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Off-Highway Engine Market

Off-Highway Engine Market

Off-Highway Engine Market, Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2021 to 2031

Off-Highway Engine Market
  • Mar-2021
  • List of Tables : 70
  • List of Figures : 175
  • 170 Pages
  • Automotive

About the Report

Globally, demand for off-highway engines is expected to witness bodacious growth over the forecast period (2021 to 2031), by the virtue of growing investments in global infrastructure development, capacity building, and technological- and capital-intensive farming & fishing.

Off-highway engines find use in an extensive range of industry verticals, such as warehousing, marine trade, and personal leisure such as power sports vehicles, yachts, and cruise ships. Diesel engine will continue to rule the landscape over the next ten years, with maximum usage of these engines in agriculture equipment.

Fact.MR, in its latest research report, offers insights on key factors expected to fuel demand over the coming years.

The report discloses that demand is high across regions such as North America, Asia, and Europe; trends have been tracked in 20+ high-growth countries. The report also details the impact of the COVID-19 pandemic on this market space.

Future projections highly impressive compared to historical trends

Over the historical period of 2016-2020, the global off-highway engine market expanded at a downright CAGR of 2.3%. Industrial and agricultural revolution along with developing infrastructure in matured and developing economies have been prime bellwethers for growth.

Emerging alternate clean fuels, and efficient and less polluting engines are ensuring potential growth of the market. There has been increase in industrial trucks and material handling equipment at warehouses and inventories. This has further helped in increasing productivity of respective plants as well as ensuring employee safety. This evident growth in material handling equipment is poised to drive demand for off-highway engines over the next ten years.

By virtue of these aforementioned factors, the market is projected to expand at an impressive CAGR of close to 7% over the forecast period.

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What are the benefits of using modern agriculture equipment?

Historically, tractors were used for only a few agricultural tasks. Today, they find application in a majority of agricultural and forestry processes, such as ploughing, planting fields, tilling, fertilizer spraying, lawn care, clearing bushes, etc. Tractors are proving to be a great advantage to big and small farms and also for regular garden work.

OEMs widely offer compact tractors under 50 HP engines for small and regular farming and forestry activity. These tractors are perfect for operations such as hauling, ploughing, digging, landscaping activity, etc.

High-end power tractors from 50 HP – 100 HP are considered under utility tractors. These tractors are used for performing heavy agriculture tasks. Tractors have modernized the way of agriculture in today’s world. Therefore, demand for tractors across the globe is increasing, thereby pushing demand for off-highway engines.

How have off-highway engines changed the modern construction industry?

From paving roads to building ports and increasing capacity building, all these are driven by construction equipment. Owing to the unmatched capabilities of diesel engines for power and reliability, these have secured a dominating position in the market.

These powerful engines allow the mobilization of heavy materials and equipment. Consequently, reduced manpower and increased work capacity have been encouraging the industry towards the adoption of modern construction equipment.

Heavy material handling, complex infrastructure building, less project time, and optimum use of power are poised to provide substantial opportunities for off-highway engines to flourish.

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How will compactness and high power output in small engines affect demand?

Compact and small engines with higher power output will drive the market for larger sales volume. These engines have immense opportunity, and see application ranging from personal lawn use to small farm use.

With growing technology and technical-intensive farming, consumers are moving towards these machines for saving time and labor cost.

In a wide range of end uses such as in small snow mobiles, golf karts, power sports, lawn movers, and pumps, these engines are proving their utility. Utility along with their cost-effectiveness are driving the market for off-highway engines across regions.

How will downsizing and down speeding of engines impact the market?

In recent developments, downsizing and down speeding of off-highway engines has gained immense popularity. Both these technologies has favored manufacturers and consumers alike.

Downsizing of engines has helped manufacturers provide the same amount of power output but with reduced engine capacity. This has lowered the overall production cost for manufacturers and ownership cost for consumers. Similarly, less displacement with modern electronically controlled multi-time fuel injectors have lowered fuel consumption.

On similar grounds, down speeding is another technology that has aided in reducing RPM. This accounts for achieving same power output at lower engine RPMs. The engine will have its maximum torque and power at a lower RPM. Same power but with reduced engine RPM results in less rotation, and thereby less fuel consumption.

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What are the key challenges faced by off-highway engine manufacturers?

High manufacturing and maintenance cost of off-highway equipment as well as engines is posing a threat to extensive volume sales. Over the years, advancements in engine technology and introduction of IOT by manufacturers have added cost in manufacturing the product.

Further, governments across the globe are imposing strict emission norms to curb pollution. Engine manufacturers have always faced this potent threat.

Pollutants such as NOx, PM, and HC are key emissions from diesel engines. Manufacturers have been innovating extensively to get rid of these pollutants from engine exhausts. Technologies such as EGR and SCR are prime evidence of this.

off-highway engine market country

Country-wise Analysis

Why is the U.S. one of the leaders in off-highway engines?

During the historical period of 2016-2020, the U.S. off-highway engine market progressed at a robust pace of 2.5% CAGR. The United States has a history of early technological adoption, industrial revolution, and technological-intensive farming.

Extensive application of off-highway engines in construction and agriculture equipment, marine engines, power sports, and oil & gas industry has been the main driving force for explicit growth of the market in the country.

Moreover, majority of the big players such as Cummins, Caterpillar, and John Deere have their origin in U.S. The country is likely to experience the advantage of latest technology deployment and easy availability of world-class products across potential end-use industries. All these factors are poised to provide immense opportunity in for the U.S. in the short-medium term duration.

Why is opportunity for off-highway engines high in China?

China is poised for unequaled growth over the forecast period, at a storming pace of close to 8% over the forecast period. China, generally known as the manufacturing hub of the world, is poised to dominate the market over the coming years due to extensive infrastructure development and technological advancement in the agriculture sector.

Furthermore, in China, increasing global marine trade and large warehousing industry establishment are likely to posit corpus opportunity for off-highway engines.

Furthermore, increasing penetration of gensets for powering the needs of the growing population in the country is poised to bolster off-highway engine demand in the future.

Why do off-highway engine manufacturers need to take notice of India?

The market in India is poised to expand at a ravaging pace of more than 8% CAGR through 2031. India has been rapidly deploying advanced technologies in the agriculture sector and small farm equipment. Moreover, extensive investments in infrastructure and capacity building across the country are further poised to provide ample amount of opportunity for off-highway engine manufacturers over the years to come.

Furthermore, increasing MSMEs and manufacturing industries under Make in India and Aatmanirbharbharat (government initiatives) have heightened demand for industrial engines and material handling trucks across small industries and warehousing facilities.

Looking at this positive outlook, the off-highway engine market is poised to experience remarkable growth in the country.

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Category-wise Insights

What is the potential for < 4 L engines?

Engine capacity of less than 4L is set to grow at the highest CAGR of 7% within the segment. This growth is complemented by wide spread use among manufacturing, construction, power sports, and marine industries, along with the agriculture sector.

Engines under capacity of less than 4 L are projected to get more boost in the near future, owing to their strong presence in various segments of compact, small and medium construction and agriculture equipment, and marine engines, along with power sports and recreational vehicles.

How big is the opportunity for < 50 HP engines?

Engines producing less than 50 HP of power output are prominent. Owing to their power band, these engines find application in numerous segments.

Small farm equipment such as compact tractors, tillers, lawn movers, ATVs, UTVs, pumps, and other various equipment use this category of engines. East Asia, South East Asia and Oceania, and Africa are the regions where agriculture, construction, maritime trade, and power generation equipment have immense opportunity.

Engines of less than 50 HP are dominating in the segment. Owing to their widespread application and easy availability, these engines have immense growth potential in the near future.

What is the potential of diesel-powered engine in off-highway equipment?

Off-highway engines are specially designed for use in off-highway terrains. These terrains ask for more work to be done by the engine. Vehicles with high torque are suitable for these engines.

Diesel engines are designed for longer strokes in the bore; higher compression of diesel engines provides higher pressure, leading to higher torque transfer, which makes them more efficient. Thus, in the near future, diesel engines will continue to be widely used in off-highway vehicles.

off highway engine market

Competition Landscape

The aforementioned market players are considered as prominent players in the off-highway engine market. Key market players are focusing on efficient and less emission-producing engines.

Targeted acquisitions and improved product offerings within the industry are key for sustaining in this space.

For instance, in March 2020, Cummins paired its X15 performance series with its new endurant XD 18-speed Transmission. The product is optimized for combined weight on-highway and for severe off-highway applications.

In June 2020, Caterpillar announced that it acquired selected assets and employees of California-based robot and autonomy technology solutions company Marble Robot. The acquisition was to further leverage its autonomous mining, and to solve problems of changing demands in the manufacturing industry.

In April 2018, YANMAR developed two new high-power industrial diesel engines that can produce up to 155 KW. The brand claims to have best-in-class fuel consumption, high power density, outstanding torque of 805 Nm, compact size, and maximum uptime.

Report Scope



Forecast Period


Historical Data Available for


Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • Spain
  • Italy
  • France
  • U.K.
  • China
  • India
  • Thailand
  • ANZ
  • GCC
  • South Africa

Key Segments Covered

  • Engine Capacity
  • Power Output
  • Fuel Type
  • Application Sector
  • Region

Key Companies Profiled

  • Cummins Inc.
  • Caterpillar Inc.
  • FPT Industrial SPA
  • John Deere
  • J C Bamford Excavators Ltd.
  • Yanmar Co., Ltd.
  • Kubota Co.
  • AGCO Co.
  • Doosan Co.
  • Kohler Co.
  • Mahindra & Mahindra Ltd.

Key Segments Covered

  • By Engine Capacity

    • < 4 L
    • 4 L – 10 L
    • 10 L – 16 L
    • 16 L – 22 L
    • Above 22 L
  • By Power Output

    • < 50 HP
    • 50 HP – 100 HP
    • 100 HP – 200 HP
    • 200 HP – 300 HP
    • Above 300 HP
  • By Fuel Type

    • Gasoline
    • Diesel
    • Others
  • By Application Sector

    • Construction Equipment
    • Agriculture Equipment
    • Marine Engines
    • Gensets
    • Industrial Trucks
    • Power Sports
    • Others
  • Region

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

Off-Highway Engine Market- Scope of Report

A recent study by Fact.MR on the off-highway engine market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of off-highway engines. The study also provides the dynamics that are responsible for influencing the future status of the market over the forecast period.

A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the off-highway engine market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including demand, product developments, revenue generation, and sales in off-highway engines across the globe.

A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the sales of off-highway engines during the forecast period. Price point comparison by region with global average price is also considered in the study.

Analysis on Market Size Evaluation

The off-highway engine market has been analyzed for each market segment in terms value (US$ Mn) and ‘000 Units for volume.

Market estimates at global and regional levels are available in terms of “US$ Mn” for value and ‘000 units for volume. A Y-o-Y growth contrast on prominent off-highway engine market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global off-highway engine market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of off-highway engine market during the forecast period.

Country-specific valuation on demand for off-highway engines has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value for emerging countries has also been included in the report.

In-depth Analysis on Competitive Landscape

The report sheds light on the leading manufacturers of off-highway engines, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in the production of off-highway engines has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

- FAQ's -

Global market to register a CAGR worth close to 7% across the 2021-2031 assessment period. High demand for construction and agriculture equipment, industrial trucks, and marine engines will be witnessed.

China is expected to pivot expansion, attributed to heavy infrastructure and capacity building, technological-intensive farming, high global sea trade, and underdeveloped power grids.

Growing consensus among the industry for downsizing and down speeding in engines for less fuel consumption and efficient power. Alternate fuels for engines is another area where companies are involved in heavy R&D. 

Prominent players manufacturing off-highway engines include Cummins, Caterpillar, Fiat powertrain technologies, John Deere, DEUTZ AG, YANMAR, Kubota, AGCO, etc.

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Is the market research conducted by Fact.MR?

Yes, the report on the radiation proctitis treatment industry has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

Who are the respondents for primary research?

Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

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