Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 2.73 billion

CAGR (2023-2028)

3.79%

Fastest Growing Segment

Lawnmower

Largest Market

North America

Market Overview

The Global Small Gas Engines Market was valued at USD 2.73 billion in 2022 and is growing at a CAGR of 3.79% during the forecast period. The increasing awareness among individuals regarding the rise in carbon dioxide emissions is a significant factor contributing to the growth of this market. Small engines are widely recognized for their fuel efficiency and compliance with government regulations, which further drives their demand in the market. In addition, small gas engines are extensively utilized in construction equipment such as concrete mixers, compactors, and power generators. These engines are renowned for their reliability, power, and fuel efficiency, making them an ideal choice for construction sites with limited access to grid power or fuel sources. The growth in both residential and commercial construction industries directly impacts the demand for small gas engines.

Key Market Drivers

Growing Demand for Outdoor Power Equipment        

The global small gas engines market is propelled by the increasing demand for outdoor power equipment. Outdoor power equipment, such as lawnmowers, leaf blowers, and chainsaws, heavily relies on small gas engines for efficient operation. As urbanization continues to expand, there is a growing need for well-maintained lawns, gardens, and public spaces. Consequently, the sales of outdoor power equipment have surged, thereby boosting the small gas engines market.

One of the primary factors contributing to the rising demand for outdoor power equipment is the growing emphasis on landscaping and lawn care, both in residential and commercial sectors. Homeowners are now investing more in their outdoor spaces, resulting in a higher demand for lawnmowers and other related tools. Similarly, commercial landscaping companies require efficient and reliable equipment to maintain parks, golf courses, and other public spaces. Small gas engines are preferred in these applications due to their power, durability, and ease of use.

Furthermore, the construction industry also heavily relies on small gas engines for various tasks, such as concrete cutting and compaction. With the construction sector witnessing steady growth globally, the demand for small gas engines in construction equipment is also on the rise. These engines provide the necessary power and mobility required for construction machinery, making them an indispensable component in this industry.

In addition to landscaping and construction, the agriculture sector remains a significant driver of the small gas engines market. Farmers rely on small gas engines for a wide range of applications, including tractors, tillers, and irrigation pumps. As the global population continues to grow, there is an increased need for efficient and productive farming practices, leading to higher demand for agricultural equipment powered by small gas engines.

In conclusion, the expanding demand for outdoor power equipment across residential, commercial, and industrial sectors serves as a major driver for the global small gas engines market. This trend is expected to persist as urbanization, landscaping, construction, and agriculture activities continue to grow, creating a sustained market for small gas engines.

Expanding Recreational and Leisure Activities      

Another key factor driving the global small gas engines market is the growing range of recreational and leisure activities that rely on small gas-powered equipment. From recreational vehicles (RVs) to boats, snowmobiles, and off-road vehicles, there is a diverse array of recreational equipment that utilizes small gas engines to provide power and mobility.

The RV industry, for example, has witnessed significant growth in recent years. RVs are equipped with small gas generators that supply electricity, heating, and cooling while on the road or at campgrounds. The increasing popularity of RV travel, particularly in North America, has resulted in a surge in the demand for these vehicles, consequently driving the demand for small gas engines.

Boating and marine activities are also major drivers of the small gas engines market. Small gas engines are commonly employed in various types of boats, including fishing boats, speedboats, and pontoons, to power propulsion systems and onboard accessories such as generators and pumps. As the interest in water-based recreational activities continues to grow, so does the demand for small gas engines in the marine sector.

Furthermore, off-road vehicles such as all-terrain vehicles (ATVs) and dirt bikes play an integral role in outdoor recreational pursuits. These vehicles rely on small gas engines for their performance and maneuverability. The popularity of off-roading and outdoor adventure sports has led to a consistent demand for small gas engines in this segment.

Snowmobiling is yet another recreational activity that drives the small gas engines market, particularly in regions with snowy winters. Snowmobiles are equipped with small yet powerful engines that enable riders to navigate through snow-covered terrains. As winter tourism and snow sports gain popularity, the demand for snowmobiles and, consequently, small gas engines remains robust.

In conclusion, the expansion of recreational and leisure activities that require small gas-powered equipment serves as a significant driver for the global small gas engines market. The appeal of outdoor adventures, RV travel, boating, off-roading, and snowmobiling is expected to fuel sustained growth in this market segment.

Increasing Demand for Backup Power Generation     

The rising demand for backup power generation solutions is a critical driver of the global small gas engines market. Small gas engines are commonly used in generators to provide backup power during grid failures, particularly in regions with unreliable or vulnerable power infrastructure.

One of the primary factors contributing to the growing need for backup power generation is the increasing frequency and severity of natural disasters, such as hurricanes, storms, wildfires, and earthquakes. These events can cause prolonged disruptions to power supply, making backup generators essential for households, businesses, and critical facilities like hospitals and data centers. Small gas engines are preferred due to their compact size, ease of maintenance, and quick response time when power is required.

Furthermore, the growing reliance on electronic devices and digital infrastructure has heightened the importance of uninterrupted power supply. Data centers, in particular, require reliable backup power solutions to ensure continuous operation of critical IT systems. Small gas generators are often used in conjunction with uninterruptible power supplies (UPS) to facilitate seamless power transitions during outages.

In remote areas with limited or no access to the electrical grid, small gas generators play a vital role in providing electricity for homes, farms, and small businesses. This is especially relevant in developing regions where infrastructure development is still underway.

The expansion of the e-commerce industry has also fueled the demand for backup power generation. Warehouses and distribution centers rely on reliable power to operate efficiently, and small gas generators offer a cost-effective solution to ensure uninterrupted order processing and delivery services.

Additionally, as more individuals work remotely and depend on home offices, the need for backup power solutions at the household level has increased. Small gas generators provide a practical way to keep essential appliances and devices running during power outages, ensuring productivity and comfort.

In conclusion, the growing demand for backup power generation solutions driven by natural disasters, digital infrastructure, remote areas, e-commerce, and remote work is a significant driver for the global small gas engines market. As the importance of reliable backup power continues to grow, so does the market for small gas engines used in generators and related applications.