India Gas Engine Market is Expected to Register a 9.51% CAGR Through 2031
Growing Demand for Clean & Reliable Power and Expansion
of Natural Gas Infrastructure are likely to propel the market during the
forecast period.
According to
TechSci Research report, “India Gas Engine Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Gas Engine Market was valued at USD 125
Million in 2025 and is expected to reach USD 217 Million by 2031 with a CAGR of
9.51% during the forecast period.
India’s robust industrial
sector—including manufacturing, textiles, chemicals, and
pharmaceuticals—requires a continuous and efficient power supply to maintain
productivity and reduce downtime. Gas engines, with their ability to operate
continuously and cost-effectively, are increasingly being adopted as a primary
or supplementary power source in such sectors. Their scalability and efficiency
make them ideal for captive power generation.
Gas engines are well-suited for Combined
Heat and Power (CHP) or cogeneration applications, which allow industries to
use waste heat from the engine for heating, cooling, or other process needs.
This enhances overall energy efficiency, often reaching up to 80%, and leads to
substantial savings in energy costs. For industries with both power and thermal
energy requirements, this dual benefit becomes highly attractive.
As Indian industries strive to improve
their energy efficiency and lower their carbon footprint, CHP systems powered
by gas engines offer an effective solution. The growing awareness of energy
efficiency measures, coupled with rising electricity tariffs and pressure to
decarbonize operations, is prompting industries to invest in such solutions.
The increasing uptake of gas engines in
industrial applications—both for standalone and cogeneration purposes—is a
strong growth driver, particularly as India positions itself as a global
manufacturing hub under initiatives like "Make in India." The synergy
between industrial development and energy optimization continues to bolster the
gas engine market.
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Based
on End User, Small industries dominated the India gas engine market due to
several compelling factors that align closely with their operational and
economic needs. These industries, which form a significant portion of India’s
manufacturing and commercial landscape, often require reliable, cost-effective,
and flexible power solutions to maintain continuous production and stay
competitive.
Small
industries frequently face challenges related to unreliable grid power,
including frequent outages and voltage fluctuations. Gas engines offer an
effective solution by providing captive power that ensures uninterrupted
electricity supply. This reliability is crucial for small-scale manufacturing
units, workshops, and processing plants where power disruptions can lead to
significant losses in productivity and revenue.
Gas
engines are comparatively more affordable and easier to install and maintain
than larger, more complex power generation systems. For small industries
operating on tight budgets, gas engines present a practical balance between
initial investment and operational costs. They also benefit from lower fuel
expenses when running on natural gas, which is increasingly accessible due to
expanding pipeline infrastructure. This affordability makes gas engines more
attractive than diesel generators, which are costlier to operate and produce
higher emissions.
Another
important factor is the growing environmental awareness and regulatory pressure
on small industries to reduce their carbon footprint. Gas engines produce fewer
pollutants compared to diesel-based generators, helping small industries comply
with local emission standards without incurring substantial additional costs. Furthermore,
small industries benefit from the scalability and flexibility of gas engines.
These engines can be sized appropriately to meet the specific power demands of
a facility and can be easily integrated with other energy systems, including
combined heat and power (CHP) applications, which improve overall energy
efficiency.
Based
on region, North India is currently the fastest-growing region in the India gas
engine market due to a combination of favorable economic, infrastructural, and
policy-related factors. This region, encompassing states like Delhi, Haryana,
Punjab, Uttar Pradesh, and Rajasthan, has witnessed rapid industrialization,
urbanization, and an increasing demand for reliable power solutions, driving
the adoption of gas engines.
One
of the primary reasons for North India’s growth is the expanding natural gas
infrastructure. The government’s initiatives such as the Pradhan Mantri Urja
Ganga project have focused heavily on extending the natural gas pipeline
network in northern states, improving fuel availability and reducing dependency
on costly diesel or coal. This increased access to piped natural gas makes gas
engines a practical and economical choice for power generation in industries,
commercial establishments, and residential areas.
North
India hosts several industrial hubs and Special Economic Zones (SEZs), where
continuous and clean power supply is essential. Gas engines provide a reliable
captive power source that meets stringent environmental regulations, helping
industries reduce emissions while ensuring uninterrupted production. The rise
of data centers, healthcare facilities, and commercial complexes in urban
centers like Delhi and Gurugram has also increased demand for efficient and
cleaner power backup systems, further boosting market growth.
Environmental
regulations and pollution control measures have gained prominence in North
India due to concerns over air quality, particularly in Delhi and its
neighboring areas. The shift away from diesel generators to cleaner gas engines
is seen as a critical step toward reducing pollution, supported by government
incentives and stricter emission norms.
Major companies
operating in the India Gas Engine Market are:
- Caterpillar
Inc.
- Cummins Inc.
- Wartsila
Corporation
- MAN Energy
Solutions SE
- General
Electric Company
- Mitsubishi
Heavy Industries, Ltd.
- INNIO Group
- Kohler
Co
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“The India gas engine market presents a
significant growth opportunity driven by increasing demand for cleaner,
cost-effective, and decentralized power solutions across industrial,
commercial, and utility sectors. Expanding natural gas infrastructure, supportive
government policies, and rising awareness of sustainable energy practices are
creating a favorable environment for gas engine deployment. Additionally,
opportunities in biogas and hydrogen-based applications, coupled with
technological advancements in engine efficiency and digital monitoring, further
enhance market potential. As industries seek reliable and low-emission
alternatives to diesel generators, the adoption of gas engines is expected to
accelerate, making India a strategic market for global and domestic players.,”
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.
“India Gas Engine Market,
By Fuel Type (Natural Gas, Special Gas, Others), By
Power Output (<15kVA, 15-25kVA, 25-55kVA, 55-75kVA), By End User (Utilities,
Construction, Mining, Small Industries, Others), By Region, Competition,
Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Gas
Engine Market and provides statistics & information on Market size,
structure and future Market growth. The report intends to provide cutting-edge Market
intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the India Gas Engine Market.
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