Europe Gas Engine Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Fuel Type (Natural Gas and Special Gas), Power Output (100-300 kW, 300-500 kW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-1

The Europe gas engine market is projected to grow significantly, reaching an estimated US$ 2,833.58 million by 2031, up from US$ 1,915.62 million in 2024. This growth represents a compound annual growth rate (CAGR) of 5.9% from 2025 to 2031.

Executive Summary and Market Analysis

Leading countries in the European gas engine market include Germany, the UK, France, and Italy. The increasing adoption of gas engines across utilities, remote sectors, and industrial applications is expected to drive market growth. The presence of major engine manufacturers such as INNIO, Liebherr, and MAN SE further supports this expansion. Stricter pollution regulations and the rising environmental concerns regarding diesel engine emissions are prompting industries and utility sectors to transition towards natural gas-powered engines.

A notable development in the market is the introduction of advanced gas engines aimed primarily at power generation. For example, in February 2025, Rolls-Royce launched its upgraded mtu Series 1600 platform, which boasts up to 40% more power than its predecessor. This platform is recognized for its high power density, with the base engine 12V1600 delivering up to 996 kWm. Additionally, it offers significant sustainability benefits, achieving up to a 90% reduction in CO2 emissions when utilizing HVO fuel. The mtu Series 1600 is designed for versatility, making it suitable for various applications, and is expected to enhance Rolls-Royce's position in the power generation market, aligning with the growing global demand for energy.

Strategic Insights

Market Segmentation Analysis

The gas engine market in Europe can be segmented based on fuel type, power output, and end-user applications:

By Fuel Type: The market is divided into natural gas and special gas, with natural gas holding a larger market share in 2024.
By Power Output: The segments include 100-300 kW, 300-500 kW, 0.5-1 MW, 1-2 MW, 2-5 MW, 5-10 MW, and 10-15 MW. The 5-10 MW segment accounted for the largest share in 2024.
By End User: This includes remote applications, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, data centers, and commercial sectors, with heavy industries leading the market share in 2024.

Market Outlook

The demand for gas engines is on the rise, particularly in the power generation sector, driven by new emission control regulations. The industrial sector, encompassing chemicals, metals, and manufacturing, is a significant contributor to this demand. The production of natural gas, essential for gas engine operation, is also increasing. According to the International Energy Agency (IEA), global natural gas demand is expected to grow at a faster rate in 2024, with an increase of over 2.5% anticipated, reflecting a recovery from previous years affected by the global energy crisis. This growth underscores the need for advanced gas engine technologies to optimize operations and ensure reliable energy delivery.

The rising supply of natural gas is fueling the demand for more efficient and advanced engine technologies. Developing robust gas engine solutions is crucial for meeting the increasing production levels and ensuring that energy generation and industrial applications can effectively utilize the growing natural gas output. Consequently, both developing and developed countries are driving the growth of the gas engine market.

Country Insights

The European gas engine market includes key countries such as Germany, France, Italy, the UK, Russia, and others. Germany, in particular, held the largest market share in 2024. As a major manufacturer of advanced gas engines, Germany is at the forefront of market growth. Companies are innovating and enhancing services to maximize the output from natural gas-based engines. For instance, in September 2023, MWM introduced the TCG 3020 gas engine series, capable of operating with a hydrogen admixture of up to 25% without technical modifications. This aligns with the increasing demand for cleaner energy solutions, as industries seek to incorporate sustainable fuel options like hydrogen into their operations.

In March 2025, Rolls-Royce equipped four new customs vessels in Germany with a total of 15 mtu gas engines for propulsion and onboard power. The 67-meter customs vessel Rügen, powered by four 16-cylinder mtu Series 4000 gas engines, reflects the growing demand for advanced, efficient gas engine technologies in maritime applications, emphasizing the shift towards sustainable energy solutions.

Company Profiles

Key players in the Europe gas engine market include Rolls-Royce Holdings Plc, Ningbo C.S.I. Power & Machinery Group Co., Ltd, Guascor Energy S.A.U, IHI Corp, MAN Energy Solutions SE, 2G ENERGY AG, Wartsila Corp, R Schmitt Enertec GmbH, Mitsubishi Heavy Industries Ltd, Liebherr, Kawasaki Heavy Industries Ltd, Fairbanks Morse, LLC, Cummins Inc, Caterpillar Inc, and INNIO Jenbacher GmbH & Co. These companies are pursuing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative products to consumers. Show more