Enjoy complimentary customisation on priority with our Enterprise License!
The diesel power engine market size is forecast to increase by USD 39.1 billion at a CAGR of 3.21% between 2024 and 2028. The advantages over petrol engines, including higher fuel efficiency and torque, contribute to their continued preference in certain applications. Additionally, there is a rising demand for reliable and uninterrupted power supply, driving market growth for diesel engines. Rapid industrialization and increased construction activities further fuel this demand, particularly for heavy-duty equipment. However, challenges persist, notably stringent emission regulations imposed, requiring manufacturers to invest in emission control technologies. Moreover, the high initial cost poses a barrier to adoption. Additionally, the rising demand for electric vehicles (EVs) presents a competitive challenge to the diesel engine market. Overcoming these obstacles requires technological innovations to improve emission performance and cost-efficiency, as well as strategic positioning to capitalize on emerging market trends. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
One of the main factors for the significant growth of the global market in APAC is factors such as an increase in the demand for commercial infrastructure, industrial buildings, and expansion of road and railway networks in China. Also, 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.
Market Forecast 2024-2028
To learn more about this report, Request Free Sample
The market plays a crucial role in ensuring uninterruptible power in various sectors, including healthcare and telecommunication, during power outages, blackouts, and brownouts caused by voltage fluctuations in the power sector. The demand is driven by the increasing energy demand and the need for reliable power sources. Manufacturers of diesel power engines, such as Cummins and Wartsila, produce internal combustion engine, including gasoline engines, with components like spark plugs, coils, piston, cylinder block, and crankshaft. These engines are widely used in the power sector due to their efficiency and ability to generate power quickly.
The health care sector and telecommunication industry rely heavily on uninterrupted power to maintain their operations. The World Steel Association reports that crude steel production requires a significant amount of energy, making the use in this sector as well. Smart City Missions and Water Body Rejuvenation projects also require reliable power sources. Diesel power engines offer a viable solution to meet the energy demands of these projects while ensuring minimal voltage fluctuations. The market is expected to grow as the need for uninterrupted power sources continues to increase in various sectors. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
In the realm of commercial power solutions, diesel power engines have gained significant traction due to their superior fuel efficiency. This advantage is attributed to the diesel cycle, which enables a nearly 1.5% greater efficiency compared to petrol engines. Diesel engines are engineered to function at higher compression ratios, typically 15:20, contrasting petrol engines with their usual 8:10 ratios. The higher compression ratios translate to enhanced thermal efficiency and improved fuel economy. They have found extensive applications in various sectors, including Smart City Missions, water body rejuvenation projects, and sewage management systems. In residential societies, they serve as reliable backup power sources during power outages through generator businesses. Their fuel efficiency and robust performance make them indispensable in these applications. Therefore, such factors are expected to fuel the demand for power generators, which is expected to drive the growth of the global market during the forecast period.
In the context of sustainable energy solutions, the conversion to dual-fuel natural gas engines holds significant potential for various applications. This cost-effective modification is particularly relevant for initiatives such as Smart City Missions, Water Body Rejuvenation projects, and Sewage Management systems. In residential societies, dual-fuel engines can be employed in generator businesses to ensure uninterrupted power supply while reducing carbon emissions. The ease of application and operation of these conversions offers numerous benefits. Customers can enjoy the advantages of a dual-fuel engine without the high cost associated with traditional engines. Moreover, the uninstallation process is straightforward, allowing the engine to be restored to its initial diesel-only condition if required. However, it is essential to acknowledge the limitations of dual-fuel engines. Although they offer the convenience of dual-fuel capability, they may not deliver the same power density as diesel engines. To achieve equivalent power output, a larger engine is necessary, which in turn increases the overall cost. Additionally, the different cam timing between spark-ignited and diesel engines results in higher exhaust gas temperatures when using dry natural gas fuel. This combination can lead to increased valve seat wear rates, which may necessitate more frequent maintenance. Hence, such factors are expected to drive the growth of the global market during the forecast period.
The market is subject to stringent regulations due to the harmful emissions produced from refined diesel fuel. These emissions, including nitrogen oxides, carbon monoxide, and hydrocarbons, negatively impact the environment and necessitate changes. For instance, the US Environmental Protection Agency (EPA) has set standards for sulfur content in diesel fuel and emissions as part of initiatives like the Smart City Mission and Water Body Rejuvenation. These regulations mandate the use of ultra-low-sulfur diesel (ULSD) fuel for highway vehicles with diesel power engines. In addition, they play a crucial role in sectors such as Sewage Management and Residential societies, where generators are essential. Compliance with these emissions standards is essential for businesses in these sectors to ensure sustainable operations and maintain regulatory compliance. 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 market during the forecast period.
The automotive segment is estimated to witness significant growth during the forecast period. The market encompasses the production and sales of engines utilized in various applications, particularly in the automotive industry. These engines are characterized by their intricate components, such as pistons and connecting rods, which facilitate the combustion process. The cooling and lubricating systems are essential for maintaining optimal engine performance and longevity. Diesel power engines have gained significant traction in various sectors due to their fuel efficiency and operational benefits. They are widely used in standby, prime, and peak shaving applications, providing backup power for residential, hospitals, power plants, and large residential areas.
Customised Report as per your requirements!
The automotive segment was the largest segment and was valued at USD 147.80 billion in 2018. In commercial and industrial settings, diesel generators are employed for quick power generation in the telecommunication, construction, health care, and mining industries. Diesel generators have been instrumental in powering various sectors, including the World Steel Association, crude steel production, and natural gas engines. The construction sector relies heavily on diesel power engines for their reliability and longevity, making them indispensable in sustainability efforts. The commercial sector, including universities and urbanization projects, also benefits from the fuel-efficient nature of diesel power engines. Product lines and contractual agreements play a crucial role in the diesel power engine market, with transportation, datacenters, and power generation being significant end-users. The mining and chemical industries also heavily rely on diesel power engines for their operational requirements. The market is expected to grow significantly due to the increasing demand for fuel-efficient engines and the expanding infrastructure in various sectors.
For more insights on the market share of various regions Download Sample PDF now!
APAC is estimated to contribute 50% to the growth by 2028. Technavio's analysts have provided extensive insight into market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The market encompasses a broad range of applications, including standby, prime, peak shaving, and Reliable back up power solutions. These engines are integral to various sectors, such as residential, hospitals, power plants, and commercial buildings, including universities and urban areas. The Industrial and Commercial sectors, in particular, rely heavily on diesel power generators for quick power generation in large residential areas, commercial buildings, data centers, and power stations. Diesel engines function through a complex system of pistons and connecting rods, which convert thermal energy into mechanical energy.
Product lines within this market include various engine sizes and configurations, catering to contractual agreements and specific application requirements. The transportation sector also utilizes diesel engines extensively, particularly in heavy-duty vehicles and machinery. Crude steel production by the World Steel Association is another major application areas. The health care sector and telecommunication sector also rely on diesel generators for uninterrupted power supply, ensuring the continuity of essential services. In conclusion, the market plays a vital role in power generation across various industries, offering solutions for quick power generation, reliability, and longevity. The market's significance is further emphasized by its applications in sectors such as residential, hospitals, power plants, commercial buildings, universities, urbanization, Industrial, Commercial, power station, mining, chemical, transportation, data centers, and crude steel production.
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 20 market companies, including:
AB Volvo, AGCO Corp., Anglo Belgian Corp., Aviation Industry Corp. of China Co. Ltd., Caterpillar Inc., China FAW Group Co. Ltd., Cooper Corp., 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.
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.
The market is a significant sector in the global energy industry, driven by the increasing demand for power and the need for sustainable and efficient energy solutions. They offer several advantages, including their high efficiency, reliability, and flexibility. They are widely used in various applications, such as power generation, transportation, and industrial processes. The market is expected to grow at a steady pace in the coming years, driven by factors such as the increasing demand for electricity, the growing popularity of renewable energy sources, and the ongoing efforts to reduce greenhouse gas emissions. The market is also being influenced by technological advancements, including the development of advanced designs and the integration of digital technologies. Key players in the market include OEMs, component suppliers, and service providers.
They are focusing on innovation, cost reduction, and sustainability to stay competitive in the market. The market is also witnessing a trend towards the adoption of modular and flexible power solutions, which can be easily integrated into various applications. In conclusion, the market is a dynamic and evolving sector, driven by the growing demand for power and the need for sustainable and efficient energy solutions. The market is expected to grow steadily in the coming years, driven by various factors, including technological advancements, regulatory initiatives, and changing customer preferences.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.21% |
Market growth 2024-2028 |
USD 39.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 50% |
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, AGCO Corp., Anglo Belgian Corp., Aviation Industry Corp. of China Co. Ltd., Caterpillar Inc., China FAW Group Co. Ltd., Cooper Corp., 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, Market condition analysis for the market 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. |
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.