Natural Gas Engine Market Outlook 2024–2031 | Growth, Regional Insights, and Major Companies

Global Natural Gas Engine Market to grow from US$ 6.08 Bn (2024) to US$ 9.8 Bn by 2031, at a CAGR of 7.4% during 2024–2031.

AUSTIN, TX, UNITED STATES, July 22, 2025 /EINPresswire.com/ -- Natural Gas Engine Market Accelerates Toward Clean Energy Future with Expanding Global Demand

Market Overview

The Global Natural Gas Engine Market Size US$ 6.08 billion in 2024 and is expected to reach US$ 9.8 billion by 2031, growing with a CAGR of 7.4% during the forecast period 2024-2031.

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Latest Key Developments:

On March 29, 2023, Enphase Energy, a leading global energy technology company, announced the shipment of its IQ8 Microinverters, featuring a peak AC output power of 384VA, to France and the Netherlands. These next-generation microinverters are designed to handle high-capacity solar modules, improving total energy output and boosting system efficiency.

On May 12, 2023, international solar energy company Sun King launched a new solar inverter in Nigeria, aimed at reducing the nation’s reliance on costly diesel generators and an unreliable electricity grid. The newly developed inverter marks a major step forward in solar power generation capabilities for the company and supports broader energy access initiatives in the region.

On January 19, 2023, SOFAR, a global provider of solar energy solutions, introduced its latest string inverter model, the SOFAR 100–125KTL-G4, during the World Future Energy Summit. Designed for commercial, industrial, and small utility-scale solar installations, the inverter features ultra-high current capacity, intelligent protection, and a simplified installation process.

Market Drivers and Opportunities

Stringent Emission Norms and Environmental Regulations: Governments worldwide are enforcing stricter emission standards, creating strong demand for cleaner-burning natural gas engines as alternatives to diesel.

Rising Demand for Combined Heat and Power (CHP) Systems: Natural gas engines are widely used in CHP systems, offering high efficiency and energy savings in industrial and commercial sectors.

Growth in Natural Gas Supply and Infrastructure: Expanding pipeline networks and liquefied natural gas (LNG) infrastructure, especially in North America and Asia-Pacific, are making natural gas more accessible and cost-competitive.

Opportunities in Remote Power Generation: Natural gas engines provide reliable off-grid power in remote or underserved areas, supporting rural electrification and industrial applications.

Geographical Market Share

The Asia-Pacific region dominates the natural gas engine market, with rapid industrialization and increasing investments in gas-based power projects. North America, particularly the United States, is also a key contributor, supported by abundant natural gas reserves and favorable policies. Meanwhile, Europe is steadily transitioning toward gas engines in power and transport sectors as part of its decarbonization strategies.

Key Market Players

Major companies driving innovation and competition in the global natural gas engine market include:

Doosan Corporation
Cummins Inc
Guangdong Honny Power-Tech Co.
YANMAR HOLDINGS CO., LTD
Westport Fuel Systems Inc
Wärtsilä
IHI Power Systems Co.
Caterpillar
MAN SE
Siemens
Rolls-Royce plc
LIEBHERR
INNIO
Kawasaki Heavy Industries
JFE Engineering Corporation
Mitsubishi Heavy Industries
Deutz Ag

Market Segmentation:

By Type: (Spark Ignited Engines, Dual fuel Engines, High-Pressure Direct Injection)

By Power Output: (500 KW – 800 KW, 1000 KW – 2000 KW, 3000 KW – 4500 KW), By Horsepower (Up to 1000 HP, 1000–2000 HP, Above 2000 HP)

By Application: (Decentralized Energy Generation, Natural Gas Gensets, Natural Gas Automotive, Others), By End-user (Hospital Pharmacies, Manufacturing industries, Utilities, Oil & Gas, Mining, Petrochemicals, Others

By Region: (North America, South America, Europe, Asia Pacific, Middle East, and Africa)

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Recent Developments – United States

April 2025 – Cummins Inc. unveiled a next-gen 15-liter natural gas engine for heavy-duty trucks, designed to deliver lower carbon emissions while meeting the EPA’s 2027 greenhouse gas standards.

September 2024 – Caterpillar Inc. launched a high-efficiency natural gas generator set for industrial and commercial use, integrated with digital monitoring systems for enhanced performance.

Recent Developments – Japan
May 2025 – YANMAR introduced a new series of compact natural gas engines for distributed power generation, targeting small- to mid-scale commercial facilities in urban Japan.

November 2024 – Mitsubishi Heavy Industries partnered with a leading utility provider to deploy gas-engine-based cogeneration systems aimed at improving energy efficiency in Tokyo’s smart city projects.

Conclusion

The global Natural Gas Engine Market is set for continued expansion as industries and governments align toward low-emission and energy-efficient power solutions. With advancements in engine technologies, growing natural gas infrastructure, and increasing environmental awareness, natural gas engines are well-positioned to support global decarbonization goals while meeting rising energy demands.

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Sai Kiran
DataM Intelligence 4market Research LLP
+1 877-441-4866
sai.k@datamintelligence.com
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