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The Diesel Engines Market for Non-Automotive Applications Market size is estimated to grow at a CAGR of 3.55% between 2022 and 2027 and the size of the market is forecast to increase by USD 13.87 billion. The growth of the market depends on several factors, such as the diesel engine technology gaining momentum on technological advances, diesel remaining the leading fuel type in generators, and the increase in seaborne trade.
This report extensively covers market segmentation by type (multi-cylinder and single-cylinder), end-user (marine, construction, agriculture, and generators), 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.
Diesel Engines Market for Non-Automotive Applications 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.
The global market for generators is dominated by diesel as a fuel type. Diesel has become the most popular fuel type among generators for several decades due to its low cost and ease of use, especially those that are used in industry. However, there is a growing trend toward the use of natural gas and other alternative environment-friendly and non-diesel fuel sources. Despite this fact, diesel will continue to lead the fuel-type segment for many years to come.
Although it is projected that diesel engine generators will lose some of their share in the market to increasing fuel types such as gas and alternate energy, they should continue to grow moderately over the forecast period. Hence, even though it is estimated that it will lose its market share during the forecast period due to the growing popularity of other alternative fuel types, this loss will be modest. Such drivers are expected to drive the growth of the market focus during the forecast period.
Without many complications, market players can replace their current diesel engines with dual-fuel natural gas engines. These modifications are easy to apply and operate. The conversions offer customers the advantage of a dual-fuel engine at a low cost. The spark-ignited engines offer some disadvantages, such as low delivery of power density. A larger engine and therefore a higher price are necessary in order to achieve the same power. The Spark Ignition engines have a different timing of cams compared to diesel, making them produce higher exhaust gas temperatures.
However, engine warranty is not compromised in most cases because the conversion from a diesel engine to a dual-fuel engine does not impact the reliability of the engine. Spark ignition systems also ensure fewer misfires, higher efficiency, and higher power density. Further, exhaust emissions such as CO2 and particulates are significantly reduced. There are advantages in encouraging end users of diesel engines to take dual-fuel engines onto their system and helping to increase the number of dual-fuel engines on the market. Such trends are expected to drive the growth of the market in focus during the forecast.
Due to strict emission rules, demand for alternative fuels like gas which has a relatively clean and eco-friendly combustion is increasing. Thus, there has been a growing popularity of the use of natural gas as a substitute fuel for diesel, encouraging engine manufacturers to incorporate their expertise and technology to develop engines that run on natural gas.
However, in Texas, where the addition of oil reserves in the Permian Basin has led to the largest increase in the proved reserves of associated dissolved natural gas in 2019, the increase was 2.5 trillion cubic feet. Associated-dissolved natural gas, also called casing head gas, is defined as the combined volume of natural gas that occurs in crude oil reservoirs, either as free gas (associated) or as natural gas in solution with crude oil (dissolved). Such challenges are expected to hinder the growth of the market in focus during the forecast.
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 41.72 billion in 2017 and continued to grow until 2021. 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.
A single-cylinder diesel engine is an internal combustion engine that converts thermal energy into mechanical energy when oil, gasoline, or other fuel is combined with hot air. It was invented to harness the energy that can be produced from gas. The sole cylinder is a vital element of the diesel engine that produces power. Generators and some machine tools used for carpentry or gardening are primarily equipped with single-cylinder diesel engines. Many industries rely on diesel engine-powered equipment and machinery to run their businesses, making the engine one of the greatest technological inventions. They come in different types, brands, and sizes, but they are all electric devices. Single-cylinder diesel engines are versatile in terms of application, usage, and efficiency. It is dominating the market focus since it is widely used and preferred by consumers. Such factors are anticipated to contribute to the growth of the segment and the market in focus during the forecast period.
Based on the analysis, the market has been segmented into marine, construction, agriculture, and generators. The marine segment will account for the largest share of this segment. The increasing production in the shipbuilding industry globally will have a positive impact on related products. The marine segment is followed by the construction segment, owing to increasing urbanization and industrialization across the globe. The diesel engine market is mainly dependent on the shipbuilding industry. As a consequence, the increased production of the shipbuilding sector worldwide will affect its products which are reliant on it. New orders and replacements of old ships have led to growth in the shipbuilding sector. The industry is dominated by players from APAC countries like China, Japan, and South Korea.
The basic applications of construction equipment involve the construction and mining industries, with the mining industry controlling two-thirds of the business revenue, leaving the construction industry with one-third of the total business revenue. Significant demand for diesel engines is expected to be generated in the forecast period as large economies increasingly focus on infrastructure development. In addition, diesel engine and generator demand in the region will grow due to increasing sales of building equipment in important markets like China, the United Arab Emirates, Japan, and India. Moreover, the government of the different countries announced the relaxation in the restrictions of lockdown, and construction activities across the region have gained pace, which further raised the demand for diesel engines for non-automotive applications. 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 56% 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.
The demand for diesel engines is experiencing an uptrend owing to increased construction activities in the region in 2020. These activities also entail an increase in demand for diesel engines not produced by automobiles, which form a vital component of construction equipment like excavators, cranes, and wheel loaders. In the Asia Pacific, China is by far the largest construction market and Japan and India are second. Owing to rising urbanization and various steps taken by the Chinese government to boost the economy, the market is expected to remain attractive for investors in several sectors during the forecasted period. The rising number of initiatives by the Japanese government for infrastructure development and the renovation of old infrastructure is expected to boost the growth of the construction industry in the country during the forecast period.
Industrial activities such as construction, marine, mining, and others in this region were suspended in 2020 owing to the COVID-19 pandemic. However, as the pandemic receded in 2021, the recovery of industrial sectors picked up pace in APAC. With a view to driving demand for new technologies and vehicles in the non-automotive applications market which would positively affect growth of the diesel engine market, capital expenditure is expected to increase in the region 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 engines for non-automotive applications such as Volvo Penta D13-IPS.
Caterpillar Inc. - The company offers diesel engines for non-automotive applications such as C 0.5 industrial diesel engines.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Anglo Belgian Corp., Cummins Inc., DEUTZ AG, Daihatsu Diesel Mfg. Co. Ltd., Fairbanks Morse LLC, IHI Corp., Isuzu Motors Ltd., Iveco Group N.V, J C Bamford Excavators Ltd., CNPC Jichai Power Co. 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 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.
The diesel engines market for non-automotive applications 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 Engines Market For Non-Automotive Applications Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.55% |
Market growth 2023-2027 |
USD 13.87 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.2 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 56% |
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, Anglo Belgian Corp., Caterpillar Inc., Cummins Inc., DEUTZ AG, Daihatsu Diesel Mfg. Co. Ltd., Fairbanks Morse LLC, IHI Corp., Isuzu Motors Ltd., Iveco Group N.V, J C Bamford Excavators Ltd., CNPC Jichai Power Co. 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, 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. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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