Global Gas Engine Market Research Report: Forecast (2024-2030)

Market Definition

Gas engines are combustion as well as internal combustion engines that utilize the heat from the burning of chemical energy to mechanical energy. Various fuels used are natural gas, biogas, special gases such as coal gas, landfill gas, etc. Such engines are used in many industries such as power plants, marine, industrial sites, and others.

Market Insights & Analysis: Global Gas Engine Market (2024-30):

The Global Gas Engine Market size was valued at around USD 5.02 billion in 2023 and is projected to reach around USD 7.2 billion by 2030. The market is also estimated to grow at a CAGR of around 5.35% during the forecast period, i.e., 2024-30. The market growth is attributed to the growing establishment of decentralized and distributed energy systems across the globe.

The increasing need for electricity from numerous existing as well as new sectors such as transportation, industrial manufacturing, combined heat & power (CHP), etc., are creating the demand for decentralized and distributed energy systems. Moreover, with the rapid transformation in the industrial sector combined with the sector's aim to reduce its contribution to the total carbon emissions, many organizations in the industrial manufacturing sector have been switching to cleaner sources instead of burning coal & diesel. The main industries are the cement and steel industries.

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Additionally, with the rising concerns about climate change and booming carbon emissions globally, gas engine original equipment manufacturers (OEMs) are consistently conducting research to develop not only fuel-efficient engines but also low-carbon-emitting gas engines. Also, in line with the upcoming energy transition to clean energies such as hydrogen, and methanol, the OEMs have been focusing on creating engines that would be able to run on hydrogen or methanol in the future years. These engines would either replace natural gas or run on a hybrid model with natural gas when the clean energies would be commercialized worldwide. Companies such as MAN Energy Solutions, INNIO, and several others are offering hybrid and future-proof solutions to their customers.

Furthermore, the steadily increasing maritime transport is also resulting in a concerning amount of carbon emissions amounting to nearly 3% of the total global carbon emissions. As per the United Nations Conference on Trade and Development (UNCTAD), almost 98% of the shipping industry relies on fossil fuels, however, in the coming years, about 21% of the total shipping vessels are expected to run on natural gas, methanol, and hybrid systems. Hence, a greater demand for gas engines for the marine industry is expected to support the Global Gas Engine Market growth during the forecast period.

Global Gas Engine Market Driver:

Increasing Need for Efficient & Effective Energy Sources Driving Market Growth – The high energy density of natural gas and significantly low carbon emissions, when compared to the commonly used diesel engines, have been the main driving force behind integrating gas engines across the globe. The gas engines are actively installed at CHP plants, decentralized energy systems, etc., in line with the engine's ability to give more energy efficiency, low noise pollution, and economical fuel and maintenance costs. Also, the capability of gas engines to switch easily and quickly to other fuels such as biogas, landfill gas, coal gas, etc., from natural gas is considered a crucial advantage in areas where a low amount of power is to be generated such as during peak-shaving, stabilizing the grid, amongst others.

In addition, many end-users primarily manufacturing units attain their sustainability goals without any compromise on the production process and output, by establishing waste to heat and power plants at their facilities. Innio’s Jenbacher gas engines have been providing sustainable solutions to many organizations around the world. From 2011 up to 2023, Innio through its distributor Clarke Energy has provided gas engine solutions for converting waste to heat and power to BioTown Biogas in the US, with total electric output amounting to approximately 7.7MW. The growing level of waste generation and the need for electricity at manufacturing sites help the revenue growth of the Global Gas Engine Market.

Global Gas Engine Market Opportunity:

Future Goals of the National Governments to Increase the Share of Renewable Energy in their Energy Mix – Due to the changing structure of power generation, and the declining use of coal as a main source of energy due to rising environmental consciousness and regulatory pressures, the demand for gas engines is expected to grow in the coming years. With nations across the globe focusing on phasing out highly carbon-emitting sources such as coal, and the new renewable energy sources to commercially completely take a longer time, gas engines are predicted to play an important role in the meantime. The gas-fired engines are comparatively emitting very little carbon all the while providing almost the same energy density.

The growing dominance of renewable energy sources, such as solar and wind, presents a lucrative market opportunity for innovative solutions aiming to enhance the integration of renewables into the power grid while mitigating the challenges faced by traditional coal and gas-based energy generation. With renewable energy contributing nearly a quarter (23%) of global electricity generation in 2022, according to the International Energy Agency (IEA), there is a pressing need for advancements in power generation and energy storage technologies. This is a need for maintaining and updating the power infrastructure to support future energy transition, the demand for gas engines would increase in the upcoming years.

Global Gas Engine Market Challenge:

Volatility in Gas Prices and Availability – The raw materials for gas engines such as natural gas, biogas, and specialized gases are largely subjected to global events. The prices of natural gas rely on its production, supply, and demand, which further is dependent upon the geopolitical events that might hamper the supply of natural gas. Such as during the Russia-Ukraine war, with the sanctions imposed on Russia, there were severe natural gas shortages in the European region. The main source of power generation for the European nations has been natural gas. These shortages forced many countries to invest in other energy sources for their routine tasks. This event further hampered the new installation of gas engines by many end users due to the risk of non-availability or availability of natural gas at very high prices.

Also, the limited sources of biomass, and specialized gases due to the dependency on particular waste generation, the widespread supply of these gases is strained. This impacts the adoption of gas engines at a broader scale further curtailing the market growth.

Global Gas Engine Market (2024-30): Segmentation Analysis

The Global Gas Engine Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Fuel Type:

• Natural Gas
• Biogas
• Other Special Gases
• Hybrid

In the forecast period, other special gases amongst all the other fuel types are expected to project the fastest growth. These specialized gases provide substantial environmental benefits, including reduced CO2 emissions from both decreasing reliance on conventional fossil fuels and further combustion of fossil fuels as raw energy. Furthermore, the source of these specialized gases is waste gases from coal mines, landfills, sewage, etc. This helps curb the adverse impact of waste gases on the environment and use it for better application i.e. power generation. In the majority of sites, the facilities use waste gases to power their facilities hence shrinking their electricity bill and bolstering their sustainability goals.

Based on the End-Use Industry:

• Power Utilities
• Manufacturing
• Combined Heat & Power
• Marine
• Others

Out of them all, the power utilities segment is poised to maintain its majority share in the market from 2024 to 2030. Base load, peak-shaving, and grid stabilization are the key solutions that are provided by gas engine-based energy systems. The gas-fueled power plants are commonly present in countries with notable natural gas resources to power their economies. Nonetheless, even the countries with a larger dependence on other energy sources such as coal, integrate gas-based small power generation systems for maintaining the balance between power supply and demand during peak load or emergencies. This installation of decentralized energy systems helps lower the burden on the major power plants and protect production costs from raw material cost fluctuations. Thus, power utilities across the globe have been major end users of gas engines and are estimated to continue in a similar pattern in the coming years as well.

Global Gas Engine Market (2024-30): Regional Projections

Geographically, the Global Gas Engine Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia Pacific

Asia-Pacific dominates the Global Gas Engine Market. The region experiences rapid industrialization, urbanization, and infrastructural development, particularly in countries like China, India, and Southeast Asian nations, fostering a substantial surge in electricity consumption. Consequently, there arises an urgent demand for steady power generation, transmission, and distribution networks. Moreover, governmental investments aimed at modernizing and expanding power grids, alongside a growing emphasis on integrating renewable energy sources, further fuel the demand for gas engines for continuous supply of power and grid stabilization.

Additionally, the countries in the region heavily rely on coal for their electricity needs. Along with this, the countries have a quite strong industrial base that caters to the large domestic as well as the international demand. Therefore, with the future goal of increasing renewable energy in the existing energy mix, the installation of gas engines would cater sustainably to the increasing power demand, lowering carbon emissions, and growing the total installed capacity of renewable energy sources in the region. Hence pushing the growth of the Asia-Pacific in the Global Gas Engine Market through 2030.

Global Gas Engine Industry Recent Development:

• 2024: Innio Group announced to deliver five Jenbacher gas engines to PGE Energia Ciepła’s (Polish Utility Company) for their CHP plant with a total power generating capacity of nearly 52.6 MWe.
• 2024: MAN Energy Solutions reported that it will provide Turkey-based Karpowership with 48 dual fuel engines for Karpowership’s fleet of power plant ships, with a total mechanical output of about 20.7 MW each.

Gain a Competitive Edge with Our Global Gas Engine Market Report

1. Global Gas Engine Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Gas Engine Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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