Gas Engine Market Trends
Growth Drivers
- Favorable Environmental Regulations – Stringent environmental regulations and the need to reduce greenhouse gas emissions are driving the shift towards cleaner and more sustainable energy sources worldwide. Gas engines, particularly those running on natural gas or biogas, emit lower levels of pollutants, such as carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter compared to traditional fossil fuels. The environmental advantages of gas engines make them an attractive choice for industries, power generation, and transportation sectors aiming to meet emissions targets and improve air quality.
On April 2023, the Environmental Protection Agency (EPA), a U.S. government agency, issued a proposal for more stringent standards for minimizing greenhouse gas emissions from heavy-duty (HD) cars beginning in model year (MY) 2027. The revised regulations would apply to HD vocational as well as tractors.
- Growing Demand for Distributed Power Generation – Gas engines are well-suited for decentralized or distributed power generation systems. Gas engines can be used in combined heat and power (CHP) applications, where waste heat from the engine is captured and utilized for heating or industrial processes, significantly improving overall system efficiency. The distributed generation capability makes gas engines appealing for industries, commercial buildings, and residential applications seeking reliable and efficient power solutions.
Challenges
- Fuel Availability and Infrastructure – The availability and accessibility of gas fuels, such as natural gas, biogas, and others can be a challenge in certain regions. Limited gas infrastructure, including pipelines and refueling stations, hinders the widespread adoption of gas engines.
- Higher Capital Cost
- Natural Gas Trade Crises
Global Gas Engine Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
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 |
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