Gas Engines Market Size, Share, Growth Analysis, By Fuel Type(Natural Gas, Special Gas, Others), By Power Output(0.5–1 MW, 1–2 MW, 2–5 MW, 5–15 MW), By Application(Power Generation, Mechanical Drive, Cogeneration, Others), By End-User(Utilities, Marine, Oil & Gas, Manufacturing), By Region - Industry Forecast 2024-2031

Gas Engines Market size was valued at USD 4.71 billion in 2019 and is poised to grow from USD 4.91 billion in 2023 to USD 6.37 billion by 2031, growing at a CAGR of 4.2% in the forecast period (2024-2031).

The market for gas engines is moderately fragmented. General Electric Company, Rolls-Royce Holdings PLC, Wartsila Oyj Abp, Caterpillar Inc., and Cummins Inc. are among the prominent competitors in this industry. 'Caterpillar', 'Rolls-Royce Holdings', 'Siemens Energy', 'General Electric Company', 'Cummins Inc.', 'Wärtsilä Corporation', 'MAN Energy Solutions SE', 'Mitsubishi Heavy Industries Ltd.', 'Doosan Infracore Co. Ltd.', 'Kawasaki Heavy Industries Ltd.', 'Yanmar Co. Ltd.', 'Cooper Corporation Pvt. Ltd.', 'DEUTZ AG', 'Dresser-Rand Group Inc.', 'Guascor Power', 'INNIO Jenbacher GmbH & Co. KG', 'Liebherr-International AG', 'MTU Friedrichshafen GmbH', 'Waukesha Bearings Corporation', 'Yanmar Energy Systems Co. Ltd.'

Power consumption in developing countries such as China, India, Brazil, and Mexico have risen dramatically in recent years. Power consumption has increased due to the economy's strong growth, a thriving manufacturing sector, and a growing population. Furthermore, as emerging countries expand and living standards improve, there is a greater demand for energy consumption. For instance, The U.S. Energy Information Administration (EIA) forecasted in September 2020 that energy consumption would rise by around 50% by 2050, with total intake in residential and commercial buildings increasing from 91 quadrillion British thermal units (Btu) to 139 quadrillion Btu, a 65% increase. As the need for electricity rises, various countries throughout the world are increasing their power generation capacity.

The rising inclination towards gas-fired power plants is a major key trend identified for gas engines market. After coal, natural gas-fired power generation ranks second in the electricity generation mix. In 2020, the output was 6268.1 TWh, accounting for 23.4% of total electricity generation. The most prominent reason for such a large deployment of gas-based engines was the electricity sector's decarbonization. Many more gas-to-power projects are in the pipeline for inclusion in the worldwide power production portfolio. Gas-fired power plants are more cost-effective and emit less carbon than coal-fired power plants. Coal combustion emits the most CO2 per million BTU of energy, at around 229 ppm, making it the most polluting of all fossil fuels. Emissions from coal-fired power plants also contribute to smog and reduce visibility. As a result, the majority of coal-fired power plants will be replaced by gas-fired power plants. Many utilities in the United States, for instance, are replacing coal-fired power plants with gas-fired power plants. Pledges made by countries such as Australia, China, India, and others at the Conference of Parties (COP) in November 2021 indicate that these countries will reduce their reliance on coal. The market for gas engines will benefit from the shift to gas-fired power plants.

North America accounted for the majority of the gas engines market in 2021, and this is likely to continue during the forecast period since natural gas-fired power is widely distributed across the country. According to the 2018 Annual Energy Outlook for the United States, natural gas-powered engines are expected to account for more than 35% of total electricity generation by 2050. Europe is also a significant region in the market for gas engines. The bulk of European countries has consistently frigid weather. As a result, they require heat for both home and commercial spaces, resulting in high demand for cogeneration applications.