Off-Highway Diesel Engine Market

Off-Highway Diesel Engine Market Size, Share & Forecast Analysis, By Engine Capacity (Up to 2 L, 2-4L, 4-8L, 8-12L, 12-16L, 16-20L, 20-24L, Above 24L), By Power Output, By Application & Region - Forecast 2022-2032

Off-Highway Diesel Engine Market Outlook (2022-2032)

The global off-highway diesel engine market stood at US$ 93.2 billion in 2021 and is forecasted to increase at a CAGR of 6.6% to reach a market valuation of US$ 186.4 billion by 2032.

Off-highway diesel engines are those that can be used in a variety of industries, including agriculture, mining, and construction. These engines provide consistent performance in challenging circumstances where there is dust, vibration, high altitude, and adverse weather conditions, thereby increasing production and boosting profitability. To carry out diverse jobs, these engines are seen in off-highway vehicles such as excavators, cranes, mixers, backhoes, and forklifts. These diesel engines are ideal for heavy-duty specifications for certain applications.

Over the 2017-2021 historical period, sales of diesel engines registered a CAGR of 0.9%, and according to Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.6% CAGR over the next ten years.

Revenue from the sales of off-highway diesel engines accounted for more than 86% share of the global off-highway engine market in 2021.

Report Attributes


Off-Highway Diesel Engine Market Size (2021A)

US$ 93.2 billion

Estimated Market Value (2022E)

US$ 98.6 billion

Forecasted Market Value (2032F)

US$ 186.4 billion

Global Market Growth Rate (2022-2032)

6.6% CAGR

North America Market Share (2022)


North America Market Value (2022)

US$ 24.8 billion

Europe Market Share (2022)


Europe Market Value (2022)

US$ 21.9 billion

China Market Share (2022)


China Market Value (2022)

US$ 14.8 billion

Market Share of Top 3 Countries


Key Companies Profiled

  • AGCO
  • Deutz
  • FPT Industrial
  • JCB
  • John Deere
  • Kohler
  • Kubota
  • Loncin
  • Mahindra
  • Mercury
  • Scania AB
  • Volvo
  • Weichai
  • Yanmar
  • Zongshen Power Co

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

What’s Driving Demand Growth for Off-Highway Diesel Engines?

“Increasing Demand in Application Sectors to Push Market Growth”

Demand for higher agricultural yield and protein & calorie-rich content is increasing. Agricultural land is increasing in Africa where agriculture accounts for 14% of the GDP, whereas, it is decreasing in developed regions such as Europe. Low income through farming in the developing south is pushing the population towards other means of livelihood, resulting in a less engaged workforce in the farming business.

Cultivatable land properties are also changing with changing environmental conditions. Extensive global food demand can be met through agricultural land expansion and higher production from existing cultivatable land. These factors are driving the demand for agricultural equipment. The ability to cover larger areas, have less reliance on labor, and enjoy high land utilization rates can be achieved by using agricultural machines.

The market continues to see advancements, and growth in the use of such equipment is driving the sales of off-highway diesel engines. As a result, the market is expected to showcase 1.9X growth over the forecast period.

“Rising Demand for Compactness & High Power Output in Small Off-Road Engines”

Owing to their compactness and high power output, small off-road engines are likely to exhibit rising demand. These engines have found applications in diverse fields. Growing demand for power snowmobiles, boring units, and others is driving the demand for small off-road engines in the automotive industry.

Their compactness is an advantage for all of their end users. Soaring emphasis on higher production in agriculture is encouraging the farming workforce to opt for smaller-horsepower engines. These machines find application in powering small pumps, power weeders, rotary tillers, and cultivators.

Rising demand for these engines in construction, agriculture, and many other industries is likely to be an impetus for the demand growth for small off-highway engines.

“Modular Units & Engine Downsizing Supporting Creation of Cost-effective Solutions”

Competition is increasing in the market based on modular products, significant fuel economy, and reduced maintenance costs. Modular technology offers the flexibility to create, replace, or modify the design independently. It also offers cost-reduction benefits.

Efficient and powerful small engines providing increased power density have become a replacement for traditional large-displacement engines. Downsizing enables weight reduction, lower emissions due to less fuel consumption, and reduced friction losses due to lesser swept volume. Modular and downsized engines also reduce manufacturing, purchasing, and maintenance costs.

Cost reduction is likely to increase the demand for off-highway engines. As assessed, the market is expected to create an absolute dollar opportunity of US$ 93.1 billion by 2032.

Off-highway diesel engine market forecast by Fact.MR

Country-wise Insights

What is the Scenario of the U.S. Off-Highway Diesel Engine Market?

The United States off-highway diesel engine market is currently estimated at US$ 19.3 billion and is predicted to expand at a CAGR of 6.1% during the forecast period. The United States dominates the market as it has made huge investments in the automotive industry. A majority of manufacturers are focusing on making diesel engines with the most recent features to make them easier and more efficient for drivers to operate.

The United States has a lot of potential for off-highway diesel engine sales over the coming years due to its rapidly expanding automotive industry and a high number of market players in the country.

Why is the China Off-Highway Diesel Engine Market Expected to Be Highly Lucrative?

China is expected to be the highest contributor to off-highway diesel engines and is expected to reach a market valuation of US$ 32.5 billion by 2032. A majority of the revenue is generated from applications such as construction, landscape & maintenance, and agriculture & forestry, which are the prime customers of off-highway diesel engine manufacturers.

There are also several localized players in the market who cater to the domestic demand for other application use cases. By establishing ventures with domestic automobile manufacturers, most foreign brands have been allowed to produce off-highway diesel engines in China.

The Chinese market for off-highway diesel engines is expected to grow 2.2X over the next ten years.

Category-wise Insights

Which Application of Off-Highway Diesel Engines Will Create High Revenue Generation Opportunities?

During the projected period, the agriculture and forestry equipment application segment is anticipated to account for the highest market share. Fierce competition in the mining and construction sectors to lower costs related to fuel prices and increase profits is another reason driving the growth of the off-highway diesel engine industry.

Fleet managers and operators prefer using off-highway diesel engines to gain a competitive edge and maintain profitability. However, small- and medium-sized fleet operators cannot afford the hefty deployment costs of these diesel engines. They continue to carry out mining and building activities using traditional machinery and equipment because of their low profit margins.

Increasing regulations by governments in different regions for near-zero diesel emissions is a factor that will play out in this market. By application, agriculture & forestry is estimated at a market valuation of US$ 25.9 billion in 2022.

Why are 24 L Off-Highway Diesel Engines Most Widely Used?

Sales of engines with a capacity greater than 24 L are anticipated to increase the fastest at a CAGR of 8.2%. Broad use in the manufacturing, construction, power sports, mining, and agricultural sectors is contributing to this rise. Due to their significant presence in key markets of marine engines; power sports vehicles; heavy commercial equipment; small, medium, and compact construction and agricultural equipment; they are expected to see an increase in popularity in the near future.

The more than 24 L off-highway engines segment is predicted to expand 2.2X during the forecast period.

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Competitive Landscape

Prominent off-highway diesel engine manufacturers are AGCO, Deutz, FPT Industrial, JCB, John Deere, Kohler, Kubota, Loncin, Mahindra, Mercury, Scania AB, Volvo, Weichai, Yanmar, and Zongshen Power Co.

Diesel engines with low emissions have become the primary focus for manufacturers as they have realized the urgency of the situation. With the help of advanced technologies such as oxidation catalysts, particulate filters, and selective catalytic reduction systems & efficient combustion, these new diesel engines will reduce emissions.

Several marketing strategies have been adopted such as strategic alliances, product launches, partnership agreements, capacity expansions, and many more by industry participants.

Fact.MR has provided detailed information about the price points of key manufacturers of off-highway diesel engines positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Off-Highway Diesel Engine Industry Research

  • By Engine Type :

    • Up to 2 L
    • 2-4 L
    • 4-8 L
    • 8-12 L
    • 12-16 L
    • 16-20 L
    • 20-24 L
    • Above 24 L
  • By Power Output :

    • < 50 HP
    • 50 HP – 80 HP
    • 80 HP – 120 HP
    • 120 HP – 150 HP
    • 150 HP – 180 HP
    • 180 HP – 220 HP
    • 220 HP – 250 HP
    • 250 HP – 300 HP
    • 300 HP – 500 HP
    • 500 HP – 750 HP
    • 750 HP – 1,000 HP
    • Above 1,000 HP
  • By Application :

    • Construction Equipment
    • Agriculture & Forestry Equipment
    • Landscape & Maintenance Equipment
    • Mining Equipment
    • Industrial Trucks
    • Power Sports
    • Marine
    • Genset
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • MEA

- FAQs -

The global off-highway diesel engine market is valued at US$ 98.6 billion in 2022.

Worldwide sales of off-highway diesel engines are anticipated to reach US$ 186.4 billion by 2032-end.

North America leads the global market for off-highway diesel engines and will account for 23.5% market share by 2032.

Agriculture & forestry equipment is expected to account for 28.2% market share by 2032.

Above 24 L off-highway diesel engines account for 18.9% share of global sales in 2022.

Between 2017 and 2021, sales of off-highway diesel engines increased at 0.9% CAGR.

Off-Highway Diesel Engine Market

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