Small Gas Engine Global Market Report 2026

Small gas engines are compact, low-powered internal combustion engines fueled by gasoline and capable of running on gases like coal gas, producer gas, biogas, landfill gas, or natural gas.

These engines come in main displacements of 20 ccs to 100 ccs, 101 ccs to 400 cc, and 401 ccs to 650 ccs. The 20 cc to 100 cc category comprises engines operating within a volume range of 20 cubic centimeters to 100 cubic centimeters. Small gas engines find primary applications in gardening, industrial, and construction contexts, powering various equipment including lawnmowers, chainsaws, string trimmers, hedge trimmers, portable generators, rotary tillers, pressure washers, concrete vibrators, concrete screeds, edgers, leaf blowers, and snow blowers.

Tariffs have affected the small gas engine market by increasing costs of imported engine components, precision parts, and raw materials. Higher duties have raised manufacturing expenses for equipment such as lawnmowers, generators, and construction tools, particularly impacting Asia-Pacific and Latin American producers. These cost pressures have influenced pricing and slowed adoption in price-sensitive markets. However, tariffs have encouraged localized engine manufacturing and component sourcing. This has improved regional supply resilience and supported domestic production capabilities.

The small gas engine market research report is one of a series of new reports from The Business Research Company that provides small gas engine market statistics, including small gas engine industry global market size, regional shares, competitors with a small gas engine market share, detailed small gas engine market segments, market trends and opportunities, and any further data you may need to thrive in the small gas engine industry. This small gas engine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The small gas engine market size has grown steadily in recent years. It will grow from $3.05 billion in 2025 to $3.18 billion in 2026 at a compound annual growth rate (CAGR) of 4.4%. The growth in the historic period can be attributed to growth in construction activities, expansion of gardening equipment usage, demand for portable generators, infrastructure development, industrial mechanization.

The small gas engine market size is expected to see steady growth in the next few years. It will grow to $3.76 billion in 2030 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to urban landscaping demand, infrastructure modernization, adoption of cleaner gas fuels, growth in small-scale construction, increased emergency power needs. Major trends in the forecast period include compact engine design innovation, fuel flexibility enhancement, emission reduction technologies, rising demand for portable equipment, durability improvements for industrial use.

Rising construction activity is expected to drive the growth of the small gas engine market in the coming years. Rising construction activity refers to the increasing development, renovation, and expansion of residential, commercial, and infrastructure projects worldwide. This growth is primarily driven by accelerating urbanization, which is boosting demand for housing, commercial spaces, and public infrastructure. The small gas engine market supports construction activity by providing reliable power solutions for construction-related outdoor equipment, such as generators and material-handling tools used across project sites. For example, in March 2023, Global Construction 2030 projected that global construction output would grow by 85% to reach $15.5 trillion by 2030, led by strong expansion in China, India, and the United States. Consequently, rising construction activity is fueling the growth of the small gas engine market.

Major companies in the small gas engine market are focusing on developing innovative solutions, such as the New-Tech Small Turbine Engine Program, to enhance their market competitiveness. The New-Tech Small Turbine Engine Program is an initiative aimed at developing advanced small turbine engines that incorporate new and innovative technologies. The program is designed to meet the specific needs of the military for unmanned aerial vehicles, reconnaissance aircraft, and other smaller platforms where compact, powerful, and reliable engines are essential. For example, in June 2023, Rolls-Royce, a UK-based engineering company known for its aerospace, defense, marine, and energy products and services, launched the New-Tech Small Turbine Engine Program. These engines are typically small in size and are used in aircraft, drones, and other specialized vehicles or machinery, combining compact design with high performance and reliability.

In September 2024, Yanmar Energy System Co., Ltd., a Japan-based industrial equipment manufacturer, acquired TEDOM Group for an undisclosed amount. The acquisition aims to strengthen Yanmar's presence in the energy sector by combining TEDOM's expertise in cogeneration and energy services with Yanmar's global reach and innovative technologies, fostering sustainable growth and innovative solutions for customers. TEDOM Group, based in the Czech Republic, specializes in the development and production of combined heat and power (CHP) units and energy solutions.

Major companies operating in the small gas engine market are Briggs and Stratton Corporation, Kohler Co., Honda Motor Co. Ltd, Yamaha Motor Corp., Kawasaki Heavy Industries, Kubota Corporation, Kipor Power, Champion Power Equipment, Generac Power Systems Inc., Fuji Heavy Industries Ltd., Fuzhou Launtop M&E Co. Ltd., Liquid Combustion Technology LLC, Lifan Power USA, Zongshen Power, Subaru Corporation, Sinoquip Power, Chongqing Winyou Power Co. Ltd., Lombardini Srl, Wuxi Kipor Power Co. Ltd., Jiangsu Excalibur Power Machinery Co. Ltd., Changzhou ETK Power Machinery Co. Ltd., Taizhou Genour Power Machinery Co. Ltd., Tecumseh Products Company, Robin America Inc., Mitsubishi Heavy Industries Engine & Turbocharger Ltd., Loncin Industries Ltd., Koki Holdings Co. Ltd., SAE Manufacturing Specialties Corp., Triton Duro Power Systems Inc., Performance Assembly Solutions, Central Diesel Inc., Sage Parts

North America was the largest region in the small gas engine market in 2025. The regions covered in the small gas engine market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the small gas engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The small gas engine market consists of sales of 2-stroke and 4-stroke engine. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Small Gas Engine Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses small gas engine market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for small gas engine ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The small gas engine market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Engine Displacement: 20 CC To 100 CC; 101 CC To 400 CC; 401 CC To 650 CC
• 2) By Equipment: Lawnmower; Chainsaw; String Trimmer; Hedge Trimmer; Portable Generator; Rotary Tiller; Pressure Washer; Concrete Vibrators; Concrete Screed; Edger; Leaf Blower; Snow Blower
• 3) By End-Use: Gardening; Industrial; Construction
• Companies Mentioned: Briggs and Stratton Corporation; Kohler Co.; Honda Motor Co. Ltd; Yamaha Motor Corp.; Kawasaki Heavy Industries; Kubota Corporation; Kipor Power; Champion Power Equipment; Generac Power Systems Inc.; Fuji Heavy Industries Ltd.; Fuzhou Launtop M&E Co. Ltd.; Liquid Combustion Technology LLC; Lifan Power USA; Zongshen Power; Subaru Corporation; Sinoquip Power; Chongqing Winyou Power Co. Ltd.; Lombardini Srl; Wuxi Kipor Power Co. Ltd.; Jiangsu Excalibur Power Machinery Co. Ltd.; Changzhou ETK Power Machinery Co. Ltd.; Taizhou Genour Power Machinery Co. Ltd.; Tecumseh Products Company; Robin America Inc.; Mitsubishi Heavy Industries Engine & Turbocharger Ltd.; Loncin Industries Ltd.; Koki Holdings Co. Ltd.; SAE Manufacturing Specialties Corp.; Triton Duro Power Systems Inc.; Performance Assembly Solutions; Central Diesel Inc.; Sage Parts
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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