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Gas Engine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 95 Pages
  • February 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4542906
UP TO OFF until Dec 31st 2023

The gas engine market was valued at USD4.75 billion in 2020, and it is anticipated to reach USD 6.1 billion by 2027, registering a CAGR of more than 3% during 2022-2027. The COVID-19 impact on the gas-engine market was quite severe. The gas engines are an integral part of the automotive sector in today's scenario, which was badly hit by the pandemic. In 2020, the global motor-vehicle production was around 78 million, which was 16% down from the production in 2019. Thus, the demand for gas-engines got highly plummeted during the pandemic. The gas engine market is largely driven by high natural gas supply at the global level and the demand for the emissions-free fuel system in the power generation and automotive sector. However, the thriving future of gas engines is thwarted by the growing inclination towards renewable sources of energy.

Key Highlights

  • The Power Utilities segment is expected to witness the highest growth during the forecast period due to the favorable economics and availability of natural gas and other gas-based engine systems in the power sector.
  • The technical advancements to produce the better versions of gas engines create ample opportunities for market development. Recently, the German company MAN Energy Solutions Engines introduced a new MAN E3872 gas-engine series for the first time at Biogas Convention & Trade Fair in Nuremberg. It is designed as a four-stroke spark-ignition gas engine with a displacement of 29.6 liters, a bore of 138mm, and a stroke of 165mm. It has 44% greater efficiency from just 12 cylinders.
  • The European region is expected to have the highest growth during the forecast period due to the growing inclination towards cleaner fuels in the region.

Key Market Trends

Power Utilities Expected to Witness Significant Growth

  • Electric Utilities prefer gas engines to serve base electrical loads. In addition, the use of gas engine generators is also considered highly useful for handling peak load demand. Several utilities worldwide have faced a rapid spike in the peak load demand, especially during the morning and evening time periods. ​
  • Natural gas-based power generation stands at second place in the global electricity generation mix, after coal. The output was recorded as 6268.1TWh in 2020, making 23.4% of total power generation. The most highlighted reason for such a huge deployment of gas-based engines was the decarbonization of the power sector. Many gas-to-power projects are still on the way to be added to the global power generation portfolio.
  • In October 2020, the engineering firm Rolls Royce bagged a contract to install a gas-based power plant at Dhamra LNG Terminal, Odisha, India. The core equipment for the gas-based power plant will include three 9.6 MW power generation units based on a 20-cylinder Rolls-Royce Bergen B35:40 gas engines.
  • In November 2021, Austrian gas engine manufacturer INNIO was chosen by South Korea’s Hyosung Heavy Industries to provide its technology for a pilot hydrogen power plant, which was supposed to be built in Ulsan, South Korea. The power plant is likely to be operational in the third quarter of 2022, and the pilot testing to be ended at the end of 2022.
  • Owing to such kind of developments, the power utility segment is expected to have a significant share among all the applications of gas engine systems during the forecast period.

Europe Expected to Have a Significant Growth

  • The European region has the maximum potential to allow high deployment of gas engines in various applications. The government policies to have a greener energy transition act as a catalyst for the growth of the market, as hydrogen and natural-gas-based technologies render an emission-free environment.
  • Furthermore, the presence of industry-leading companies in the region propels a higher techno-growth of the gas engine industry. Many companies have come out with better gas engine systems with more versatility for new applications.
  • In July 2021, Wartsila, the Finland-based technology provider, clinched a contract to supply six flexible power plants fuelled by natural gas, with the combined capacity of 380 MW to be installed in different locations in Italy. The plants will be powered by around 18 Wartsila 50SG and 4 Wartsila 31SG gas-fuelled engines in the country. The power plants are expected to be operational by June 2022.
  • In September 2021, Cummins Inc. announced plans that its hydrogen-fueled internal combustion engine (H2-ICE) program is going to have the start of the development of a medium-duty 6.7-liter and heavy-duty 15-liter hydrogen-fueled engine. Part of the development work to be undertaken at Cummins Darlington facility in the UK and will be financially supported by the UK Government. The program is a part of the major goal to decarbonize the transport sector by 2025.
  • Owing to such developments, the European region is expected to ace the market during the forecast period.

Competitive Landscape

The gas engine market is moderately fragmanted. The key players in this market include General Electric Company, Wartsila Oyj Abp, Rolls-Royce Holdings PLC, Caterpillar Inc., and Cummins Inc.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1 End-User
5.1.1 Power Utilities
5.1.2 Automotive
5.1.3 Marine
5.1.4 Industrial
5.1.5 Others
5.2 Fuel Type
5.2.1 Natural Gas
5.2.2 Hydrogen
5.2.3 Other Fuel Types
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Caterpillar Inc.
6.3.2 Cummins Inc.
6.3.3 Siemens AG
6.3.4 Rolls-Royce Holdings PLC
6.3.5 Wartsila Oyj Abp
6.3.6 Mitsubishi Heavy Industries Ltd
6.3.7 Hyundai Heavy Industries Co. Ltd
6.3.8 Man SE
6.3.9 General Electric Company
6.3.10 Kawasaki Heavy Industries Ltd
6.3.11 JFE Engineering Corporation
6.3.12 Liebherr Group

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Caterpillar Inc.
  • Cummins Inc.
  • Siemens AG
  • Rolls-Royce Holdings PLC
  • Wartsila Oyj Abp
  • Mitsubishi Heavy Industries Ltd
  • Hyundai Heavy Industries Co. Ltd
  • Man SE
  • General Electric Company
  • Kawasaki Heavy Industries Ltd
  • JFE Engineering Corporation
  • Liebherr Group