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Off-Highway Engine Market

Off-Highway Engine Market

Off-Highway Engine Market By Engine Capacity (< 4 L, 4 L - 10 L, 10 L- 16 L), By Power Output (< 50 HP, 5 HP - 100 HP, 100 HP - 200 HP, 200 HP - 300 HP), By Fuel Type (Gasoline, Diesel), By Application Sector (Genset, Power Sports), By Region - Global Insights to 2031

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

Market Outlook for Off-Highway Engine

Fact.MR- a market research and competitive intelligence provider- expects the global market for off-highway engines to surpass US$ 8 Bn by 2021, expected to reach US$ 15.8 Bn by the end of the 2021-2031 assessment period. The market is expected to surge nearly 2x across the forthcoming decade, with agriculture emerging as the dominant application area, surging at a CAGR of 6%.

Key Points Covered in Off-Highway Engine Industry Survey

  • Market Estimates and Forecasts (2016-2031)
  • Key Drivers and Restraints Shaping Market Growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand Share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Off-Highway Engine Demand and How to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Off-Highway Engine Revenue Analysis Vs 2021-2031 Forecast

From 2016-2020, the market for global off-highway engines surged at a CAGR of 2.3%. Expanding mechanization of key industries to bolster productivity and optimize energy consumption across key domains as construction and agriculture has been influencing growth in the historical period.

Furthermore, increased emphasis on achieving fuel economy are ensuring a robust growth potential for the industry. In addition, an increase in deployment of industrial trucks and advanced material handling equipment across warehouses is further stimulating off-highway engines demand. 

Furthermore, government measures to improve farm mechanization, particularly in emerging nations, have boosted demand for agricultural machinery such as power tillers and heavy-duty tractors. As a result, the market is expected to witness a surge of 7% across the 2021-2031 assessment period.

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How are Off-Highway Engines Reshaping the Construction Industry?

As urbanization expands, the global construction and infrastructure development industry is receiving massive tailwinds. The Institution of Civil Engineers (ICE) expects the global construction industry to reach US$ 8 trillion by 2030. Hence, companies are leveraging advanced technologies to increase output.

Notwithstanding the recessionary impacts of COVID-19, the industry will continue to remain on its projected growth course. Equipment manufacturers are deploying highly robust and advanced construction machinery, equipped with the latest technology.

Voluminous material handling, complex infrastructure building, achieving project targets in shorter timespans and optimum utilization of power and energy are the key factors influencing demand for off-highway engines for the global construction industry.

What Effect would Small Engines' Compactness and High Power Generation have on Demand?

Compact and tiny engines with better power output will boost the market growth. These engines have a wide range of applications, from personal lawn care to modest farm operations. Consumers are turning to these tools to save time and money as technology advances and farming becomes more scientific.

These engines are being used in a variety of applications, including tiny snowmobiles, golf karts, power sports, lawn movers, and pumps. The market for off-highway engines is being driven by their utility and cost-effectiveness across areas.

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Country-wise Analysis

Why are Off-Highway Engines Popular in the U.S?

The market for off-highway engines in the U.S expanded at a historical CAGR of 2.5% from 2016-2020. As per Fact.MR, the market is slated to register an expansion rate of 7% from 2021-2031. Rapid technological integration in off-road motor applications is primarily driving expansion.

Recent years have seen off-highway engine applications across a wide range of industries- construction, agricultural equipment, marine engines, power sports and oil & gas exploration. Presence of key manufacturers such as Cummins, Caterpillar and John Deere have enhanced growth prospects for the market.

Why is the Opportunity for Off-Highway Engines high in China?

China is expected to develop at an unrivaled growth rate of over 8% over the projection period. Due to considerable infrastructural development and technical innovation in the agriculture sector, China recognized as the world's manufacturing hub is poised to dominate the industry in the next years.

Furthermore, growing global marine traffic and the construction of significant warehousing industry in China are projected to provide a corpus opportunity for off-highway engines.

What Supports Increasing Off-Highway Engine Sales in India?

India is projected to register a CAGR of over 8% with regard to off-highway engine demand from 2021-2031, according to Fact.MR. Extensive modernization of agriculture by incorporating mechanization of farming practices is primarily stimulating sales of off-highway engines in the country.

Agricultural mechanization is expected to receive major stimulus from the recently announced self-reliance program titled Aatmanirbhar Bharat unveiled in 2020. According to the Ministry of Agriculture and Farmers Welfare, Government of India, for FY 2020-2021, ? 1033 crores (US$ 140 million) is allocated towards mechanization, thus expected to fuel prospects for off-highway engines.

Off highway engine market forecst analysis by Fact.MR

Category-Wise Insights

Why are Agriculture Off-Highway Engines Experiencing High Sales?

According to Fact.MR, demand for off-highway engines for agriculture is anticipated to expand significantly, clocking a CAGR of over 6% from 2021-2031. Increased mechanization of farming practices is leading to its enhanced uptake. Several players are active in this domain.

For instance, Cummins offers a broad range of agriculture engines, ranging from 2.8 to 19 liters. These engines are tailored to monitor farm performance, with power bulge and torque back up options available for tractor and other heavy equipment operations.

<50 HP Power Output to Hold the Largest Market Share?

Small electric off-highway vehicles typically employ motors with a power output of less than 50 horsepower. The top manufacturers of electric off-highway vehicles with 50 horsepower include CAT, Komatsu, Volvo CE, Hitachi Construction, John Deere, Sandvik, and Solectrac.

Compact excavators, small and compact loaders, farm tractors, and small dozers are all fitted with 50 horsepower motors. Construction vehicles with a power output of 50 horsepower are mostly employed for light construction. Based on these trends, Fact.MR expects the segment to account for nearly 60% of total demand.

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Competitive Landscape

Prominent off-highway engine manufacturers are emphasizing on introducing low-emission producing engines, consistent with regional frameworks on curbing emission levels. Additionally, expansion strategies such as partnerships, collaborations and acquisitions are also relied upon.

  1. In 2017, Herero 4x4 selected FPT Industrial S.p.A to equip its fleet with the latter’s F1C Euro 6 engine and the 2840.6 FPT industrial gear for off-road applications. The engine offers high torque, regimen and reliability
  2. In October 2020, Cummins India initiated production of electronically controlled Cummins B4.5 engines with a power range of 121-200 horsepower. The new plant will initially have an annual production capacity of 30,000-50,000 engines, but it is geared to expand in the future.

Report Scope



Market size value in 2020

USD 8.1 Billion

Market forecast value in 2031

USD 15.8 Billion

Growth Rate

CAGR of 7% from 2021-2031

Forecast Period


Historical Data Available for


Market Analysis

US$ Mn for Value and Units for Volume

Key Regions Covered

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

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • Spain
  • Italy
  • France
  • U.K.
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • GCC
  • South Africa
  • Turkey

Key Market Segments Covered

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

Key Companies Profiled

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

Key Segments Covered

  • Engine Capacity

    • Off-Highway Engines < 4 L
    • Off-Highway Engines  from 4–10 L
    • Off-Highway Engines from 10–16 L
    • Off-Highway Engines from 16–22 L
    • Off-Highway Engines Above 22 L
  • Power Output

    • Off-Highway Engines < 50 HP
    • Off-Highway Engines from 50–100 HP
    • Off-Highway Engines from 100–200 HP
    • Off-Highway Engines from 200–300 HP
    • Off-Highway Engines Above 300 HP
  • Fuel Type

    • Gasoline Off-Highway Engines
    • Diesel Off-Highway Engines
    • Other Fuel Off-Highway Engines
  • Application

    • Off-Highway Engines for Construction Equipment
    • Off-Highway Engines for Agriculture Equipment
    • Off-Highway Engines for Marine Engines
    • Off-Highway Engines for Gensets
    • Off-Highway Engines for Industrial Trucks
    • Off-Highway Engines for Power Sports
    • Off-Highway Engines for Other Applications

- FAQs -

As of 2021, the off-highway engine market is poised to surpass US$ 8 Bn as per Fact.MR

From 2016 to 2020, off-highway engines demand grew at a CAGR of 2.3%

Fact.MR expects the market for off-highway engines to reach US$ 15.8 Bn by 2031

From 2021-2031, off-highway engine sales are expected to register a 7% value CAGR

Extensive mechanization of construction & agricultural equipment is primarily spurring off-highway engine sales

According to Fact.MR, off-highway engines demand is expected to accelerate at around 7% CAGR in the U.S

Both China and India will likely register a CAGR of 8% each with regard to off-highway engines through 2031

Agriculture remains the dominant off-highway engines application area, registering a CAGR of 6%

Off-highway engines of < 50 HP are most preferred, capturing 60% of global demand

Some prominent manufacturers of off-highway engines include Cummins Inc., Caterpillar Inc., John Deere & Company and Mahindra & Mahindra Ltd. among others.

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Is the market research conducted by Fact.MR?

Yes, the report 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?

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