USD 19.5 Billion
Diesel Power Engine Market Size, Share, and Growth Analysis
Diesel Power Engine Market By Operation (Standby, Prime), By Power Rating (Below 0.5 MW, 0.5–1 MW), By Speed (Below 720 RPM, 720-1000 RPM), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG20I2284 |
Region:
Global |
Published Date: November, 2024
Pages:
202
|Tables:
66
|Figures:
75
Format -
Diesel Power Engine Market Insights
Diesel Power Engine Market size was valued at USD 19.5 Billion in 2023 and is poised to grow from USD 20.38 Billion in 2024 to USD 28.95 Billion by 2032, growing at a CAGR of 4.5% during the forecast period (2025-2032).
The global diesel power engine market has experienced substantial growth in recent years. According to the UN, 50% of the global population lives in urban areas, as of 2022, and it is projected to increase to 68% by 2050. Urbanization at this scale requires the development of supporting infrastructures and power transmission and distribution networks. Urbanization always goes hand in hand with increasing industrialization. Power reliability is one of the key factors in growth of industries, which is often achieved using diesel engines as the primary or the backup source of power. Hence, factors such as the demand for electricity in commercial and industrial infrastructures are driving the growth of this market. There are also a few challenges in this market, such as cost, abundance of natural gas, coupled with awareness about environment has led to a shift towards natural gas engines as opposed to diesel powered engines. Nevertheless, rising electrification projects in developing countries, for example Western Africa Regional Off-Grid Electrification Project present huge opportunities for the market players in diesel powered engines.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
High
Fastest Growth
Medium
Growth Rate
4.5% CAGR
Global Diesel Power Engine Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Diesel Power Engine Market Segments Analysis
Global Diesel Power Engine Market is segmented by Operation, Power Rating, Speed, End User and region. Based on Operation, the market is segmented into Standby, Prime, Peak Shaving. Based on Power Rating, the market is segmented into Below 0.5 MW, 0.5–1 MW, 1–2 MW, 2–5 MW, and Above 5 MW. Based on Speed, the market is segmented into Below 720 RPM, 720-1000 RPM, Above 1000 RPM. Based on end user, the market is segmented into Power Utilities, Industrial, Commercial, and Residential. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis By Speed
The high-speed segment of the diesel power engine market holds the dominant share. High speed diesel engines have a wide range of applications, for example marines, power generation and other sectors. They are robust, operate at significantly high speeds and deliver enhanced power output within a compact structure. These factors lead to the growing demand for high-speed diesel power engines in the market.
The medium speed engines in Diesel Power Engine are the fastest-growing segment in this market. These engines are known for their fuel flexibility, that is, ability to operate on low grade fuels. Such engines are common in smaller ships and power plants, thereby leading to the rapid growth in its market.
Analysis By End User
The Power Generation segment dominates the Diesel Power Engine industry. There is an even increasing demand for uninterrupted power supply to support growing industrialization, manufacturing, and processing activities. Growing population also means more households, which demand power to be generated and transmitted. All of this aids the growth in demand for diesel powered engines in the power generation segment.
The fastest-growing segment is the Transportation segment in Diesel Power Engine market. As the population of the world rises, the need for personal and commercial vehicles is also on the rise. Along with these, increasing urbanization, rising disposable income, increased use of e-commerce are all responsible for the rapid year-on-year rise of diesel-powered engines in this segment.
Global Diesel Power Engine Market By Speed
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Diesel Power Engine Market Regional Insights
The dominating region in the global diesel power engine market is Asia Pacific, with the majority of demand coming from countries like China and India. The dominance of this region is largely due to the major manufacturing hubs present in the fast-developing countries in this continent. Increasing infrastructural developments and electricity requirements in this region, along with rise in GDP and average energy consumption rate is propelling the diesel-powered engine market. Also, the rising demand for small marine engines required in the defense sector due to increasing number of territorial conflicts in this region is a reason for its rapid growth.
North America is the second largest and the fastest growing segment for diesel power engines, driven by various industries such as construction, mining, agriculture, transportation, and energy generation. The region has a well-established industrial base and infrastructure, leading to a consistent demand for diesel-powered equipment and generators. Additionally, stringent emission regulations and technological advancements in diesel engine technology have resulted in the adoption of cleaner and more efficient diesel engines in this region. The United States and Canada are major consumers of diesel power engines, with applications ranging from heavy-duty trucks and construction machinery to backup power generation for commercial and industrial facilities.
Global Diesel Power Engine Market By Region
- Largest
- Fastest
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Diesel Power Engine Market Dynamics
Drivers
Increasing Urbanization & Industrialization
- The growing industrialization in the emerging economies has led to the rise in manufacturing units, increased construction activities, number of infrastructure projects, etc. With the increasing industrial activities, the need for power generation has grown rapidly. Diesel power engines are widely used for power generation, especially with regions with inadequate power grids. Diesel power engines also work as reliable backup power solution for industrial and infrastructure projects. Diesel engines are also essential in mining and construction industry for powering heavy equipment and machinery. The rising demand of diesel engines for all the above activities, especially in emerging economies have been a driving factor for growth of this market.
Transportation, Heavy-Duty Vehicles & Military Applications
- Diesel engines power a most of the heavy-duty vehicles, such as trucks, buses, and construction equipment. The demand for diesel engines in the transportation sector can be attributed to efficiency and durability. As the population of the world is growing, the need for both commercial and personal vehicles are also rising at a substantial rate. Most commercial and many personal vehicles consist of diesel power engines. Diesel engines are also widely used in military vehicles and ships due to their reliability and fuel efficiency. Increase in defence expenditures and modernization of military fleets globally also drive the demand for diesel power engines.
Technological Advancements
- Diesel engines are known for their fuel efficiency and higher energy density. As environmental concerns and fuel economy standards become more critical, diesel engines are favoured for their ability to provide efficient power. Continuous research and development have also led to advancements in diesel engine technology, including improvements in fuel injection, combustion efficiency, and emissions control, all of which contribute to the attractiveness of diesel power solutions. These advancements enhance performance while addressing environmental concerns.
Restraints
Cost of Implementation
- Diesel Power Engine is often expensive, due to the cost of diesel, which is often more compared to other fuels like Gasoline, especially for long duration applications. Maintenance of the engines also requires servicing, refilling lubrication, cooling, fuel system, etc. These costs add up to the total operation and maintenance cost of diesel-powered engines. Other factors such as extreme temperature, saltwater (marine applications) add on to the maintenance requirements. Newer technology batteries, whereas, have no fuel costs and easy to maintain and operate. Diesel powered engines are facing high competition from such battery powered engines market.
Regulations & Environmental Concerns
- Increasingly stringent environmental regulations and emissions rules pose a challenge for diesel engines. Compliance with emission norms requires the integration of advanced emission control technologies, which add to the cost of diesel-powered engines. There is also a growing awareness of environmental impact of diesel engines on air quality and health. Regulations from governing bodies to mitigate air pollution are on the rise. All of the above impact the use of diesel power engines.
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Diesel Power Engine Market Competitive Landscape
The Diesel power engine market shows the existence of several key players who are competing for market share. Key players in their Diesel power engine market are investing substantially on research and development to improve their product lines. Prominent manufacturers are focussing on strategic collaborations and partnerships to expand their geographical footprint. New product launches, contractual agreements, mergers and acquisitions are some of the many steps taken by the market players to strengthen their market presence. Competitors in diesel power engine market are continually trying to offer more cost effective solutions to their consumers to survive in this aggressive market.
Top Players in Diesel Power Engine Market
- Caterpillar
- Cummins Inc.
- WEICHAI POWER CO., LTD
- MAN
- WARTSILA
- Rolls-Royce plc
- AB Volvo Penta
- Mitsubishi Heavy Industries, Ltd.
- HD HYUNDAI INFRACORE
- Daihatsu Diesel Mfg. Co., Ltd.
- Yanmar Holdings Co.Ltd.
- Kubota Corporation
- Kohler Energy
- DEUTZ AG
- Mahindra & Mahindra Ltd.
- Guangzhou diesel engine factory Limited
- Isotta Fraschini Motori S.P.A.
- Anglo Belgian Corporation
Recent Developments
- In January 2024, Tata Motors, India’s largest commercial vehicle manufacturer, has launched its latest technological marvel, the Turbotronn 2.0 Diesel engine. This cutting-edge engine is designed to power trucks in the 19-42 tonne segment, and promises to redefine efficiency and reliability in the trucking landscape.
- In December 2023, Engine manufacturer Cummins Inc., had to pay a $1.675 billion penalty for allegedly installing "defeat devices" on approximately 1 million pickup trucks to cheat emissions tests. It is the largest civil fine ever levied under the Clean Air Act, according to the U.S. Justice Department.
- In June 2023, Rolls-Royce officially opened a new assembly plant for its MTU Series 2000 engines in Kluftern near Friedrichshafen, Germany. The company is focusing on developing engines that can run on a wide range of sustainable fuels, replacing fossil fuels, and significantly reducing carbon dioxide emissions. Many mtu engines from Rolls-Royce have already been released for use with this sustainable fuel which is called the Renewable Diesel (HVO/hydrogenated vegetable oil).
Diesel Power Engine Key Market Trends
- Integration of Hybrid Technologies: There is a significant shift towards electrification in the transportation and industrial sectors, mainly because of environment sustainability reasons. Diesel power engines are being increasingly integrated with hybrid and electric technologies to improve fuel efficiency and reduce emissions.
- Renewable Diesel: The use of renewable diesel, which is derived from sustainable feedstocks, is gaining attention. Renewable diesel offers lower carbon intensity compared to traditional diesel fuel, in line with efforts to reduce the environmental impact of diesel engines. Research and development efforts are also underway to explore the use of synthetic fuels in diesel engines. Synthetic fuels, produced using renewable energy sources, have the potential to further reduce the carbon footprint of diesel-powered vehicles and equipment.
Diesel Power Engine Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global diesel power engine market analysis, there are several factors like increasing urbanization and industrialization, increased transportation and growing technological advancements which drive this industry. High speed diesel power engines are most widespread in their usage, and hence hold the major share in the market, with the fastest growing market being the medium speed engines. Power generation sector is the biggest end user of diesel-powered engines, whereas the rapidly growing end user is the Transportation sector, with the highly increasing number of private and commercial vehicles worldwide. Asia Pacific has the largest market for diesel engines, it is also the most rapidly growing one. This market's landscape shows close competition between leading players, who are dedicated to developing more fuel efficient and environmentally sustainable options in the diesel engine market. One significant trend that is shaping the future of the need for abiding by the emission level regulations from governing bodies. One of the key challenges faced by this market is from natural gas, which is currently more cost effective than diesel engines. Key market players need to continuously research and develop to bring in improved diesel engine systems to stay relevant in this industry.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 19.5 Billion |
| Market size value in 2032 | USD 28.95 Billion |
| Growth Rate | 4.5% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Diesel Power Engine Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Diesel Power Engine Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Diesel Power Engine Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Diesel Power Engine Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Diesel Power Engine Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Diesel Power Engine Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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