Gas Engine Market by Fuel Type (Natural Gas & Special Gas), Application (Power Generation, Co-generation, & Mechanical Drive), End-User (Utilities, Manufacturing, & Oil & Gas), Power Output, and Region - Global Forecast to 2022
[166 Pages report] The global gas engine market is estimated to be USD 3.54 Billion in 2017 and is expected to grow at a CAGR of 6.12% from 2017 to 2022 to reach the market size of USD 4.76 Billion by 2022. This growth can be attributed to the increased demand for power generation.
The years considered for the study are as follows:
- Base Year: 2016
- Estimated Year: 2017
- Projected Year: 2022
- Forecast Period: 2017 to 2022
The base year considered for company profiles is 2016. Whenever information was unavailable for the base year, the prior year has been considered.
Selected Market Dynamics in Gas Engine Market
Decline in natural gas prices
The advent of hydraulic fracturing technology has made it possible to extract oil and gas trapped below shale rock formations, which was previously thought to be uneconomical. Since 2007, the US market has witnessed the large-scale production of natural gas from these shale reserves; this has been dubbed the “shale revolution”.
Abundant production has resulted in a sharp decline in natural gas prices in the US market as well as price corrections in the global natural gas market. The Henry Hub natural gas spot price was USD 2.61 per Btu in 2015, the lowest since 1999. Comparatively low natural gas prices have led to an increased use of natural gas engines for electricity generation. The low cost of natural gas fuel has become an attractive option for use in utility power generation, and the utilities sector has since embraced natural gas-fired power plants as one the cheapest methods of large scale electricity generation.
Price disparity across regional markets
Gas importers experience disparity in prices, as production and supply of most of the world’s natural gas is concentrated in a few countries. While 40% of the total natural gas production comes from the US and Russia, nearly two-thirds of the total global reserves are located in Russia, Iran, and Qatar. The trade of liquefied natural gas (LNG) is highly localized with only 14% traded in international markets, compared to more than 70% of crude oil. Hence, pricing negotiations are mostly carried out confidentially for large supply agreements, such as the one between Russia's Gazprom and China National Petroleum Corporation in 2014. Utilities in North America pay a much lower cost for natural gas than those in other countries that heavily depend on imports, such as India. India has a natural gas-fired power plant capacity of nearly 24,000 MW, only 20% of which was operational in 2014, largely due to the high cost of imported natural gas. As a result, the price disparity in the international trade of natural gas restrains the gas engine market.
Objectives of the Study
- To define, describe, and forecast the global market by power output, application, fuel type, end-user, and region.
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To strategically analyze the market with respect to individual growth trends, future prospects, and contribution of each segment to the market
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To track and analyze competitive developments such as contracts & agreements, partnerships, and collaborations in the market
Research Methodology
This research study involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg Businessweek, Factiva, and OneSource, to identify and collect information useful for a technical, market-oriented, and commercial study of the global market. Primary sources are mainly industry experts from core and related industries, preferred suppliers, manufacturers, distributors, service providers, technology developers, standards and certification organizations of companies, and organizations related to all the segments of this industry’s value chain. The research methodology has been explained below.
- Study of annual revenues and market developments of the major players that manufacturers gas engines.
- Assessment of future trends and growth of end-users in the market.
- Assessment of the market with respect to the type of gas engines used by various end-users in various applications.
- Study of the market trends in various regions or countries supported by the type of gas engines.
- Study of contracts & developments related to the market by key players across different regions.
- Finalization of the overall market sizes by triangulating the supply-side data, which includes product developments, supply chain, and annual revenues of companies manufacturing gas engines across the globe.
After arriving at the overall market size, the total market has been split into several segments and subsegments. The figure given below illustrates the breakdown of primaries conducted during the research study on the basis of company type, designation, and region.
To know about the assumptions considered for the study, download the pdf brochure
Market Ecosystem
The ecosystem of gas engine starts with the parent market which is further categorized, by power output, into 0.5 MW–1 MW, 1 MW–2 MW, 2 MW–5 MW, 5 MW–10 MW, and 10.0 MW–20.0 MW. The market is segmented, by fuel type, into natural gas, special gas, which includes biogas, landfill gas & sewage gas, and others, which includes producer gas, coal mine gas, wood gas, and propane gas. It has been further categorized into end-user type, into power generation and mechanical drive.
Target Audience:
The report’s target audience includes:
- Gas engine manufacturing companies
- Raw material suppliers
- Institutional investors
- Associations
- Government and research organizations
- National and local government organizations
Scope of the Report:
The market has been segmented as follows.
By Fuel Type:
- Natural Gas
- Special Gas
- Others
By Power Output:
- 0.5 MW–1 MW
- 1 MW–2 MW
- 2 MW–5 MW
- 5 MW–10 MW
- 10 MW–20 MW
By Application:
- Power Generation
- Co-generation
- Others
By End-User:
- Utilities
- Manufacturing
- Oil & Gas
- Others
(The report also covers the end-use application of gas engines)
By Region:
- North America
- South America
- Asia Pacific
- Middle East & Africa
- Europe
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Regional Analysis
Further breakdown of region-/country-specific analyses
Company Information
Detailed analyses and profiling of additional market players (up to five)
The global gas engine market is expected to grow at a CAGR of 6.12%, from 2017 to 2022, to reach a projected USD 4.76 Billion by 2022. The growth will be mainly driven by an increase in the demand for clean power generation across globe.
The report segments the market, on the basis of fuel type, into natural gas, special gas, which includes biogas, landfill gas & sewage gas, and others, which includes producer gas, coal mine gas, wood gas & propane gas. The natural gas segment led the market, by fuel type, and is used in base load power generation and CHP (combined heat and power) applications. Natural gas fueled gas engines are mainly used for the power generation application by utilities and manufacturing facilities. The gas engines ranging between 5 MW–20 MW mostly utilizes natural gas. The special gas segment is also the fastest growing market due to increased adaptation of biogas and landfill gas in power generation application. Countries around the world are offering subsidies for the biogas and landfill run power plants.
The global market, by application, is segmented into power generation, co-generation, mechanical drive, and others which include tri-generation, quad-generation, and greenhouse. Power generation is leading the global market and trend is expected to continue during the forecast period. Manufacturing plants, commercial buildings, public buildings, and utilities are mainly deploys gas engines for power generation application. The gas engines are suitable for base load, grid support, combined cycle, peak shaving, and distributed power generation applications. The market for gas engines for power generation is mainly driven by the growing demand for global power requirement, especially in regions such as Europe, the Americas and Asia Pacific. Co-generation application segment is expected to grow at high CAGR during the forecast period. The growth of co-generation application is mainly attributed to the increasing installed capacity of gas fueled CHP power plants in cold climate countries.
The report further segments market, by end user into Utilities, manufacturing, oil & gas, and others which include commercial complex, hospitals, wastewater treatment plants and greenhouse. The utilities segment is leading the market. Utilities mainly deploys the gas engines for the base load and peak load power generation. Falling natural gas prices and improved natural gas distribution network are driving the growth of the utilities segment.
The report segments the market by power output into 0.5 MW–1 MW, 1 MW–2 MW, 2 MW–5 MW, 5 MW–10 MW, and 10 MW–20 MW. The 1 MW-2 MW gas engines held the major market share in 2016. The growth of 1 MW–2 MW gas engines mainly attributed to increasing demand of continuous power from small to mid-range manufacturing facilities, commercial buildings, and hospitals. These engines are can be run on various gases fuel such as natural gas, biogas, special gas, and landfill gas. Cost effectiveness and option for multiple fuel is the main driver for the growth of 1 MW– 2 MW gas engines. The 0.5 MW–1 MW gas engines are mainly used for the emergency or standby power application. These engines also find its application in the oil & gas industry as prime mover for compressors and pumps.
The European market is the largest, by size, and is estimated to grow at the highest rate during the forecast period. Due to stringent environmental norms and low natural gas price, the European market for gas engines is expected to dominate global market during the forecast period.
The major factor restraining the growth of the market is inconsistent availability and supply of natural gas in global market. The power generation sector is an energy-intensive sector and energy costs contribute to nearly a third of the manufacturing costs. A majority of the gas engines manufacturers rely on global power generation demand and the high volatility in natural gas prices has become a major restraining factor affecting the growth of the market.
The market is dominated by a few international players such as, General Electric Company (U.S.), Caterpillar Inc. (U.S.), Wärtsilä Corporation (Finland), Rolls-Royce Holdings plc (U.K.), Cummins Inc. (U.S.) that hold a major share of the global gas engine market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
Table of Contents
1 Introduction (Page No. - 14)
1.1 Objectives
1.2 Market Definition
1.3 Market Scope
1.3.1 Markets Covered
1.3.2 Years Considered for the Study
1.3.3 Currency
1.4 Limitations
1.5 Stakeholders
2 Research Methodology (Page No. - 17)
2.1 Research Data
2.1.1 Secondary Data
2.1.1.1 Key Data From Secondary Sources
2.1.2 Primary Data
2.1.2.1 Key Data From Primary Sources
2.1.2.2 Breakdown of Primary Interviews
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.2 Top-Down Approach
2.3 Data Triangulation
2.4 Research Assumptions & Limitations
2.4.1 Assumptions
3 Executive Summary (Page No. - 25)
4 Premium Insights (Page No. - 30)
4.1 Attractive Opportunities in the Gas Engine Market
4.2 Gas Engine, By Application
4.3 European Gas Engine, By End-User & Region
4.4 Gas Engine, By Fuel Type
5 Market Overview (Page No. - 32)
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Fall in Natural Gas Prices
5.2.1.2 Clean and Efficient Power Generation Technology
5.2.1.3 Carbon Emission Reduction Targets
5.2.2 Restraints
5.2.2.1 Price Disparity Across Regional Markets
5.2.2.2 Political Uncertainties Impacting the Supply of Natural Gas
5.2.3 Opportunities
5.2.3.1 Shift Toward Gas-Fired Power Plants
5.2.3.2 Growing Trend of Distributed Power Generation
5.2.4 Challenges
5.2.4.1 Limited Natural Gas Reserves
5.2.4.2 Infrastructure Concerns
6 Gas Engine Market, By Fuel Type (Page No. - 40)
6.1 Introduction
6.2 Natural Gas
6.3 Special Gas
6.4 Others
7 Gas Engine, By Power Output (Page No. - 44)
7.1 Introduction
7.2 0.5–1 MW
7.3 1–2 MW
7.4 2–5 MW
7.5 5–10 MW
7.6 10–20 MW
8 Gas Engine, By Application (Page No. - 50)
8.1 Introduction
8.2 Power Generation
8.3 Cogeneration
8.4 Mechanical Drive
8.5 Others
9 Gas Engine, By End-User (Page No. - 55)
9.1 Introduction
9.2 Utilities
9.3 Manufacturing
9.4 Oil & Gas
9.5 Others
10 Gas Engine, By Region (Page No. - 60)
10.1 Introduction
10.2 Europe
10.2.1 By Fuel Type
10.2.2 By Power Output
10.2.3 By Application
10.2.4 By End-User
10.2.5 By Country
10.2.5.1 Germany
10.2.5.2 UK
10.2.5.3 Russia
10.2.5.4 Italy
10.2.5.5 Turkey
10.2.5.6 Rest of Europe
10.3 North America
10.3.1 By Fuel Type
10.3.2 By Power Output
10.3.3 By Application
10.3.4 By End-User
10.3.5 By Country
10.3.5.1 US
10.3.5.2 Mexico
10.3.5.3 Canada
10.4 Asia Pacific
10.4.1 By Fuel Type
10.4.2 By Power Output
10.4.3 By Application
10.4.4 By End-User
10.4.5 By Country
10.4.5.1 China
10.4.5.2 Japan
10.4.5.3 India
10.4.5.4 Rest of Asia Pacific
10.5 Middle East & Africa
10.5.1 By Fuel Type
10.5.2 By Power Output
10.5.3 By Application
10.5.4 By End-User
10.5.5 By Country
10.5.5.1 Saudi Arabia
10.5.5.2 UAE
10.5.5.3 Egypt
10.5.5.4 Nigeria
10.5.5.5 Rest of the Middle East & Africa
10.6 South America
10.6.1 By Fuel Type
10.6.2 By Power Output
10.6.3 By Application
10.6.4 By End-User
10.6.5 By Country
10.6.5.1 Brazil
10.6.5.2 Argentina
10.6.5.3 Rest of South America
11 Competitive Landscape (Page No. - 93)
11.1 Overview
11.2 Market Ranking By Revenue Share, Gas Engines
11.3 Competitive Leadership Mapping
11.3.1 Visionary Leaders
11.3.2 Innovators
11.3.3 Dynamic Differentiators
11.3.4 Emerging Companies
12 Company Profiles (Page No. - 101)
(Overview, Strength of Product Portfolio, Business Strategy Excellence, Products Offering, Recent Development’s, Business Strategy)*
12.1 Introduction
12.2 General Electric Company
12.3 Caterpillar, Inc.
12.4 Wärtsilä Corporation
12.5 Rolls-Royce Holdings Plc
12.6 Cummins Inc.
12.7 Siemens AG
12.8 MAN SE
12.9 Mitsubishi Heavy Industries, Ltd.
12.10 Kawasaki Heavy Industries, Ltd.
12.11 Liebherr Group
12.12 JFE Holdings, Inc.
12.13 Hyundai Heavy Industries Co., Ltd.
12.14 Niigata Power Systems Co., Ltd
*Details on Overview, Strength of Product Portfolio, Business, Strategy Excellence, Products Offering, Recent Development’s, Business Strategy Might Not Be Captured in Case of Unlisted Companies.
13 Appendix (Page No. - 157)
13.1 Insights of Industry Experts
13.2 Discussion Guide
13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
13.4 Introducing RT: Real-Time Market Intelligence
13.5 Available Customizations
13.6 Related Reports
13.7 Author Details
List of Tables (70 Tables)
Table 1 Gas Engine Industry Snapshot
Table 2 Pounds of Air Pollutant Produced Per Billion Btu of Energy (US Eia Emissions 1998)
Table 3 The US: Coal-Fired Power Plant Retirement Announcements Since November 2013
Table 4 Market, By Fuel Type 2015–2022 (USD Million)
Table 5 Natural Gas: Market, By Region, 2015–2022 (USD Million)
Table 6 Special Gas: Market, By Region, 2015–2022 (USD Million)
Table 7 Others: Market, By Region, 2015–2022 (USD Million)
Table 8 Market, By Power Output, 2015–2022 (USD Million)
Table 9 0.5–1 MW: Market, By Region, 2015–2022 (USD Million)
Table 10 1–2 MW: Market, By Region, 2015–2022 (USD Million)
Table 11 2–5 MW: Market, By Region, 2015–2022 (USD Million)
Table 12 5–10 MW: Market, By Region, 2015–2022 (USD Million)
Table 13 10–20 MW: Market, By Region, 2015–2022 (USD Million)
Table 14 Market, By Application, 2015–2022 (USD Million)
Table 15 Power Generation: Market, By Region, 2015–2022 (USD Million)
Table 16 Cogeneration: Market, By Region, 2015–2022 (USD Million)
Table 17 Mechanical Drive: Market, By Region, 2015–2022 (USD Million)
Table 18 Others: Market, By Region, 2015–2022 (USD Million)
Table 19 Market, By End-User, 2015–2022 (USD Million)
Table 20 Utilities: Market, By Region, 2015–2022 (USD Million)
Table 21 Manufacturing: Market, By Region, 2015–2022 (USD Million)
Table 22 Oil & Gas: Market, By Region, 2015–2022 (USD Million)
Table 23 Others: Market, By Region, 2015–2022 (USD Million)
Table 24 Market, By Region, 2015–2022 (USD Million)
Table 25 Europe: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 26 Europe: Market Size, By Power Output, 2015–2022 (USD Million)
Table 27 Europe: Market Size, By Application, 2015–2022 (USD Million)
Table 28 Europe: Market Size, By End-User, 2015–2022 (USD Million)
Table 29 Europe: Market Size, By Country, 2015–2022 (USD Million)
Table 30 Germany: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 31 UK: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 32 Russia: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 33 Italy: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 34 Turkey: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 35 The Rest of Europe: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 36 North America: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 37 Europe: Market Size, By Power Output, 2015–2022 (USD Million)
Table 38 North America: Market Size, By Application, 2015–2022 (USD Million)
Table 39 North America: Market Size, By End-User, 2015–2022 (USD Million)
Table 40 North America: Market Size, By Country, 2015–2022 (USD Million)
Table 41 The US.: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 42 Mexico: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 43 Canada: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 44 Asia Pacific: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 45 Asia Pacific: Market Size, By Power Output, 2015–2022 (USD Million)
Table 46 Asia Pacific: Market Size, By Application, 2015–2022 (USD Million)
Table 47 Asia Pacific: Market Size, By End-User, 2015–2022 (USD Million)
Table 48 Asia Pacific: Market Size, By Country, 2015–2022 (USD Million)
Table 49 China: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 50 Japan: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 51 India: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 52 The Rest of Asia Pacific: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 53 The Middle East & Africa: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 54 The Middle East & Africa: Market Size, By Power Output, 2015–2022 (USD Million)
Table 55 The Middle East & Africa: Market Size, By Application, 2015–2022 (USD Million)
Table 56 The Middle East & Africa: Market Size, By End-User, 2015–2022 (USD Million)
Table 57 The Middle East & Africa: Market Size, By Country, 2015–2022 (USD Million)
Table 58 Saudi Arabia: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 59 The UAE: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 60 Egypt: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 61 Nigeria: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 62 Rest of the Middle East & Africa: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 63 South America: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 64 South America: Market Size, By Power Output, 2015–2022 (USD Million)
Table 65 South America: Market Size, By Application, 2015–2022 (USD Million)
Table 66 South America: Market Size, By End-User, 2015–2022 (USD Million)
Table 67 South America: Market Size, By Country, 2015–2022 (USD Million)
Table 68 Brazil: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 69 Argentina: Market Size, By Fuel Type, 2015–2022 (USD Million)
Table 70 The Rest of South America: Market Size, By Fuel Type, 2015–2022 (USD Million)
List of Figures (46 Figures)
Figure 1 Market Segmentation
Figure 2 Gas Engine: Research Design
Figure 3 Breakdown of Primary Interviews: By Company Type, Designation, & Region
Figure 4 Market Size Estimation Methodology: Bottom-Up Approach
Figure 5 Market Size Estimation Methodology: Top-Down Approach
Figure 6 Market: Data Triangulation
Figure 7 Market, By Region, 2015–2022 (USD Million)
Figure 8 1–2 MW Segment Led the Gas Engine Industry, By Power Output, 2016
Figure 9 Utilities Was the Major End-User of the Market, 2016
Figure 10 Contracts & Agreements Was the Key Strategy Adopted By Players in the Market, 2014–2017
Figure 11 Opportunities in the Utilities & Manufacturing End-User Segments, Gas Engine Industry, 2017–2022
Figure 12 Power Generation Market is Expected to Lead the Gas Engine Industry in the Application Segment, 2017–2022
Figure 13 Russia Led the Market in Europe, 2016
Figure 14 Natural Gas Segment Dominated the Market, By Fuel Type, 2016
Figure 15 Market Dynamics of the Gas Engine
Figure 16 Natural Gas Production (BCM), 2012–2016
Figure 17 Natural Gas Price Trend, 2011– 2015
Figure 18 Emission Targets in Key Countries By 2020
Figure 19 Natural Gas Reserve to Production Ratio (In Terms of Number of Years), 2015
Figure 20 Market, By Fuel Type, 2017–2022 (USD Million)
Figure 21 Market, By Power Output, 2017–2022 (USD Million)
Figure 22 Market, By Application, 2017–2022 (USD Million)
Figure 23 Market, By End-User, 2017–2022 (USD Million)
Figure 24 Market, By Region, 2017–2022 (USD Million)
Figure 25 Regional Snapshot: CAGR of the Market in Major Countries, 2017–2022
Figure 26 Europe: Gas Engine Industry Snapshot
Figure 27 North America: Market Snapshot
Figure 28 Companies Adopted Contracts & Agreements & New Product Launches as Key Growth Strategies 2014 to 2017 July
Figure 29 Market Ranking, 2016
Figure 30 Market Evaluation Framework: Contracts & Agreements Fueled the Growth of Companies From 2014 to July 2017
Figure 31 Battle for Market Share (2014 to 2017 July): Contracts & Agreements Was the Key Strategy Adopted By the Players in the Market
Figure 32 Gas Engine: Competitive Leadership Mapping, 2017
Figure 33 Strength of Product Portfolio (20 Players)
Figure 34 Business Strategy Excellence (20 Players)
Figure 35 General Electric Company: Company Snapshot
Figure 36 Caterpillar, Inc.: Company Snapshot
Figure 37 Wärtsilä Corporation: Company Snapshot
Figure 38 Rolls-Royce Holdings Plc.: Company Snapshot
Figure 39 Cummins Inc.: Company Snapshot
Figure 40 Siemens AG : Company Snapshot
Figure 41 MAN SE: Company Snapshot
Figure 42 Mitsubishi Heavy Industries, Ltd.: Company Snapshot
Figure 43 Kawasaki Heavy Industries, Ltd.: Company Snapshot
Figure 44 Liebherr Group: Company Snapshot
Figure 45 JFE Holdings, Inc: Company Snapshot
Figure 46 Hyundai Heavy Industries Co., Ltd.: Company Snapshot
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