Gas Engine Market revenue to reach USD 7.98 Billion by 2035, says Research Nester

Prominent gas engine market players include Caterpillar Energy Solutions GMBH, HHI Engine & Machinery, Cummins Inc., Liebherr, International Society of Baudouin Motors, R Schmitt Enertec GmbH, Kawasaki Heavy Industries Ltd., Doosan Corporation, Mitsubishi Heavy Industries Ltd., Deutz AZ, INNIO, Guascor Energy, Power Solutions International, Inc., and PSI Generac Holdings Inc.

New York, March 19, 2024 (GLOBE NEWSWIRE) -- The global gas engine market size is predicted to expand at ~4.9% CAGR between 2023 and 2035. The market is projected to garner a revenue of USD 7.98 billion by the end of 2035, up from a revenue of ~USD 4.29 billion in the year 2022.This growth is driven by the increasing demand for fuel-efficient engines in the automotive and industrial sectors. With the industrial sector growing, adequate and consistent power supply is needed. Industrial production in India was 3.89 percent higher in January 2024 than in the same month of the previous year.

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The manufacturing sector’s productivity in the United States accelerated by 2.4% during the fourth quarter of 2023. Gas engines are being widely adopted for power generation due to their lower emissions and cost-effectiveness. Gas engines are used in various industrial applications such as manufacturing, oil and gas, mining, and construction. They provide a dependable source of power for machinery and equipment.

Advancements in Gas Engine Technology to Boost Market Growth
Advancements in gas engine technology have played a significant role in boosting the gas engine market. These advancements have led to improved performance, increased efficiency, and reduced emissions, making gas engines a more attractive option for various applications. Gas engines with direct injection technology have improved fuel efficiency and power output. This technology allows for precise fuel delivery directly into the combustion chamber, resulting in better combustion and reduced fuel consumption. In recent years, more than 50% of the U.S. fleet had direct-injection engines. However, “98 % of gasoline engines in new cars will have direct injection by 2025” as stated in the EPA’s 2019 Automotive Trends Report.

Moreover, turbocharging is a technology that uses exhaust gases to drive a turbine, which in turn compresses the incoming air. This compressed air increases the oxygen supply to the engine, resulting in improved power output and efficiency. Further, electronic control units (ECUs) have revolutionized gas engine control systems. ECUs use sensors and actuators to monitor and adjust various engine parameters, optimizing performance, fuel consumption, and emissions.

Gas Engine Market: Regional Overview

The market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region. 

The Rising Popularity of Gas-Powered Vehicles to Drive the Growth in the Asia Pacific Region

The gas engine market in Asia Pacific region is estimated to garner the largest revenue by the end of 2035. This is largely due to the rising popularity of gas-powered vehicles in the region, as gas is cheaper than other fossil fuels and is more environmentally friendly. Sales of compressed natural gas vehicles rose more than 83 per cent in the past five years due to a shift in mobility trends and people choosing less polluting energy forms. A total of 728800 CNG automobiles was sold in 2022-23 as opposed to 400800 in 2017-18. CNG vehicles are becoming increasingly popular as they offer a cheaper alternative to petrol and diesel vehicles, and provide a lower carbon footprint as they are powered by a cleaner-burning fuel. Additionally, the Indian government has implemented incentives for CNG vehicles, such as tax breaks and subsidies, to further encourage adoption of this fuel. Furthermore, the region is also witnessing an increase in investment in energy efficiency and technological advancements, which further drives the demand for gas engines.

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The Increased Adoption of Renewable Energy Sources to Drive the Growth in the North America Region

The North America gas engine market is estimated to garner the largest revenue by the end of 2035. This is driven by the increased adoption of renewable energy sources such as solar and wind, which are cheaper than traditional energy sources such as gas or coal. According to the US Energy Information Administration, the renewable energy production and consumption both set new records in 2022. They accounted for approximately 13% (13.40 quads) of total energy production and 13% of total energy consumption. This trend shift to using alternative sources increased gas engines demand in power generation. Gas engines are highly efficient and can be easily integrated into existing power plants to support the intermittent nature of renewable energy sources. Additionally, governments in many countries are investing in renewable energy sources to reduce carbon emissions and protect the environment.

Gas Engine Segmentation by Fuel Type

  • Natural Gas
  • Special Gas
  • Others

The natural gas segment in Gas Engine market is anticipated to hold the largest revenue by the end of 2035. Natural gas is a cleaner and more efficient fuel source than other fossil fuels, resulting in lower emissions and a reduced environmental impact. On the whole, burning natural gas also generates less carbon dioxide per unit of energy about 50% as much compared to the most efficient coal technology and, by this metric, it is preferable from a climate standpoint. That makes it a popular choice among companies and households that want to minimize their carbon footprint. Additionally, natural gas is abundant and relatively inexpensive, making it a cost-effective option for power generation and other applications. Furthermore, the increasing demand for renewable energy sources has led to a shift towards natural gas as a transitional fuel, as it can bridge the gap between traditional fossil fuels and renewable energy sources.

Gas Engine Segmentation by Power Output

  • Up to 100 kW
  • 100-300 kW
  • 300-500 kW
  • More than 500 kW

The More than 500 kW power output segment is anticipated to hold the largest revenue by the end of 2035. This segment is expected to grow due to increasing demand for gas engines in industrial applications such as power generation, oil & gas, and mining. Additionally, advancements in technology have led to the development of more efficient and reliable gas engines. This has resulted in increased demand for gas engines with higher power outputs of more than 500 kW. Moreover, Caterpillar, a leading player in the engine industry, has focused on developing more efficient and environmentally friendly engines. The company has invested heavily in research and development to improve its engines' performance and emissions. For instance, 423 ekW Gas Generator Set, by Caterpillar from natural gas for combined heat and power systems and emergency power for facilities, to renewable biogas energy to support the local grid, or electricity generated from coal mine gases.

A few of the well-known industry leaders in the gas engine market that are profiled by Research Nester are Caterpillar Energy Solutions GMBH, HHI Engine & Machinery, Cummins Inc., Liebherr, International Society of Baudouin Motors, R Schmitt Enertec GmbH, Kawasaki Heavy Industries Ltd., Doosan Corporation, Mitsubishi Heavy Industries Ltd., Deutz AZ, INNIO, Guascor Energy, Power Solutions International, Inc., PSI Generac Holdings Inc., and other key market players.

Recent Development in the Gas Engine Market

  • February 2023: Cummins Inc. announced the next engine from its fuel-agnostic series; the X10 will be available to customers in North America in 2026. The X10 comes with an exceptional design positioned to take the place of both L9 and X12 engines. X10 is flexible, designed to fit on both medium and heavy-duty jobs.
  • December 2022, Caterpillar Energy Solutions announced Eitenbluse: “The lineup of generator sets extends with a new 2-MW variant of the versatile MWM TCG 3020 V20 gas engine.”

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