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The global gas engine market size is estimated to grow by USD 2,168.62 million between 2022 and 2027 accelerating at a CAGR of 6.32%.
Gas generators use gas engines; hence they are one of the noteworthy contributors to the global gas engine market. Additionally, factors such as the use of gas engines electricity generation, and low emission levels of natural gas as compared with fossil fuels are positively impacting the market growth.
This gas engine market analysis report extensively covers market segmentation by application (power generation, co-generation, and others), end-user (power, industrial, residential, and commercial), and geography (Europe, North America, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market share growth by the power generation segment will be significant during the forecast period. This segment includes the use of gas engines for power generation or standby power systems by various end-users, including power plant operators (utilities), and industrial, commercial, and residential end-users.
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The power generation segment was valued at USD 3,166.57 million in 2017 and continued to grow until 2021. Advances in gas engine technologies have helped vendors offer highly reliable products with efficiencies ranging from 25% to 90%. A gas engine uses lean-burn technology, which helps lower carbon emissions during power generation. The efficiencies of engines are determined based on fuel consumption, carbon emission, and operational cost for generating energy. High-efficiency engines have a reduced level of fuel consumption, reduced carbon emission, and lower operational cost for each kilowatt-hour of energy generated. The advent of high-efficiency engines capable of producing up to 20 MW has increased the adoption of gas engines in power generation. In recent years, there have been growing investments in gas-fired power plants and thermal power stations. This has also led to the completion of many gas-fired power plant expansion projects in the past few years. Such additions will propel the demand for natural gas engines from power generation plants and augment the growth of the segment during the forecast period.
Europe is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European region offers the greatest potential for high gas engine deployment in a wide range of applications. As hydrogen and natural-gas-based technologies produce no emissions, government initiatives promoting a cleaner energy transition act as a catalyst for industry growth. Many companies have created and upgraded engine systems that are more flexible to new applications. For instance, in September 2021, Cummins stated that it would begin developing a medium-duty 6.7-liter hydrogen-based combustion engine and a 15-liter hydrogen engine as part of its hydrogen-fueled internal combustion engine (H2-ICE) development. A part of the work at Cummins Darlington site in the United Kingdom will be funded by the UK government. The project is part of a bigger effort to decarbonize the transportation sector by 2025. Such developments fuel the growth of the regional market during the forecast period.
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COVID-19 in 2020 had an adverse impact on the regional market. However, with the launch of vaccination drives in the region at the beginning of 2021, there has been a rise in production activities in several industries, such as manufacturing and construction. This has also led to an increase in the demand for electricity, which has had a positive impact on the market in focus in the region. The revival in economic growth and a rise in demand for energy in the region are also expected to boost the growth of the regional market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Gas Engine Market.
Hyundai Heavy Industries Co. Ltd. - The company focuses on providing naval shipbuilding, industrial shipbuilding, and other services, and manufacturing diesel engines and other products. The key offerings of the company include gas engines.
The gas engine market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The expanding gas generator market is notably driving the growth of the gas engine market share. Gas generators use gas engines, hence they are one of the noteworthy contributors to the global market. The shortage of power and energy has become predominant following the rise in urbanization and industrial development. Industries are rapidly adopting gas generators to ensure continuous power supply and smooth business operations. This is increasing the demand for gas generators.
Developing countries are experiencing higher growth when compared with other countries, and the per capita income of individuals is growing steadily, thus creating an increased demand for these generators. Therefore, vendors have started venturing into developing countries. Overall, the gas generator market is experiencing a strong potential for gas generators, especially in the industrial sector. Concerns about environmental sustainability due to the use of diesel generators are also a driving factor for the growing gas generator market, especially in the industrial sector. This is because gas generators release fewer pollutants than diesel generators. Hence, these factors will fuel the growth of the global market during the forecast period.
The emergence of dual-fuel engines is an emerging trend in the market. Dual fuel engines use two types of fuels during operation. Such engines can switch between fuels so that they use the most efficient one for any condition. Usually, the engine starts by using diesel and later adds natural gas, which ignites quickly, thus helping to start the engine. Natural gas replaces fuel at a 50%-70% substitution rate.
The cost of fuel is the highest among the operational expenditure of gas engines, therefore, the manufacturers are coming up with products that can reduce the dependence on fuel. Moreover, some regions have a higher availability of natural gas, so natural gas engines can be used for various applications. These gas engines offer high energy efficiency and torque, and power characteristics that are identical to the original diesel engine and excellent long-term reliability. Wartsila offers low-pressure dual-fuel engines, which reduce capital expenditure by 15%-20%. Such engines can be used in merchant shipping to reduce fuel bills. These technological and commercial developments will likely drive global market growth during the forecast period.
The efficiency problems are major challenges impeding the market growth. With the increased use of gas engines, different types of fuels are used for operating them. Propane, cleaned biogas, and hydrogen are being used as alternatives to natural gas. Such gases usually have some amounts of contaminants, such as siloxanes and hydrogen sulfides. These gasses are classified as sour gasses as the contaminants in them can cause engine failures by wearing outliners and piston rings.
Gas engines need to deal with changing methane numbers, and the combustion ratio is usually set at a high to achieve maximum efficiency. Different gases are formed using waste products, and they all possess different properties. This increases the need for maintenance and lubrication of engines. Thus, the decrease in efficiency is expected to hamper the growth of the global market growth during the forecast period.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Gas Engine Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
Gas Engine Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.32% |
Market growth 2023-2027 |
USD 2,168.62 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.99 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 42% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Caterpillar Inc., Cummins Inc., DEUTZ AG, Guangxi Yuchai Machinery Group Co. Ltd., Hyundai Heavy Industries Co. Ltd., INNIO Jenbacher GmbH and Co. OG, JFE Engineering Corp., Kawasaki Heavy Industries Ltd., Kohler Co., Liebherr International AG, MAN Energy Solutions SE, Mitsubishi Heavy Industries Ltd., NGV Global Group, Rolls Royce Holdings Plc, Siemens Energy AG, Sinotruk Hong Kong Ltd., Volkswagen AG, WeiChai Holding Group Co. Ltd., Yanmar Holdings Co. Ltd., and Wartsila Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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