Market Size (2017)
2017
$3.66B
Vertical: EnPBase Year: 201810 Sections
Market Size (2017)
2017
$3.66B
Projected (2025)
2025
$5.62B
CAGR (2017–2025)
5.5%
5.5%Key Players
108+
The demand for gas engines is growing rapidly in the global market owing to various factors, including the rising shift towards gas-fired power generation and the increasing focus on carbon emission reduction targets.
The global gas engines market is projected to grow at 5.71% CAGR during the forecast period, 2019–2025. In 2018, the global gas engines market was dominated by Europe with a 32.14% share, followed by North America and Asia-Pacific with shares of 22.97% and 20.30%, respectively.
The global gas engines market has been segmented based on fuel type, power output, horsepower, application, end-use, and region. On the basis of fuel type, the global gas engines market has been segmented into natural gas, special gas, and others. The special gas segment is expected to grow at a faster rate during the forecast period. In 2018, the natural gas segment held a share of 67.23% of the global gas engines market.
On the basis of power output, the global gas engines market has been segmented as up to 1 MW, 1–2 MW, 2–5 MW, 5–10 MW, and 10–20 MW. The 1–2 MW segment is expected to grow at a faster rate during the forecast period. In 2018, the up to 1 MW segment held a share of 34.40% in the global gas engines market.
On the basis of horsepower, the global gas engines market has been segmented as Up to 1000 HP, 1000-2000 HP, and above 2000 HP. The up to 1000 HP segment is expected to grow at a faster rate during the forecast period. In 2018, the 1000–2000 HP segment held a 37.23% share of the global gas engines market.
On the basis of application, the global gas engines market has been segmented into power generation, cogeneration, mechanical drive, and others. The cogeneration segment is expected to grow at a faster rate during the forecast period. In 2018, the power generation segment held a 41.01% share of the global gas engines market.
On the basis of end-use, the global gas engines market has been segmented into utilities, manufacturing, oil & gas, mining, and others. The utilities segment is expected to grow at a faster rate during the forecast period. In 2018, the utilities segment held a share of 45.36% in the global gas engines market.
The Gas Engine Market market is projected to grow at a CAGR of 5.5% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansA gas engine is a reciprocating internal combustion engine which runs on gaseous fuels such as natural gas, biogas, landfill gas, and syngas. Gas engines are highly reliable and provide efficiency with low operating and maintenance costs. These gas engines are used for various applications including power generation, cogeneration, trigeneration, mechanical drive, and others.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansMarket estimates by geography (2025)
InsightEurope leads with $1.79B by 2025, while North America is projected to grow fastest at a 6.1% CAGR.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $739.60M | $916.80M | $1.17B | 5.9% | 21% |
| South America | $288.30M | $337.50M | $406.20M | 4.4% | 7% |
| Europe | $1.18B | $1.43B | $1.79B | 5.4% | 32% |
| North America | $835.20M | $1.04B | $1.34B | 6.1% | 24% |
| Middle East and Africa | $616.70M | $739.80M | $912.30M | 5.0% | 16% |
| Total | $3.66B | $4.47B | $5.62B | 5.5% | 100% |
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View Subscription PlansTotal Market Size
$5.62B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Natural Gas | $3.78B | 5.5% | 89% |
| Special Gas | $1.50B | 5.5% | 89% |
| Others | $346.10M | 5.5% | 53% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Gas Engine Market covering market dynamics, competitive landscape, and strategic outlook.
The Gas Engine Market market is projected to reach $5.62B by 2025, growing at 5.5% CAGR. The Natural Gas segment holds the largest share.
The global gas engines market is expected to grow substantially during the forecast period owing to the shift towards gas-fired power generation and the increasing focus on reducing carbon emissions. Moreover, the growing trend of distributed generation is expected to create an opportunity for the players operating in the global market. However, the geopolitical instability in the global market is expected to restrain growth during the forecast period.
According to the BP Statistical Review of World Energy 2019, global natural gas production grew from 3,677.7 billion cubic meters (BCM) in 2017 to 3,867.9 BCM in 2018. Moreover, as per the data from the report mentioned above, the demand for natural gas as a fuel generation source increased from 5952.8 Terawatt-hours (TWh) in 2017 to 6182.8 TWh in 2018. The growth in the production of natural gas can be attributed to the increasing use of natural gas for power generation. The figure below depicts the rise in the global production of natural gas from 2010–2018.
Gas engines used in gas-fired power plants supply power to drive the generator to produce electricity and supply power to various utilities and end-use industries. Gas engines used in power plants also provide additional benefits such as quick start-up, high operational rate, and flexible load efficiency as per the power demand. Such factors are expected to increase the establishment of gas-fired power plants. Many countries across the world, including India and Germany, are focusing on the development of gas-fired power generation plants. In India, as per the National Electricity Plan, 2018, the Indian government is focusing on developing gas-fired power plants. For instance, it plans to construct 38 MW powered gas-based power plants and 34.88 MW gas-based power plants in Andhra Pradesh and Telangana, respectively. Similarly, in Germany, in 2016, the Stadtwerke Kiel (Germany) commenced the construction of gas engine power plants in the country, leading to the increasing need for gas engines. Furthermore, as per the New Policies Scenario of International Energy Agency (IEA), globally, approximately 1,510 GW of gas-fired power plants will be needed by 2040. Such developments increase the establishment of gas-fired power plants worldwide, which will consequently increase the demand for gas engines. Thus, the shift towards gas-fired power generation is expected to drive the global gas engines market during the forecast period.
Distributed generation, also known as decentralized distribution systems, refers to the process of generating electricity near the source of consumption using energy sources, such as solar, wind, fuel cells, biogas, and natural gas. The electricity sector is slowly moving from centralized to distributed power generation due to the various challenges associated with centralized generation, such as environmental pollution, waste generation, and transmission & distribution (T&D) losses. Distributed generation is a technology that can be used to overcome challenges faced by centralized generation and reduce dependence on centralized energy generation sources, such as thermal energy and nuclear power plants. Moreover, distributed generation systems offer several advantages, such as electricity supply to remote areas, reduction in T&D losses, and improved power quality. As per the Rise of Distributed Power Report published by General Electric (US), by 2020, approximately USD 206 billion is expected to be invested annually for the installation of distributed generation systems globally. Utility companies across the world are increasingly adopting distribution generation. For instance, in 2017, in the US, California Public Utilities Commission announced its plans to spend USD 9 billion on developing distributed energy systems in the country. Generally, natural gas and other gases are used in distributed generation for combined heat and power (CHP) to supply electricity to consumers. Gas engine generator sets that are powered by CHP helps enhance the power supply as it provides reliable power with a 60–80% efficiency. Moreover, companies such as General Electric (US) and Airbus (Netherlands) are focused on developing CHP plants for electricity generation and other heating purposes, which is expected to create a demand for gas engines in CHP applications. The use of natural gas as a power generation source in distributed generation is expected to witness high growth. Therefore, the growing trend of distributed generation is expected to create an opportunity for the players operating in the global gas engines market growth during the forecast period.
The development of the pipelines helps in diversifying pipeline supply routes, trading partners, and economic ties between the countries. Geopolitical instability refers to the disturbances caused due to the influence of various geographic and political factors. These factors are major concerns for the players in the oil & gas industry that export and import natural gas. Political instability leads to a delay in the construction of the pipeline projects, which hampers the installation of gas engines as natural gas and other gases are the fuel source of these engines. For instance, the TAPI pipeline project, which was proposed for enabling the gas supply from Turkmenistan to India, got delayed due to various challenges such as political and technological challenges. Internal regional conflicts, changes in oil prices, demand and supply risks, and political extremism result in cancellations, delays, interruptions, and financial losses in pipeline projects. This can lead to projects being scrapped or put on hold. For instance, in 2016, Saipem (Italy) filed an arbitration claim against Gazprom (Russia) worth approximately USD 823 million for the cancellation of a natural gas pipeline project in the Black sea. Moreover, regions that are prone to tsunamis and high tides create challenges for the installation and deployment of pipelines. Pipelines are essential for importing and exporting natural gas across regions. Interruptions in the supply of natural gas will hamper the demand for gas engines in the global market. Therefore, geopolitical instability is expected to restrain the growth of the global gas engines market during the forecast period.
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 108 companies operating in the Gas Engine Market market, including revenue, employee count, and market positioning where available.
Showing 108 of 108 companies
China Yuchai International Limited
China Yuchai International Limited (China Yuchai International) is engaged in the provision of management, financial planning, internal audit services, internal control testing, international financial reporting standard (IFRS) training, business enhancement consulting, and other services. It operates through four segments, namely, heavy-duty engines, medium-duty engines, light-duty engines, and other products and services. The company manufactures diesel and natural gas engines for highway vehicles, generator sets, and marine and industrial applications. China Yuchai International has over 2900 service stations in China and 14 international sales offices. Guangxi Yuchai Machinery Company Limited, Grace Star Services Ltd., Venture Delta Limited, Venture Lewis Limited, Guangxi Yulin Chi Jia Cars Spare Parts Company Limited, and Yuchai Machinery Monopoly Company Limited are some of its subsidiaries.
Volkswagen AG
Volkswagen AG (Volkswagen) operates through two business divisions, namely, financial services and automotive. The automotive division comprises its power engineering business and involves the development of vehicles and engines, production and sales of passenger cars, light commercial vehicles, trucks, motorcycles, large-bore diesel engines, gas engines, turbomachinery, special gear units, propulsion components, and testing system business. The company operates through four business segments, namely, passenger cars, commercial vehicles, power engineering, and financial services. It offers gas engines through its subsidiary, MAN. Volkswagen offers its products through various brands, including Audi, SKODA, SEAT, Bentley, Porsche Automotive, Scania, and MAN commercial vehicles. It has 122 manufacturing plants worldwide. The company has a strong presence in North America, South America, Asia-Pacific, and Europe. MAN SE, TRATON SE, and RENK AG are a few of its subsidiaries.
MITSUBISHI HEAVY INDUSTRIES LTD
Company Headquarters: Tokyo, Japan Founded: 1884 Workforce: ~ 77,778 employes Primary Industry: Energy, Space, Defense, Aviation, Logistics, Engineering, Data Center Specialties: Thermal power systems, gas and steam turbines, nuclear power equipment, aerospace systems, shipbuilding, compressors, environmental systems, and diesel generator sets Company Working: Mitsubishi Heavy Industries, Ltd. (MHI) is a leading Japanese multinational engineering and manufacturing company that operates across diverse sectors, with a strong presence in power systems, industrial machinery, aerospace, shipbuilding, and energy solutions. Within the power generation space, MHI has established itself as a global leader in delivering advanced, reliable, and efficient energy systems that cater to residential, commercial, and large-scale industrial requirements. Its portfolio spans a wide capacity range, including diesel and gas generator sets, gas turbines, steam turbines, and complete power plant solutions capable of meeting both prime and standby power demands. MHI’s operations are supported by advanced manufacturing facilities in Japan and worldwide, coupled with a robust global distribution and service network. This ensures localized expertise, high-quality engineering, and timely service for clients across multiple geographies. Beyond conventional generator sets, MHI also provides packaged power solutions, acoustic enclosures, intelligent control systems, and turnkey engineering, procurement, and construction (EPC) services to meet market requirements for integrated energy solutions. Aligned with global sustainability trends, MHI is actively engaged in developing hybrid and low-carbon energy solutions that integrate conventional generator systems with renewable energy sources, energy storage, and hydrogen-based technologies. This reflects the company’s long-term commitment to reducing carbon emissions and supporting the transition to cleaner, more sustainable power generation. The company’s engineering capabilities are among the most advanced globally, enabling it to design customized energy solutions for industries such as utilities, data centers, oil & gas, healthcare, infrastructure, and transportation. MHI’s product and service offerings also include associated systems like compressors, boilers, fuel supply systems, monitoring platforms, and advanced environmental technologies, providing a fully integrated approach to energy management. After-sales service is a cornerstone of MHI’s business model, with comprehensive maintenance programs, spare parts support, remote monitoring, and technical training ensuring long-term reliability and performance of its equipment. Operating in a highly competitive energy landscape alongside global players such as Siemens Energy, General Electric, and Caterpillar, MHI differentiates itself through its technological expertise, broad product portfolio, and ability to deliver large-scale, innovative, and sustainable solutions. To address evolving global energy challenges, MHI is expanding into smart grid, microgrid, and hydrogen-ready applications, where traditional and renewable systems are integrated with intelligent digital controls to deliver flexible, resilient, and low-emission energy. By leveraging its legacy of engineering excellence and its focus on decarbonization, Mitsubishi Heavy Industries positions itself as a pivotal player in shaping the future of global power generation and energy infrastructure
Yanmar Co Ltd
Company Headquarters: Osaka, Osaka, Japan Founded: 1912 Workforce: ~ 10,001+ employes Primary Industry: Industrial Machinery Manufacturing Specialties: Industrial Engine. Vertical Water-cooled Diesel Engines. Horizontal Water-cooled Diesel Engines. Air Cooled Diesel Engines Company Working: Yanmar Co. Ltd. is a Japanese manufacturing company best known for its expertise in diesel engines, agricultural machinery, and construction equipment, and it also maintains a significant role in the genset market. The company produces a wide range of generator sets powered primarily by its own diesel engines, covering applications from small portable units to larger stationary and industrial systems designed for continuous, prime, or standby power. Yanmar’s gensets are used in diverse sectors including construction, agriculture, marine, telecommunications, data centers, healthcare, and residential backup, making them suitable for both rural and urban power needs. In addition to conventional diesel generator sets, the company has expanded into gas-powered solutions and hybrid configurations that integrate renewable energy inputs, battery storage, and digital control systems to improve fuel efficiency and reduce environmental impact. Its engineering background in compact and efficient diesel engines provides a strong foundation for genset design, allowing the company to align its offerings with regional regulatory requirements while addressing global demand for flexible and reliable distributed energy systems. Yanmar operates through a network of production sites, subsidiaries, and distributors across multiple continents, ensuring global reach and localized service support for its generator business. The company also emphasizes lifecycle support through training, parts availability, and maintenance programs, which enhance the long-term reliability of its genset products. Within the competitive landscape, Yanmar positions itself among other established global manufacturers by leveraging its integration of in-house engine technology with generator system design, offering solutions that can adapt to a wide variety of operational contexts. The genset business also benefits from the company’s diversification into marine engines, agricultural machinery, and construction equipment, which strengthens its technical base and expands its customer ecosystem. Yanmar has also pursued research into cleaner fuels, electrification, and hybrid energy systems, reflecting its adaptation to evolving energy trends and the increasing demand for reduced-emission power sources. As a result, its genset operations combine engineering expertise, global distribution, and hybrid-ready solutions, allowing the company to serve a wide spectrum of customers ranging from individual households to industrial-scale facilities. This integration of core diesel technology with ongoing innovation in hybrid and alternative power positions Yanmar as an important and adaptable participant in the global genset market
Rolls-Royce plc
Rolls-Royce plc (Rolls-Royce) is a multinational conglomerate that offers a wide range of products, including aircraft engines, power generation systems, submarine propulsion systems, reciprocating engines, and control & monitoring systems. It offers gas engines through its subsidiary, BERGEN ENGINES A/S. The company operates through five business segments, namely, civil aerospace, power systems, defense, ITP aero, and non-core businesses. It offers distributed energy systems, gas engines, propulsion systems, and generators through its power systems segment. Furthermore, it offers a wide range of diesel and gas engines for emergency, peak load, and baseload power generation systems. Rolls-Royce offers its products and services across more than 50 countries globally. It has operations in countries such as the US, Canada, Mexico, China, Norway, France, Italy, Russia, Germany, India, Japan, Poland, the UAE, Saudi Arabia, Qatar, Australia, Brazil, and the UK. BERGEN ENGINES A/S, Bergen Engines India Private Limited, MTU China Company Limited, MTU France SAS, and MTU Onsite Energy GmbH are some of the subsidiaries of the company.
Kohler Co.
Company Headquarters: United States Founded: 1873 Workforce: ~10,000 employes Industry: Power generation, Diesel Generators, Gas Generators, Rental Power Specialties: Power System, Kitchen and Bath equipment Company Working: Kohler Co. is a diversified American manufacturing company with operations spanning plumbing products, engines, and energy systems, and it has built a significant role in the global genset market. Through its energy division, the company designs and produces generator sets for residential, commercial, industrial, marine, and data center applications, supplying a wide spectrum of power solutions across different sizes and configurations. Its genset operations extend across multiple continents, supported by production facilities in North America, Europe, Asia, and South America, giving it a wide-reaching supply chain and service network. Kohler’s portfolio includes both diesel and gas-powered generators, as well as hybrid systems that integrate energy storage and digital controls for improved efficiency and resilience. Within the global genset industry, the company operates alongside other major multinational players, maintaining a strong market position through a combination of established technical expertise and geographic scale. The business has expanded its presence through acquisitions, most notably in Europe, which strengthened its position as a key supplier of large-scale generator systems to both industrial and infrastructure markets. Its product lines cover everything from small residential backup units to high-capacity industrial gensets, serving sectors such as healthcare, telecommunications, construction, mining, events, and critical infrastructure. Kohler has also pursued developments in cleaner fuel applications and hybridized energy systems, aligning its genset portfolio with changing industry demands for reduced environmental impact and integration with renewable and distributed energy sources. The company’s long-standing experience in engine design provides a strong technical foundation for its genset production, while its service capabilities include maintenance, training, and operational support through a global network of distributors and partners. This combination of engineering expertise, international reach, and a diversified portfolio positions Kohler as a significant player in the generator set sector, able to address the requirements of customers ranging from individual households to complex industrial operations in both developed and emerging markets.
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Gas Engine Market