According to The Insight Partners' research, the Asia Pacific gas engine market was valued at US$ 1,555.22 million in 2024 and is expected to reach US$ 2,529.98 million by 2031, registering a CAGR of 7.3% from 2025 to 2031. Rising production of natural gas and increasing focus on the development of efficient fuel engines are among the critical factors attributed to drive the Asia Pacific gas engine market.
The demand for gas engines is rising in the power generation industry with new emission control regulations. The industrial sector, including chemicals, metals, and manufacturing industries, is a major contributor to the escalating demand for gas engines. The production of natural gas, which is required for the functioning of gas engines, is growing at a significant rate. For instance, in October 2024, according to the International Energy Agency (IEA), global demand for natural gas is projected to grow at a faster rate in 2024 compared to the previous two years, which were significantly impacted by the global energy crisis. The IEA forecasts a global gas demand increase of over 2.5% in 2024, with similar growth expected in 2025. This surge is primarily driven by fast-growing markets in Asia, along with a recovery in industrial gas demand in Asia Pacific, although it still lags pre-crisis levels. This growing demand underscores the expanding opportunities within the gas engine market as industries seek more efficient and reliable power solutions to meet the rising need for natural gas across various sectors. The increase in demand further emphasizes the importance of advanced gas engine technologies to optimize operations and ensure reliable energy delivery.
In 2023, natural gas production in the APAC averaged 66.94 billion cubic feet/day, a slight growth from 66.55 Bcf/d in 2022 and a rise of 0.6%. This region accounted for 17% of global gas output, with China leading the way at ~222 billion cubic meters (bcm). Australia followed with around 153 bcm, while Malaysia produced about 82 bcm, and Indonesia contributed roughly 58 bcm. The increased supply of natural gas boosts demand for more efficient and advanced engine technologies. The development of robust gas engine solutions is critical to meeting the rising production levels and ensuring that energy generation and industrial applications can effectively utilize the growing natural gas output. Thus, a continuous surge in demand from developing and developed countries drives gas engine market growth.
On the contrary, escalating popularity of renewable energy alternatives and technological drawbacks in several countries hamper the growth of Asia Pacific gas engine market.
Based on fuel type, the Asia Pacific gas engine market is bifurcated into natural gas and special gas. The natural gas segment held 69.7% market share of Asia Pacific gas engine market in 2024, amassing US$ 1,083.35 million. It is projected to garner US$ 1,790.65 million by 2031 to register 7.6% CAGR during 2025-2031.
By power output, the Asia Pacific gas engine market is segmented into 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 19.5% share of Asia Pacific gas engine market in 2024, amassing US$ 302.75 million. It is projected to garner US$ 504.80 million by 2031 to expand at 7.7% CAGR from 2025 to 2031.
Based on end user, the Asia Pacific gas engine market is segmented into remote, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, datacenters, mush, and commercial. The heavy industries segment held 20.2% market share of Asia Pacific gas engine market in 2024, amassing US$ 314.29 million. It is projected to garner US$ 514.72 million by 2031 to register 7.4% CAGR during 2025-2031. Further, the heavy industries segment is sub-segmented into chemicals, paper, metals, food and beverages, and others.
Based on country, the Asia Pacific gas engine market is categorized into Australia, China, India, Italy, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 27.1% share of Asia Pacific gas engine market in 2024. It was assessed at US$ 420.91 million in 2024 and is likely to hit US$ 691.95 million by 2031, registering a CAGR of 7.5% from 2025 to 2031.
Key players operating in the gas engine market are INNIO Jenbacher GmbH & Co, Caterpillar Inc, Cummins Inc, Fairbanks Morse, LLC, Kawasaki Heavy Industries Ltd, Liebherr, Mitsubishi Heavy Industries Ltd, R Schmitt Enertec GmbH, Wartsila Corp, 2G ENERGY AG, MAN Energy Solutions SE, IHI Corp, Guascor Energy S.A.U., Ningbo C.S.I. Power & Machinery Group Co., Ltd., and Rolls-Royce Holdings Plc, among others.
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