HS Code:
Gas engines, encompassing natural gas and liquid propane (LP) engines, fall under the Harmonized System (HS) Code 8407, which includes spark-ignition reciprocating or rotary internal combustion piston engines. These engines are primarily used in power generation, industrial applications, and vehicles, offering a cleaner alternative to diesel engines due to lower emissions. They are critical in sectors aiming for reduced carbon footprints, such as renewable energy integration and off-grid power solutions. The category includes engines of various capacities, catering to both small-scale and large industrial needs.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 800 million
32% of total trade of total trade
Increasing
USD 600 million
24% of total trade of total trade
Stable
USD 400 million
16% of total trade of total trade
Increasing
USD 300 million
12% of total trade of total trade
Increasing
USD 200 million
8% of total trade of total trade
Stable
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as USMCA and EU-Japan EPA)
Rising demand for cleaner energy solutions
Increased adoption of natural gas engines in power generation and transportation sectors due to stricter emission regulations globally.
2021-2023
Technological advancements in engine efficiency
Manufacturers are investing in R&D to improve fuel efficiency and integration with renewable energy systems, boosting market competitiveness.
2020-2022
Shift towards hybrid systems
Growing interest in hybrid gas-electric systems to balance cost and environmental impact, particularly in industrial applications.
2022-2023
The European Union introduced stricter emission standards for gas engines under the EU Stage V regulation, mandating lower NOx and particulate matter emissions.
January 2023
Manufacturers must upgrade engine designs, increasing production costs but also creating opportunities for innovation in cleaner technologies.
A bilateral agreement reduced tariffs on gas engines traded between the US and China, aiming to boost mutual market access.
March 2022
This has led to a surge in exports from the US to China, with a projected 10% increase in trade volume for 2023.
A leading Japanese manufacturer unveiled a new liquid propane engine with 20% higher fuel efficiency, targeting the industrial and agricultural sectors.
September 2022
This innovation is expected to drive demand in markets prioritizing cost-effective and eco-friendly solutions.