North America Gas Engine Market Outlook (2021–2028)
The North America gas engine market is projected to grow from US$ 861.3 million in 2021 to US$ 1,469.1 million by 2028, expanding at a CAGR of 7.9% during the forecast period. This growth is primarily driven by increasingly stringent emission regulations and the rising demand for cleaner and more efficient power generation solutions across industrial and utility sectors.
Market Drivers
Governments across North America are implementing stricter emission standards, aimed at reducing the environmental impact of traditional diesel and petrol engines. This regulatory pressure is accelerating the shift toward alternative fuel solutions, particularly natural gas, which is significantly cleaner and more efficient.
Gas engines are gaining traction as they emit fewer pollutants while delivering high efficiency in power generation. As a result, industries are increasingly adopting gas engines and generators to comply with evolving environmental standards.
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Innovations from leading manufacturers are further bolstering market momentum. For example:
- Rolls-Royce introduced the MTU Series 500 in December 2020—a new gas engine series offering 250–550 kW of power. Designed to support hydrogen as a fuel source, these engines offer low operating costs and reduced emissions, aligning with global sustainability targets.
- In June 2020, Kawasaki Heavy Industries launched the KG-18-T gas engine model, equipped with a two-stage turbocharging system and boasting an impressive 51% electrical efficiency—positioning it as an ideal solution for large-scale power generation.
Such technological advancements underscore the growing emphasis on clean energy and energy efficiency, propelling the market forward.
COVID-19 Impact
The COVID-19 pandemic had a mixed impact on the gas engine market in North America. As businesses shut down or shifted to remote operations, energy demand from commercial and industrial sectors declined. This led to a temporary slowdown in natural gas consumption and LNG exports, especially in the US.
Furthermore, financial pressures caused by the pandemic forced several power plants and industrial facilities to defer or cancel investments in new gas engine systems. Budget cuts and uncertain economic conditions created a challenging environment for market expansion during the peak of the crisis.
Market Opportunities
Despite the short-term setbacks, the market is poised for long-term growth, supported by:
- Ongoing technological advancements that improve engine efficiency and lower emissions.
- Rising demand for decentralized power generation in remote and off-grid areas.
- Growing investment in clean energy infrastructure driven by policy support and ESG (Environmental, Social, and Governance) commitments.
Companies Mentioned
- INNIO Jenbacher GmbH & Co OG
- Caterpillar Inc.
- Cummins Inc.
- Fairbanks Morse, LLC
- Kawasaki Heavy Industries, Ltd.
- Liebherr; MAN SE
- Mitsubishi Heavy Industries, Ltd.
- Wärtsilä Corporation
- MTU (Rolls-Royce Power Systems AG)
- 2G ENERGY AG
- MAN SE
North America Gas Engine Strategic Insights
Strategic insights for the North America Gas Engine provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.
North America Gas Engine Market – Regional Insights
The geographic landscape of the North America gas engine market plays a pivotal role in shaping business strategies and competitive dynamics. Regional variations—such as differences in consumer preferences (e.g., preferred engine configurations, emissions standards, or fuel types), economic stability, and regulatory frameworks—demand localized approaches. By closely analyzing these distinctions, companies can pinpoint untapped opportunities, adapt product offerings to regional needs, and fine-tune their market entry strategies. A well-defined geographic focus enables businesses to optimize resource allocation, craft highly targeted marketing initiatives, and gain an edge over local competitors—ultimately fueling growth and expanding market share across North America.
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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights
