Dual Fuel Engine Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Four-Stroke Dual Fuel Engine and Two-Stroke Dual Fuel Engine), By Application (Cargo Ship, Cruise Ship, and Others), and Region Forecast 2019-2030

The global dual fuel engine market size was valued at US$ 2,869.5 million in 2023, poised to grow at a CAGR of 11.9% from 2024-2030. The market is propelled by the rising expense of conventional fuels and the increasing need for cleaner, more efficient fuel sources to comply with environmental requirements. Because dual-fuel engines are flexible, they can run on both diesel and natural gas, which lowers fuel costs and pollution. Growth in the market is further aided by the growing use of these engines in the transportation, power generation, and marine industries. The high upfront cost of dual-fuel engines and the lack of infrastructure for alternate fuels in some areas are two barriers. Nonetheless, there are chances in the growing usage of hydrogen and LNG as greener substitutes. The move toward hybrid power systems and renewable fuels, together with improvements in engine technology for increased efficiency, are important trends.

Key Players

The dual fuel engine market share of inclusive of several companies covered in this report such as 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.

Facts and Figures

• Diesel generator sets with factory installation now have the option to use Caterpillar Inc.'s Dynamic Gas Blending dual-fuel technology. With the help of this technology, diesel, and natural gas may be used in combination with Cat diesel engines to reduce fuel expenditures by up to $100/eMWh per hour of generator set operation without compromising the performance of the diesel engines.
• The BeHydro dual-fuel engine, which has an energy capacity of 1 MW to 10 MW, is offered by Anglo Belgian Corp. Cummins Inc. also meets this need with its products, which include the 3512C Dynamic Gas Blending Engine and the 3512E Tier 4 Final Dynamic Gas Blending Engine.

Key Developments

• In September 2022, At SMM Hamburg, Anglo Belgian Corporation (ABC) unveiled the 20EV23, the second engine model in the ground-breaking and inventive EVOLVE family. This medium-speed, 20-cylinder engine is safe and leads the way in terms of power, fuel adaptability, economy, and environmental performance.
• In January 2024, to provide Microsoft data centers with dependable and sustainable backup energy, Caterpillar Inc. and Ballard Power Systems have launched a three-year endeavor to showcase a power system that integrates large-format hydrogen fuel cells. The project is supported and partially funded by the National Renewable Energy Laboratory (NREL) and the U.S. Department of Energy's H2@Scale effort.

Dual Fuel Engine Market Segmentation

By Type: Due to its extensive usage in marine, power generation, and industrial applications, the four-stroke dual-fuel engine holds a significant market share in the dual-fuel engine market. Because of their better fuel flexibility, higher efficiency, and lower emissions, four-stroke engines are preferred because they can easily comply with strict environmental laws. They may be used for a variety of medium- to large-scale enterprises since they are more adaptable and simpler to operate, especially in locations that need steady and dependable electricity. Four-stroke engines are favored by most other industries due to their greater fuel efficiency, pollution control, and operational flexibility, even though two-stroke dual-fuel engines are prevalent in some high-power applications, such as large ships.

By Application: Cargo Ships are the leading application sector in the Dual Fuel Engine Market. This is mostly because of the increased emphasis on fuel economy and emission reduction in the global shipping sector, which is being driven by more stringent environmental rules like the IMO 2020 requirements. Dual fuel engines are very advantageous for cargo ships because they can convert between diesel and greener fuels, such as LNG, which lowers operating costs and carbon emissions. The efficiency and versatility of dual-fuel engines make them a desirable alternative for ship operators, especially considering the high fuel consumption and extended running hours of cargo ships. Due to their sheer quantity and the scale of their fuel requirements, cargo ships dominate the market even though Cruise Ships and other vessels are using dual fuel technology.