Reciprocating Power Generating Engine Market Size - By Fuel Type, By Rated Power, By Application, By End Use, Analysis, Share, Growth Forecast, 2025 - 2034

Report ID: GMI3386
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Published Date: May 2025
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Report Format: PDF

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Reciprocating Power Generating Engine Market Size

The global reciprocating power generating engine market was valued at USD 46.6 billion in 2024 and is expected to reach USD 70.7 billion by 2034, growing at a CAGR of 4.7% from 2025 to 2034. The expanding use of these engines for grid stabilization, industrial processes, and distributed generation will enhance market growth.
 

Reciprocating Power Generating Engine Market

The ongoing expansion of microgrids and rural industrial electrification projects will drive the demand for scalable power solutions and augment the adoption of these engines. Their quick start-up, high efficiency, and operational flexibility make them ideal for meeting the rising need for reliable power in both urban and remote locations, strengthening the overall business landscape.
 

Ongoing focus toward energy resilience by enterprises and utilities in emerging markets to manage grid instability, reduce downtime, and battle extreme weather events will significantly drive the demand for reciprocating engines. Their fast start-up times and fuel flexibility further enhance their appeal for peaking and standby power applications.
 

The robust performance of these engines and their ability to handle variable loads paired with aging power grids will propel the business demand. Growing investments data centers, oil and gas and the mining sectors will encourage the adoption of these products and foster the industry landscape.
 

Reciprocating Power Generating Engine Market Trends

The industry will experience strong growth owing to the reliable and efficient performance of these engines combined with their integration with wind, solar, and battery systems to reduce emissions. Furthermore, the modular design will fuel incremental growth and enable rapid deployment of these products in centralized power plants.
 

For instance, the German Federal Ministry of Education and Research assisted in funding the Eco-Engine 2023 project in the amount of USD 80.3 million, which aims to bring leading industry participants and major research centers together to achieve and 18% reduction in engine emissions and 10% reduction in fuel consumption using modern catalysts, improved fuel control mechanisms and better fuel monitoring systems.
 

The integration of IoT and AI for real-time observation, diagnostics, and maintenance will enable predictive analytics and encourage growth in the industry. Furthermore, the growing requirement of these engines in geographically less developed regions with unstable grid systems will also increase the market demand for the product.
 

To illustrate, in 2024, the U.S. Department of Energy spent USD 75 million dollars on a pilot project in California that sought to incorporate reciprocating engines into distributed energy systems. The program improved energy reliability and flexibility as well as grid stability while also lowering service costs, increasing productivity during peak hours by 30% and improving efficiency by 20%.
 

The industry growth will be boosted by the growing investments in gas infrastructure and the transition toward alternative fuels owing to their low cost and emissions. In addition, the rapid up and down modulation requirements for grid balancing and frequency control will drive robust business growth.
 

For instance, in 2023, the U.S. Department of Energy spent an estimated USD 150 million to initiate the Digital Power Generation Integration Project that uses sophisticated sensors and IoT devices for real-time observation of power-generating engines, particularly reciprocating engines.
 

Reciprocating Power Generating Engine Market Analysis

Reciprocating Power Generating Engine Market Size, By Fuel Type, 2022 - 2034 (USD Billion)

  • The reciprocating power generating engine industry was valued at USD 42.3, 44.5 & 46.6 billion in 2022, 2023 and 2024 respectively. Manufacturers are advancing cleaner combustion technologies, adopting exhaust after-treatment solutions, and developing hydrogen-compatible engines, all of which are contributing to the growing adoption of these products.
     
  • Based on fuel type, the market is segmented into gas-fired, diesel-fired, dual fired, and others. The gas-fired reciprocating power generating engine market is projected is set to register at CAGR of 5.8% till 2034. The growing emphasis on clean energy generation and reducing carbon emissions will further drive the demand of these engines in various industries.
     
  • For instance, the U.S. Department of Energy dedicated USD 80 Million in 2024 to a venture which displayed the implementation of gas reciprocating engines in industrial power settings. This project achieved a 17% increase in fuel efficiency and a 12% decrease in emissions over the baseline systems.
     
  • The diesel-fired reciprocating power generating engine market was valued at USD 35.6 billion in 2024. These systems will witness demand across sectors including data centers, healthcare facilities, and military operations owing to their remarkable reliability and quick start-up ability.
     
  • For reference, in 2024, the European Commission sponsored the Diesel System Modernization Project in Eastern Europe which greatly enhanced the dependability of power plant auxiliary system installations. This project also resulted in a 13% increase in energy efficiency and almost 10% in lowered maintenance costs.
     
  • The dual-fuel reciprocating power generating engines market is anticipated to exceed USD 1 million by 2034. These engines showcase an adaptable combustion system using both liquid and gaseous fuels. They are economically advantageous, provide operational flexibility and a strategic resource for power generation, utility services, and remote site operations.
     

Reciprocating Power Generating Engine Market Revenue Share, By Rated Power, 2024

  • Based on rated power, the industry is segmented into 0.5 MW - 1 MW, > 1 MW - 2 MW, > 2 MW - 3.5 MW, > 3.5 MW - 5 MW, > 5 MW - 7.5 MW, > 7.5 MW. The > 1 MW - 2 MW rated power reciprocating power generating engines hold a market share of 39.5% in 2024. These engines illustrate a flexible combustion technology that can run on both liquid and gas fuels. They provide considerable cost advantages along with operational and strategic benefits for power plant services and remote site facilities.
     
  • The 0.5 MW - 1 MW rated power reciprocating power generating engines market was valued at USD 12.3 billion in 2024. Strong demand for dependable backup power, coupled with cost-effective solutions for small to mid-sized facilities, will drive growth in the industry.
     
  • For instance, in 2023, GE launched a 7.5 MW reciprocating engine project in Tennant Creek, Australia, under its gas engine technology program. The project achieved a 35% boost in operational efficiency and a 27% reduction in emissions compared to earlier systems.
     
  • The > 2 MW - 3.5 MW rated power reciprocating power generating engines market will cross USD 14 billion by 2034. The increasing need for these engines in large-scale industrial facilities including cement, steel, mining, and chemical industries is anticipated to provide lucrative business prospects.
     
  • The > 3.5 MW - 5 MW rated power reciprocating power generating engines market will witness a growth rate of over 7% by 2034. Expansion of existing urban infrastructure, IT parks, major hospitals, and the construction of new airports, in addition to the adoption of renewable energy systems, will sustain ongoing investment and further increase product adoption.
     
  • For reference, in 2024, MAN completed the installation of 12 MW dual-fuel engines at the Ghasha gas field in the UAE. These turbines were removed and are being replaced to assist the LNG liquefaction facility, which required upgrading. Additionally, during combustion, these engines supplanted diesel and reduced emissions by 25%.
     
  • The > 5 MW - 7.5 MW rated power reciprocating power generating engines market is projected to hit USD 1.5 billion by 2034. The rising need for continuous and reliable electricity supply, leading industry players are investing in high-capacity engines, thereby driving growth and strengthening the market outlook.
     

U.S. Reciprocating Power Generating Engine Market Size, 2022 - 2034 (USD Billion)

  • The U.S. reciprocating power generating engine market was estimated at USD 6, 6.2, & 6.5 billion in 2022, 2023 and 2024 respectively. The country will experience rapid growth owing to the expanding infrastructure, rising energy demand and the increasing frequency of severe weather events.
     
  • For illustration, in 2024, an additional fund of USD 550 million was set aside for auxiliary power projects, encompassing Entergy’s 45 MW natural gas piston engine unit located south of Houston which cuts storm-related power outages by 80%. Furthermore, demand for hybrid systems has spurred companies like Cummins and Caterpillar by 25% year-on-year sales growth.
     
  • The North America reciprocating power generating engine holds a market share of 17.2% in 2024. An increase in climate-related disruptions including hurricanes and wildfires will boost the demand for these engines. These engines provide dependable backup power, quick start capability, and uninterrupted operation for critical infrastructure.
     
  • The Europe reciprocating power generating engine market was valued at USD 12.9 billion in 2024. The rise in energy costs with precise efficiency requirements will result in the robust adoption of reciprocating engine in commercial, industrial, and district heating systems.
     
  • To illustrate, the RWE 60 MW biogas-solar facility in Bavaria illustrates the 2024 Energy Transition Act in Germany, which mandates the installation of gas engines in all hybrid plants. Also, EU sponsored initiatives like the 24 MW Ebro Delta Microgrid in Spain with Wärtsilä Engines have further cut coal use by 50%. Furthermore, Stages IV and V of EU Emission Control now affects 30% of utility operators.
     
  • The Asia Pacific reciprocating power generating engine market is set to reach over USD 18 billion by 2034. The rapid development of infrastructure, urban centers, along with supporting government policies will foster the growth of decentralized power generation systems to aid the industry’s growth potential.
     
  • The Middle East & Africa reciprocating power generating engine has a market share of 20.2% in 2024. The continuous demand for standalone and backup power generating engines, especially in remote and underserved regions, combined with ongoing grid instability, frequent power outages, and lack of centralized power infrastructure, will drive increased product deployment throughout the area.
     
  • For reference, in 2024, NEOM city in Saudi Arabia will utilize 50 MW INNIO Jenbacher gas engines to power off-grid electrolyzer for green hydrogen production, advancing its goal of achieving 100% renewable energy through integrated hybrid power solutions.
     
  • The Latin America reciprocating power generating engine market will witness a CAGR of 3.6% till 2034. The increasing availability of natural gas will stimulate the use of gas-fired reciprocating engines in the region. Moreover, policies and incentives aimed at reducing reliance on imported fuel will accelerate industry growth.
     
  • To illustrate, under the Brazil 2024 Amazon Energy Pact, 120 MW of Wärtsilä 34SG gas engines were commissioned to aid in hydropower during periods of drought, coupled with gas turbine steady supply of power.
     

Reciprocating Power Generating Engine Market Share

  • The top 5 players including Caterpillar, Wärtsilä, GE Vernova, Rolls-Royce & MAN Energy Solutions together hold a share of about 45% in the reciprocating power generating engine industry. The market competition will strengthen driven by technological advancements, versatile fuel, dependable engine performance, efficient after-sales support, and high overall efficiency.
     
  • Cummins designs and develops emission compliant engines and hybrid power systems. In 2024, the company provided BP’s Rotterdam Hydrogen Hub in the Netherlands with 45 MW of QSK95 gas engines, further augmenting backup power for electrolyzes while reaching a 90% NOx emission reduction. This project is in line with the EU Fit for 55 targets and assists in the constraining energy from offshore wind farms with hydrogen-ready engines.
     
  • Wärtsilä operates in the reciprocating power generating engine industry as one of the leading companies manufacturing medium and large gas and dual-fuel engines. Wärtsilä strives to develop engines with high efficiency and low emissions suitable for both flexible and baseload power generation applications.
     

Reciprocating Power Generating Engine Market Companies

  • Caterpillar Inc. reported revenues of USD 16.5 billion in the second quarter of 2024. Furthermore, the company collaborated with Siemens Energy to install a 6 MW Cat CG260 gas engine at Singapore’s Jurong Data Hub, employing a hybrid microgrid system that cut emissions by 35% relative to diesel engines.
     
  • In 2024, Wärtsilä reported revenue of USD 6.2 billion alongside other power plants and energy storage systems companies. Furthermore, they completed a project at the Arctic LNG terminal in Norway terminating the installation of 50 MW gas engines powered by Wärtsilä 46TS-DF gas engines. They achieved a 30% reduction in CO2 emissions by utilizing LNG-hydrogen blending technology.
     
  • MAN Energy Solutions registered a revenue of USD 5.8 Billion in 2024, specializing in the dual-fuel propulsion engines for marine and industrial vessels. They partnered with ADNOC on the Ghasha Gas Project in the UAE where they pre-installed four 42 MW MAN 18V35/44G TS engines with improved efficiency by 25% and methane slip by about 50%.
     

Major players operating in the reciprocating power generating engine market are:

  • Ashok Leyland
  • Briggs & Stratton
  • Caterpillar
  • Cummins
  • Deere & Company
  • Deutz AG
  • Enerflex
  • Escorts Limited
  • GE Vernova
  • Guascor Energy
  • Kawasaki Heavy Industries
  • Kirloskar Oil Engines
  • Kohler Engines
  • MAN Energy Solutions
  • Mitsubishi Heavy Industries
  • Rolls-Royce
  • Scania
  • TRITON DURO
  • Wärtsilä
  • YANMAR HOLDINGS
     

Reciprocating Power Generating Engine Industry News

  • In February 2025, Kohler acquired Enerflex’s hybrid power division for USD 320 million. This purchase further included Enerflex’s Solar-Diesel Microgrid Platform, operational in Australia’s Pilbara Mining Region since 2023, strengthening Kohler’s renewables-integrated genset solutions.
     
  • In April 2024, Rolls-Royce entered into a Memorandum of Understanding (MOU) to create gas-powered reciprocating engines that produce “clean” power by capturing greenhouse gasses for sustainable energy solutions. Rolls-Royce will develop new power generation technologies that integrate carbon capture utilizing reciprocating gas engines.
     
  • In September 2024, Caterpillar introduced the next generation Cat Microgrid Controller with AI-based forecasting models at a 45 MW solar, storage and genset hybrid power plant situated in the Imperial Valley, California. The plant leverages machine learning for better optimization of fuel dispatch between battery storage and gas engines (Cat CG260, 15 MW), leading to a 22% reduction in fuel consumption compared to systems with traditional control.
     
  • In March 2024, Mitsubishi Heavy Industries launched the S12R-H2 model of hydrogen-blend reciprocating engine that runs on a 50% natural gas and 50% hydrogen mixture. This engine has 30% lower CO2 emissions compared to diesel gensets, and it has already been successfully tested at Thailand’s Map Ta Phut Industrial Port.
     

The reciprocating power generating engine market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Units), Capacity (MW) & revenue (USD Million) from 2021 - 2034, for the following segments:

Market, By Fuel Type

  • Gas-fired
    • 0.5 MW - 1 MW
    • > 1 MW - 2 MW
    • > 2 MW - 3.5 MW
    • > 3.5 MW - 5 MW
    • > 5 MW - 7.5 MW
    • > 7.5 MW
  • Diesel-fired
    • 0.5 MW - 1 MW
    • > 1 MW - 2 MW
    • > 2 MW - 3.5 MW
    • > 3.5 MW - 5 MW
    • > 5 MW - 7.5 MW
    • > 7.5 MW
  • Dual fuel
    • 0.5 MW - 1 MW
    • > 1 MW - 2 MW
    • > 2 MW - 3.5 MW
    • > 3.5 MW - 5 MW
    • > 5 MW - 7.5 MW
    • > 7.5 MW
  • Others
    • 0.5 MW - 1 MW
    • > 1 MW - 2 MW
    • > 2 MW - 3.5 MW
    • > 3.5 MW - 5 MW
    • > 5 MW - 7.5 MW
    • > 7.5 MW

Market, By Rated Power

  • 0.5 MW - 1 MW
  • > 1 MW - 2 MW
  • > 2 MW - 3.5 MW
  • > 3.5 MW - 5 MW
  • > 5 MW - 7.5 MW
  • > 7.5 MW

Market, By Application

  • Industrial
  • CHP
  • Energy & utility
  • Landfill & biogas
  • Oil & gas
  • Others

Market, By End Use

  • Backup
    • 0.5 MW - 1 MW
    • > 1 MW - 2 MW
    • > 2 MW - 3.5 MW
    • > 3.5 MW - 5 MW
    • > 5 MW - 7.5 MW
    • > 7.5 MW
  • Prime power
    • 0.5 MW - 1 MW
    • > 1 MW - 2 MW
    • > 2 MW - 3.5 MW
    • > 3.5 MW - 5 MW
    • > 5 MW - 7.5 MW
    • > 7.5 MW

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Italy
    • Spain
    • Netherlands
    • Denmark
    • Norway
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Thailand
    • Singapore
    • Indonesia
    • Malaysia
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • Qatar
    • Oman
    • Kuwait
    • Iran
    • Egypt
    • Turkey
    • Jordan
    • South Africa
  • Latin America
    • Brazil
    • Argentina
    • Chile
    • Peru
Authors: Ankit Gupta, Shubham Chaudhary
Frequently Asked Question(FAQ) :
How much is the U.S. reciprocating power generating engine market worth in 2024?
The U.S. reciprocating power generating engine market was worth over USD 6.5 billion in 2024.
Who are the key players in reciprocating power generating engine market?
How big is the reciprocating power generating engine market?
What will be the growth of gas-fired segment in the reciprocating power generating engine industry?
Reciprocating Power Generating Engine Market Scope
  • Reciprocating Power Generating Engine Market Size
  • Reciprocating Power Generating Engine Market Trends
  • Reciprocating Power Generating Engine Market Analysis
  • Reciprocating Power Generating Engine Market Share
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    Base Year: 2024

    Companies covered: 20

    Tables & Figures: 45

    Countries covered: 35

    Pages: 150

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