Off-Highway Engine Market to Expand 2x, with Extensive Applications in Construction & Agriculture: Fact.MR
Published : 20 Sep 2021 Industry: Automotive
A newly published Fact.MR report expects the off-highway engine market to reach a value of US$ 15.8 Bn by 2031, registering a CAGR of 7% throughout the 2021-2031 forecast period. By 2021, sales are anticipated to reach US$ 8.1 Bn, driven majorly by applications in the construction and agriculture industries respectively.
Historically, from 2016 to 2020, off-highway engine sales were sluggish, expanding at a CAGR of 2.3%, as high-grade mechanization was still in its fledgling stage. While prospects for the construction industry in general dimmed during the coronavirus pandemic, demand for off-highway engines remained sustained as deployment for farming continued unabated.
Government measures to improve farm mechanization, particularly in emerging nations, have boosted demand for agricultural machineries such as power tillers and heavy-duty tractors. Increased private sector participation in infrastructure projects, combined with increased government spending on these projects has fueled demand for construction machinery equipment, which in turn has fueled demand for engines for off-highway vehicles such as loaders, excavators, and truck-mounted cranes among others.
Key Takeaways from the Market Study
- Global off-highway engines demand to surge nearly 2x from 2021 to 2031
- By power output, < 50 HP off-highway engines to capture 60% of market demand
- Agriculture to be fastest growing application industry, clocking a 6% value CAGR
- In terms of capacity, < 4 L off-highway engines to add 2.1x market value
- U.S off-highway engine market likely to surge at around 7% value CAGR
- China expected to develop at an unrivaled rate of close to 8.2% through 2031
- India to register a CAGR of 8% across the 2021-2031 assessment period
“Increased scramble for attaining energy efficiency and fuel economy across various industrial sectors is expected to aid the growth of off-highway engine sales,” says an analyst at Fact.MR.
Prominent off-highway engine manufacturers are emphasizing on introducing low-emission producing engines, consistent with regional frameworks on curbing emission levels. Additionally, expansion strategies such as partnerships, collaborations and acquisitions are also relied upon.
- In 2017, Herero 4x4 selected FPT Industrial S.p.A to equip its fleet with the latter’s F1C Euro 6 engine and the 2840.6 FPT industrial gear for off-road applications. The engine offers high torque, regimen and reliability
- In October 2020, Cummins India initiated production of electronically controlled Cummins B4.5 engines with a power range of 121-200 horsepower. The new plant will initially have an annual production capacity of 30,000-50,000 engines, but it is geared to expand in the future.
More Insights Available
Fact.MR, in its new offering, presents an unbiased analysis of the global off-highway engine market, presenting historical demand data (2016-2020) and forecast statistics for the period of 2021-2031.
The study indulges essential insights on the market on the basis of engine capacity (< 4 L, 4-10 L, 10-16 L, 16-22 L and above 22-L), power output (< 50 HP, 50-100 HP, 100-200 HP, 200-300 HP and above 300 HP), fuel type (gasoline, diesel and others) and application (construction equipment, agriculture equipment, marine engines, gensets, industrial trucks, power sports and others) across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa).
About the Automotive Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned automobile team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million-plus data points, the team has analyzed the automotive industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
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Consultant - Industrial Goods and Automotive