Dual-Fuel Engine Market to Reach USD 8.7 Billion by 2036

The dual-fuel engine market is expected to grow at a compound annual growth rate (CAGR) of 6.0% from 2026 to 2036, reaching a value of USD 8.7 billion by 2036. In 2026, the market size will be USD 4.9 billion.

The demand for dual-fuel engines is driven by high-utilization assets that require fuel flexibility and a second-fuel system as a backup during supply interruptions. MAN Energy Solutions has reported an order for four ME-GI dual-fuel engines for two LNG carriers in February 2025, highlighting the commercial relevance of dual-fuel combustion.

The market is segmented by fuel combination, engine type, power range, end-use, sales channel, and region. Diesel-natural gas is expected to account for 42.0% of the fuel combination category in 2026 due to mature gas handling and diesel fallback reducing conversion risk. Heavy-duty truck engines are projected to hold 27.0% share in 2026 owing to high fuel throughput and costly downtime on long-haul and mine-haul duty.