Natural Gas Engine Market is expected to reach US$ 5,762.46 Million by 2031

Global Natural Gas Engine Market Forecast to 2031: Key Insights

According to our latest study on "Global Natural Gas Engine Market – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Power Output, End-User and Geography," the market was valued at US$ 3,727.08 million in 2024 and is expected to reach US$ 5,762.46 million by 2031. The Natural Gas Engine market size is estimated to register a CAGR of 6.56% during 2025–2031.

Governments of different countries are setting up rules to cut down the emissions from diesel and petrol cars. As a result, manufacturers must find alternative fuel solutions for engines such as natural gases. Gas engines give out fewer emissions to provide enough power. Emission control and regulatory organizations are setting tough rules on the usage of diesel engines and generators. Gas engines and generators provide power to various industries. These industries are switching to gas-powered equipment to meet the regulatory standards.

Natural Gas Engine Market

Liberty Energy Inc. and Cummins Inc. have announced the debut of the natural gas variable-speed, large displacement engine, the first in the industry, to power Liberty’s digiPrime hydraulic fracturing platform, with the rollout planned for the first half of 2025. They had earlier agreed upon a strategic partnership in June 2024 to work together in developing new technologies for the completions services market. The Cummins HSK78G natural gas engine was designed as part of a fixed-speed generator set for the power generation sector and has been a reliable solution for power supply over diverse natural gas sources and operational environments. Liberty’s digiPrime platform for the HSK78G engine has been improved to reduce the response time and increase the load acceptance owing to the recent developments. 

Government Incentives for Clean Energy Transition

More and more, governments are supporting the shift to clean energy sources as part of their overall environmental sustainability objectives. This is key to the global demand for de-carbonization and the lowering of carbon emissions. Governments are giving out different incentives, subsidies, and tax cuts to encourage the use of new and energy-efficient technologies. Gas engines, as one of the cleanest alternatives to coal and oil, are in a good position to really take advantage of these supportive policies.

The rising focus on clean, energy-efficient solutions in the transport sector has brought on numerous government-supported programs aimed at facilitating the transition of transit fleets to sustainable technologies. The Federal Transit Administration (FTA) was very instrumental with its Low-No Emission and Bus Facilities Grants in this case. The main purpose of these grants is to help organizations operating public transport in the replacement of their fleets with low-emission and more energy-efficient vehicles such as those running on renewable natural gas (RNG). Since 2022, the FTA has committed over $500 million to support different natural gas projects which have largely contributed to machinery and equipment for agencies and the general public access to 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.

Global Natural Gas Engine Market: Segmental Overview

On the basis of power output, the natural 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 10–20 MW. 2-5 MW are accounting for major share of the global natural gas engine market. These gas engine offers robust energy delivery with high efficiency for large industrial facilities and commercial complexes.

Global Natural Gas Engine Market Analysis: Competitive Landscape and Key Developments

The global Natural Gas Engine market report emphasizes the factors driving the market and the prominent players' developments. 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 prominent players profiled in the global Natural Gas Engine market report. The market players focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.

• In March 2025, Cummins Inc. announced DNV Approval in Principle (AIP) for its methanol-ready QSK60 IMO II and IMO III engines, available from 2000 - 2700 hp (1491 - 2013 kW). Received in June 2024, the AIP validates Cummins's retrofittable methanol dual-fuel solution for the global marine market, ensuring it meets the highest standards of safety and performance.
• In Nov 2024, INNIO Group announced the market launch of the new, even more efficient Generation F for its Jenbacher Type 2 engine platform. Compared to the previous version, the new eight-cylinder J208 F engine achieves up to 3 percentage points higher efficiency at 41.8%, with electrical output increased by 9% to as much as 360 kW. Additional benefits include reduced total hydrocarbon (THC) emissions and greater maintenance ease – with the proven robustness and future-proof fuel flexibility that characterize all Jenbacher solutions. Most of the installed Type 2 engines also can be upgraded to the 2F generation.

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