United States Natural Gas Engine Market Set to Grow at 7.4% CAGR from 2024 to 2031, Driven by Clean Energy Initiatives | Doosan corporation, Cummins inc, Guangdong honny power-tech co.

The Global Natural Gas Engine Market is expected to grow at a CAGR of 7.4% during the forecast period (2024-2031).The Global Natural Gas Engine Market is expected to grow at a CAGR of 7.4% during the forecast period (2024-2031).

The Natural Gas Engine Market encompasses the production, distribution, and utilization of engines powered by natural gas. These engines are employed in various sectors, including transportation, power generation, and industrial applications. Natural gas engines are favored for their lower emissions compared to traditional diesel and gasoline engines. The market's growth is driven by the global shift towards cleaner energy sources and stringent environmental regulations.

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☛ Natural Gas Engine Market Dynamics and Drivers

Drivers of Market Growth:

Environmental Regulations: Stricter emissions standards are prompting industries to adopt cleaner technologies, boosting the demand for natural gas engines.

Cost-Effectiveness: Natural gas is often more affordable than other fuels, making natural gas engines an attractive option for cost-conscious businesses.

Energy Security: Utilizing domestically available natural gas resources enhances energy security for many nations.

Trends:

Hybrid Systems: The integration of natural gas engines with renewable energy sources is gaining traction, offering a more sustainable energy solution.

Decentralized Power Generation: Natural gas engines are increasingly used in distributed power generation systems, reducing transmission losses and enhancing reliability.

Digitalization: The adoption of digital technologies for monitoring and optimizing engine performance is on the rise, leading to improved efficiency and reduced downtime.

☛ Natural Gas Engine Industry News:

United States: Recent Industry Developments

✅ In August 2025, Cummins Inc. launched a new 15-liter natural gas engine for heavy-duty trucks at its Columbus facility, featuring 10% higher fuel efficiency and reduced emissions. The engine is designed to meet stringent U.S. EPA standards and expand fleet adoption of clean fuel technologies.

✅ In July 2025, Caterpillar Inc. invested $120 million to expand its natural gas engine production line in Peoria, Illinois. The expansion aims to boost output for industrial and marine applications, meeting growing demand for low-carbon alternatives.

✅ In June 2025, Westport Innovations announced a partnership with Shell to supply 500 natural gas engines for commercial fleets across the U.S. The deal supports large-scale transition of logistics fleets toward cleaner fuel solutions.

Japan: Recent Industry Developments

✅ In August 2025, Isuzu Motors unveiled its new 6-cylinder natural gas engine for commercial trucks, designed to reduce NOx emissions by 15%. The engine integrates advanced combustion technology to meet Japan's latest environmental regulations.

✅ In July 2025, Hino Motors announced a $90 million investment to expand its natural gas engine manufacturing facility in Hamura, Tokyo. The investment will enhance production capacity to support the rising adoption of CNG-powered commercial vehicles.

✅ In June 2025, Mitsubishi Fuso Truck and Bus Corporation launched a fleet deployment program using its latest natural gas engines for urban delivery trucks. The initiative aims to demonstrate fuel cost savings and emissions reductions in metropolitan areas.

☛ Natural Gas Engine Market Competitive Landscape:

Doosan corporation, Cummins inc, Guangdong honny power-tech co., Yanmar holdings co., ltd, Westport Fuel Systems Inc, Wärtsilä, IHI Power Systems Co., Caterpillar, MAN SE Siemens, Rolls-Royce plc, Liebherr, Innio, Kawasaki Heavy Industries, Jfe Engineering Corporation, Mitsubishi Heavy Industries, Deutz Ag and among others.

Research Methodology

We employ a hybrid approach, integrating qualitative insights with robust quantitative analysis to deliver comprehensive and reliable market intelligence. The process starts with extensive secondary research, leveraging trusted industry publications, proprietary databases, and credible market sources. This foundation is then strengthened through targeted primary research, including structured surveys and in-depth interviews with industry leaders, subject matter experts, and key market participants.

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☛ Segment Covered in the Natural Gas Engine Market:

By Type: Spark Ignited Engines, Dual fuel Engines, High-Pressure Direct Injection.

By Power Output: 500 KW - 800 KW, 1000 KW - 2000 KW, 3000 KW - 4500 KW.

By Horsepower: Up to 1000 HP, 1000-2000 HP, Above 2000 HP.

By Application: Decentralized Energy Generation, Natural Gas Gensets, Natural Gas Automotive, Others.

By End-user: Hospital Pharmacies, Manufacturing industries, Utilities, Oil & Gas, Mining, Petrochemicals, Others.

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✔ Identification of potential and niche segments/regions showcasing strong growth opportunities.

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☛ Regional Analysis for Natural Gas Engine Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

☛ Frequently asked questions:

➠ What is the global sales, production, consumption, import, and export value of the Natural Gas Engine Market?
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➠ Which product types or end-users show the most growth potential and market share?
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