Off-Highway Engine Market

Off-Highway Engine Market Outlook (2024 to 2034)

Projected to increase at a CAGR of 5.9%, the global off-highway engine market is forecasted to grow from a size of US$ 98.36 billion in 2024 to US$ 174.49 billion by the end of 2034.

• Short Term (2024 to 2027): Ongoing advancements in engine manufacturing will positively influence the sales of advanced off-highway engines.
• Medium Term (2027 to 2030): North America and Europe are projected to exhibit comparatively higher off-highway engine demand due to increasing penetration of electrical vehicles.
• Long Term (2030 to 2034): Rising usage of electric and hybrid vehicles will open new opportunities for off-highway engine suppliers.

Off-highway engines are also called as recreational off-highway vehicles, adventure vehicles or off-road vehicles. Some of the types of off-highway engines include tractors, golf carts, excavators, bulldozers, forklifts, and cranes. Infrastructure development projects in both developed and emerging economies, along with the industrial and agricultural advancements are some of the major factors set to boost the economic growth during the forecast period.

Potential for market expansion is being bolstered by the development of alternative efficient and clean fuels, less-polluting engines. At warehouses and inventories, there are more industrial heavy duty trucks and material handling equipment works on engine. This has additionally aided in raising productivity and guaranteeing employee safety. Over the forecast period, the off-highway engine market growth is expected to be driven by the clear expansion of material handling equipment. Off-highway gasoline engine and off-highway diesel engine are two engine types based on fuel type.

• North America is estimated to hold 25.1% of the global off-highway engine market share in 2024.
• The East Asian off-highway engine market size is forecasted to reach US$ 42.40 billion by 2034.

Report Attributes	Details
Off-Highway Engine Market Size (2024E)	US$ 98.36 Billion
Forecasted Market Value (2034F)	US$ 174.49 Billion
Global Market Growth Rate (2024 to 2034)	5.9% CAGR
South Korea Market Value (2034F)	US$ 2.27 Billion
Canada Market Growth Rate (2024 to 2034)	5.7% CAGR
Key Companies Profiled	Cummins; Deere and Company; AGCO Corporation; Doosan Infracore; Deutz AG; Caterpillar Inc.; Yanmar Co., Ltd; Fiat Powertrain Technologies (FPT); Kubota Corporation; J. C. Bamford Excavators Ltd.; Mahindra and Mahindra Ltd.; Kohler Co.

Why are Off-Highway Engines Gaining Popularity?

“High Benefits of Modern Agricultural Equipment with Advanced Off-Highway Engines”

Historically, tractors were used in only a few agricultural tasks. Nowadays tractors are finding applications in the bulk of agricultural and forestry operations including plowing, planting crops, tilling, applying fertilizer, maintaining lawns, and removing shrubs. The agriculture tractors are proven to be a great asset for both large and small farms as well as routine garden maintenance. Depending on their use they are available in various sizes and designs.

These tractors are available from OEM in a variety of products. Additionally, OEMs frequently provide tiny tractors with engines under 50 HP for small-scale regular agricultural and forestry activities. These farm tractors are ideal for tasks including transporting, plow work, digging, and landscaping.

Utility tractors are high-performance tractors with 50 to 100 horsepower (HP). Heavy agricultural chores are carried out with these tractors. The farming method is modernizing due to the introduction of autonomous and compact tractors. The growing demand for tractors across the globe is increasing dramatically especially in the countries where economy is driven by agriculture sector and farming is the primary occupation.

“Off-Highway Engines Advancing Construction Sector through their Multifaceted Features”

From paving roads to building ports and increasing heights of building, all these are driven by construction equipment. Owing to the unmatched capabilities of engines for power and reliability as well as efficient and less polluting engines are key features that are securing the dominating position of these engines.

These powerful engines are ensuring the mobilization of heavy materials and equipment. Consequently, reduced human power and high work capacity are encouraging the industry towards the adoption of modern construction equipment thereby off-highway engines. Heavy material handling, complex infrastructure building, less project time, and optimum use of power are poised to provide substantial opportunities for off-highway engine producers in the next 10 years.

What Do Off-Highway Engine Manufacturers Need to Find a Solution For?

“High Product and Maintenance Expenses”

Machinery using off-highway engines is significantly expensive and involves high capital investments. Starting from the production phase to owning and maintaining, this equipment is price-consuming. Over the years, the changing environmental norms and continuous technological developments such as the use of the Internet of Things (IoT) are leading to rise in the end product cost. This has been a factor of concern for the producers of off-highway engines as high end product cost affects their minimum selling price and ultimately sales growth. Later, expensive equipment operating and maintenance costs restrain customers from buying machinery in large numbers.

How are Startups Strategizing to Enhance Their Market Position?

“Focus on Integration of Digital Technologies to Offer Advanced Off-Highway Engines”

Integration of artificial intelligence (AI), smart sensor, and the Internet of things are some of the notable off-highway engine market trends. New companies are integrating advanced technologies and sensors for the development of advanced off-highway engines. This is set to boost their market position and revenues.

• Founded in 2018, Monarch a United States start-up offers AI-powered electric autonomous tractors. The company’s tractors are designed from the point of view of modern day farming. These AI-powered electric autonomous tractors are equipped with sensors and cameras to map and tag every crop and get real-time information and alert.

Country-wise Analysis

Which Factors are Increasing Demand for Off-Highway Engines in the United States?

“High Volume of Industrial Activities and Presence of Industry Leaders”

Attribute	United States
Market Value (2024E)	US$ 19.02 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 33.46 Billion

Presence of early adopters, the ongoing industrial activities, and technologically intensive farming all are set to boost the sales of off-highway engines in the United States. The main factor influencing the market growth is the widespread use of off-highway engines in power sports, marine engines, construction and agriculture equipment, and oil and gas.

Existence of industry leaders including Cummins, Caterpillar, John Deere, is further supporting off-highway engine sales growth. The United States market is also expected to get benefitted from the deployment of cutting-edge technologies and the simple accessibility of top-notch products across the potential end-use industries.

Why is China a Lucrative Market for Off-Highway Engine Manufacturers in?

“Advanced Off-Highway Engines Exhibiting High Use in Agriculture Sector”

Attribute	China
Market Value (2024E)	US$ 16.44 Billion
Growth Rate (2024 to 2034)	7% CAGR
Projected Value (2034F)	US$ 32.45 Billion

Ongoing infrastructure development projects and technological advancements in the agriculture equipment sector are benefitting off-highway engine suppliers in China. China, which is regarded as the world's manufacturing hub is poised to dominate the East Asia market over the next ten years. Furthermore, China's expanding warehousing sector and growing marine trade are expected to boost the demand for off-road engines.

Category-wise Analysis

Which Power Type HP Off-Highway Engine is Highly Demanded?

“Widespread Application and Versatility Driving Demand for Above 250 HP Off-Highway Engines”

Attribute	Above 250 HP Off-Highway Engines
Segment Value (2024E)	US$ 24.03 Billion
Growth Rate (2024 to 2034)	6.8% CAGR
Projected Value (2034F)	US$ 46.55 Billion

According to the Fact.MR study, engine producing more than 250 HP of power output is prominent among all. Owing to this power band, off-highway engines with above 250 HP are finding widespread applications. Small farm equipment such as compact tractors, tillers, lawn movers, all-terrain-vehicles (ATVs), utility terrain vehicles (UTVs), pumps, and other various equipment use above 250HP category of engines. East Asia, South East Asia & Pacific, and Africa are the regions where agriculture, construction, maritime trade, and power generation equipment lay the immense opportunity, further driving sales of off-highway engines with more than 250 HP.

Why are Off-Highway Engines Preferred for Agriculture & Forestry Purposes?

“Advancing Farming Methods Driving Demand for Reliable and Specialized Off-Highway Engines”

Attribute	Agriculture & Forestry Equipment
Segment Value (2024E)	US$ 26.22 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 46.98 Billion

Rising awareness of off-highway engines among farmers is increasing their adoption rates. With increasing importance of off-highway engines in farming, farmers are demanding for standard as well as customized solutions. Considering this factor, manufacturers are introducing agricultural equipment with innovative technologies and designs. Furthermore, increasing use of specialized tractors from timber and forest harvesters is driving the need for reliable off-highway engines.

Competitive Landscape

Some of the key players in the off-highway engine market are Cummins, Caterpillar Inc., Yanmar Co., Ltd., Fiat Powertrain Technologies (FPT), Kubota Corporation, AGCO Corporation, Mahindra and Mahindra Ltd., and Kohler Co.

Leading companies are concentrating on the development of efficient and emission-free engines. For a company to remain competitive in the off-highway engine business, targeted acquisitions and advanced product offerings within the sector are essential.

• In March 2020, Cummins combined its X15 performance series with its long-lasting XD 18-speed Transmission. The product is designed for heavy off-highway application as well as combined weight on-highway use.
• In June 2020, Marble Robot, a provider of robotics and autonomy technology solutions, in California, stated that Caterpillar has acquired certain assets and personnel. The acquisition was made by Caterpillar to improve autonomous mining and address issues with shifting manufacturing industry demands.

Fact.MR provides detailed information about the price points of key manufacturers of off-highway engines positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated report.

Key Segments of Off-Highway Engine Market Research

• By Engine Capacity:

  • < 4 L
  • 4 L to 10 L
  • 10.1 L to 16 L
  • 16.1 L to 22 L
  • Above 22 L

• By Power Output:

  • < 50 HP
  • 50 HP to 80 HP
  • 80 HP to 120 HP
  • 120 HP to 150 HP
  • 150 HP to 200 HP
  • 200 HP to 250 HP
  • Above 250 HP

• By Fuel Type:

  • Gasoline
  • Diesel

• By Application:

  • Construction & Mining Equipment
  • Agriculture & Forestry Equipment
  • Marine Engines
  • Gensets
  • ATVs
  • Industrial Trucks
  • Power Sports
  • Landscape & Maintenance Equipment
  • Others

• By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa