Publication Month: Mar 2021 |
Report Code: TIPRE00015324
| No. of Pages:
| Category: Energy and Power
| Status: Published
No. of Pages 150
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.
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.
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.
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.
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.
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.
|Market Size Value in||US$ 3,930.0 Million in 2020|
|Market Size Value by||US$ 6,354.4 Million by 2028|
|Growth rate||CAGR of 6.6% from 2021-2028|
|No. of Pages||150|
|No. of Tables||168|
|No. of Charts & Figures||101|
|Historical data available||Yes|
|Segments covered||Fuel Type , Power Output (100|
|Regional scope||North America; Europe; Asia Pacific; Latin America; MEA|
|Country scope||US, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
Players operating in the gas engine market are mainly focused on the development of advanced and efficient products.
The List of Companies - Gas Engine Market