North America Gas Engine Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)
North America Gas Engine Market Market: by Type (Natural Gas, Special Gas, Others), Application (Power Generation, Cogeneration, Mechanical Drive, Others), Distribution Channels (Direct, Indirect), Technology (Open Cycle, Combined Cycle, Others), Organization Size (Small, Medium, Large) and By North America Historical & Forecast Period (2020-2035) Comprehensive Study 2025
Last Updated: 23-07-2025 | Format: PDF | Report ID:10715 | Author: Manisha C
The North America gas engine market, spanning applications such as power generation, cogeneration, and mechanical drives, is witnessing substantial innovation driven by advances in fuel types, efficiency, and emission regulations. Gas engines, defined as internal combustion engines powered by gaseous fuels like natural gas, biogas, hydrogen, syngas, and special gases, have gained traction due to their lower emissions and operational flexibility compared to traditional diesel engines. Advances in layout (reciprocating vs. turbines), technology (open/combined cycle), and escalating usage in decentralized and renewable-integrated grids are propelling the market forward. Notable vendor strategies, expanded product portfolios, and direct as well as indirect sales channels are key factors shaping market differentiation, while policy support for clean energy further underpins robust demand outlook for 2025 and beyond.
Latest Market Dynamics
Key Drivers
Rising focus on decarbonization across North America is spurring adoption of gas engines, particularly as utilities and industries seek flexible, lower-emission alternatives to coal and diesel. For example, Caterpillar Inc. has expanded its gas engine portfolio to support renewable natural gas, supporting cleaner distributed energy generation.
The expansion of distributed energy resources (DERs) is increasing demand for highly efficient, quick-start engines for microgrid and backup applications. Cummins Inc.'s new line of high-efficiency engines meets these needs, enabling resilient operations for critical infrastructures.
Key Trends
Integration of hydrogen and biogas into gas engine portfolios is growing, with Siemens Energy AG and Wartsila developing engines capable of running on hydrogen blends to align with decarbonization targets.
Digital monitoring and predictive analytics for O&M optimization are being adopted, as demonstrated by General Electric’s engines offering remote diagnostics, reducing downtime and maximizing asset value for operators.
Key Opportunities
Growth in CHP and district heating installations presents significant opportunity, driven by rising energy efficiency mandates. MAN Energy Solutions has installed advanced gas engines in new district heating projects launched in 2024.
Policy incentives and investments in renewable gas (RNG and biogas) infrastructure create avenues for engine OEMs to supply to biogas plants—Wartsila’s recent projects in Canada exemplify this opportunity.
Key Challenges
Stringent emission norms challenge legacy engine adoption—Rolls-Royce Holdings is investing in retrofit and aftertreatment solutions to comply with the latest US EPA Tier standards.
Supply chain volatility in engine component materials, highlighted by Cummins’ recent Q2 2024 reporting, affects production lead times and cost structures for OEMs.
Key Restraints
High initial capital cost for advanced gas engines versus legacy diesel alternatives is curbing adoption among cost-sensitive commercial users.
Increasing competition from alternative technologies such as battery energy storage, as seen in recent grid projects in California and Texas, is restraining growth potential in some application segments.
North America Gas Engine Market Share (%), By Type, 2025
Natural gas engines are expected to dominate the market in 2025, accounting for nearly half of all installations due to abundant supply, established infrastructure, and favorable policy support. Special gases—including hydrogen and synthesized fuels—are gradually increasing their footprint as large industrial and CHP users shift toward cleaner energy. Biogas and other alternative types, meanwhile, comprise a fast-growing but still smaller share, buoyed by renewable energy mandates and distributed power applications. This landscape reflects a balanced transition toward sustainability, with core natural gas applications remaining robust as special and bio-based gas market shares gradually climb.
North America Gas Engine Market Share (%), By Application 2025
Power generation takes precedence as the foremost application for gas engines in North America for 2025, making up nearly half the market share. Cogeneration (CHP) is the second largest segment, reflecting strong demand from industrial and district energy users for enhanced efficiency and reduced emissions. Mechanical drive and other applications, including district heating, comprise the remainder, reflecting niche but growing uses in both urban and remote environments. This diversified application mix illustrates not only the gas engine’s versatility but also the rising importance of higher-efficiency, multi-purpose energy systems in the regional energy landscape.
North America Gas Engine Market Revenue (USD Million), 2020-2035
The revenue trajectory for North America’s gas engine market features consistent growth throughout the forecast period. From USD 5,110 Million in 2021, the market rises steadily as energy transition policies, distributed generation, and decarbonization efforts create sustained demand. By 2025, revenues are projected at USD 6,800 Million, and the upward trend continues, crossing USD 10,500 Million in 2035. This positive outlook is attributed to strong replacement cycles, new installations in CHP and renewables-oriented projects, and ongoing modernization of industrial assets.
North America Gas Engine Market Year-on-Year Growth (%), 2020-2035
The North American gas engine market demonstrates robust annual growth rates, averaging 6-7% from 2020 through 2025, reflecting accelerated adoption driven by energy transition initiatives. After peaking near 7.2% in 2023, the growth moderates and stabilizes between 4.5% and 5.2% annually from 2026 onwards due to a maturing installed base and increased market saturation in key regions. Nevertheless, continued innovation in fuels and grid integration sustains positive year-on-year momentum across the assessment period.
North America Gas Engine Market Share (%), By Region, 2025
The United States is the clear leader in North America’s gas engine market, accounting for 64% of the regional share in 2025. Canada follows at 21%, benefitting from increasing renewable integration and district energy investments, while Mexico holds the remaining 15%. These shares reflect economic scale, policy orientation, and energy market maturity, with the US retaining dominance due to its large-scale power infrastructure and consistent investment in distributed energy systems.
North America Gas Engine Market Share (%), By Major Players, 2025
Caterpillar Inc. leads the North American gas engine market in 2025 with a 19% share, followed closely by Cummins Inc. at 15%. General Electric secures a 13% share by leveraging digitalization and flexible engine technologies. Other notable market participants include Siemens Energy, Rolls-Royce, and INNIO, jointly holding significant but smaller shares, underscoring competitive diversity and technological innovation within the market.
North America Gas Engine Market Share (%), By Buyer Type, 2025
Utilities form the largest buyer group for gas engines in North America at 44%, driven by large grid-tied and distributed generation projects. Industrial/commercial sector accounts for 38%, reflecting significant uptake in manufacturing, district energy, and CHP. Municipal and other institutional buyers—including public utilities and combined service providers—make up the remaining 18%, capitalizing on cleaner backup power solutions and heating projects.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
United States, Canada, Mexico
Segments
By Type (Natural Gas, Special Gas, Biogas, Hydrogen, Syngas, Others), By Application (Power Generation, Cogeneration, Mechanical Drive, District Heating, Combined Heat & Power, Others), By Distribution Channel (Direct, Indirect, Online, Distributors, OEMs, Others), By Technology (Open Cycle, Combined Cycle, Reciprocating Engines, Gas Turbines, Dual-Fuel Technology, Others), By Organization Size (Small, Medium, Large)
June 2024: Cummins Inc. announced the launch of its next-generation hydrogen-ready gas engines for distributed energy applications across North America.
July 2024: Caterpillar completed the commissioning of its largest biogas power project in Texas, using high-efficiency gas engines.
August 2024: Wartsila secured a landmark contract to supply gas engines for district heating in eastern Canada, supporting municipal decarbonization programs.
September 2024: Rolls-Royce launched new retrofitting solutions for industrial gas engines to achieve compliance with updated U.S. EPA Tier standards.
October 2024: General Electric introduced enhanced digital monitoring features, enabling real-time performance analytics for North American gas engine installations.
Frequently Asked Questions
About the Author
Manisha C
Lead Industry Analyst
Manisha C is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Energy & Power. Manisha C brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Manisha C has helped organizations translate data into actionable growth strategies.
Energy & PowerMarket ResearchIndustry AnalysisStrategic Consulting
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