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

Gas Engine Market Size and Forecast (2021-2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - 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 10-15 MW), End-user (Remote, Mid-Stream Oil and Gas, Heavy Industries, Light Manufacturing, Utilities, Biogas, Datacenters, MUSH and Commercial), Remote (Mining, Drilling and Others), Heavy Industries (Chemicals, Paper, Metals, Food and Beverages and Others), Utilities (Grid, IPP and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, South America)

The gas engine market size was valued at US$ 5.29 billion in 2024 and is anticipated to reach US$ 8.09 billion by 2031. The gas engine market is estimated to record a CAGR of 6.4% from 2025 to 2031.

The Middle East & Africa is projected to witness swift growth in new technology adoption and industrialization, further improving diverse industries. The Gulf countries are economically advanced, while the countries in Africa still have to balance to match Gulf countries’ economic conditions due to the lack of supporting infrastructure. The Gulf countries are on the verge of adopting advanced engine technologies. Growing population, rising middle-class income, and increasing efforts to motivate businesses other than oil & gas industries are likely to provide ample growth opportunities to the market players in the Middle East & Africa. Improvements in the economic conditions help promote the growth of natural gas consumption for engine applications. The demand for gas engines is low in the region but is expected to increase with growing investments in gas engines for the power generation sector in the coming years.

According to the International Energy Agency (IEA), in 2022, Oil and gas producers in the Middle East and North Africa (MENA) have long been central to the global energy landscape, currently representing ~50% of global oil exports and 15% of natural gas exports. As global energy markets tighten due to reduced supplies from Russia following its invasion of Ukraine, MENA producers, with their established track record of providing reliable energy, are expected to play a critical role in mitigating potential global shortages. Oil and gas dominate the energy mix in the MENA, accounting for ~95% of electricity generation. Thermal power plants consume over 290 billion cubic meters of gas, which constitutes more than one-third of the region’s gas production, alongside 1.75 million barrels of oil per day. The heavy reliance on fossil fuels in the region’s power generation results in an emissions intensity that is ~25% higher than the global average. Given these dynamics, the continued growth of the gas engine market in the MENA is essential. As the demand for flexible, reliable, and dispatchable power generation increases, particularly in the face of fluctuating energy supplies, the role of advanced gas engines becomes even more prominent. These engines, which can offer rapid response times and efficient energy output, are poised to meet the evolving needs of the region’s power sector while supporting efforts to reduce emissions intensity as part of the region’s broader energy transition.

In terms of fuel type, the gas engine market is segmented into natural gas and special gas. The natural gas segment held the largest gas engine market share in 2024. Fossil fuel combustion is the largest contributor to global air pollution, which affects the natural environment. Rapid research and development activities are being carried out to reduce the consumption of fossil fuels and pollution, owing to which the importance of natural gases has increased. Natural gases are emerging as a promising solution to reduce diesel and petrol consumption. Stringent emission standards, global warming, and increasing CO2 legislation are increasing the adoption of natural gas engines. The natural gases are a rich mixture of hydrocarbons and are easily available due to their strong penetration. The benefits of natural gas are low emission, clean burning, and lower cost than fossil fuels. The absence of particulates and the clean properties of the natural gas are reducing the tear and wear of engines.

INNIO; Caterpillar Inc; Cummins Inc; Fairbanks Morse, LLC; Kawasaki Heavy Industries Ltd; Liebherr; MAN Energy Solutions SE; Mitsubishi Heavy Industries Ltd; R Schmitt Enertec GmbH; Wartsila Corp; 2G ENERGY AG; IHI Corp; Guascor Energy S.A.U.; Ningbo C.S.I. Power & Machinery Group Co., Ltd.; and Rolls-Royce Holdings Plc are among the prominent players profiled in the gas engine market. Several other major players were also studied and analyzed in the gas engine market report to get a holistic view of the market and its ecosystem.

The overall gas engine market share has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the gas engine market. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the gas engine market.

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