North America 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, a

The North America gas engine market is projected to grow significantly, reaching an estimated US$ 1,785.15 million by 2031, up from US$ 1,134.92 million in 2024. This growth represents a compound annual growth rate (CAGR) of 6.8% from 2025 to 2031.

Executive Summary and Market Analysis

The North American gas engine market is becoming increasingly competitive due to rapid technological advancements and a population with substantial purchasing power that is drawn to these innovations. The region is witnessing a surge in natural gas production, which is fueling growth in the power generation sector. Gas engines, generators (gensets), and gas turbines are gaining popularity among various user groups in North America. These engines allow customers to comply with stringent emission regulations by providing cleaner combustion, lower emissions, and enhanced electrical efficiency.

The demand for natural gas is particularly noteworthy, as it accounts for nearly one-third of electricity generation in the United States. The U.S. is actively expanding its power generation capabilities, focusing on both natural gas and renewable energy sources. According to the U.S. Energy Information Administration (EIA), natural gas consumption is expected to rise to 35.7 trillion cubic feet (Tcf) by 2050, with production anticipated to reach 43.0 Tcf. Additionally, the industrial sector's natural gas consumption is projected to increase by 3.6 Tcf, or 35%, from 2020 to 2050. This growth in consumption and production is a key driver for the gas engine market.

Strategic Insights

Market Segmentation Analysis

The North America gas engine market can be segmented based on fuel type, power output, and end user:

By Fuel Type: The market is divided into natural gas and special gas segments. In 2024, the natural gas segment dominated the market share.
By Power Output: The market is categorized into several power output ranges: 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 held the largest market share in 2024.
By End User: The end-user segments include remote applications, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, data centers, and commercial sectors. Heavy industries represented the largest share of the market in 2024.

Market Outlook

Governments across North America are implementing regulations aimed at reducing emissions from diesel and petrol engines, which is pushing engine manufacturers to explore alternative fuel solutions like natural gas. Gas engines are favored for their lower emissions while still generating substantial power. Regulatory bodies are enforcing strict emissions standards, prompting various industries to adopt gas engines and generators to comply with these regulations.

A notable development in the market is the collaboration between Cummins Inc. and Liberty Energy Inc., which announced the launch of the first natural gas variable-speed, large displacement engine designed for Liberty's digiPrime hydraulic fracturing platform, set to be deployed in early 2025. This partnership, initiated in June 2024, aims to innovate technology for the completions services market. The Cummins HSK78G natural gas engine, which was first introduced in March 2019, has proven reliable in delivering consistent power across diverse natural gas sources and operational conditions. The enhancements for Liberty's platform are designed to improve response times and load acceptance, marking a significant advancement in the gas engine market, particularly in hydraulic fracturing and energy production sectors.

Country Insights

The North American gas engine market includes the United States, Canada, and Mexico, with the U.S. holding the largest market share in 2024. As the world's largest economy, the U.S. boasts advanced engine technology suitable for various industrial applications. Companies in the U.S. are increasingly adopting cutting-edge technologies to enhance fuel consumption, efficiency, and overall performance. The development of advanced gas engines is crucial for meeting emission standards, especially with the rising production of natural gas.

The American Gas Association reported a significant reduction in greenhouse gas emissions in 2023, largely attributed to the increased use of natural gas. This transition is facilitating immediate emission reductions, and the natural gas delivery infrastructure is expected to support further advancements in low-carbon fuels and efficiency improvements in the coming years. This trend aligns with the growing demand for natural gas, which is anticipated to drive continued growth in the U.S. gas engine market as industries seek more sustainable energy solutions.

Company Profiles

Key players in the North America 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 employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers. Show more