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The Diesel Power Engine Market size is estimated to grow at a CAGR of 3.05% between 2022 and 2027 and the size of the market is forecast to increase by USD 36.09 billion. The growth of the market depends on several factors, such as the advantages of diesel power engines over petrol engines, the rising demand for reliable and uninterrupted power and rapid industrialization, and growing construction equipment.
This report extensively covers market segmentation by application (automotive and non-automotive), end-user (industrial, commercial, and residential), and geography ( APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Diesel Power Engine Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Electricity is one of the essential resources for any country's growth. As per the EIA International Energy Outlook 2019, global electricity demand will increase by 2.11% per year until 2040. Some of the key countries which will significantly contribute to the global diesel power engine market are the Non-OECD countries such as China and India.
Furthermore, global energy electricity production capacity increased at a faster rate than T and D network development from 2010 to 2018 which led to the reliability issues such as power outages and surges. Therefore, such factors are expected to fuel the demand for power generators, which is expected to drive the growth of the global diesel power engine market during the forecast period.
Factors such as growing environmental concerns among end-users are forcing manufacturers into designing eco-friendly diesel power engines. For instance, Bosch designed a new diesel-exhaust system that helps cut emissions far below legal limits.
Furthermore, Loughborough University innovated a similar diesel-exhaust system that can significantly minimize the environmental impact of diesel power engines. It can be used to clean up the level of pollutants from diesel. This proposed system utilizes a diesel-exhaust fluid that offers the ammonia required for reducing NOx. Hence, such factors are expected to drive the growth of the global diesel power engine market during the forecast period.
Several harmful emissions such as nitrogen oxides, carbon monoxide, and hydrocarbons are produced as a result of refining diesel fuel from crude oil which has an impact on the environment. For example, the US Environmental Protection Agency (EPA) established a set of standards for the sulfur content allowed in diesel fuel and emissions from diesel power engines. This US EPA fuel standard requires manufacturers to reduce the sulfur content of diesel fuels.
Similarly, EPA has also established emissions standards for highway vehicles that have diesel power engines which states that the engines must operate only with ultra-low-sulfur diesel (ULSD) fuel. California Emission Standards require all vehicles from 2020 to be LEV III standards certified. Therefore, manufacturers are forced to increase their expenditure to design and market their products as per the requirements of regional markets which is expected to hinder the growth of the global diesel power engine market during the forecast period.
The automotive segment is estimated to witness significant growth during the forecast period. The automotive segment mainly comprises light-duty vehicles, medium-duty vehicles, and heavy-duty vehicles. Light-duty vehicles mainly include passenger cars that are powered by diesel power engines and there is an increasing demand for passenger vehicles from developing countries due to the increase in income in these countries.
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The automotive segment was the largest segment and was valued at USD 144.84 billion in 2017. Factors such as diesel fuel tend to be cheaper than petrol and have better fuel efficiency, and operational benefits are significantly fuelling the increasing adoption of diesel engine vehicles. Transportation and logistics play an essential role in urbanization and industrialization. The increase in industrialization and urbanization plays a crucial factor in fuelling the demand for heavy-duty trucks and medium-duty trucks. For example, if there is a rise in construction, mining, and shipping activities, it will lead to an increase in demand for heavy-duty trucks and medium-duty trucks over the past several years. Thus, as most of these are diesel-powered vehicles, it is expected to drive the growth of this segment which, in turn, will drive the global diesel power engine market during the forecast period.
Based on end-user, the segment is classified into industrial, commercial, and residential. Some of the key industries which use diesel power engines include marine, agriculture, oil and gas mining, health care manufacturing, and others. One of the key reasons which is driving the diesel power engine market growth in this segment is the growing deployment of diesel power engines in the aforementioned end-user industries. These industries are mainly dominated by APAC countries such as China, Japan, and South Korea as they have many shipbuilding companies that require diesel power engines. Hence, such factors are expected to drive the growth of this segment which in turn will drive the global diesel power engine market during the forecast period.
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APAC is estimated to contribute 41% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors for the significant growth of the global diesel power engine market in APAC is the factors such as an increase in the demand for commercial infrastructure, industrial buildings, and expansion of road and railway networks in China. Some of the key countries in APAC with the most construction activities include countries like China, Japan, and India. Hence, China will remain attractive to foreign investors while the increasing number of initiatives by the Japanese government for infrastructure development and the renovation of old infrastructure is expected to fuel the growth of diesel engines. These factors are expected to drive the global diesel power engine market in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global diesel power engine market witnessed a significant slowdown due to the suspension of industrial activities such as construction, marine, mining, and others. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of industrial activities. Such factors are expected to drive the market during the forecast period.
Vendors 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.
AB Volvo: The company offers diesel power engines that deliver rapid acceleration, reliable performance, and the ability to maintain a high cruising speed, regardless of the load or sea, under the brand name Volvo Penta.
AGCO Corp: The company offers diesel power engines such as 33MD, CORE75, and 33MD mechanical.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Diesel Engine Market- The diesel engine market share is expected to accelerate at a CAGR of 3.16% and reach an estimated value of USD 37.45 billion from 2021 to 2026.
The diesel power engine market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Diesel Power Engine Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.05% |
Market growth 2023-2027 |
USD 36.09 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.69 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, South Korea, Japan, and India |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, AGCO Corp., Anglo Belgian Corp., Aviation Industry Corp. of China Ltd., Caterpillar Inc., China FAW Group Co. Ltd., Cooper Corp. Pvt. Ltd., Cummins Inc., Deere and Co., Ford Motor Co., Hyundai Motor Co., IHI Corp., Kohler Co., Kubota Corp., Mahindra and Mahindra Ltd., Mitsubishi Heavy Industries Ltd., Rolls Royce Holdings Plc, Volkswagen AG, 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, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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