Saudi Arabia Gas Engine Market Overview, 2029

The Saudi Arabia gas engine market is an essential part of the country’s broader energy landscape, significantly influencing its transition towards sustainable and diversified energy sources. Saudi Arabia has long been a dominant player in the global energy sector, primarily due to its vast oil reserves, but the kingdom has increasingly recognized the need to diversify its energy mix as part of its Vision 2030 initiative. This vision aims to reduce the country’s reliance on oil, focusing instead on natural gas and renewable energy sources for domestic consumption and export. In this context, the gas engine market has seen substantial growth, as natural gas is considered a cleaner and more sustainable fuel alternative compared to oil and coal. The Kingdom’s abundant natural gas reserves, combined with its strategic location and expanding energy infrastructure, make it an ideal market for gas engines used in power generation, co-generation, and mechanical drive applications. The government’s policies have also been favorable, with regulations designed to promote energy efficiency and reduce carbon emissions. Saudi Arabia has made significant investments in upgrading its gas infrastructure, both in terms of supply and distribution, ensuring a steady and reliable fuel source for gas engines. For instance, the National Industrial Development and Logistics Program, part of Vision 2030, has sought to develop more energy-efficient industrial systems, increasing the demand for gas engines in various sectors. The Saudi Arabian government has also introduced policies to stimulate the adoption of natural gas in power generation, including the establishment of new natural gas plants and incentives for companies that adopt clean technologies. Furthermore, the demand for gas engines is expected to rise, driven by the growing need for reliable and efficient power generation solutions. Saudi Arabia's strong push to improve energy security, combined with its environmental objectives, makes the gas engine market a key component of the country’s energy strategy.

According to the research report, "Saudi Arabia gas engine Market Outlook, 2029," published by Bonafide Research, the Saudi Arabia gas engine market is anticipated to add to more than USD 20 million by 2024–29.The Saudi Arabia gas engine market is expected to continue expanding at a significant pace in the coming years, driven by various factors such as government policies, rising industrial demand, and the increasing adoption of natural gas as a fuel source. One of the primary drivers of this growth is the country’s ongoing efforts to diversify its energy sources and reduce its dependence on crude oil, as outlined in Vision 2030. The government’s initiatives to promote the use of natural gas and other alternative energy sources are expected to lead to increased adoption of gas engines across various industries, including power generation, co-generation, and mechanical drive applications. In addition to energy diversification, Saudi Arabia’s emphasis on sustainability and reducing carbon emissions plays a pivotal role in shaping the market. Gas engines, with their relatively low emissions compared to diesel or coal-fired engines, align well with the country’s environmental goals. As global awareness around climate change and pollution continues to rise, natural gas has emerged as a more eco-friendly alternative to traditional fossil fuels, further driving demand for gas engines in Saudi Arabia. Modern gas engines are increasingly efficient, with higher fuel-to-energy conversion rates and lower emissions, which make them a desirable choice for both industrial and commercial applications. The market also benefits from the expansion of gas infrastructure, with new pipelines, storage facilities, and liquefied natural gas (LNG) terminals being developed across the country to ensure a stable supply of natural gas. The rise of industrialization, particularly in sectors such as manufacturing, oil and gas, and utilities, is another key factor driving demand for gas engines. Notably, the growth of the oil and gas sector, which remains a major part of the country’s economy, contributes to the increased need for gas-powered engines in upstream, midstream, and downstream operations. Local companies are also entering the market, driven by the growing demand for more customized, cost-effective, and locally manufactured gas engine solutions.

The Saudi Arabia gas engine market is segmented based on fuel type, which includes natural gas, special gas, and others. Among these, natural gas is the dominant fuel type due to its abundance, relatively low cost, and environmental advantages. Saudi Arabia has the sixth-largest proven natural gas reserves in the world, which ensures a stable and affordable supply of fuel for gas engines. As part of the country’s Vision 2030 initiative, Saudi Arabia is investing heavily in natural gas infrastructure, including the development of new gas processing plants and storage facilities. This expansion is expected to further strengthen the position of natural gas as the primary fuel for gas engines. Natural gas-powered engines are favored for their efficiency and lower emissions compared to diesel engines, which makes them ideal for power generation and co-generation applications. Furthermore, natural gas is considered a cleaner fuel compared to coal, which is why it is increasingly used in industrial settings, where reliability and environmental sustainability are critical. Special gas types, such as biogas, landfill gas, and other alternative gases, represent a smaller but growing segment of the market. These gases are typically used in specialized applications where conventional natural gas is not available or where industries have access to waste gas streams that can be harnessed for power generation. Special gases are becoming more popular in sectors like waste-to-energy and agriculture, where biogas produced from organic waste can be used to fuel gas engines. Although special gases are not yet as widely used as natural gas, their adoption is expected to rise as industries and governments focus more on sustainable energy solutions and the reduction of carbon emissions. The other fuel types segment covers a range of alternative fuels, including synthetic natural gas, hydrogen, and other emerging energy sources.

The Saudi Arabia gas engine market is driven by applications in power generation, co-generation, and mechanical drive, with each segment serving a distinct set of energy needs. Power generation is the largest application segment, as the country’s demand for electricity continues to grow, driven by population expansion, industrialization, and urbanization. Gas engines are particularly suitable for power generation due to their high fuel efficiency, reliability, and ability to operate in both grid-connected and off-grid settings. They are used in a variety of power plants, from small, decentralized facilities to large, utility-scale plants that contribute to the national grid. Co-generation, or combined heat and power (CHP), is another key application in Saudi Arabia, particularly in industrial settings. Co-generation systems use gas engines to produce both electricity and useful heat, improving overall energy efficiency. These systems are commonly employed in manufacturing facilities, oil refineries, and chemical plants, where both electricity and heat are essential for operations. The ability to recover and utilize waste heat makes co-generation systems highly cost-effective, contributing to their increasing adoption in the industrial sector. Mechanical drive applications, which involve the use of gas engines to power machinery such as pumps, compressors, and fans, are also a significant portion of the market. In Saudi Arabia, these applications are primarily found in the oil and gas sector, where gas engines are used to power critical equipment in upstream exploration, midstream transportation, and downstream refining. Mechanical drive applications benefit from the high reliability and performance of gas engines, which are able to operate continuously under harsh conditions.


Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029



Aspects covered in this report
• Global Gas Engine Market with its value and forecast along with its segments
• Region & country wise Gas Engine market analysis
• Application wise Gas Engine distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fuel Type
• Natural Gas
• Special Gas
• Others

By Power Output
• 0.5-1 MW
• 1.1-2 MW
• 2.1-5 MW
• 5.1-15 MW
• Above 15 MW

By Application
• Power Generation
• Co-generation
• Mechanical Drive
• Others

By End-use industry
• Utilities
• Manufacturing
• Oil & Gas
• Marine
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.