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The diesel engines market size is forecast to increase by USD 13.4 billion at a CAGR of 3.34% between 2023 and 2028. Market growth in non-automotive sectors is driven by several factors, notably the advancements in diesel engine technology which have bolstered its momentum. Diesel remains the preferred fuel type in generators, delivering reliability and efficiency crucial for diverse industries. Furthermore, the expansion of seaborne trade has increased demand for diesel engines in marine applications, where robust performance and durability are paramount. These factors synergistically contribute to the dominance and growth of diesel engines globally outside of automotive sectors. As technological innovations continue to enhance diesel engine capabilities, industries benefit from improved operational efficiency and reduced environmental impact. Our market growth analysis report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
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The market is experiencing significant growth due to the increasing demand for efficient power solutions in various industries. Diesel engine technology is widely used in non-automotive applications such as power backup equipment, marine, construction, agriculture, and shipbuilding industry. The operational efficiency makes them an ideal choice for end-users seeking to minimize fuel consumption and reduce carbon footprint. In the power backup equipment sector, they offer reliability and robustness, making them a preferred choice for critical power applications. In the marine industry, they are extensively used for propulsion and auxiliary power requirements. In construction and agriculture, they power heavy machinery and equipment. In the shipbuilding industry, they are used for propulsion and power generation. Urbanization and industrialization have led to an increased demand in various applications. The power cycle of diesel engines offers high thermal efficiency, making them a preferred choice for industries seeking to minimize fuel costs and improve operational efficiency. Their use in non-automotive applications is expected to continue growing due to their fuel economy and efficiency advantages over gasoline-powered equipment.
The global market for generators is dominated by diesel as a fuel type. They hold a substantial market share in non-automotive applications, particularly in industries with a focus on fuel efficiency. Notable sectors include cargo ships, ferries, offshore platforms, and mining operations. Modifications have enhanced their performance in extreme conditions, enabling them to excel in heavy machinery applications such as excavators, mining equipment, and agricultural machinery.
Moreover, tractors, combines, and irrigation pumps contribute to increased agricultural productivity and food demand. Emissions control systems and environmental regulations drive the adoption of sustainable solutions in diesel-powered machinery. Developing economies and rapid industrialization fuel the growth of this market, with key applications including power and mobility for factories, construction sites, infrastructure development projects, and off-road vehicles. High torque output and hauling capacity make diesel engines ideal for powering stationary machinery like pumps and compressors.
Without many complications, market players can replace their current diesel engines with dual-fuel natural gas engines. In the industrial sector, they play a significant role in powering various applications, including cargo ships, ferries, offshore platforms, mining operations, heavy machinery, agricultural machinery such as tractors, combines, and irrigation pumps, and drilling equipment. The demand for diesel-powered machinery arises from their ability to operate efficiently in extreme conditions and excavate materials with high torque output. The growth of industries, food demand, and rapid industrialization in developing economies have fueled the market's expansion. However, they have some disadvantages, such as lower power density delivery compared to spark-ignited engines. To achieve equal power, a larger engine is required, leading to a higher cost. Spark-ignited engines also have different cam timings, resulting in higher exhaust gas temperatures and increased valve seat wear rates when using dry gas fuel. Despite these challenges, the market for diesel engines in non-automotive applications continues to grow due to the need for power and mobility in various industries, such as mining, construction, and agriculture.
Furthermore, emissions control systems and environmental regulations are driving the adoption of sustainable solutions, making it with improved fuel efficiency and lower emissions increasingly popular. Diesel-powered machinery is essential for industries that require high towing capacity, range, and powering stationary machinery like pumps and compressors. Applications include power generation, infrastructure development projects, and off-road vehicles. The market's growth is further fueled by the increasing demand for energy in factories and construction sites.
Due to strict emission rules, demand for alternative fuels like gas, which has a relatively clean and eco-friendly combustion, is increasing. They play a significant role in powering various non-automotive applications, including cargo ships, ferries, offshore platforms, mining operations, heavy machinery, agricultural machinery such as tractors, combines, and irrigation pumps. These engines are preferred due to their high torque output and ability to haul heavy loads in extreme conditions. However, the use of diesel engines comes with environmental concerns, particularly the production of nitrogen oxides (NOx), carbon monoxide (CO), hydrocarbons (HC), and particulate matter (PM). NOx emissions have gained increased attention due to their link to cancer-related illnesses and premature deaths.
Further, according to the Environmental Protection Agency (EPA), reducing NOx emissions could prevent 12,000 premature deaths and 8,900 hospitalizations by 2030. The growth of industries in emerging economies and rapid industrialization in developing economies have led to an increase in the demand for diesel-powered machinery. Emissions control systems and environmental regulations are driving the adoption of sustainable solutions to mitigate the environmental impact. Applications include power and mobility for excavators, mining industries, off-road vehicles, and powering stationary machinery like pumps and compressors.
The multi-cylinder segment will account for a major share of the market's growth during the forecast period. A multi-cylinder diesel engine means that it has more than one cylinder. There are 4 cycles to each cylinder in the multifuel diesel engine: intake, compression, work, and exhaust. In the employment cycle, there is simply a single cycle of work. The other three cycles are auxiliary cycles that create conditions for work cycles.
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The multi-cylinder segment was valued at USD 42.90 billion in 2018. Multi-cylinder diesel engines are commonly used in a wide range of non-automotive applications due to their durability, fuel efficiency, and torque output. This category is suited to powering a variety of machines and equipment in all sectors, as stated above, on the basis of its reliability, fuel efficiency, and durability. Hence, such factors are expected to contribute to the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 58% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market is witnessing a surge due to the increased need for these engines in construction activities in APAC. They are a preferred choice for heavy-duty applications in sectors such as transportation, commercial vehicles, and industrial equipment. In contrast to their gasoline counterparts, diesel engines offer higher torque production and are more reliable and durable. However, their carbon footprint and carbon dioxide emissions are concerns that are being addressed through technological advancements. Diesel-powered vehicles, including trucks and buses, are essential for moving goods and passengers. Diesel generators provide quick response time and uninterrupted power supply, making them crucial for critical infrastructure projects and commercial establishments. The transportation sector's reliance on diesel engines for moving goods and passengers is expected to remain high during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
AB Volvo, Anglo Belgian Corp., CNPC Jichai Power Co. Ltd., Cummins Inc., Daihatsu Diesel Mfg. Co. Ltd., DEUTZ AG, Fairbanks Morse LLC, IHI Corp., Isuzu Motors Ltd., Iveco Group N.V, J C Bamford Excavators Ltd., Kirloskar Oil Engines Ltd., Kohler Co., Kubota Corp., Liebherr International Deutschland GmbH, MAN Truck and Bus SE, Mitsubishi Heavy Industries Ltd., Wartsila Corp., and Yanmar Holdings Co. Ltd.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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Diesel engines have been gaining significant traction in various non-automotive applications due to their high efficiency and power density. The market is driven by the increasing demand for power generation, particularly in the oil and gas industry. Diesel engines are widely used in power generation applications due to their ability to operate continuously and provide a reliable power source. Another major application of diesel engines in the non-automotive sector is in the construction industry. They are used to power heavy machinery such as excavators, bulldozers, and cranes. The growing construction industry, especially in developing countries, is expected to boost the demand in this sector. They are also used in marine applications, particularly for propelling ships and powering onboard systems.
Futher, the increasing demand for maritime transportation and the need for fuel-efficient engines are expected to drive the growth of the market in this sector. Furthermore, diesel engines are used in various other non-automotive applications such as in the agriculture industry for powering irrigation pumps and in the mining industry for powering mining equipment. The growing demand for food production and mineral resources is expected to fuel the demand in these sectors. In conclusion, the market is expected to grow significantly due to the increasing demand for power generation, construction, marine, agriculture, and mining applications. The high efficiency and power density of diesel engines make them an ideal choice for various non-automotive applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.34% |
Market growth 2024-2028 |
USD 13.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.2 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 58% |
Key countries |
China, US, South Korea, Japan, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Anglo Belgian Corp., Caterpillar Inc., CNPC Jichai Power Co. Ltd., Cummins Inc., Daihatsu Diesel Mfg. Co. Ltd., DEUTZ AG, Fairbanks Morse LLC, IHI Corp., Isuzu Motors Ltd., Iveco Group N.V, J C Bamford Excavators Ltd., Kirloskar Oil Engines Ltd., Kohler Co., Kubota Corp., Liebherr International Deutschland GmbH, MAN Truck and Bus SE, Mitsubishi Heavy Industries Ltd., Wartsila Corp., and Yanmar Holdings Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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