Gas Engines Global Market Report 2026

A gas engine is an internal combustion engine designed to combust gaseous fuels such as natural gas and blast furnace gas to generate gas. These engines find applications in renewable energy production and grid balancing.

Gas engines primarily utilize natural gas, special gas, and other fuel types. Natural gas engines, specifically, are internal combustion engines ignited by sparks and fueled by natural gas, commonly employed in vehicles. They come in different power output categories, including 1-2 MW, 2-5 MW, 5-15 MW, and above 15 MW. These engines are utilized in diverse applications such as power generation, mechanical drive, cogeneration, and other fields, catering to end users such as utilities, marine, oil and gas, manufacturing, and other sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are affecting the gas engines market by raising the prices of imported engine components such as turbochargers, ignition systems, control electronics, and precision-machined parts. Power generation, oil and gas, and industrial manufacturing users in North America and Europe are most impacted due to dependence on imported high-capacity engines and subcomponents. Asia-Pacific exporters are also facing pricing pressure in international markets. On the positive side, tariffs are accelerating domestic engine manufacturing, localization of component supply chains, and innovation in modular and fuel-flexible gas engine designs.

The gas engine market research report is one of a series of new reports from The Business Research Company that provides gas engine market statistics, including gas engine industry global market size, regional shares, competitors with a gas engine market share, detailed gas engine market segments, market trends, and opportunities, and any further data you may need to thrive in the gas engine industry. This 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 gas engines market size has grown strongly in recent years. It will grow from $5.38 billion in 2025 to $5.66 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to expansion of natural gas infrastructure, increased use in power generation facilities, growing industrial demand for captive power, adoption of gas engines in marine applications, availability of cost-effective gas fuels.

The gas engines market size is expected to see strong growth in the next few years. It will grow to $6.92 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to increasing investments in renewable-integrated power systems, rising demand for low-emission engines, expansion of hydrogen-ready engine technologies, growth in decentralized energy generation, increasing adoption in microgrid systems. Major trends in the forecast period include expansion of gas engines for distributed power, increasing use of biogas and alternative fuels, growing demand for high-efficiency gas engines, rising adoption in grid balancing applications, integration of digital engine management systems.

Rising use of natural gas for power generation is expected to drive the growth of the gas engine market. Power generation involves producing electricity from sources such as fossil fuels, nuclear plants, and hydropower, including both combined heat and power (CHP) and electricity-only facilities. The modularity and high cost-efficiency of gas engines make them an optimal solution for stable power needs. For example, in December 2023, the International Energy Agency, a France-based energy authority, reported that natural gas supplied more than half of U.S. electricity demand for the first time on August 28, 2023, with its share of the summer power mix rising from 40% to 45% over two years. Consequently, increasing natural gas usage for power generation is driving demand for gas engines.

Key companies in the gas engine market are developing high-efficiency natural gas engine cogeneration systems to maintain a competitive edge. Engine cogeneration systems, or CHP systems, simultaneously generate electricity and useful heat from a single energy source, typically an internal combustion engine. For instance, in March 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., a Japan-based engines and power systems company, launched the SGP M2000, a natural gas engine cogeneration system with a 2,000 kW generation output. It features a 16-cylinder natural gas-fired engine, the G16NB, achieving 44.3% electrical efficiency-a 1.8 percentage point improvement over MHIET's 1,000 kW gas engine system-while reducing footprint by 40%. Designed for distributed energy resources (DER), the SGP M2000 maximizes efficiency and minimizes environmental impact, supporting carbon neutrality initiatives.

In August 2024, DEUTZ AG, a Germany-based company specializing in engine industrial machinery and equipment, acquired Blue Star Power Systems, Inc. for an undisclosed amount. This acquisition aims to transform DEUTZ from a component manufacturer into a comprehensive solutions provider for decentralized electricity generation. It allows the company to enter the rapidly expanding genset market in the USA, with anticipated additional annual revenues exceeding US$ 100 million. The acquisition also facilitates the strategic expansion of DEUTZ's energy-related business models while enhancing its portfolio of sustainable products in response to the growing global electricity demands and the increasing importance of renewable energy sources. Blue Star Power Systems, Inc. is a US-based provider of power generation systems, including diesel and gaseous-driven generators.

Major companies operating in the gas engines market are Caterpillar Inc., Cummins Inc., Wartsila Oyj Abp, Mitsubishi Heavy Industries Ltd., Hyundai Heavy Industries Co. Ltd., Maschinenfabrik Augsburg-Nurnberg AG (MAN Energy Solutions), General Electric Company, Kawasaki Heavy Industries Ltd., Liebherr-International AG, Kohler Co., Yanmar Co. Ltd., Perkins Engines Company Limited, Doosan Group, INNIO Jenbacher GmbH & Co. OG, Deutz AG, Guascor Power, Dresser-Rand, Motoren- und Turbinen-Union Friedrichshafen GmbH (Rolls-Royce Power Systems / MTU), Fairbanks Morse LLC, Jinan Lvneng Power Machinery Equipment Co. Ltd., Ningbo C.S.I. Power & Machinery Group Co. Ltd., Baudouin, CNPC Jichai Power Complex, Googol Engine Tech Co. Ltd., Lombardini Srl, Chongqing Winyou Power Co. Ltd., Briggs & Stratton Corporation, KUBOTA Corporation, Generac Power Systems Inc.

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

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

The gas engine market consists of sales of stoichiometric Otto cycle engines, biogas engines, and shale gas engines. 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.

Gas Engines 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 gas engines 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 gas engines ? 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 gas engines 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 Fuel Type: Natural Gas; Special Gas; Other Fuel Type
• 2) By Power Output: 1-2 MW; 2-5 MW; 5-15 MW; Above 15 MW
• 3) By Application: Power Generation; Mechanical Drive; Cogenerations; Other Applications
• 4) By End User: Utilities; Marine; Oil And Gas; Manufacturing; Other End Users
• Subsegments:
• 1) By Natural Gas: Compressed Natural Gas (CNG); Liquefied Natural Gas (LNG)
• 2) By Special Gas: Biogas; Landfill Gas; Synthesis Gas
• 3) By Other Fuel Types: Propane; Hydrogen
• Companies Mentioned: Caterpillar Inc.; Cummins Inc.; Wartsila Oyj Abp; Mitsubishi Heavy Industries Ltd.; Hyundai Heavy Industries Co. Ltd.; Maschinenfabrik Augsburg-Nurnberg AG (MAN Energy Solutions); General Electric Company; Kawasaki Heavy Industries Ltd.; Liebherr-International AG; Kohler Co.; Yanmar Co. Ltd.; Perkins Engines Company Limited; Doosan Group; INNIO Jenbacher GmbH & Co. OG; Deutz AG; Guascor Power; Dresser-Rand; Motoren- und Turbinen-Union Friedrichshafen GmbH (Rolls-Royce Power Systems / MTU); Fairbanks Morse LLC; Jinan Lvneng Power Machinery Equipment Co. Ltd.; Ningbo C.S.I. Power & Machinery Group Co. Ltd.; Baudouin; CNPC Jichai Power Complex; Googol Engine Tech Co. Ltd.; Lombardini Srl; Chongqing Winyou Power Co. Ltd.; Briggs & Stratton Corporation; KUBOTA Corporation; Generac Power Systems Inc.
• 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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