Emerging Demand for Natural Gas Engine to Boost the Global Natural Gas Engine Market, reaching CAGR 7.4 % by 2027

 

Natural gas production, which is necessary for the operation of gas engines, is increasing rapidly. According to the International Energy Agency (IEA) Natural Gas Information, natural gas output in 2019 reached a new high of 4,088 billion cubic metres (Bcm), up 3.3% from 2018. In addition, natural gas demand climbed by 1.5% in 2019. Gas engines are less expensive, more ecologically friendly, more reliable, and more efficient than engines powered by other fuels, driving up demand for them. According to Eurostat, natural gas accounts for 36% of EU energy consumption, while it accounts for more than 25% of energy consumption in the United States. Natural gas engines are becoming more popular in heating, energy generating, and vehicle operation applications.

Data Bridge Market Research analyses that the Natural Gas Engine Market is expected to grow at a CAGR of 7.4% in the forecast period of 2020 to 2027 and is expected to reach USD 6,973.57 million by 2027. The market for the natural gas engine is expected to be driven by increasing adoption across commercial sectors and rising demand of natural gas engine owing to the availability of natural gas at lower prices among consumers.  

Key Findings of the Study

  • The natural gas engine market is anticipated to reach a value of USD 6,973.57 million by 2027, with a CAGR of around 7.4% during the forecast period from 2020 to 2027.
  • Europe dominated the natural gas engine market in 2020 due to the increasing business expansion and awareness among customers in this region.
  • Asia-Pacific is expected to register lucrative growth over the forecast period of 2020 to 2027 owing to rising use of automobiles and surging demand for electricity in this region.
  • The spark-ignited engines segment accounted for the largest share in 2020 at 67.23 %. The rise in number of application in automobile sector is expected to boost the natural gas engine market growth.
  • The natural gas engine market was adversely affected by COVID-19 outbreak. The COVID-19 pandemic has had a significant economic impact on a variety of industries, including manufacturing, oil and gas, renewable energy, electricity generation, and nuclear power.

Surging Demand for Clean and Efficient Power Generation Technology is Expected to Drive the Market's Growth Rate

As economies transition to renewables and other clean energy sources, natural gas is frequently used as a transition fuel. Furthermore, natural gas accounted for around 25% of the world's total primary energy consumption in 2020, which is expected to rise. Natural gas-fired power stations are much less expensive and easier to develop. Natural gas engines burn cleaner, and the crankcase engine oil is not contaminated with soot. Applications such as cogeneration, trigeneration, and quad generation improve the efficiency of gas-fired power plants even more. Cogeneration and trigeneration systems are used in developed countries such as the United States, the United Kingdom, Germany, and Ireland. Developing countries will soon embrace these methods to achieve operational excellence and reduce their carbon footprint. As a result, the market for gas engines is likely to grow over the forecast period due to the rising demand for clean and efficient power generation technology.

Report Scope and Market Segmentation

Report Metric

Details

Forecast Period

2020 to 2027

Base Year

2019

Historic Years

2018 (Customizable to 2017 - 2012)

Quantitative Units

Revenue in USD Million, Volumes in Units, Pricing in USD

Segments Covered

Engine Family (Spark Ignited Engines, Dual Fuel Type Engine and High Pressure Direct Injection), Power Output (500 KW – 800 KW, 1000 KW – 2000 KW and 3000 KW – 4500 KW), Application (Natural Gas Gensets, Natural Gas Automotive and Decentralized Energy Generation)

Countries Covered

U.S., Canada, Mexico, Brazil, Argentina, the rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, rest of Europe, Japan, China, India, South Korea, Australia, New Zealand, Singapore, Malaysia, Thailand, Indonesia, Philippines, Hong Kong, Taiwan, rest of Asia-Pacific, UAE, Saudi Arabia, Egypt, Israel, South Africa, rest of the Middle East and Africa.

Market Players Covered

YANMAR HOLDINGS CO., LTD. (Japan), Westport Fuel Systems Inc. (Canada), Wärtsilä (Finland), IHI Power Systems Co.,Ltd. (a subsidiary of IHI Corporation) (Japan), MAN SE (Germany), BERGEN ENGINES AS (a subsidiary of Rolls-Royce plc) (UK), Liebherr-International Deutschland GmbH (Germany), JFE Engineering Corporation (a subsidiary of JFE Holdings, Inc.) (Japan), Siemens (Germany), Caterpillar (US), Cummins Inc. (US), INNIO (Austria), MITSUBISHI HEAVY INDUSTRIES, LTD. (Japan), Kawasaki Heavy Industries, Ltd. (Japan), DEUTZ AG (Germany), Doosan Corporation  (South Korea) and Guangdong Honny Power-Tech Co., Ltd. (China)  

Data Pointers Covered in Report

The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.          

Segment Analysis:

The natural gas engine market is segmented on the basis of engine family, power output and application.

  • On the basis of engine family, the natural gas engine market is segmented into spark ignited engines, dual fuel type engines and high pressure direct injection. In 2020, the spark ignited engines segment is dominating the market with 67.23% market share because of surging number of applications in automobile sector.

In 2020, the Spark Ignited Engines Segment is Projected to Hold the Largest Share of Distribution Channel Segment in the Natural Gas Engine Market

In 2020, the spark ignited engines segment is anticipated to hold the largest share of global natural gas engine market owing to the rise in the number of applications in automobile sector. The spark ignited engines segment is growing with a CAGR of 7.9% in the forecast period of 2020 to 2027.

  • On the basis of power output, the natural gas engine market is segmented into 500 kw – 800 kw, 1000 kw – 2000 kw and 3000 kw – 4500 kw. In 2020, 500 kw – 800 kw segment is dominating the market with 43.88% market share due to the proerty of high fuel efficiency.
  • On the basis of application, the natural gas engine market is segmented into natural gas gensets, natural gas automotive, and decentralized energy generation. In 2020, natural gas gensets dominate the market with 56.01% market share as the demand for natural gas gensets has been growing very rapidly because of the increasing demand of cleanest fossil fuels in gensets.

In 2020, the Natural Gas Gensets Segment of Application Segment is Anticipated to Dominate the Natural Gas Engine Market

In 2020, this market's natural gas gensets segment will dominate the natural gas engine market due to the upsurge in demand for cleanest fossil fuels in gensets in the market. The natural gas gensets segment is expected to reach the highest CAGR of 7.2% in 2020-2027.

Major Players

Data Bridge Market Research recognizes the following companies as the major natural gas engine market players in natural gas engine market are JFE Engineering Corporation (a subsidiary of JFE Holdings, Inc.) (Japan), Kawasaki Heavy Industries, Ltd. (Japan), YANMAR HOLDINGS CO., LTD. (Japan), BERGEN ENGINES AS (a subsidiary of Rolls-Royce plc) (UK), and IHI Power Systems Co.,Ltd. (a subsidiary of IHI Corporation) (Japan).

Market Development

  • In December 2021, for the current generation of its MTU Series 4000 engines for commercial maritime applications, Rolls-Royce Holdings had introduced significantly longer engine running periods of up to 96,000 hours between overhauls (TBO). Depending on the duration and intensity of operation, all MTU Series 4000 marine engines can now run for 25 years before requiring substantial repair.
  • In November 2021, Wärtsilä agreed to supply two major multi-fuel power plants with a combined capacity of 600 MW to Mexico's state-owned electricity utility, Comision Federal de Electricidad (CFE). The projects include the Mexicali Oriente power plant, which has a capacity of 400 megawatts, and the Parque Industrial plant, which has a capacity of 200 megawatts and is located in Sonora, Mexico. Wärtsilä 50DF dual-fuel engines will power the Mexicali Oriente facility, while Wärtsilä 34DF dual-fuel engines will power the Parque Industrial plant. The engines will run primarily on gas, with the option to switch to liquid fuel if necessary.
  • In October 2021, Cummins had introduced 15-litre natural gas engine for North America. Cummins' 15-liter natural gas engine is a key component of the company's zero-emissions goal. The strategy emphasises the development of new powertrains, such as enhanced diesel, natural gas, hydrogen engines, hybrids, battery electric vehicles, fuel cells, and increased usage of low-carbon fuels and renewable electricity well as related infrastructure.
  • In September 2021, Caterpillar acquired Carbon Point Solutions to concentrate and capture CO2 for use. Engines and turbines at oil and gas sites, distributed electricity, industrial plants, and waste to energy sites can all benefit from carbon capture systems based on proprietary techniques. This collaboration will aid in the reduction of greenhouse gas emissions.
  • In September 2021, The Government of Gabon had signed a Concession Agreement with Wärtsilä (Finland) and Gabon Power Company (GPC), a subsidiary of the Sovereign Fund of the Gabonese Republic (FGIS), for the development, supply, building, operation, and maintenance of a 120 MW gas power plant. This project will help to close the gap, and around 600,000 people will benefit from a more reliable and cost-effective electrical supply delivered to SEEG.
  • In March 2020, Moteurs Baudouin had announced the release of first natural gas engine line. According to the business, the new natural gas engines are built to work reliably even when using fuel of varying quality. Onshore oil and gas, cogeneration projects (industrial greenhouses and waste treatment facilities), and bottling plants are only a few of the uses for the new gas engines.

Regional Analysis

Geographically, the countries covered in the natural gas engine market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

As per Data Bridge Market Research analysis:

Europe is the Dominant Region in Natural Gas Engine Market during the Forecast Period 2020 - 2027

Europe will continue to dominate the natural gas engine market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period. This is due to the increasing business expansion and awareness among customers in this region. Europe dominates the natural gas engine industry because consumers in the United Kingdom are more environmentally conscious and seek environmentally friendly products, mostly created using natural gas engines. The United Kingdom is leading the European market in terms of growth, owing to the increasing demand for natural gas engines in power plants, which is driving up demand for natural gas engines.

Asia-Pacific is Estimated to be the Fastest Growing Region in Natural Gas Engine Market the Forecast Period 2020 - 2027

Asia-Pacific is expected to grow during the forecast period due to the rising demand for electricity in this region. The surging focus of various countries involving India, Japan and South Korea, on the adoption of clean and reliable energy sources will propel the growth rate of the natural gas engine market. China dominates the Asia-Pacific market because of the expanding use of automobiles in the region.

COVID-19 Impact Analysis

The global expansion of coronavirus had a number of negative consequences for major producing and manufacturing enterprises all around the world. The primary sectors that were the most affected were hospitality, aviation, manufacturing, oil, and gas. The healthcare and medical sectors, on the other hand, saw a bump. Government rules, support, and assistance were provided in the form of regulations, subsidies, budget allocation for specific regions, and more.

The pandemic also afflicted the global sector that uses renewable energy sources, disrupting supply chains and causing demand to be stifled. The COVID-19 pandemic has had a significant economic impact on a variety of industries, including manufacturing, oil and gas, renewable energy, electricity generation, and nuclear power.

Demand from the residential sector has been strong, but demand from other industry verticals has been weak. The oil and gas and the mining industries are currently closed due to the virus's spread.

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