Gas Engine Market size is set to grow by USD 2.48 billion from 2024-2028, Expanding gas generator market boost the market, Technavio

NEW YORK, July 17, 2024 /PRNewswire/ --The global gas engine market size is estimated to grow by USD 2.48 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 6.77% during the forecast period. Expanding gas generator market is driving market growth, with a trend towards emergence of dual-fuel engines. However, irregularities in natural gas reserves and supplies poses a challenge. Key market players include Caterpillar Inc., Cummins Inc., DEUTZ AG, Guangxi Yuchai Machinery Group Co. Ltd., Hyundai Heavy Industries Group, INNIO Jenbacher GmbH and Co. OG, JFE Engineering Corp., Kawasaki Heavy Industries Ltd., Kohler Co., Liebherr International Deutschland GmbH, MAN Energy Solutions SE, Mitsubishi Heavy Industries Ltd., NGV Global Group, Rolls Royce Holdings Plc, Siemens Energy AG, Sinotruk Hong Kong Ltd., Volkswagen AG, Wartsila Corp., WeiChai Holding Group Co. Ltd., and Yanmar Holdings Co. Ltd..

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Market Driver

Dual-fuel gas engines utilize two types of fuels, primarily diesel and natural gas, during operation. These engines can switch between fuels to optimize efficiency based on conditions. Typically, the engine starts on diesel and later introduces natural gas, which ignites quickly, aiding in engine start-up. Natural gas is introduced into the system, replacing diesel at a 50%-70% substitution rate. Towards the end of compression, diesel is injected to ignite and burn the natural gas. Fuel cost is a significant operational expense for gas engines, leading manufacturers to develop products that minimize fuel dependency. Natural gas availability and energy efficiency make gas engines suitable for various applications. Clean Air Partners offers the technology commercially, while Wartsila provides low-pressure dual-fuel engines, reducing capital expenditure by 15%-20%. These advancements are expected to fuel the global gas engine market growth during the forecast period. 

The gas engine market is experiencing significant growth due to various driving factors. One trend is the shift towards renewable gases like biogas and hydrogen as alternatives to fossil fuels. This is driven by the need to reduce carbon emissions and mitigate climate change. Coal-fired power plants are being replaced with more efficient and cost-effective gas engines and cogeneration applications. Cummins, a leading engine manufacturer, is at the forefront of this trend with its advanced gas engine technology. Economic expansion and increasing electricity demand are also key drivers. Gas engines offer cost-effective ways for distributed power generation and can be used for emergency backup options. Incentives for emissions reduction and compliance with emission regulations are also pushing the market forward. The use of gas engines in district heating systems and industrial plants is also on the rise. Efficiency and energy consumption are major concerns, and gas engines offer improvements in both areas compared to coal plants. The electricity generation mix is shifting towards cleaner sources, and gas engines are an important part of this transition. The environmental footprint of gas engines is lower than that of coal, making them a more sustainable choice for businesses and consumers alike. The gas distribution network is expanding to meet the growing demand, and the future looks bright for the gas engine market. 

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Market Challenges

• The natural gas engine market is experiencing growth due to the increasing preference for natural gas in new power generation capacities. However, the unpredictability of global natural gas reserves may impact the demand for gas engines. In the US, natural gas production has risen significantly due to the shale gas boom, accounting for approximately 25% of global production in 2022. However, the natural gas distribution infrastructure is inadequate in several regions, with many relying on old cast iron pipes, leading to potential disruptions and high maintenance costs. In contrast, coal remains the dominant fuel in rapidly developing countries due to its cost-efficiency, with reserves projected to last over a century at the current consumption rate. This could hinder the growth of the global gas engine market, as North American reserves are expected to run out in just 13 years and European reserves in 30 years.
• The Gas Engine Market faces several challenges in the power generation sector. Integration of natural gas with other energy sources, such as nuclear and renewable energy, requires efficient coordination. Natural gas reserves are depleting, making it crucial to explore alternative fuel sources like shale gas and sewage gas. Power production from gas engines must comply with stringent regulations on emissions, including nitrogen oxides (NOx) and particulate matter (PM). Peak load requirements necessitate reliable power generation technology with high power output. Population growth and increasing power consumption put pressure on utilities and water providers to meet energy demands. Renewable energy sources, such as solar, wind, and hydro, are gaining popularity, but their intermittency poses challenges. Power plants must ensure ultimate reliability, especially during extreme weather conditions. Transmission lines and transportation infrastructure must be upgraded to accommodate increased power production. Special gases like syngas and tri-generation applications offer opportunities for improved efficiency, but their implementation requires significant investment. Sulfur oxides (SOx) and other pollutants must be minimized to meet environmental regulations. Innovations in power generation technology, such as advanced combustion systems and fuel cells, can help address these challenges. Universities and research institutions play a vital role in developing new technologies and improving the efficiency and sustainability of gas engines.

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Segment Overview

This gas engine market report extensively covers market segmentation by

1. Application
• 1.1 Power generation
• 1.2 Co-generation
• 1.3 Others
2. End-user
• 2.1 Power
• 2.2 Industrial
• 2.3 Residential
• 2.4 Commercial
3. Geography
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Power generation- The gas engine market is experiencing steady growth due to its efficiency and reliability. Businesses are increasingly turning to gas engines for their power needs, particularly in industries like transportation and power generation. Gas engines offer cost savings through fuel efficiency and long service life. Major players in the market include Caterpillar, Cummins, and Volvo, who continuously innovate to meet customer demands. The market is expected to continue growing due to these advantages and increasing global focus on reducing carbon emissions.

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Research Analysis

The gas engine market is witnessing significant growth due to the increasing demand for power production technology in various industries and economic expansion. The environment is a key consideration in this sector, with a focus on reducing emissions and improving energy efficiency. Gas engines offer several advantages, including the ability to use natural gas, which is a cleaner burning fuel compared to traditional fossil fuels. Natural gas reserves continue to be discovered, making it an attractive option for power generation and industrial processes. Manufacturing and transportation industries are major consumers of gas engines due to their reliability and fuel efficiency. Governmental bodies are also promoting the use of gas engines to reduce the environmental footprint and meet electricity demand. Gas engine technology is continually evolving, with advancements in fuel efficiency, emissions reduction, and the use of special gases such as syngas, biogas, shale gas, mine gas, landfill gas, and sewage gas. Acquisitions and partnerships are common in this market as companies seek to expand their offerings and stay competitive.

Market Research Overview

The gas engine market is experiencing significant growth due to various driving factors, including economic expansion, increasing electricity demand, and the need for cost-effective ways to reduce carbon emissions and mitigate climate change. Gas engine technology, which includes engines fueled by biogas, landfill gas, mine gas, and natural gas, is becoming increasingly popular for cogeneration applications, distributed power generation, and emergency backup options. Gas engines offer improved efficiency compared to coal-fired power plants and are more environmentally friendly, producing fewer greenhouse emissions and fewer nitrogen oxides (NOx) and particulate matter (PM) than coal. The use of natural gas also reduces reliance on fossil fuel imports and supports grid stability. Industrialization and manufacturing industries are also turning to gas engines for their mechanical drive needs, and the renewable sector is exploring the use of hydrogen and biogas as fuel sources. However, there are challenges to the widespread adoption of gas engines, including emission regulations, maintenance costs, and the need for infrastructure investment. Despite these challenges, the market for gas engines is expected to continue growing, driven by the need for reliable and efficient power production technology, peak load requirements, and the environmental benefits of reducing carbon emissions and improving energy efficiency.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Power Generation
• Co-generation
• Others
• End-user
• Power
• Industrial
• Residential
• Commercial
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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