Gas Engine Market to Grow at a CAGR of 6.6% to reach US$ 6,354.4 Mn Million from 2021 to 2028

Gas Engine Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Fuel Type (Natural Gas and Special Gas), Power Output (100

Publication Month : Mar 2021

  • Report Code : TIPRE00015324
  • Category : Energy and Power
  • Status : Published
  • No. of Pages : 150
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The gas engine market was valued at US$ 3,930.0 million in 2020 and is projected to reach US$ 6,354.4 million by 2028; it is expected to grow at a CAGR of 6.6% during 2021–2028.

The increasing focus on development of efficient fuel engines is the key factor driving the gas engine market. Governments of various countries are imposing certain regulations to control the emissions of diesel and petrol engines, thus compelling engine manufacturers to opt for alternative fuel solutions such as natural gases. Gas engine market release less emissions to generate enough power with high efficiency. The emission monitoring and regulatory bodies from various countries are imposing stringent regulations on the use of diesel engines and generators. To meet these regulatory standards, various industries are deploying gas engines and generators for power generation.

In December 2020, Rolls-Royce launched MTU Series 500, a new series of gas engines, with a power range of 250–550 kilowatt. The engines are specially designed to meet the emission goals by using hydrogen as a power source, which is offering low fuel costs and low fuel consumption for industrial and utility sectors. Similarly, in June 2020, Kawasaki Heavy Industries, Ltd., a heavy equipment manufacturer, launched a new model of KG-18-T gas engine. The company introduced a two-stage turbocharging system with 51% electrical efficiency for power generation. Thus, the rise in research and development activities, owing to stringent regulations related to gas engines, is propelling the market growth.

Impact of COVID-19 Pandemic on Gas Engine Market

With the outbreak of the COVID-19 worldwide, several business organizations have been pushed to reduce their operations owing to lockdowns announced by several governments across the globe. The lockdowns have drastically affected businesses. The lockdowns announced by various governments across the globe resulted in temporary shutdown of offices, schools, cinema halls, manufacturing plants, and venues. This had negatively impacted the market for gas engines. For instance, according to the International Energy Agency (IEA), the global demand for electricity has been decreased by 2.5% in first quarter of 2020. However, in the second half of 2020, with the relaxation of lockdown, the demand has again spiked due to the implementation of advanced technologies by the power generation plants to maintain power supply.

Though the complete impact of COVID-19 is still unidentified, the impact across the engines value chain will probably be far-reaching—and strongly affecting parties involved with engine manufacturing. COVID-19 outbreak is underlining the possible risks and vulnerability of present engine value chain model as well as challenging the industry to consider altering its global supply chain model.

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Market Insights–Gas Engine Market

Rise in Production of Natural Gas

With the new emission control regulations, the demand for gas engines in the power generation industry is rising. 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 2019, according to the IEA Natural Gas Information, natural gas production hit a new high of 4,088 billion cubic meters (Bcm), at a rate of +3.3% over the production in 2018. Also, the demand for natural gas increased by 1.5% in 2019. Gas engines are less expensive, environmentally friendly, reliable, and efficient than engines based on other fuel sources, which is propelling their demand. According to Eurostat, natural gas accounts for ~36% of the EU energy consumption; in the US, it accounts for more than 25% of energy consumption. Increasing use in applications such as heating, electricity generation, and vehicle functioning is bolstering the demand for natural gas engines. Due to the COVID-19 situation, a large number of population is either working from home, virtually attending school from home, or enjoying entertainment at home. Hence, to provide a solution for unexpected power outages, the utility service providers are using gas generators to handle peak loads. Thus, continuous surge in demand from developing and developed countries is one of the key factors driving gas engine market.

Fuel Type-Based Insights

Based on fuel type, the gas engine market is segmented into natural gas and special gas. The natural gas segment held a larger market share in 2020.

Power Output-Based Insights

Based on power output, the 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. The 0.5–1 MW segment is projected to register the highest CAGR during the forecast period.

End-User-Based Insights

Based on end-user, the gas engine market is segmented into remote, mid-stream oil and gas, heavy industries, light manufacturing, utilities, biogas, datacenters, MUSH, and commercial. The datacenters segment is projected to register the highest CAGR during the forecast period.

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Gas Engine Market: Strategic Insights

Market Size Value inUS$ 3,930.0 Million in 2020
Market Size Value byUS$ 6,354.4 Million by 2028
Growth rateCAGR of 6.6% from 2021-2028
Forecast Period2021-2028
Base Year2021
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Players operating in the gas engine market are mainly focused on the development of advanced and efficient products.

  • In March 2021, Cummins Inc. launched a new heavy-duty powertrain for natural gas customers. The combination of the ISX12N near-zero natural gas engine and the endurant HD N 12-speed automated transmission from Eaton Cummins Automated Transmission Technologies is well suited for heavy-duty regional haul fleets looking to lower emissions and improve their sustainability profile.
  • In 2020, Caterpillar Inc. launched new natural gas fueled G3412 generator set with US EPA stationary emergency certification rated at 500 kW for 60 Hz markets. The G3412 is engineered to meet a full suite of critical market requirements, including quick starting and loading capability.

The gas engine market has been segmented as follows:

Gas Engine Market– by Fuel Type

  • Natural Gas
  • Special Gas

Gas Engine Market – by Power Output

  • 100–300 kW
  • 300–500 kW
  • 0.5–1 MW
  • 1–2 MW
  • 2–5 MW
  • 5–10 MW
  • 10–20 MW

Gas Engine Market – by End-User

  • Remote
    • Mining
    • Drilling
    • Others
  • Mid-Stream Oil and Gas
  • Heavy Industries
    • Chemicals
    • Paper
    • Metals
    • Food and Beverages
    • Others
  • Light Manufacturing
  • Utilities
    • Grid
    • IPP
    • Others
  • Biogas
  • Datacenters
  • MUSH
  • Commercial

Gas Engine Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • Germany
    • France
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • Australia
    • China
    • India
    • Japan
    • South Korea
    • Rest of APAC
  • Middle East & Africa (MEA)

    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM

Gas Engine Market – Company Profiles

  • INNIO Jenbacher GmbH & Co OG
  • Caterpillar Inc
  • Cummins Inc
  • Fairbanks Morse, LLC
  • Kawasaki Heavy Industries, Ltd
  • Liebherr
  • MAN SE
  • Mitsubishi Heavy Industries, Ltd
  • R Schmitt Enertec GmbH
  • Wärtsilä Corporation
  • MTU (Rolls-Royce Power Systems AG)
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Fuel Type , Power Output (100

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

What are home medical devices?

A home use medical device or home medical device is intended for patients (care recipient) in any environment. This includes devices intended for use in both professional healthcare facilities and homes. Additionally, changes in healthcare have encouraged care from the hospital environment to the home environment. Home medical device may include glucose meter, heating pad, hospital bed, walker, ventilator, wheelchair and others.

What are the driving factors for the home medical devices market across the globe?

The global home medical devices market growth is mainly attributed to factors such growing demand for homecare medical devices due to increasing geriatric population, increasing homecare settings, and rising market consolidation. However, stringent regulations, challenges, and risks for homecare medical devices are key factors restraining the market growth.

Who are the major players in the home medical devices market?

The home medical devices market majorly consists of the players such as F. Hoffmann-La Roche Ltd., General Electric Company, Abbott, Koninklijke Philips N.V., B. Braun Melsungen AG, Johnson and Johnson Services, Inc., Medtronic, Medline Industries, Inc., Baxter International Inc., and Invacare Corporation. among others.

The List of Companies - Gas Engine Market

  1. NNIO Jenbacher GmbH & Co OG
  2. Caterpillar Inc.
  3. Cummins Inc
  4. Fairbanks Morse, LLC
  5. Kawasaki Heavy Industries, Ltd.
  6. Liebherr
  7. MAN SE
  8. Mitsubishi Heavy Industries, Ltd.
  9. R Schmitt Enertec GmbH
  10. Wärtsilä Corporation
  11. MTU (Rolls-Royce Power Systems AG)
  12. 2G ENERGY AG

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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