According to The Insight Partners' research, the Europe gas engine market was valued at US$ 1,915.62 million in 2024 and is expected to reach US$ 2,833.58 million by 2031, registering a CAGR of 5.9% from 2025 to 2031. Government incentives for clean energy transition and increasing focus on the development of efficient fuel engines are among the critical factors attributed to drive the Europe gas engine market.
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.
Europe is a global leader in facilitating the adoption of clean energy through significant grants and subsidies. The EU's Innovation Fund, funded by the Emissions Trading System, has allocated about 25 billion euros from 2020 to 2030 for technologies like renewable energy and carbon capture. The European Green Deal enhances this with initiatives such as the Just Transition Mechanism, which offers over 17.5 billion euros for regions dependent on fossil fuels. Further, member states also have their own programs; for example, Germany's KfW Renewable Energy Program provides low-interest loans for solar and wind projects, while France's CRE implements feed-in tariffs for renewable energy producers. Additionally, the EU's Recovery and Resilience Facility invests billions in clean energy infrastructure. Together, these efforts aim for carbon neutrality by 2050 and foster economic growth and job creation in the clean technology sector. They support the transition to cleaner, more efficient technologies, benefiting both the environment and industry stakeholders is expected to create lucrative opportunities for natural gas engine manufacturers and fleet operators in the coming years.
On the contrary, escalating popularity of renewable energy alternatives and technological drawbacks in several countries hampers the growth of Europe gas engine market.
Based on fuel type, the Europe gas engine market is bifurcated into natural gas and special gas. The natural gas segment held 71.8% market share of Europe gas engine market in 2024, amassing US$ 1,375.92 million. It is projected to garner US$ 2,055.40 million by 2031 to register 6.0% CAGR during 2025-2031.
By power output, the Europe 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 21.1% share of Europe gas engine market in 2024, amassing US$ 404.76 million. It is projected to garner US$ 649.19 million by 2031 to expand at 7.1% CAGR from 2025 to 2031.
Based on end user, the Europe 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 20.0% market share of Europe gas engine market in 2024, amassing US$ 383.92 million. It is projected to garner US$ 571.38 million by 2031 to register 6.0% 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 Europe gas engine market is categorized into Germany, France, Italy, the UK, Russia, and the Rest of Europe. Our regional analysis states that Germany captured 27.1% share of Europe gas engine market in 2024. It was assessed at US$ 518.34 million in 2024 and is likely to hit US$ 743.81 million by 2031, registering a CAGR of 5.4% during 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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