Small Gas Engine Market Growth Forecast: Rising Demand from Industrial & Gardening Sectors Powers Future Expansion

Small Gas Engine Market to Reach $4 Billion by 2030 | Growth Driven by Urbanization & Construction Sector Expansion

WILMINGTON, DE, UNITED STATES, September 15, 2025 /EINPresswire.com/ --

The global Small Gas Engine Market is forecasted to grow from $2.7 billion in 2020 to $4.0 billion by 2030, exhibiting a steady CAGR of 4.2% from 2021 to 2030, according to a recent report by Allied Market Research.

Small gas engines are low-powered internal combustion engines that include essential systems such as fuel, exhaust, ignition, combustion, cooling, and lubrication. These engines are widely used in portable power tools like lawnmowers, portable generators, concrete mixers, vibrators, tillers, trimmers, and edgers. Their versatility makes them essential for applications in the gardening, industrial, construction, and automotive sectors.

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By Region:

North America accounted for the largest market share in 2020, driven by high industrial activity, significant construction investments, and established infrastructure.

The small gas engine market report is also studied across Europe, Asia-Pacific, and LAMEA, with the Asia-Pacific region expected to experience rapid growth due to fast urbanization and industrial development in countries like China and India.

🚀 Key Market Growth Drivers

Several factors are fueling the robust growth of the Small Gas Engine Market:

Rapid Industrialization and Urbanization: The surge of people migrating from rural to urban areas is driving the construction of residential and commercial buildings. In the U.S., public project construction spending rose by 1.3%, boosting demand for power tools driven by small gas engines.

Infrastructure Investment in Emerging Economies: According to the India Brand Equity Foundation (IBEF), India requires an investment of $777.73 billion in infrastructure by 2022, attracting foreign investors and creating new opportunities for the small gas engine market.

Affordable Maintenance and Low Product Costs: Small gas engines require nominal maintenance costs and offer reduced product costs, making them appealing for frequent rental and purchase by homeowners and contractors.

Strategic Acquisitions and Partnerships: Leading companies such as Yamaha Motors acquiring Subaru Industrial Power Products are expanding their outdoor power segments, further enhancing market growth.

⚠️ Market Challenges

Despite promising growth, the small gas engine market faces certain challenges:

Uncertain Fossil Fuel Prices: Volatility in global crude oil prices affects production costs and market stability.

Government Regulations: Stringent environmental regulations demand additional investments from manufacturers to comply with emission and safety standards.

Environmental Awareness: Growing consumer awareness of the environmental impact of fossil-fuel-based products may limit market adoption, promoting a shift toward alternative energy solutions.

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🌱 Market Segmentation Insights

By Engine Displacement:

The 101-450cc segment accounted for the largest share of the small gas engine market in 2020, due to its ideal balance of power and efficiency for a broad range of applications.

By Equipment Type:

The lawnmower segment led the market share in 2020, reflecting strong demand from residential and commercial landscaping projects.

By Application:

The gardening segment dominated in 2020, driven by increasing demand from homeowners and commercial entities seeking efficient outdoor power solutions.

🏭 Key Industry Players

The report profiles key companies driving the Small Gas Engine Market:

Briggs and Stratton Corporation

Champion Power Equipment

Kohler Co.

Liquid Combustion Technology

Kipor Power

Kawasaki Heavy Industries

Honda Motor Co., Ltd

Fuji Heavy Industries

Yamaha Motor Corporation

Kubota Corporation

These players are actively investing in R&D, expanding production capacities, and engaging in partnerships to develop innovative products and capture a larger market share.

🦠 Impact of COVID-19

The COVID-19 pandemic had a temporary but negative impact on the small gas engine market:

Disruptions in global supply chains and raw material shortages forced many manufacturers to halt operations.

Declines in industrial activities and construction projects during lockdown periods significantly reduced the demand for small gas engines.

Price volatility of crude oil and refined petroleum products led to cost challenges in production.

The global downturn in energy consumption further restricted demand for new gas engines.

However, supportive government policies and a gradual economic recovery are expected to drive market growth in the coming years, especially as the demand for outdoor power tools and industrial equipment rises once again.

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🌞 Future Outlook

The outlook for the Small Gas Engine Market remains strong as urbanization continues and infrastructure investments rise globally. As manufacturers innovate and improve product efficiency while responding to environmental regulations, small gas engines are set to remain a vital component in outdoor power equipment and industrial applications.

The combination of cost-effectiveness, growing industrial applications, and strategic industry expansions will continue to propel the market toward its projected $4 billion valuation by 2030.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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