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Over the past few years, trends that have emerged in the market for dual fuel engines indicate high demand toward developing sustainable and effective energy solutions. Dual fuel engines operate in combination of two fuels commonly natural gas and diesel, which affords an alternative to the conventional combustion process that may be favourable ecologically. An important market trend is the rising demand for dual fuel engines within transportation, focusing on marine and heavy-duty trucking markets.
This shift is driven by the desire to reduce greenhouse gas emissions and maintain a high level of regulatory compliance. In the shipping sector, dual fuel engines consume less gas and are also much more effective in terms of meeting greenhouse emissions while following regulatory demands that have been finalized by IMO. Yet, since the growing demand to lessen discharges and satisfy higher environmental standards; ship owners are more likely turning towards dual fuel technology.
This trend is clearly seen in the increased number of vessels carrying dual fuel engines such as large container ships and cruise liners. In the same vein, the market for heavy-duty trucks is witnessing a rapid increase in replacement of dual fuel engines to offset environmental issues and improve operational efficiency. With a dual fuel setup, trucks are able to change from natural gas and diesel enabling the fleet manager greater flexibility in their choice of fuel based on availability or cost.
As dual fuel technology offers both economic and environmental benefits, fleets are moving towards a phase-out of conventional transportation methods in favor for more sustainable options. Another important change in the market for dual fuel engines is constant innovation and development of advanced technologies. Through the research and development of dual fuel engines, different engine manufactures invest to boost their performance.
This involves combustion process optimization, fuel injection system improvement and intelligent controlling the blend of different fuels. These technological developments help to make dual fuel engines more reliable and competitive against other traditional alternatives. In addition, the worldwide trend to minimize reliance on fossil fuels and move towards greener energy is a major growth factor for dual fuel engine market.
Governments and regulatory bodies across the globe have adopted policies and incentives that are aimed at promoting adopting alternative fuel such as natural gas. The double support from the regulatory push and increasing awareness about eco-damage caused by conventional engines is causing growth in dual fuel engine market across different industries.
Dual Fuel Engine Market Highlights:
Global Dual Fuel Engine Market Overview
Dual Fuel Engine Market Size was valued at USD 1.2 billion in 2022. The Dual Fuel Engine market is projected to grow from USD 1.32 Billion in 2023 to USD 2.87 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.20% during the forecast period (2023 - 2032). The desire for low-emission and highly efficient marine propulsion systems is one of the major market drivers driving the growth of the dual fuel engine market globally.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Dual Fuel Engine Market Trends
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Stringent government regulation is expected to propel the market growth
The stringent regulations on NOx emissions are among the main factors driving growth in the dual-fuel engine market. Diesel emissions negatively influence the environment, particularly air quality. Recent environmental studies have focused primarily on this issue, leading to the modification of diesel emission regulations. In response to the increased awareness of emission regulations, diesel engine manufacturers must ensure that their products are high-performing and compliant with stringent emission regulations. The difficulty resides in reducing NOx at the source to avoid costly measures. Current diesel engine models are the purest combustion engines available on the market. To comply with stringent government regulations, like those enforced by the US EPA or the EU, engine manufacturers must adopt the stringent Tier IV and Stage III and IV standards when operating in the United States and Europe, respectively.
Ammonia gas as an alternative to natural gas in dual-fuel engines is an additional factor contributing to the market share expansion of dual-fuel engines. Using ammonia gas as a fuel source is a novel concept in dual-fuel applications. When ammonia is used as a fuel, CO2, NOx, and PM emission levels decrease significantly. Ammonia is a fuel with high resistance to pre-ignition due to its high octane content. The power output of ammonia-fueled engines is greater than that of gasoline or diesel-fueled engines of the same size. When these two ammonia characteristics are combined, engine efficiency is significantly enhanced. This has led to the design and development of engines utilizing ammonia as fuel. Due to the numerous advantages of ammonia gas, several research organizations are concentrating on the efficient use of ammonia in dual-fuel engines. Thus, driving the Dual Fuel Engine market revenue.
Dual Fuel Engine Market Segment Insights
Dual Fuel Engine Product Type Insights
Based on product type, the dual fuel engine market segmentation includes four-stroke dual fuel engines and two-stroke dual fuel engine. The four-stroke dual fuel engine segment dominated the market, accounting for 45%-50% of market revenue. The four-stroke dual-fuel engine is an internal combustion engine that simultaneously ignites two fuels. The first stroke of the piston draws oxygen from the atmosphere and fuel from the carburetor, while the fourth stroke re-ignites and sends power back to the engine to propel the vehicle.
Dual Fuel Engine Application Insights
Based on application, the dual fuel engine market segmentation includes cargo ships, cruise ships, and others. The cargo ship category generated the most income (70.4%). The demand for these engines is anticipated to increase due to the global increase in passenger traffic and commerce. Growing import export of various goods is also anticipated to boost the segmental growth.
Figure 1: Dual Fuel Engine Market, by Application, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Dual Fuel Engine Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American dual fuel engine market area will dominate this market. The rise in demand for environmentally friendly and cost-effective engines is propelling the expansion of this market. The North American region is anticipated to dominate the market due to the increase in LNG-powered vessel adoption and the enactment of stringent government regulations.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Dual Fuel Engine Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe dual fuel engine market accounts for the second-largest market share. Due to the high demand for dual-fuel engines in the automotive and transportation industries, it is anticipated that Europe will hold a significant market share. Further, the German Dual Fuel Engine market held the largest market share, and the UK Dual Fuel Engine market was the fastest growing market in the European region.
The Asia-Pacific dual fuel engine market is expected to grow at the fastest CAGR from 2023 to 2032 due to an increase in governmental activities and restrictions regarding DF engines in nations like China, India, South Korea, and Japan. Moreover, China’s Dual Fuel Engine market held the largest market share, and the Indian Dual Fuel Engine market was the fastest growing market in the Asia-Pacific region.
Dual Fuel Engine Key Market Players & Competitive Insights
Leading market players are developing innovative technologies, collaborating with customers to provide customized solutions, and promoting the environmental benefits of using greener fuels. These businesses can contribute to the expansion of the marine dual-fuel engine market. Players are also undertaking strategic activities for expanding their global footprint, with key market developments including new launches, agreements, mergers and acquisitions, and collaboration with other companies.
In recent years, the Dual Fuel Engine industry has launched several technologically advanced products. Major Dual Fuel Engine market players include Anglo Belgian Corp., Caterpillar Inc., Cummins Inc., Heinzmann GmbH and Co. KG, Kubota Corp., MAN Energy Solutions SE, Wartsila Corp., Westport Fuel Systems Inc., Woodward Inc., and Yanmar Holdings Co. Ltd.
Anglo Belgian designs and manufactures four-stroke, medium-speed diesel engines for marine, power generation, traction, and complete power plants. Anglo-Belgian manufacturers of medium-speed diesel, HFO, dual-fuel engines, and generator sets for the global energy industry. The company offers diesel and dual-fuel engine design, engine manufacturing, land-based power generation, traction engines, special applications, turnkey projects, marine engines, hybrid power plants, and medium-speed engines.
Caterpillar Inc. manufactures construction, transportation, and energy apparatus. It designs, produces, markets, and distributes construction and mining machinery, industrial gas turbines, forestry equipment, diesel-electric locomotives, and diesel and natural gas engines. The company's product line comprises asphalt pavers, draglines, integrated systems, backhoe excavators, compactors, reciprocating engines, and several other items. Customers and dealers can also access Caterpillar products' retail and wholesale financing options. The company markets and sells its products in several countries across North and South America, the Middle East, Asia-Pacific, Africa, and Europe via its subsidiaries and dealers. Caterpillar's headquarters are in the United States, in Deerfield, Illinois.
Key Companies in the Dual Fuel Engine market include
- Anglo Belgian Corp.
- Caterpillar Inc.
- Cummins Inc.
- Heinzmann GmbH and Co. KG
- Kubota Corp.
- MAN Energy Solutions SE
- Wartsila Corp.
- Westport Fuel Systems Inc.
- Woodward Inc.
- Yanmar Holdings Co. Ltd.
Dual Fuel Engine Industry Developments
September 2022: Anglo Belgian Corporation (ABC) introduced at SMM Hamburg the 20EV23, the second engine variant of the innovative and ground-breaking EVOLVE family. This 20-cylinder, medium-speed engine is secure and sets new standards for efficiency, power, fuel versatility, and environmental performance.
November 2021: Caterpillar Inc. announced a three-year initiative collaborating with Microsoft and Ballard Power Systems to demonstrate a power system integrating large-format hydrogen fuel cells to generate reliable and sustainable backup energy for Microsoft data centers. The H2@Scale initiative of the U.S. Department of Energy (DOE) and the National Renewable Energy Laboratory (NREL) support and partially fund the endeavor.
April 2018: Caterpillar Inc. unveiled its Dynamic Gas Blending dual-fuel technology as an option for factory-installed diesel generator sets. This system permits Cat diesel engines to consume a mixture of diesel and natural gas, reducing fuel costs by up to $100/eMWh per hour of generator set operation while preserving diesel engine performance.
Dual Fuel Engine Market Segmentation
Dual Fuel Engine Product Type Outlook
- Four-Stroke Dual Fuel Engine
- Two-Stroke Dual Fuel Engine
Dual Fuel Engine Application Outlook
- Cargo Ship
- Cruise Ship
- Others
Dual Fuel Engine Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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