The gas engine market size is expected to reach US$ 8,095.93 million by 2031 from US$ 5,298.16 million in 2024. The market is estimated to register a CAGR of 6.4% during 2025–2031. The rising energy demand worldwide is likely to bring new trends to the market in the coming years.
Increasing focus on the development of efficient fuel engines is one of the key factors driving the growth of the global gas engine market. In addition, rising product of natural gas and exploration and production activities across the globe is anticipated to further boost the demand for gas engines during the analyzed timeframe. Moreover, growing government incentives for clean energy transition across the globe is further projected to create opportunities for the key players operating in market.
The gas engine manufacturing industry is evolving with innovations in natural gas engine offerings to support emission targets. The rising demand for low-emission, fuel-efficient engines to reduce air pollution and the advent of special gas engines in the manufacturing, utilities, and remote generation application sectors propel the gas engine market growth. Also, biogas-powered engines with improved electric efficiency and low emissions are creating substantial growth opportunities for the market players. The gas engine manufacturers are focusing on offering advanced products to address the rising demand for high power outputs, meeting diesel engine standards. Major heavy industries, remote power plants, and manufacturing companies are selecting high-power gas engines due to enhanced electric efficiency and reduced fuel costs. The use of natural gas in gas engine combustion technology can resolve the emission problems, along with assisting customers in meeting new regulatory norms. There is an increase in the adoption of gas engines in South America, Africa, and Asia, while North America and Europe are focusing on adopting solar and wind energy during the forecast period. The increasing adoption of natural gas for power generation in commercial, industrial, and construction sectors is supporting the gas engine market growth.
Several governments are imposing regulations to control the emissions of diesel and petrol engines, compelling engine manufacturers to opt for alternative fuel solutions such as natural gas. Gas engines release less emissions as compared to other types of engine to generate a sufficient amount of power. The emission monitoring and regulatory bodies are imposing stringent regulations on the use of diesel engines and generators. Various industries are deploying gas engines and generators for power generation to meet these regulatory standards.
Cummins Inc. and Liberty Energy Inc. announced the launch of the industry’s first natural gas variable-speed, large-displacement engine to power Liberty’s digiPrime hydraulic fracturing platform, set for deployment in the first half of 2025. This follows the strategic partnership between the two companies in June 2024, aimed at jointly developing innovative technology for the completions and services market. The Cummins HSK78G natural gas engine, initially introduced in March 2019 as part of a fixed-speed generator set for the power generation sector, has demonstrated exceptional reliability in providing consistent power across varying natural gas sources and operational environments. The recent advancements in Liberty’s digiPrime platform utilize the HSK78G engine and enhance its response time and load acceptance. This collaboration highlights a significant step in the ongoing growth of the gas engine market, which continues to innovate in areas of efficiency and operational performance, particularly within sectors such as hydraulic fracturing and energy production. Thus, the rise in the development of efficient fuel engines, owing to stringent regulations related to gas engines, is propelling the market growth.
Governments are increasingly supporting the transition to cleaner energy sources as part of their broader environmental sustainability goals. This is crucial for the global push for decarbonization and the reduction of greenhouse gas emissions. Various incentives, subsidies, and tax breaks are provided by the governments to encourage the adoption of cleaner and more energy-efficient technologies. Gas engines, being a cleaner alternative to coal and oil, are well-positioned to benefit from these supportive policies. For instance, the growing emphasis on clean, energy-efficient solutions in transportation has led to the development of several government grant programs aimed at supporting the transition of transit fleets to sustainable technologies. The Federal Transit Administration (FTA) has played a significant role through its Low-No Emission and Bus Facilities Grants. These grants are specifically designed to aid transit agencies in transitioning their fleets to cleaner, more energy-efficient alternatives such as renewable natural gas (RNG). Since 2022, the FTA has awarded over US$ 500 million to fund various natural gas projects, significantly offsetting capital expenditures for agencies and facilitating the adoption of clean energy technologies. These federal grants, particularly in the transportation sector, promote the use of natural gas-powered buses and vehicles, which are increasingly viewed as a viable and environmentally friendly alternative to diesel and gasoline-powered options.
Key segments that contributed to the derivation of the gas engine market analysis are fuel type, power output, end user, and application.
The gas engine market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South and Central America (SAM). Europe dominated the market in 2024, followed by Asia Pacific and North America.
The gas engine market in Europe is segmented into Germany, France, the UK, Russia, and Italy. Europe has been a leader in the adoption of renewable energy solutions, and the shift toward cleaner energy sources is significantly boosting the gas engine market. Countries such as Germany, Italy, and the UK are transitioning to more sustainable energy solutions, integrating natural gas and hydrogen as part of their green energy strategies. MWM’s recent launch of the TCG 3020 series engine, capable of using a hydrogen admixture, reflects the continent’s focus on hydrogen and natural gas as future energy sources. Additionally, the UK’s commitment to carbon neutrality by 2050 and its investments in gas engine technology demonstrate the growing demand for energy-efficient, low-emission technologies. The European Union’s ambitious targets for reducing emissions by 2030 further fuel the demand for natural gas engines in power generation, transportation, and industrial applications.
The regional trends and factors influencing the Gas Engine Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Gas Engine Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 5,298.16 Million |
| Market Size by 2031 | US$ 8,095.93 Million |
| Global CAGR (2025 - 2031) | 6.4% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Fuel Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Gas Engine Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Gas Engine Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The gas engine market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the gas engine market are listed below:
The "Gas Engine Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Gas Engine Market
The global gas engine market was valued at US$ 5.29 billion in 2024 and is projected to reach US$ 8.09 billion by 2031; it is expected to grow at a CAGR of 6.4% during 2025–2031.
The global gas engine market is expected to reach US$ 8,095.93 million in the year 2031.
The Europe held the largest market share in 2024, followed by APAC and North America.
Technological advancement in gas engine is the future trends of the global gas engine market.
Increasing focus on the development of efficient fuel engines and rising production of natural gas are the driving factors impacting the global gas engine market.