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 Driver

• 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 global 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.

Gas Engines Market Restraint

• Natural gas supply and cost are being impacted by geopolitical uncertainty. Australia, Russia, Qatar, Norway, and the United States are some of the world's greatest natural gas exporters. The current political conflict between Russia and the European Union (EU) over the Ukraine issue has raised concerns about Russian supply disruptions. The project delivers gas to the EU on a yearly basis, accounting for a significant portion of Russia's exports. However, the present standoff between Russia and Ukraine has put the project in jeopardy of EU sanction. Russia is starving the EU of natural gas in response, supplying roughly 25% less natural gas despite rising demand. As a result, the EU is facing a severe gas shortage. The United States has also threatened to sanction the Nord Stream 2 pipeline project and the firms involved. The Nord Stream 2 pipeline is slated to begin operations in June 2022, but geopolitical difficulties between the countries involved may cause it to be delayed much further. With relation to such projects, there are also strong political tensions between the CIS and several European countries. Such political upheaval is predicted to have a severe influence on the economics of several European countries.