Off-Highway Engine Market

Off Highway Engine Market Outlook (2022-2032)

The global off highway engine market has reached a valuation of US$ 88,031.9 million in 2022 and is expected to progress at a CAGR of 6.03% to reach US$ 158.2 billion by the end of 2032.

Sales of off highway engine accounted for nearly 10% volume share of the global automotive engine market by the end of 2022.

Report Attributes	Details
Off Highway Engine Market Size (2021A)	US$ 83,718.7 million
Estimated Market Value (2022E)	US$ 88,031.9 million
Forecasted Market Value (2032F)	US$ 158.2 billion
Global Market Growth Rate (2022-2032)	6.03% CAGR
North America Market Share (2021)	~24.9%
North America Market Value (US$ Mn), 2022	US$ 21,997.6 million
Europe Market Share (%), 2022	~21.3%
Europe Market Value (US$ Mn), 2022	US$ 18,763.9 million
China Market Share (%), 2022	~ 74.4%
China Market Value (US$ Mn)	US $ 14,309.2 million
Market Share of Top 3 Countries	~41.8%
Key Companies Profiled	Cummins Caterpillar Inc. Yanmar Co., Ltd Fiat Powertrain Technologies (FPT) Doosan Infracore Deutz AG Kubota Corporation J. C. Bamford Excavators Ltd. Deere and Company AGCO Corporation Mahindra and Mahindra Ltd. Kohler Co.

Sales Analysis of Off Highway Engine (2017-2021) Vs. Market Outlook (2022-2032)

Infrastructure development in both developed and emerging economies, along with the industrial and agricultural revolutions, has been a major driver of economic growth over the forecast period.

The potential for market expansion is being ensured by the development of alternative efficient and clean fuels, less-polluting engines. At warehouses and inventories, there are more industrial trucks and material handling equipment works on engine. This has additionally aided in raising productivity and guaranteeing employee safety. Over the forecast period, the market for off-highway engines is expected to grow due to the clear expansion of material handling equipment.

Due to the aforementioned factors, an astounding CAGR of 6.03% is predicted for the global off-highway engine market during the forecast period.

• Short Term (2022 Q2 to 2025): Growing engine market will positively impact off highway engine market growth.
• Medium Term (2025-2028): North America and Europe projected to witness comparatively high off highway engine demand due to increased penetration of electrical vehicles.
• Long Term (2028-2032): Increased Usage of electric and hybrid vehicles to open new opportunities for off highway engine suppliers.

From 2017 to 2021, the global market for off highway engine registered a CAGR of 1.2%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 6.03% CAGR between 2022 and 2032.

Market share analysis of off highway engine based on application sector and region is provided in the above image. Under the application sector segment, the agricultural and forestry equipment sub-segment dominates with 26% market share in 2022.

What’s Driving High Demand for Off Highway Engine across Regions?

“An Increased Benefit of Modern Agricultural Equipment Will Elevate the Market Growth”

Historically, tractors were used in only a few agricultural tasks. Tractors are used in the bulk of agricultural and forestry operations nowadays, including plowing, planting crops, tilling, applying fertilizer, maintaining lawns, removing shrubs, etc. The tractors are proven to be a great asset for both large and small farms as well as routine garden maintenance.

These tractors are available from OEM in a variety of products. Additionally, OEMs frequently provide tiny tractors with engines under 50 HP for small-scale regular agricultural and forestry activities. These tractors are ideal for tasks including transporting, plow work, digging, and landscaping.

Utility tractors are high-performance tractors with 50 to 100 horsepower. Heavy agricultural chores are carried out with these tractors. The manner that farming is done today has been modernized due to tractors. Therefore, the demand for tractors across the globe is increasing dramatically especially in the countries where economy is driven by agriculture sector and farming is the primary occupation.

“Off-Highway Engines Have Changed the Construction Industry in Turn Boosting the Market Growth”

From paving roads to building ports and increasing heights of building, all these are driven by construction equipment. Owing to the unmatched capabilities of engines for power and reliability as well as efficient and less polluting engines are key features that have secured the dominating position of these engines.

These powerful engines have ensured the mobilization of heavy materials and equipment. Consequently, reduced human power and increased work capacity has been encouraging the industry towards the adoption of modern construction equipment thereby off highway engines.

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

Owing to this, demand for off-highway engines is expected to rise in the modern construction industry.

What Do Off Highway Engine Manufacturers Need to Watch Out for?

“High Maintenance Charge Can Pose Threat to Diesel Engine Market”

Machinery using off-highway engines is significantly expensive and involves high capital investments. Starting from the production phase to owning and maintaining, this equipment is price-consuming. Over the years changing environmental norms and continuous technological developments like the use of IoT have contributed to increasing the end product cost. This has been a factor of concern for the off-highway engine market as increasing end product cost affects the minimum selling price of the end product resulting in a decline in equipment sales.

Later, expensive equipment operating and maintenance costs restrain costumer from buying machinery in large numbers. This moreover affects the off-highway engine market in the sales term. Engine maintenance costs hinder market expansion in this way.

Country-wise Insights

How Increasing Use of off highway engine in United States Drive Off Highway Engine Demand?

The US off-highway engine market expanded at a strong rate of 3.2% CAGR over the historical period of 2017–2021. Early technological adoption, the industrial revolution, and technologically intensive farming all have a history in the United States. The main factor influencing the market's explicit growth has been the widespread use of off-highway engines in power sports, marine engines, construction and agriculture equipment, and oil and gas.

Additionally, the majority of the major players, including Cummins, Caterpillar, John Deere, and others, are American-based. The region is likely to benefit from the deployment of cutting-edge technology and the simple accessibility of top-notch products across the potential end-use industries. In the short- to medium-term, all of these factors have the potential to offer tremendous opportunity.

Consequently, the United States, off-highway engine market is expected to reach US$ 31,914.52 million by 2032.

Why is the China’s Off Highway Engine Market Expected to Be Highly Lucrative?

The off-highway engine market in China is expected to grow at an incomparable rate with a CAGR of 7.6% during the forecast period.

Due to extensive infrastructure development and technological advancements in the agricultural sector, China, which is regarded as the world's manufacturing hub, is poised to dominate the market over the next ten years. Furthermore, China's expanding warehousing sector and growing marine trade are likely to create a large market for off-road engines.

A further factor that will support the off-highway engine market in the future is the growing use of Gensets to power the nation's expanding population. As a result, these elements will support the development of the Chinese off-highway engine market over time and create a US$ 16,442.17 million absolute dollar opportunity in the assessment period.

Category-wise Insights

Why Is Above 30 L Engine Capacity a Main Segment in Off Highway Engine Market?

The engine capacity of more than 30 L is set to grow with the highest CAGR of 8.4% within the segment. This growth is complemented by the widespread use among manufacturing, construction, power sports, and marine industries along with the agriculture sector.

An engine under a capacity of more than 30 L is projected to get more boost shortly owing to their strong presence in the paramount segment of compact, small and medium construction and agriculture equipment, marine engines along with power sports and recreational vehicles.

Owing to the above facts, the more than 30 L sub-segment of the Off-Highway Engine market is predicted to expand 2.2X by the end of 2032.

Why is There is Big Opportunity from Above 250 HP Engine in Off Highway Engine Market?

According to the Fact.MR study, Engine producing more than 250 HP of power output is prominent among all. Owing to this power band, the engine finds its application in every segment.

Small farm equipment like compact tractors, tillers, lawn movers, ATVs, UTVs, pumps, and other various equipment use this category of engines. East Asia, South East Asia, Oceania, and Africa are the regions where agriculture, construction, maritime trade, and power generation equipment lay the immense opportunity. The engine of more than 250 HP is the dominating engine in the segment.

Owing to their widespread application and easy availability, these engines have had immense growth shortly with a valuation of US$ 16,843.68 million during the assessment period.

Competitive Landscape

Prominent off highway engine manufacturers are Cummins, Caterpillar Inc., Yanmar Co., Ltd., Fiat Powertrain Technologies (FPT), Doosan Infracore, Deutz AG, Kubota Corporation, J. C. Bamford Excavators Ltd., Deere and Company, AGCO Corporation, Mahindra and Mahindra Ltd., Kohler Co.

The market participants mentioned above are regarded as the leading ones in the off-highway engine space. Additionally, major industry participants in the off-highway engine market are concentrating on efficient and emission-free engines. For a company to remain competitive in the off-highway engine business, targeted acquisitions and better product offerings within the sector are essential.

• In March 2020, Cummins combined its X15 performance series with its long-lasting XD 18-speed Transmission. The product is designed for heavy off-highway application as well as combined weight on-highway use.
• Additionally, in June 2020, Marble Robot, a provider of robotics and autonomy technology solutions, in California, stated that Caterpillar has acquired certain assets and personnel. The acquisition was made to improve autonomous mining and address issues with shifting manufacturing industry demands.

Fact.MR has provided detailed information about the price points of key manufacturers of Off Highway Engine positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Off Highway Engine Industry Research

• 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
  • 5 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
  • Genset
  • Industrial Trucks
  • Power Sports
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East and Africa (MEA)