Small Gas Engine Market Size, Share, and Industry Analysis, By Type (20-100 CC, 101-450 CC, and 451-650 CC), By Equipment (Lawnmower, Chainsaw, Leaf Blower, Portable Generator, Pressure Washer, and Others), By Application (Construction, Industrial, and Gardening), and Regional Forecast, 2024-2032

The global small gas engine market size was valued at USD 2.70 billion in 2023. The market is projected to be worth USD 2.85 billion in 2024 and reach USD 4.39 billion by 2032, exhibiting a CAGR of 5.5% during the forecast period.

A small gas engine can be defined as an engine that consists of a low-powered range. This engine is a small-displacement engine and can primarily run on natural gas, coal gas, landfill gas, and biogas. These engines have a compact system design and a low power output range. These engines have different configurations based on the combustion cycle, which can be four- or two-stroke.

The COVID-19 pandemic has impacted several business sectors, such as power generation, manufacturing, oil & gas, mining, automotive, construction, etc. Governments in many countries had to impose nationwide lockdowns & the power and energy sector has faced significant negative impacts and declined investments in this sector due to the lockdown. The pandemic has also caused supply chain disruptions, affecting the raw material transport used to manufacture such engines. The demand for such engines was very low from application industries during the pandemic.  Based on our analysis, the global market exhibited a decline of -7.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market's demand and growth returning to pre-pandemic levels once the pandemic is over.

Small Gas Engine Market Trends

Increasing Focus and Rising Demand for Advanced and Standard Regulated Avenues to Create Opportunities

Stringent emission standards have increased the adoption of small gas engines in various industries, such as car manufacturing. The U.S. Environmental Protection Agency (EPA) has set emission standards to control exhaust and evaporative emissions from small gas engines. According to these standards, small gas engines should emit not more than one-third of hydrocarbons compared to other gas engines. This demand has paved the way for new technical avenues and advancements, such as micro-hybridization and biofuels, which are projected to provide market growth opportunities over the forecast period. New developments include new technologies such as gasoline direct injection (GDI), homogeneous charge compression ignition (HCCI), and engine boosting. Gasoline direct-injection (GDI) engines are increasingly being used owing to their potential benefits, such as low fuel consumption and superior performance.

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Small Gas Engine Market Growth Factors

Rising Demand for Outdoor Power Equipment to Augment Growth

The demand for outdoor power equipment is increasing worldwide due to the booming commercial and residential markets. Construction contractors and homeowners are shifting from conventional methods to renting outdoor power equipment. Renting such equipment costs less and is cost-effective to maintain. Such equipment requires low power and lower torque and, thus, is mostly equipped with small engines that majorly run on natural gas to release lower GHG emissions. The higher adoption of such equipment boosts the global market growth.

Rising Need to Reduce Emission to Propel Market Growth

Carbon emissions are increasing immensely worldwide, and the major cause of this is exhaust gas emissions. The engines that run on diesel, petrol, or oil emit high volumes of carbon dioxide, and electrical equipment use has grown significantly in every part of the world. The gardening, residential, and construction sectors heavily consume such devices for various applications. However, using small gas engines contributes to reducing emissions and air pollution. Governments across several countries have regulated strict policies to reduce such emissions, and small gas engines comply with such norms. Thus, this drives the growth of the market during the forecast period.

RESTRAINING FACTORS

High Cost of Product May Hinder Market Growth

The price of small gas engines is very high in the market. The manufacturing cost of small gas engines is also high due to their compact design and dimensions. Some components are imported from other nations, which increases the overall price. The high prices of such engines are not affordable for every enterprise, and thus, they restrict the market's growth.

Small Gas Engine Market Segmentation Analysis

By Type Analysis

101-450 CC Segment Dominated the Small Gas Engine Market Share in 2023

The market is bifurcated into 20-100 CC, 101-450 CC, and 451-650 CC based on type. The 101-450 CC segment is projected to dominate market share over 2021-2028. The demand for and installation of such engines is high in the market as these engines are used mainly by lawnmowers and other equipment that require high torque. The above factors are driving the growth of this segment over the projected period.

The 20-100 CC segment is anticipated to grow significantly through 2028 due to increasing demand for lower torque applications. Devices such as leaf blowers and trimmers utilize such engines for low torque requirements. The manufacturing of such devices is also increasing heavily. This drives the growth of the 20-100 CC segment over the forecast duration.

By Equipment Analysis

Lawnmower Segment to Dominate Market Share Through 2032

The market is divided into lawnmowers, chainsaws, leaf blowers, portable generators, pressure washers, and others based on equipment. The lawnmower segment will likely witness growth with the highest CAGR from 2021 to 2028. Lawnmowers are highly in demand for their wide application in residential and commercial sectors. Parks, lawns, fields, patches, and garden areas largely use such equipment for managing grass.

The leaf blowers segment is anticipated to grow significantly in the forthcoming years. The demand for such devices is increasing as they are easy and convenient. These devices are lightweight and use small engines due to lower torque requirements. These blowers are easy to maintain.

By Application Analysis

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Gardening Segment to Dominate the Market over 2024-2032

The market is segmented into construction, industrial, and gardening based on application. The gardening segment is expected to dominate the market during the forecast period. The gardening segment is widely growing and installing equipment such as trimmers, lawnmowers, and leaf blower. The demand and requirement for outdoor power equipment in landscaping services are increasing. This drives the growth of the gardening segment over 2021-2028.     

The construction segment is projected to foresee growth over the projected timeline. The demand for construction equipment is widely increasing across the world. Construction companies and homeowners have now started to rent outdoor power equipment. This drives the growth of the segment through 2028.  

REGIONAL INSIGHTS

The global market has been analyzed across five prominent geographical regions: North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

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North America dominated the global market in 2023. The construction and industrial segments are witnessing higher growth. The trend of renting equipment is increasing in such sectors in North America. The demand for outdoor equipment is also high for landscape services in this region. The U.S. and Canada are highly invested in the construction sector in this region. In Canada, the government has announced that it will invest around USD 141.95 billion in the infrastructure segment around the country for 12 years starting from 2016. The country has approved 35,336 new projects since 2016. 

Asia Pacific is expected to grow significantly over 2024-2032. The demand for advanced technology equipment is increasing rapidly in this region. Industrialization is widely increasing in this region, and the commercial and residential sectors are also booming. Manufacturing components such as small gas engines are increasing in this region due to the high gardening and other industrial equipment demand. The construction segment is shifting toward renting equipment, increasing the demand for various tools such as concrete vibrators, portable generators, and other tools.

Europe is estimated to grow significantly during the forecast period owing to the increasing demand from gardening, construction, and industrial sectors. The demand for various equipment such as lawnmowers, snowblowers, portable generators, and others is increasing widely.

Latin America is estimated to foresee significant growth in the projected timeframe. The demand for such engines is widely increasing in the residential, commercial, and industrial segments during 2021-2028. This engine primarily runs on gas and helps in reducing emissions. The Middle East and Africa region is expected to witness growth in the global market during the period. The region is heavily increasing its investment in new technology and also working on reducing pollution within the country.

List of Key Companies in Small Gas Engine Market

Key Players Increasing their Concentration On New Contracts and Product Portfolio

The global small gas engine market is fragmented due to numerous companies in developed and developing countries. Honda Motor Co., Ltd., Subaru, Kohler Co., Briggs & Stratton Corporation, Yamaha Motor Corp., and Kawasaki Heavy Industries are leading the market. These companies are enhancing their product portfolio and focusing on securing new contracts. For instance,

LIST OF KEY COMPANIES PROFILED:

• Briggs & Stratton Corporation (U.S.)


• Kohler Co. (U.S.)


• Yamaha Motor Corp. (Japan)


• Kawasaki Heavy Industries (Japan)


• Kubota Corporation (Japan)


• Liquid Combustion Technology (U.S.)


• Kipor Power (China)


• Champion Power Equipment (U.S.)


• Subaru Industrial Power Products (U.S)


• Lifan Power (U.S.)


• Maruyama Mfg. Co. Inc (Japan)


• Honda Motor Co., Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• October 2021- Briggs & Stratton has announced the Vanguard 400 single-cylinder engine launch, which can be converted to run on propane. This engine has been certified by the Environmental Protection Agency as compliant with the Clean Air Act emission standards. This engine is the first and only engine in its size class.  


• April 2021- Kohler Power announced expanding its home standby generator product plant at the Mississippi site. It announced a capital expenditure, which will triple the plant's current production capacity for residential standby generators. The plant can manufacture 2 million general-purpose engines annually, including GCV for residential power equipment applications.


• August 2019- Honda Power Equipment Mfg., Inc. announced USD 46.4 million to expand the Swepsonville, N.C. plant's manufacturing capabilities. It also announced plans to start the production of the Honda HRN lawn mower at this site.


• January 2019- Yanmar has announced the development of a gas-powered engine requiring LPG to adhere to the EU stage five emission norms. This means that it can meet the diverse needs of its customers.

REPORT COVERAGE

The market research report includes a detailed small gas engine industry analysis focusing on key aspects such as leading companies, components, and leading product technologies. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several drivers that have contributed to the market's growth in recent years.

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