Press release
Gas Engine Market Growth Driven by 6.3% CAGR, Fueled by Natural Gas Dominance and Industrial Cogeneration Demand
Gas Engine Market
By integrating biogas compatibility, hybrid microgrid solutions, and IoT-enabled predictive maintenance, gas engines enable decarbonization pathways and energy resilience across power, transportation, and marine sectors.
Growth Drivers
✦ Global shift to natural gas as bridge fuel, with LNG trade projected to rise 25% by 2030 (IEA), driving engine demand in remote power and marine propulsion.
✦ Industrial cogeneration installations grew 18% YoY in 2024, fueled by energy efficiency mandates reaching 40% system efficiency.
✦ Renewable gas (biogas/RNG) adoption surged 32% in Europe under RED III, supported by subsidies exceeding USD 5 billion annually.
✦ Oil & gas sector invested USD 12 billion in gas compression engines for pipeline and LNG facilities amid production boom.
✦ Asia-Pacific manufacturing hubs allocated USD 3.4 billion for captive power gas engines targeting grid independence and emissions reduction.
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Browse in-depth TOC on "Gas Engine Market"
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Market Segmentation Analysis
By Fuel Type
The market is segmented into Natural Gas, Special Gas, and Others.
Natural Gas dominates with 72% market share in 2024, driven by abundant supply and lower carbon intensity in power generation and cogeneration. Special Gas holds 20%, led by biogas and syngas engines for waste-to-energy projects. Others account for 8%, emerging with hydrogen blends in pilot decarbonization programs.
By Power Output
2-5 MW leads with 38% share, foundational for industrial CHP and oilfield mechanical drives. 1-2 MW (28%) grows in distributed power, 0.5-1 MW (22%) in small-scale utilities, and Others (12%) in high-power marine and pipeline applications.
By Application
Power Generation holds 42% share and fastest CAGR (7.2%), propelled by peaking plants and microgrids. Cogeneration (30%) spikes with heat recovery efficiency. Mechanical Drive (18%), and Others (10%) support oil & gas pumping and marine propulsion.
By End-User
Utilities dominate with 35% share, scaling gas-fired backup and base-load capacity. Manufacturing (28%) grows fastest at 7.8% CAGR via on-site CHP. Oil & Gas (20%), Transportation (12%), and Others (5%) round out specialized segments.
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Regional Insights
North America
North America holds the largest share (38% in 2024), driven by shale gas abundance, EPA emissions standards, and data center power reliability.
U.S. gas engine installations rose 22% in 2024; FERC approved 15 GW natural gas capacity. Over 60% of oilfield operators adopted gas compression engines. Canada expanded LNG export terminals with 2 GW engine backup.
Asia-Pacific
Fastest-growing region at 8.1% CAGR, led by industrialization and energy security initiatives.
India commissioned 40 new biogas plants under SATAT scheme, targeting 5,000 MW by 2030. China deployed 3.2 GW gas engines in 2024 via Belt and Road projects. Japan and South Korea drove 28% YoY growth in marine LNG engines.
Competitive Landscape
According to DataM Intelligence, the Gas Engine Market is highly competitive, with OEMs and energy majors expanding high-efficiency portfolios and aftermarket services.
Key Players:
✦ Caterpillar Inc. launched Cat G3516H in 2024, achieving 46% electrical efficiency for data centers.
✦ Cummins Inc. reported 25% YoY growth from QSK95 series in oil & gas mechanical drive.
✦ INNIO Jenbacher introduced J920 FleXtra with hydrogen-ready capability, reducing NOx by 50%.
✦ Wärtsilä expanded 31SG engine line globally, securing 1.2 GW marine orders.
✦ MAN Energy Solutions integrated hybrid propulsion with gas engines for zero-emission ferries.
✦ Rolls-Royce (MTU) enhanced Series 4000 for biogas, with 44% efficiency in CHP.
✦ Kawasaki Heavy Industries rolled out KG-18V for LNG carriers, cutting fuel use by 20%.
✦ GE Vernova secured EPA certification for 12 MW gas engine in distributed power.
✦ Siemens Energy partnered with utilities for IoT predictive maintenance platforms.
✦ Doosan Engine opened new assembly plant in Vietnam, accelerating APAC market entry.
Recent Developments
✦ INNIO partnered with Chevron for hydrogen-blend engines in oilfields (Q1 2024).
✦ Wärtsilä launched 50SG engine in 12 new markets (Q4 2024).
✦ Caterpillar acquired Marathon Engine Systems for USD 850 million to strengthen service network (Feb 2025).
✦ Cummins integrated digital twin technology with 5,000+ pre-validated control modules (May 2025).
✦ MAN received IMO Tier III approval for methanol-ready gas engines (Apr 2025).
Market Outlook and Opportunities
The market stands at an inflection point as energy transition accelerates and fuel flexibility expands.
Key Forecast Indicators:
✦ Asia-Pacific to reach 35% global share by 2030, overtaking Europe.
✦ Cogeneration segment revenue to exceed USD 8 billion by 2031.
✦ Natural gas fuel type to maintain 70%+ dominance through 2031.
✦ Special gas/biogas to contribute 30% incremental growth via circular economy.
✦ Digital twin and predictive analytics to unlock USD 2.5 billion in aftermarket opportunities by 2031.
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Conclusion
The Global Gas Engine Market is evolving from backup power to cornerstone of resilient, low-carbon energy systems. With a steady 6.3% CAGR through 2031, advanced engines are bridging critical gaps in grid stability, industrial efficiency, and marine decarbonization.
According to DataM Intelligence, leaders like Caterpillar, Cummins, and INNIO supported by innovators such as Wärtsilä and MAN are scaling efficient, adaptable solutions that democratize cleaner power. As renewable gas scales and net-zero targets tighten, gas engines are poised to become essential infrastructure for sustainable energy by 2031.
Contact:
Sai Kiran DataM Intelligence 4market Research LLP Ground floor, DSL Abacus IT Park, Industrial Development Area Uppal, Hyderabad, Telangana 500039 USA: +1 877-441-4866 Email: Sai.k@datamintelligence.com
About DataM Intelligence
DataM Intelligence is a renowned provider of market research, delivering deep insights through pricing analysis, market share breakdowns, and competitive intelligence. The company specializes in strategic reports that guide businesses in high-growth sectors such as water technologies and sustainable infrastructure. To find out more, visit https://www.datamintelligence.com/ or follow us on Twitter, LinkedIn and Facebook.
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