Industrial Engine Market
Industrial Engine Market By Fuel Type (Diesel and Gasoline), By Engine Type (50 HP-500 HP, 501 HP-10,000 HP, and above 10,000 HP), and By Region - Global Market Report (2024 to 2034)
Analysis of Industrial Engine Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Industrial Engine Market Outlook (2024 to 2034)
The global industrial engine market size is estimated to be valued at US$ 18.60 billion in 2024. The market is projected to account for US$ 34.28 billion in revenue, registering a CAGR of 6.3% through 2034.
The growing construction industry, where demand for auxiliary power remains constant, is driving the demand for industrial engines. The requirement for industrial engines is also rising in mining operations, where they are used as a portable backup power source. Additionally, diesel and gasoline engines are highly popular owing to their durability and heavy-duty design.
Market players are focusing on expanding their customer bases by customizing industrial engines as per consumers’ requirements. Firms are now ordering engines of different sizes or specific power ratings to meet their specifications. Furthermore, new technologies such as digital control systems are being integrated for users to surveil engine performance and make necessary adjustments.
Top Drivers Propelling Growth in the Industrial Engine Market
- Increasing applications of industrial engines in manufacturing, electricity, marine transportation, oil and gas, off-road vehicles, construction, agricultural use, and mining and metallurgy are driving market demand.
- Surging investments in construction and mining industries are predicted to expand the scope of the market.
- Growing focus on the technological improvement of engines for better efficiency, durability, and reliability also enhances market growth. The utilization of advanced materials, software, and electronics has empowered manufacturers to develop engines that emit lower emissions, are more fuel-efficient, and require less maintenance.
- Consumer preferences are the driving force behind the sales of industrial engines. Customers are increasingly seeking engines that are eco-friendly, easy to operate, and have low noise levels, thus raising the demand for engines that are quieter, easier to service, and emit reduced levels of pollutants.
|Estimated Market Value (2024E)
|US$ 18.60 billion
|Forecasted Market Value (2034F)
|US$ 34.28 billion
|Projected Growth Rate (2024 to 2034)
|Diesel Segment Growth Rate (2024 to 2034)
|500HP-10,000HP Segment Growth Rate (2024 to 2034)
|North America Market Share (2024)
|East Asia Market Share (2024)
|Leading Companies Profiled in the Industrial Engine Market Research Report
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Which Trends are Guiding the Growth of the Industrial Engine Market?
“Increasing Traction for Off-road Diesel Engines”
Globalization of construction and agricultural sectors is raising the demand for off-road vehicle engines. A spike in sales of construction equipment due to urbanization and surging infrastructure projects for residential as well as non-residential purposes is stimulating growth in the market. Further, government initiatives to propel farm mechanization, especially in developing countries, are increasing the demand for agricultural equipment like heavy-duty tractors and power tillers. Therefore, growth in both agricultural and construction operations is escalating the demand for engines required for off-road vehicles.
“Growing Demand for Off-highway Engines”
The increasing demand to generate greater output with minimum manpower is stimulating the construction sector to utilize advanced tools, such as off-highway engines. Off-highway engine manufacturers have opportunities abound, owing to their ability to reduce the delivery time of projects, handle heavy loads, and construct complicated infrastructure. The future of off-highway engines lies in their use in increasingly developing modern constructions.
What is Negatively Impacting Market Growth?
“Promotion of Renewable Energy Sources and High Costs Associated with Industrial Engines”
High carbon emissions, capital costs, and maintenance costs associated with the operation of industrial engines are restricting their uptake among end users. Several customers prefer alternative power sources that have less environmental impact and lower operational costs.
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Which Region Accounts for a Significant Share of the Market?
“Rising Capital Expenditures in East Asia’s Industrial Engine Market”
|CAGR (2024 to 2034)
The East Asia market is projected to acquire a value share of 36.5% in 2024. In the same year, the market is estimated to attain US$ 6.79 billion. Recording a CAGR of 6.8%, the market is forecast to attain US$ 13.16 billion by 2034. The regional market is driven by increasing capacity expansions and rising capital expenditures by leading players.
What is Fueling Demand for Industrial Engines in North America?
“Ongoing Technological Advancements in North America Market”
|CAGR (2024 to 2034)
The North American industrial engine market is estimated to generate earnings worth US$ 5.32 billion in 2024. The regional market is expected to accumulate a total of US$ 9.97 billion by 2034, expanding at a CAGR of 6.5% over the forecast period.
The increasing demand for industrial engines in application sectors like automotive, energy and electricity, agriculture, and other industrial sectors is projected to raise the value of the regional market. Rising government spending to boost these sectors is anticipated to accelerate the deployment rate of industrial engines.
Ongoing technological advancements in industrial engines are resulting in increased durability, improved crankshaft designs, less complicated installations, and streamlined designs.
Which Country in North America Exercises Hegemony in the Market?
“The United States Enjoys the Leading Market Share”
|CAGR (2024 to 2034)
The United States is predicted to capture a value share of 68.6% of the North American market in 2024. The country is estimated to yield a total of US$ 3.65 billion in 2024. The United States market is expected to generate US$ 6.87 billion by 2034, recording a CAGR of 6.5% through 2034. Demand for industrial engines is increasing in the agriculture sector as powerful agricultural machinery like combines, tractors and irrigation pumps are commonly used to raise agricultural productivity.
Within the construction sector, the surging infrastructure spending and rising utilization of heavy machinery are favoring the sales prospect of high-powered industrial engines. Growing demand for fuel-efficient engines and rising trade volumes for cargo ships and other vessels are catalyzing sales of industrial engines.
Which Country in East Asia is Leading the Industrial Engine Market?
“Rising Demand for Industrial Engines in China”
|CAGR (2024 to 2034)
The China market is predicted to acquire a regional value share of 57.5% in 2024. The market is estimated to be valued at US$ 3.90 billion in 2024. The market is forecast to reach US$ 7.58 billion by 2034, expanding at a CAGR of 6.9% over the forecast period.
Increasing government initiatives to foster manufacturing, industrialization, and infrastructure development are creating an environment conducive to industrial expansion. Thus, bolstering the demand for industrial engines for use in multiple applications.
The robustly expanding logistics and transportation sector is also acting as a strong catalyst for industrial engines. In line with this, the strengthening road network and rapid movement of goods across the country have created significant demand for diesel-powered vehicles like trucks and buses.
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Which Fuel Type Significantly Contributes to the Rising Market Demand?
“Need for Efficient Transportation Fueling Demand for Diesel-powered Engines”
|Market Share in 2024
The diesel segment is predicted to acquire a market share of 56.8% by fuel type in 2024. The segment is estimated to attain US$ 10.56 billion and expand at a CAGR of 7% over the forecast period. By 2034, the segment’s value is forecasted to be US$ 20.87 billion. The growing demand for diesel engines to provide power for generators, construction equipment, and machinery is increasing the segment’s growth.
The surging need for long-range and efficient transportation is fueling the demand for diesel-powered vehicles, making them critical for the movement of passengers and goods. Further, increasing investments in the research and development of diesel engine technology to develop cleaner, more efficient engines is also favoring the segment’s expansion.
Which Engine Type is Highly Preferred?
“The 501 HP-10,000 HP Segment is the Highly Preferred Engine Type”
|Market Share in 2024
The 501 HP-10,000 HP segment is expected to obtain a value share of 38.9% in 2024. The segment is estimated to reach US$ 7.23 billion in 2024. By 2034, the segment is forecasted to reach US$ 13.78 billion, expanding at a CAGR of 6.7% over the forecast period. Surging demand for this power range, covering both stationary and mobile equipment, is expected to propel the segment’s growth. Further, factors like growing demand for reliable power sources in multiple industries, technological advancements, and infrastructure developments are also expected to increase sales of 501 HP-10,000 HP industrial engines.
Key players in the industrial engine market include Kawasaki Heavy Industries, Ltd., Honda Motor Co. Ltd., Hyundai, Mitsubishi, SIEMENS Energy, and Yanmar.
Market players are carving for a bigger share by strategically partnering with firms, investing in innovation, and complying with environmental norms. Industry leaders are continuously investing in research and development to develop cleaner, more efficient, and technologically progressive industrial engines. Furthermore, top competitors are forging partnerships with manufacturers from different sectors, like agriculture, automotive, and construction, to ascertain a consistent demand for industrial engines.
Recent Developments in the Industrial Engine Market
- In 2023, AGCO Corporation officially declared that it had created a new set of diesel engines, known as CORE. These engines are developed with future alternative fuels like gas and hydrogen. The newly launched engines are capable of lowering GHG emissions by up to 90%, utilizing renewable HVO fuels.
- In August 2023, Cummins Inc. revealed that it had gained the approval of its overall line of diesel high horsepower engines to be used with renewable diesel fuels. This sanction applies to all high-horsepower engines utilized in different industries like marine, mining, defense, rail, and oil and gas.
- In July 2023, Ford Motor Company and General Motors announced that they are going to continue investing in internal combustion engine vehicles powered by diesel and gas despite their commitments to EV development.
Segmentation of the Industrial Engine Market Research
By Fuel Type:
By Engine Type:
- Above 10,000HP
- North America
- Latin America
- East Asia
- South Asia and Oceania
- Middle East and Africa
- FAQs -
What was the Value of the Industrial Engine Market in 2019?
The industrial engine market was worth US$ 13.65 billion in 2019.
What is the sales outlook for industrial engines in 2024?
The sales outlook for industrial engines is likely to be valued at US$ 18.60 billion in 2024.
What is the Demand Forecast for Industrial Engines by 2034?
Sales of industrial engines are projected to reach a market value of US$ 34.28 billion by the end of 2034.
What is the Growth Projection for the Industrial Engine Market?
The demand for industrial engines is projected to rise at a CAGR of 6.3% through 2034.
At What Rate is the Market in East Asia Predicted to Grow?
The East Asia market for industrial engines is forecasted to expand at a CAGR of 6.8% through 2034.