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Gas Engines Market Forecast: What Value Will The Market Reach By 2030?
The gas engines market has experienced strong expansion in recent years. It is anticipated to increase from $5.38 billion in 2025 to $5.66 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 5.2%. This growth observed in the past can be linked to the development of natural gas infrastructure, a rise in their use within power generation facilities, increasing industrial need for self-generated power, the integration of gas engines into marine applications, and the presence of economical gas fuels.
The gas engines market size is projected to experience substantial growth over the next few years. It is expected to expand to $6.92 billion by 2030, achieving a compound annual growth rate (CAGR) of 5.2%. This growth during the forecast period is primarily driven by increasing investments in renewable-integrated power systems, a rising demand for low-emission engines, the expansion of hydrogen-ready engine technologies, the growth in decentralized energy generation, and the increasing adoption of these systems in microgrid applications. Significant trends for the forecast period include the wider deployment of gas engines for distributed power, an increased use of biogas and alternative fuels, a growing demand for high-efficiency gas engines, rising implementation in grid balancing applications, and the integration of digital engine management systems.
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Gas Engines Market Growth Factors: What’s Supporting Expansion?
Increased reliance on natural gas for electricity production is anticipated to drive expansion in the gas engine market. Power generation encompasses electricity created through diverse sources like fossil fuels, nuclear power facilities, and hydroelectric systems, including output from combined heat and power plants and dedicated electricity-only sites. Gas engines offer a highly effective solution for consistent power needs due to their modular design and excellent cost-efficiency. Consequently, the growing utilization of natural gas for electricity generation is boosting demand within the gas engine market. For example, in December 2023, data released by the International Energy Agency, an energy authority based in France, revealed that natural gas met over half of U.S. electricity demand for the first time on August 28, 2023, with its proportion in the summer power mix growing from 40% to 45% in the past two years. Thus, the increasing application of natural gas for generating electricity is a key driver for the gas engine market.
Gas Engines Market Segment Breakdown: Which Categories Lead On Revenue?
The gas engines market covered in this report is segmented –
1) By Fuel Type: Natural Gas, Special Gas, Other Fuel Type
2) By Power Output: 1-2 MW, 2-5 MW, 5-15 MW, Above 15 MW
3) By Application: Power Generation, Mechanical Drive, Cogenerations, Other Applications
4) By End User: Utilities, Marine, Oil And Gas, Manufacturing, Other End Users
Subsegments:
1) By Natural Gas: Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG)
2) By Special Gas: Biogas, Landfill Gas, Synthesis Gas
3) By Other Fuel Types: Propane, Hydrogen
Gas Engines Market Industry Trends: What’s Reshaping Demand?
Leading firms within the gas engine market are innovating with advanced high efficiency natural gas engine cogeneration systems to secure a competitive advantage. An engine cogeneration system, also recognized as a combined heat and power (CHP) system, functions by concurrently producing electricity and useful heat from a singular energy source, typically an internal combustion engine. For instance, in March 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., a Japan-based engines and power systems company, unveiled the SGP M2000, a natural gas engine cogeneration system delivering a generation output of 2,000kW. This system incorporates a 16-cylinder natural gas-fired engine, known as the G16NB, achieving an electrical efficiency of 44.3% for a 2,000kW-class engine. The SGP M2000 provides a notable 1.8 percentage point improvement in electrical efficiency compared to MHIET’s existing 1,000kW gas engine cogeneration system. Importantly, it accomplishes this while shrinking its physical footprint by 40%, positioning it as a compact, energy-saving offering. Designed for use in distributed energy resources (DER), the SGP M2000 supports goals for carbon neutrality through enhanced efficiency and reduced environmental footprint.
Gas Engines Market Leading Players And Competitive Positioning
Major companies operating in the gas engines market are Caterpillar Inc., Cummins Inc., Wärtsilä Oyj Abp, Mitsubishi Heavy Industries Ltd., Hyundai Heavy Industries Co. Ltd., Maschinenfabrik Augsburg-Nürnberg AG (MAN Energy Solutions), General Electric Company, Kawasaki Heavy Industries Ltd., Liebherr-International AG, Kohler Co., Yanmar Co. Ltd., Perkins Engines Company Limited, Doosan Group, INNIO Jenbacher GmbH & Co. OG, Deutz AG, Guascor Power, Dresser-Rand, Motoren- und Turbinen-Union Friedrichshafen GmbH (Rolls-Royce Power Systems / MTU), Fairbanks Morse LLC, Jinan Lvneng Power Machinery Equipment Co. Ltd., Ningbo C.S.I. Power & Machinery Group Co. Ltd., Baudouin, CNPC Jichai Power Complex, Googol Engine Tech Co. Ltd., Lombardini Srl, Chongqing Winyou Power Co. Ltd., Briggs & Stratton Corporation, KUBOTA Corporation, Generac Power Systems Inc.
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Gas Engines Market Global Footprint: Which Region Leads The Market?
North America was the largest region in the gas engines market in 2025. The regions covered in the gas engines market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
