Natural Gas Engine Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By 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-S

The global natural gas engine market size was valued at US$ 3.72 billion in 2024 and is expected to reach US$ 5.76 billion by 2031; it is estimated to record a CAGR of 6.56% from 2025 to 2031.

North America, especially the US, is experiencing rapid growth in the natural gas engine market driven by a strong shift toward cleaner energy sources. Natural gas is widely recognized as a bridge fuel, significantly aiding efforts to reduce carbon emissions as coal usage declines. The US government, supported by EPA regulations and decarbonization initiatives, encourages the adoption of highly efficient natural gas power generation technologies. Through their partnership with Liberty Energy, industry leaders such as Cummins have pioneered the deployment of large-displacement, variable-speed natural gas engines for hydraulic fracturing. This innovation delivers improved operational efficiency and considerably lowers emissions in important sectors such as energy and oilfield services, helping the nation reach its energy and climate goals.

In Europe, the drive for sustainable energy is shaping the trajectory of the natural gas engine market. Countries such as Germany, Italy, and the UK are integrating natural gas and hydrogen mixtures into their power generation strategies to meet aggressive decarbonization targets. Companies such as MWM and Caterpillar Energy Solutions have responded by developing cutting-edge gas engines capable of running on hydrogen blends or pure hydrogen, which aligns with Europe’s future focus on renewable and low-carbon technologies. The UK’s commitment to achieving carbon neutrality by 2050, supported by its Clean Power 2030 Action Plan and extensive investment in advanced distributed generation, further boosts the demand for gas engines. The European Union’s 2030 emissions reduction target and its robust Emissions Trading Scheme provide additional incentives for industries and utilities to adopt energy-efficient, low-emission engine solutions for combined heat and power (CHP), standby power, and transportation.

The Asia Pacific natural gas engine market is driven by ambitious sustainability pledges and technological advancements. China is expanding its natural gas infrastructure and deploying gas engines in diverse sectors, while Japan and South Korea are leading innovation in hydrogen-powered engines. Kawasaki Heavy Industries recently conducted successful tests with large gas engines featuring up to 30% hydrogen admixture, demonstrating significant CO₂ emissions reduction and operational flexibility. India is aggressively pursuing emission reductions, setting targets for a 45% decrease in carbon emissions by 2030, with natural gas engines serving as key solutions in power generation and industrial applications. Government policies in countries such as India promote increased adoption of cleaner technologies and the development of infrastructure for reliable, affordable, and sustainable energy systems.

In the Middle East and Africa, natural gas continues to be a cornerstone for energy security and economic development. Saudi Arabia’s Jafurah project is set to greatly increase domestic natural gas production, enabling growth in gas engine deployment for power generation and industrial use. The UAE’s goal of reducing emissions by 47% by 2035 and major investments in LNG infrastructure support the region’s push toward sustainable development. South Africa is transitioning to self-generation for energy, leveraging natural gas engines to provide reliable electricity and reduce dependency on coal. The extensive infrastructure for natural gas pipelines and LNG facilities across the Middle East accelerates adoption in power generation and large-scale industrial operations. Similarly, the growing demand for natural gas engines from various industries in South America is expected to drive the market growth in the region.

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 key global natural gas engine market players that are profiled in this market study.

The overall global natural gas engine market size 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 global natural gas engine market size. 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 global natural gas engine market.

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