Ammonia-Diesel Dual-Fuel Engine Market Size, Share & Trends Analysis Report By Engine Type ( Compression Ignition (CI) Engines, Spark Ignition (SI) Engines ) By Application ( Marine Engines, Power Generation, Automotive ), By Fuel Blend Ratio ( <30% Ammonia, 30–70% Ammonia, 70% Ammonia ) By Region (North America, Europe, Asia-Pacific, Latin America, The Middle East and Africa) And Forecasts, 2025 – 2030

Ammonia-Diesel Dual-Fuel Engine Market Growth Factors

The Ammonia-Diesel Dual-Fuel Engine Market is gaining momentum due to strong global decarbonization policies, including the IMO 2050 and EU Fit-for-55 targets, which demand a significant reduction in greenhouse gas emissions from the maritime and transportation sectors. Ammonia is increasingly favored as a low-carbon fuel due to its higher energy density compared to hydrogen and its compatibility with existing storage and distribution infrastructure. Dual-fuel engines serve as a transitional solution, enabling operators to reduce emissions without full dependence on green ammonia, which is still scaling.

Technological advancements such as improved injection systems and optimized combustion are enhancing the efficiency and viability of ammonia-diesel blends. Companies like Wärtsilä, MAN Energy Solutions, and Hyundai Heavy Industries are leading innovation in this space. Furthermore, electrification remains impractical for long-distance maritime transport, strengthening the case for ammonia-powered solutions.

Market Restraints

Despite promising developments, several challenges restrain the growth of the ammonia-diesel dual-fuel engine market. Chief among these is the toxicity and corrosiveness of ammonia. Handling ammonia requires specialized safety systems, including corrosion-resistant materials, leak detection technologies, and rigorous operational protocols. These factors raise safety concerns and add complexity to engine design and fuel storage infrastructure.

High capital costs are another barrier. Retrofitting existing engines to accommodate ammonia or developing entirely new dual-fuel engines entails substantial investment. For many shipowners and industrial operators, the return on investment remains uncertain, particularly in regions without supportive policy frameworks or subsidies.

Key Market Opportunities

On the opportunity front, large-scale investments in green ammonia production are gaining momentum. Industry leaders such as Yara, CF Industries, and Ørsted are spearheading projects in Europe and Australia to develop renewable ammonia at commercial scale. These developments are expected to align with upcoming launches of ammonia-fueled pilot vessels by 2026, which would validate technical feasibility and support commercial adoption across various sectors.

Emerging Market Trends

The market is also witnessing transformative trends that are shaping its long-term evolution. One major trend is the surge in public-private partnerships and joint ventures. Collaborations between engine manufacturers, fuel suppliers, and shipping companies such as the partnership between Maersk and MAN Energy Solutions are becoming increasingly common, driving coordinated innovation and reducing risks associated with new technology deployment.

Another trend is the rise of modular engine platforms. Manufacturers are focusing on creating flexible, modular designs that allow for easy retrofitting and fuel-switching. These platforms enable end users to transition from diesel to dual-fuel operations incrementally, which is especially valuable for operators seeking to future-proof their fleets.

Engine Type Insight

The Ammonia-Diesel Dual-Fuel Engine Market is segmented by engine type into Compression Ignition (CI) and Spark Ignition (SI) engines. Compression Ignition engines dominate the market due to their maturity, proven compatibility with diesel systems, and widespread use in marine and heavy-duty truck applications. In 2024, CI engines accounted for a market size of USD 180 million, and this segment is projected to grow to USD 800 million by 2030, registering a CAGR of 27.8%. On the other hand, Spark Ignition engines are gaining traction, particularly in stationary power generation and agricultural machinery. These engines are easier to adapt for ammonia pre-mixing with air, making them suitable for regions prioritizing renewable integration in remote and off-grid applications. The SI engine segment was valued at USD 90 million in 2024 and is expected to reach USD 410 million by 2030, growing at a faster CAGR of 29.6%.

Application Insight

Based on application, the market is segmented into marine engines, power generation, and automotive (heavy-duty vehicles). Marine engines constitute the largest share, accounting for 52% of the market in 2024, with a forecasted value of USD 630 million by 2030. The dominance of this segment is driven by growing decarbonization mandates in global shipping, particularly in container transportation. The power generation segment held a 30% market share in 2024 and is anticipated to reach USD 363 million by 2030. Ammonia-diesel engines are increasingly being deployed in remote mining operations, island energy systems, and as backup generators where diesel has traditionally been the primary fuel source.

The automotive segment, focused on heavy-duty vehicles, represented 18% of the market in 2024 and is projected to grow to USD 217 million by 2030. While adoption in this segment remains limited, demand is expected to rise in regions like Asia-Pacific and South America, where heavy-duty vehicles contribute significantly to transport emissions.

Fuel Blend Ratio Insight

The market can also be categorized by fuel blend ratio, which includes three segments: less than 30% ammonia, 30–70% ammonia, and greater than 70% ammonia. Blends with less than 30% ammonia are typically used in transitional systems that prioritize operational reliability while gradually reducing carbon emissions. These are commonly employed in retrofitted engines.

The 30–70% ammonia segment represents the core of mainstream dual-fuel designs, particularly in the shipping sector, where a balance between emissions reduction and engine performance is critical. Blends with more than 70% ammonia are still in the experimental or pilot phase and are primarily being explored in next-generation engine platforms aimed at achieving net-zero emissions. These systems are under development by industry leaders and are expected to play a key role in future propulsion technologies.

Regional Insights

In North America, the Ammonia-Diesel Dual-Fuel Engine Market was valued at USD 70 million in 2024 and is projected to reach USD 280 million by 2030, demonstrating strong growth potential. This growth is primarily fueled by investments from the U.S. Department of Energy (DOE), the emergence of maritime decarbonization projects along the Gulf Coast, and California’s aggressive clean port initiatives. These programs are driving demand for alternative marine fuels and dual-fuel engine technologies. However, the region faces certain challenges, particularly a lag in regulatory standardization for ammonia as a marine fuel and gaps in ammonia bunkering and handling infrastructure, which could hinder large-scale adoption in the short term.

Europe ammonia-diesel dual-fuel engine market trends

Europe remains a frontrunner in the global ammonia-diesel dual-fuel engine space, with a market size of USD 100 million in 2024, expected to expand to USD 450 million by 2030. The region’s rapid growth is driven by strong regulatory support under the EU Green Deal, along with aggressive carbon-neutral targets in the shipping industry. Europe also benefits from being home to major industry players such as Wärtsilä and MAN Energy Solutions, who are leading innovations in dual-fuel engine technologies. Additionally, advanced ammonia bunkering trials in countries like Norway and the Netherlands are laying the groundwork for commercial-scale infrastructure, further accelerating adoption across maritime and industrial applications.

Asia Pacific ammonia-diesel dual-fuel engine market trends

Asia Pacific is another high-growth region, with the market valued at USD 80 million in 2024, projected to reach USD 370 million by 2030. The region is witnessing a surge in demand for dual-fuel technologies, driven largely by the shipbuilding powerhouses of South Korea and Japan, which are actively developing ammonia-compatible vessels. Additionally, governments in China and India are implementing clean fuel mandates and subsidies to promote sustainable energy transitions. Asia Pacific is also home to some of the largest ammonia production facilities and ongoing port retrofitting projects, positioning the region as a critical hub for ammonia-based propulsion systems in the near future.

Latin America and the Middle East & Africa (MEA) regions collectively held a market value of USD 20 million in 2024, and this is forecasted to increase to USD 110 million by 2030. Although currently in the nascent stages of adoption, these regions present promising opportunities, particularly in off-grid electrification and the mining sector, where diesel-based generators are still prevalent. Pilot projects in countries like Chile and Saudi Arabia are exploring the use of ammonia-diesel dual-fuel engines for stationary and mobile applications. However, these markets face structural challenges, including underdeveloped infrastructure and a lack of robust safety regulations surrounding ammonia handling, which may slow down broader market penetration.

Competitive Landscape

1. Wärtsilä Corporation
2. MAN Energy Solutions
3. Hyundai Heavy Industries
4. WinGD (Winterthur Gas & Diesel)
5. Cummins Inc.

Recent Developments

• 2023 – MAN Energy Solutions announced a 2-stroke ammonia dual-fuel engine for commercial vessels, with trials beginning in 2024.
• 2024 – Yara and Wärtsilä completed a joint demonstration of an ammonia-powered marine engine in Norway.
• 2024 – Hyundai Heavy Industries initiated development of ammonia-compatible propulsion systems for cargo ships under a $50M R&D program.
• 2025 – Japan’s NYK Line retrofitted one of its Panamax vessels with ammonia-diesel dual-fuel engines as part of its Green Horizon Project.