Global Gas Engine Market TOC
Gas Engine Market size is poised to expand from USD 4.76 billion to USD 8.79 billion, reflecting a CAGR of more than 4.9% during the forecast timeline, from 2025 to 2037. In the year 2025, the industry size of gas engines is estimated at USD 4.95 billion.
The gas engine market is predominantly driven by growing use of natural gas in several end use industries and the subsequent rise in its global trade. EIA estimates that non-OECD Asia to emerge as the largest importer of natural gas amounting to approximately 17 trillion cubic feet by 2050. In 2020, OECD Europe was the largest importer, followed by South Korea and Japan, and non-OECD Asia, including India and China. As per the IEO2021 Reference case, the U.S., Middle East, and Russia will continue to expand production through 2050, while the U.S. is projected to remain the largest producer globally, generating more than 43 trillion cubic feet (Tcf) in 2050 which will be a steep growth from 34 Tcf in 2020.
The U.S., the Middle East, and Russia have large proven reserves of both oil and natural gas, coupled with transportation and processing infrastructure to encourage international trade. LNG terminals and the availability of large-scale transportation vessels have created an outlet for natural gas to reach markets in Europe and Asia. Natural gas exports reached a record high of 6.90 trillion cubic feet in 2022 and the U.S. exports reached 46 countries. 44% of the U.S. natural gas exports were by pipeline, and 32% of those exports went to Canada and 68% were to Mexico.
Natural gas net exports by select countries in 2050 (trillion cubic feet)
|
Country |
Net export volume (Tcf in 2050) |
|
Russia |
14 |
|
The U.S. |
7 |
|
Middle East |
5 |
Source: EIA
Supportive policies including the Bipartisan Infrastructure Law and the Inflation Reduction Act (IRA) have rendered investments of over USD 154 billion into building automotive components. According to the U.S. Bureau of Labor Statistics (BLS), nearly 900,000 workforces manufacture large auto parts or components and assemble internal combustion engine vehicles at OEMs and Tier 1 suppliers. Supply chain employment linked to internal combustion engine vehicles comprising fuel injection systems often has a high displacement risk as more EVs are being manufactured. Of the 886,000 Tier 1 suppliers and OEM workers, around 58,000 workers cater to gasoline engines and its parts manufacturing is prone to job risks and competitiveness from the growing EV market. However, the booming global trade in natural gas and gas turbines is positively influencing the employment scenario in the gas engine market.
The global gas turbine trade was valued at USD 150 billion in 2022 and was the 21st most traded product worldwide. Gas turbine (inclusive of Gas turbine engines nes of a power > 5000 kW and Gas turbine engines nes of a power < 5000 kW) exports grew by 11.5% between 2021 and 2022, reaching from USD 135 billion to USD 150 billion and representing 0.63% of the overall global trade. The top exporters of gas turbines in 2022 were the U.S. (USD 32.5 billion), UK (USD 29.2 billion), France (USD 13.6 billion), Singapore (USD 8.48 billion), and Hong Kong (USD 7.92 billion). As per OEC, disaggregated by gas engine’s HS6 level, the most traded segments were turbo-jet engines of a thrust > 25 (USD 65.9 billion), parts of turbo-jet or turbo-propeller engines (USD 50.2 billion), parts for gas turbine engines (excl. turbo jet/prop) (USD 20.7 billion), Gas turbine engines nes of a power > 5000kW (USD 6.11 billion), and turbo-propeller engines of a power > 1000kW (USD 2.43 billion).
Growth Drivers:
Challenge
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
4.9% |
|
Base Year Market Size (2024) |
USD 4.76 billion |
|
Forecast Year Market Size (2037) |
USD 8.79 billion |
|
Regional Scope |
|
Fuel Type (Natural Gas, Special gas)
The natural gas segment in the gas engine market is expected to account for a significant revenue share by 2037. The segment growth is primarily attributable to its widespread use as a source of energy across several end use industries such as power generation, heating, and transportation. According to the International Energy Agency (IEA), an intergovernmental organization in France, the natural consumption in 2022 was 4,084 billion cubic meters (bcm) in 2022 and is expected to reach 4,242 billion cubic meters (bcm) by the end of 2025.
Power Output (Up to 100 kW, 100-300 kW, 300-500 kW, more than 500 kW)
The more than 500 kW segment in the gas engine market is expected to record significant growth rate during the forthcoming years. Gas engines with a power output of more than 500 kW are commonly used as they offer the necessary power capacity, efficiency, flexibility, and reliability for industrial, utility-scale, and large-scale applications where significant amounts of electricity and heat are required.
Our in-depth analysis of the global market includes the following segments:
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Fuel Type |
|
|
Power Output |
|
|
Application |
|
|
End User |
|
APAC Market Analysis
The Asia Pacific gas engine market is projected to hold largest revenue share of 42% by the end of 2037. The net gas import in the region showcased a 291% surge in the last two decades, with a net gas import of 24.3% in 2022, finds EIA. The domestic natural gas production has also increased at a rate of 135% in the last 20 years, accounting for a global production share of 16% in 2022, while the total share of gas generated locally stood at 76.1%. Rise in domestic production, electrification, policy measures supporting coal- and oil-to-gas switching, and investments in building gas infrastructure, comprising regasification capacity, and the expansion of distribution and transmission, are among the main drivers.
Gas turbine import trade value in China was USD 9.9 billion in 2022, marking its spot as the top five importers. China and its People’s Liberation Army Air Force (PLAAF) are investing in advancing capabilities to penetrate the aerospace with widespread gas engine manufacturing facilities. The PLAAF aims to operate modern aircraft, comprising the J-31, J-10, and J-20. Beijing has embarked on an indigenization effort to boost in-house aero-derivative gas turbine production to offset foreign dependencies for key capabilities.
North America Market Forecast
North America gas engine market is slated to grow at substantial rate through 2037. The expansion is driven by well-established and extensive energy infrastructure, including natural gas pipelines, storage facilities, and distribution networks. The region has abundant natural gas reserves and a long history of gas production and utilization. This infrastructure provides a reliable and readily available supply of natural gas, which is a common fuel for gas engines.
The U.S. is a key player in the generation of aerospace and automobile subsector. The capacity utilization of manufacturing aerospace and transportation equipment reached 60% in November 2024, as per Fred Economic Data. In 2023, the country consumed 32.50 Tcf of natural gas, which is equivalent to 33.61 quadrillion British thermal units’ quads and 36% of the total U.S. energy consumption. 4% or 1.27 Tcf was consumed for transportation, including gas engines. Approximately most of the natural gas consumption in transportation is by private vehicle fleets and government as compressed and liquefied natural gas.
The gas engine market integrating all internal combustion engine vehicle components, ranging from gas tanks, turbines, to fuel injectors is dominated by market giants like Cummins, Inc. and Mitsubishi Heavy Industries Ltd. To gain a competitive edge other companies are seeking strategic initiatives such as new product launches, geographical expansions, and technological innovation. Some of the key players in the gas engine market include:
Author Credits: Dhruv Bhatia
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