Off-Highway Diesel Engine Market

Off-Highway Diesel Engine Market Study by Construction & Mining, Agriculture & Forestry, Landscape & Maintenance, Industrial Trucks, Power Sports, Marine, Gensets, and ATVs from 2024 to 2034

Analysis of Off-Highway Diesel Engine Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Off-Highway Diesel Engine Market Outlook (2024 to 2034)

Growing use of off-highway diesel engines in several industries, including construction, mining, agriculture, etc., is attributed to their consistent and efficient performance. The global off-highway diesel engine market size is calculated at US$ 111.82 billion in 2024 and is forecasted to increase at a CAGR of 6.6% to reach US$ 211.88 billion by the end of 2034.

Consistency in the performance of off-highway diesel engines in certain challenging circumstances, such as high altitude, vibration, adverse weather conditions, and dust is contributing to their popularity. This is estimated to contribute to their increased production and thus profitability. Moreover, these engines are also used in off-highway vehicles, including forklifts, backhoes, mixers, cranes, and excavators. They are ideal for heavy-duty specification in some applications.

Off-highway vehicles are motorized, and specifically designed for off-highway utilization, such as uneven terrains. They are used in construction and agriculture activities for multiple operations, including raw material transportation and multiple other construction and agricultural activities. These vehicles need specially designed engines for load-carrying and high power capacity.

Increasing use of off-highway diesel vehicles is owing to the growing sales of construction and agricultural machinery. Increased infrastructure activities and urbanization are generating demand for construction machinery. These factors are forecasted to result in a growing preference for construction and agricultural machinery, which is subsequently leading to rising demand for off-highway diesel engines around the world.

  • North America is evaluated to capture 22.4% of the global off-highway diesel engine market share by 2034.
  • Sales of off-highway diesel engines in South Korea are projected to rise at a CAGR of 8% from 2024 to 2034.
  • Agriculture & forestry equipment is poised to hold 26.9% share of the global market by 2034-end.
Report Attribute Detail
Off-Highway Diesel Engine Market Size (2024E) US$ 111.82 Billion
Forecasted Market Value (2034F) US$ 211.88 Billion
Global Market Growth Rate (2024 to 2034) 6.6% CAGR
Japan Market Growth Rate (2024 to 2034) 8.4% CAGR
Market Share of Above 250 HP Engines (2034F) 26.68%
East Asia Market Share (2034F) 38.9%
Key Companies Profiled
  • Mahindra
  • AGCO
  • Zongshen Power Co.
  • Deutz
  • Yanmar
  • FPT Industrial
  • Weichai
  • JCB
  • Volvo
  • John Deere
  • Scania AB
  • Kohler
  • Mercury
  • Kubota
  • Loncin

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Which Aspects are Positively Transforming the Market for Off-Highway Diesel Engines?

“Growing Requirements for Off-Highway Diesel Engines in Several Industry Sectors”

Increasing requirements for high agricultural yield and calorie & protein-rich content are encountered. Cultivable land properties are also estimated to change with constantly changing environmental conditions. Rising global demand for food is estimated to be met through the expansion of agricultural land and higher production from current cultivatable land. Therefore, these factors are projected to generate demand for more effective agricultural equipment. Their ability to cover large areas and less dependency on manual labor is leading to the growing use of agricultural machines, which is subsequently generating demand for off-highway diesel engines.

“Increasing Demand for High Power Output and Compactness in Small Off-road Vehicles”

In recent years, a noteworthy increase in the demand for small off-road engines has been experienced because of their high power output and compactness. These engines are used in diverse fields. Rising requirements for boring units, power snowmobiles, and others are stimulating sales of off-highway diesel engines in the automotive industry.

Compactness of off-highway diesel engines is one of their key advantages. Surging emphasis on increased production in the agriculture sector is encouraging the farming workforce to adopt engines with smaller horsepower. They find application in power weeders, cultivators, rotary tillers, and small pumps. Increasing demand for off-highway diesel engines in agriculture, construction, and various other industries is driving their demand.

How is Off-Highway Diesel Engine Market Growth Being Restrained to Some Extent?

“Gradual Transition to Electric Vehicles Limiting Demand for Off-Highway Diesel Engines”

Increasing environmental concerns and efforts to minimize carbon emissions are stimulating the automotive industry to shift to electric vehicles and hybrid automobiles. This trend is anticipated to minimize demand for conventional off-highway diesel engines.

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Which Off-Highway Diesel Engine Market Trends are Startups Leveraging?

“Modular Units and Engine Downsizing Leading to Development of Cost-effective Products”

Growing preference for modular technology is projected to offer flexibility to develop, replace, and modify designs. This technology provides cost-reduction benefits. Powerful and more efficient small engines offering increased power density are projected to become a replacement for conventional large-displacement engines. Downsizing ensures weight reduction, reduced friction losses, and minimized emissions owing to less fuel consumption because of their lesser swept volume. Downsized and modular engines also minimize their maintenance, purchasing, and manufacturing costs.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, through its newly updated study, reveals that East Asia is approximated to capture 38.9% share of global market revenue by 2034. Increasing infrastructure activities, including housing, road construction, etc., are expected to drive demand for construction equipment, such as off-highway diesel engines.

What is Pushing Demand for Off-Highway Diesel Engines in the United States?

“High Investments in the Automotive Industry”

Attribute United States
Market Value (2024E) US$ 23.53 Billion
Growth Rate (2024 to 2034) 5.4% CAGR
Projected Value (2034F) US$ 39.96 Billion

The United States is calculated to enjoy 84.2% share of the market in North America by 2034-end. The country is forecasted to hold a noteworthy share of the regional market with increased investments in the automotive sector. Various manufacturers are concentrating on producing diesel engines with more advanced features to make them more effective. Moreover, the increasing number of market players along with the expansion of the automotive industry is set to contribute to the expansion of the off-highway diesel engine market size in the coming decade.

Why is China Operating at the Forefront of the East Asian Market?

“Extensive Application of Off-Highway Diesel Engines in Various Sectors”

Attribute China
Market Value (2024E) US$ 32.2 Billion
Growth Rate (2024 to 2034) 7.5% CAGR
Projected Value (2034F) US$ 66.47 Billion

China is approximated to account for 80.7% of the East Asian market share by 2034. The rising application of off-highway diesel engines in multiple applications, including landscape & maintenance, agriculture & forestry, construction, etc., is widening opportunities for market players. Further, the presence of some localized market players catering to domestic requirements is also anticipated to impact market growth positively.

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Category-wise Insights

Fact.MR, through its newly updated market report, reveals that off-highway diesel engines of above 250 HP find application in various equipment because of their ability to generate high power and high load-carrying capacity.

Why are Off-Highway Diesel Engines of Above 250 HP More Popular?

“Use of Off-Highway Diesel Engines Above 250 HP in Several Equipment”

Attribute Above 250 HP
Segment Value (2024E) US$ 26.89 Billion
Growth Rate (2024 to 2034) 7.7% CAGR
Projected Value (2034F) US$ 56.53 Billion

Off-highway diesel engines of above 250 HP are anticipated to hold 26.68% share of the global market by 2034-end. These engines are used in the construction, manufacturing, mining, agriculture, and power sports. Their utilization in power sports vehicles, agricultural equipment, heavy commercial equipment, marine engines, etc., is attributed to their efficiency, which is contributing to increased popularity.

Why are Off-Highway Diesel Engines Preferred More in Agriculture & Forestry Equipment?

“Agricultural Mechanization Driving Demand for Off-Highway Diesel Engines”

Attribute Agriculture & Forestry Equipment
Segment Value (2024E) US$ 29.98 Billion
Growth Rate (2024 to 2034) 6.6% CAGR
Projected Value (2034F) US$ 57.05 Billion

Agriculture & forestry equipment is expected to account for 26.9% share of global market revenue by the end of 2034. Growing awareness among more farmers across potentially high growth countries about the benefits of using agricultural machinery is driving demand for off-highway diesel engines for their effective operation. Further, supportive government initiatives, including agricultural mechanization programs, etc., are contributing to the increased requirements for agricultural equipment, such as tractors, heavy-duty combine harvesters, etc.

Competitive Landscape

Diesel engines with minimal emissions are becoming the primary point of concentration among more manufacturers due to their understanding of the situation. The use of advanced technologies, including particulate filters, selective catalytic reduction systems, oxidation catalysts, etc., is projected to help them in minimizing emissions. Various market players are adopting multiple strategies, such as new product launches, capacity expansion, offering quality products, partnerships, managing supply chain systems, etc., to expand their product portfolio and reach around the world.

Key players in the off-highway diesel engine market include Mahindra, AGCO, Zongshen Power Co., Deutz, Yanmar, FPT Industrial, Weichai, JCB, Volvo, John Deere, Scania AB, Kohler, Mercury, Kubota, and Loncin.

Segmentation of Off-Highway Diesel Engine Market Research

  • By Engine Type :

    • Up to 2L
    • 2.1 to 4 L
    • 4.1 to 8L
    • 8.1 to 12L
    • 12.1 to 16L
    • 16.1 to 20L
    • 20.1 to 24L
    • Above 24L
  • By Power Output :

    • <50 HP
    • 50 HP to 80 HP
    • 80.1 HP to 120 HP
    • 120.1 HP to 150 HP
    • 150.1 HP to 200 HP
    • 200.1 HP to 250 HP
    • Above 250 HP
  • By Application :

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

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

- FAQs -

How big is the size of the off-highway diesel engine market in 2024?

The global off-highway diesel engine market is calculated at US$ 111.82 billion in 2024.

What is the sales projection for off-highway diesel engines for 2034?

Global demand for off-highway diesel engines is anticipated to reach a market value of US$ 211.88 billion by 2034.

What is the forecasted growth rate for the global market?

The global market is expected to expand at a CAGR of 6.6% from 2024 to 2034.

What is the contribution of East Asia to global market revenue share?

East Asia is approximated to account for 38.9% share of the global market by 2034.

What is the projected CAGR for the market in South Korea?

Sales of off-highway diesel engines in South Korea are calculated to climb at 8% CAGR from 2024 to 2034.

What is the market scenario for agriculture & forestry equipment engines?

The agriculture & forestry equipment segment poised to rise at 6.6% CAGR and reach US$ 57.05 billion by 2034-end.

How much share of the global market are off-highway diesel engines above 250 HP evaluated to account for?

Off-highway diesel engines above 250 HP are approximated to hold 26.68% share of the global market by 2034.

- Also of Interest -

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