Middle East & Africa Gas Engine Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Middle East & Africa gas engine market size is expected to reach US$ 647.67 million by 2031 from US$ 468.68 million in 2024. The market is estimated to record a CAGR of 4.8% from 2025-2031.

Executive Summary and Middle East & Africa Gas Engine Market Analysis:

The Middle East & Africa region is projected to witness swift growth in new technology adoption and industrialization, further improving diverse industries. The Gulf countries are economically advanced, while the countries in Africa still have to balance to match the Gulf countries' economic conditions due to the lack of supporting infrastructure. The Gulf countries are on the verge of adopting advanced engine technologies. Growing population, rising middle-class income, and increasing efforts to motivate businesses other than oil & gas industries are likely to provide ample growth opportunities to the market players in the Middle East and Africa. Improvements in the economic conditions help promote the growth of natural gas consumption for engine applications. The demand for gas engines is low in the region, but is expected to increase with growing investments in gas engines for the power generation sector in the coming years.

According to the International Energy Agency (IEA), in 2022, Oil and gas producers in the Middle East and North Africa (MENA) have long been central to the global energy landscape, currently representing ~50% of global oil exports and 15% of natural gas exports. As global energy markets tighten due to reduced supplies from Russia following its invasion of Ukraine, MENA producers, with their established track record of providing reliable energy, are expected to play a critical role in mitigating potential global shortages. Oil and gas dominate the energy mix in the MENA, accounting for ~95% of electricity generation. Thermal power plants consume over 290 billion cubic meters of gas, which constitutes more than one-third of the region's gas production, alongside 1.75 million barrels of oil per day. The heavy reliance on fossil fuels in the region's power generation results in an emissions intensity that is ~25% higher than the global average. Given these dynamics, the continued growth of the gas engine market in the MENA region is essential. As the demand for flexible, reliable, and dispatchable power generation increases, particularly in the face of fluctuating energy supplies, the role of advanced gas engines becomes even more prominent. These engines, which can offer rapid response times and efficient energy output, are poised to meet the evolving needs of the region's power sector while supporting efforts to reduce emissions intensity as part of the region's broader energy transition.

Middle East & Africa Gas Engine Market: Strategic Insights

Middle East & Africa Gas Engine Market Segmentation Analysis:

Key segments that contributed to the derivation of the gas engine market analysis are fuel type, power output, and end user.

• By fuel type, the gas engine market is bifurcated into natural gas and special gas. The natural gas segment held a larger share of the market in 2024.

• By 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 10-15 MW. The 5-10MW segment held the largest share of the market in 2024.

• By 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 heavy industries segment held the largest share of the market in 2024.

Middle East & Africa Gas Engine Market Players Density: Understanding Its Impact on Business Dynamics

The Middle East & Africa Gas Engine Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Middle East & Africa Gas Engine Market Outlook

Several governments are imposing regulations to control the emissions of diesel and petrol engines, compelling engine manufacturers to opt for alternative fuel solutions such as natural gases. Gas engines release less emissions to generate a sufficient amount of power. The emission monitoring and regulatory bodies are imposing stringent regulations on using diesel engines and generators. Various industries are deploying gas engines and generators for power generation to meet these regulatory standards.

In 2023, the Hamriyah Independent Power Plant in the UAE began operations with GE's 9HA.01 turbines, making it the most efficient gas-fired power plant in the region. Mitsubishi Power deployed hydrogen-ready gas turbines for various projects in Saudi Arabia, Bahrain, and Morocco (at Al Wahda), facilitating future transitions to 100% hydrogen fuel. Also, in Qatar, GE upgraded the turbines at a major power station in 2022, which resulted in a reduction of CO₂ emissions by 67,000 tonnes annually. Additionally, in 2019, Wärtsilä expanded the Borg El Arab plant in Egypt by adding two 34SG gas engines, increasing its capacity by 19 MW. Thus, the rise in such development of efficient fuel engines owing to stringent regulations related to gas engines is propelling the market growth.

Middle East & Africa Gas Engine Market Country Insights

Based on country, the Middle East & Africa gas engine market comprises Saudi Arabia, South Africa, the UAE, and the Rest of Middle East & Africa. Saudi Arabia held the largest share in 2024.

Saudi Arabia has a strong dominance of gas engines due to its rich source of fossil fuels. The country has a strong adoption of high-power output engines due to the low cost of fuels, but with growing concern for air pollution country is shifting toward gas engines for low emissions. The demand for gas engines is increasing in oil and gas, remote, and other industrial sectors. According to the International Energy Agency (IEA), Saudi Arabia's natural gas production is expected to increase by 4% in 2025, driven by the anticipated commencement of major projects such as Jafurah Phase 1 and Tanajib. Further, companies such as Saudi Aramco are increasing their natural gas production capabilities to achieve Saudi Vision 2030 objectives

Middle East & Africa Gas Engine Market Company Profiles

Some of the key players operating in the market include Rolls-Royce Holdings Plc, Ningbo C.S.I. Power & Machinery Group Co., Ltd, Guascor Energy S.A.U, IHI Corp, MAN Energy Solutions SE, 2G ENERGY AG, Wartsila Corp, R Schmitt Enertec GmbH, Mitsubishi Heavy Industries Ltd, Liebherr, Kawasaki Heavy Industries Ltd, Fairbanks Morse, LLC, Cummins Inc, Caterpillar Inc, and INNIO Jenbacher GmbH & Co, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Middle East & Africa Gas Engine Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis, and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise