing Winyou Power Co. Ltd., Lombardini Srl, Wuxi Kipor Power Co. Ltd., Jiangsu Excalibur Power Machinery Co. Ltd., Changzhou ETK Power Machinery Co. Ltd., Taizhou Genour Power Machinery Co. Ltd., Tecumseh Products Company, Robin America Inc., Mitsubishi Heavy Industries Engine & Turbocharger Ltd., Loncin Industries Ltd., Koki Holdings Co. Ltd., SAE Manufacturing Specialties Corp., Triton Duro Power Systems Inc., Performance Assembly Solutions, Central Diesel Inc., Sage Parts.

North America was the largest region in the small gas engine market in 2024. The regions covered in the small gas engine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the small gas engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Small gas engines are compact, low-powered internal combustion engines fueled by gasoline and capable of running on gases like coal gas, producer gas, biogas, landfill gas, or natural gas.

These engines come in main displacements of 20 ccs to 100 ccs, 101 ccs to 400 cc, and 401 ccs to 650 ccs. The 20 cc to 100 cc category comprises engines operating within a volume range of 20 cubic centimeters to 100 cubic centimeters. Small gas engines find primary applications in gardening, industrial, and construction contexts, powering various equipment including lawnmowers, chainsaws, string trimmers, hedge trimmers, portable generators, rotary tillers, pressure washers, concrete vibrators, concrete screeds, edgers, leaf blowers, and snow blowers.

The small gas engine market research report is one of a series of new reports that provides small gas engine market statistics, including small gas engine industry global market size, regional shares, competitors with market share, detailed small gas engine market segments, market trends and opportunities, and any further data you may need to thrive in the small gas engine industry. This small gas engine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The small gas engine market consists of sales of 2-stroke and 4-stroke engine. 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 3-5 business days.