Off Highway Vehicle Engine Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.79 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Off Highway Vehicle Engine Market Analysis
The Off-highway Vehicle Engine market was valued at USD 37.21 billion and is expected to reach USD 54.67 billion over five years by registering a CAGR of 6.79% during the forecast period.
The COVID-19 pandemic has hindered the growth of the off-highway vehicle engine market due to trade restrictions imposed by various governments worldwide. Off-highway vehicle sales have declined due to the global outbreak of COVID-19, resulting in a decline in off-highway vehicle engine sales. However, post-pandemic, due to the easing of the lockdown globally, there has been an increase in the production and sales of Off-highway vehicles, which also results in the increasing production of engines for off-highway vehicles.
Off-highway vehicle engine growth depends on the growth rate of agricultural and construction machinery industries. Rising agriculture mechanization trends in developing countries and a spike in residential and commercial construction projects globally are driving the construction and agricultural machinery markets.
An increase in demand and production of off-road vehicles is projected to boost the off-highway engine market during the forecast period. Moreover, a rise in automation in various industries such as agriculture, construction, mining, infrastructure, and others has increased the use of off-road vehicles in these sectors.
However, high cost and maintenance expenditures are anticipated to restrain the off-highway engine market significantly. Regulatory bodies are imposing rigorous norms globally to reduce carbon emissions from automobiles. Off-highway Engines can be modified to reduce carbon emissions from vehicles. This is estimated to drive the off-highway engine market.
At the global level, construction is anticipated to be one of the most profitable sectors over the next decade. The recovery of the Asia-Pacific construction industry improved business in the mining and quarrying sectors, and a favorable economic environment with low-interest rates is likely to stimulate investments in the market further. Extensive modernization of agriculture by incorporating mechanization of farming practices is primarily to drive demand for off-highway engines across Asia-pacific during the forecast period.
Off Highway Vehicle Engine Market Trends
This section covers the major market trends shaping the Off Highway Vehicle Engine Market according to our research experts:
Increasing Electrification of Off-highway Vehicles
Off-highway heavy-duty vehicle electrification is increasing, and OEMs are eager to learn how this new trend can complement their existing business models. The trend toward electrification of vehicles is expected to gain traction in the coming years, with factors such as battery technology, supply, and overall economics favoring electric vehicles. The adoption of electric solutions is influenced by charging infrastructure, battery technology, and total development cost. Off-highway vehicle electrification ensures long-term cost savings due to reduced maintenance and fuel consumption.
As technology advances and farming becomes more scientific, consumers turn to these tools to save time and money. Off-highway engines are being driven by their utility and cost-effectiveness in a variety of applications. Moreover, medium-sized combine harvesters with an average length of 4.8m, a width of 2.2m, and a height of 2.8m have been widely used in rice fields, particularly in ASEAN countries such as the Philippines, Indonesia, Vietnam, and India. Kubota Corporation and Yanmar Co. Ltd. are two prominent suppliers of medium-sized combine harvesters in the Asia-Pacific market.
India is one of the emerging agricultural markets, with consistent demand for more than 50 hp tractors over the last three years, owing to strong government support for Indian farmers in purchasing agrarian machinery in order to achieve a high agricultural economy and rapid improvement in the tractors industry.
Asia-Pacific Region Likely to Dominate the Global Market
Despite volatile growth in the real estate sector, significant development of rail & road infrastructure by the countries across the Asia-pacific region to withstand the demand stemming from the growing industrial and service sectors has resulted in significant growth of the construction industry in recent years. These rising infrastructural activities elevated the necessity of off-highway vehicles, and such demand for their engines picked up momentum simultaneously.
As the construction industry is dominated by both state-owned and private enterprises, increased government and private spending in this area are propelling the industry to global dominance. Over the forecast period, the market for excavators and other types of construction machinery is expected to grow in countries such as India, China, and Japan. Furthermore, rising global marine traffic and the development of a significant warehousing industry in China are expected to create a large market for off-highway engines.
Additionally, with the increasing investments in public infrastructure, renewable energy, infrastructure, and commercial projects, the off-highway vehicle engines segment is expected to record growth at a moderate pace over the next five years, thereby improving both consumer and investor confidence.
Such factors are expected to increase the demand for high-performance equipment in the country, thus driving the off-highway engine market.
Off Highway Vehicle Engine Industry Overview
The Off-highway Vehicle Engine Market is moderately consolidated as the majority of market shares are captured by some of the major players, like Yanmar Co. Ltd, Cummins, Deutz AG, Man Engines & Components Inc., Deere & Company, Caterpillar Inc., Volvo Penta, etc. The players operating in the market are focusing on various growth strategies to gain a competitive edge over other players. For instance,
- September 2022: Guangxi Yuchai Machinery Group Co., Ltd. showcased its products at the 19th China-ASEAN Expo. Yuchai displayed the YCK08 diesel engine, which meets China 6 emission standards, in the outdoor exhibition area for intelligent equipment (construction machinery and vehicles).
Caterpillar Inc, Komatsu, Volvo CE, Hitachi Construction, John Deere, and Others are some of the key players in the market.
Off Highway Vehicle Engine Market Leaders
Yanmar Co. Ltd
Cummins Inc.
Deutz AG
MAN
Volvo Penta
*Disclaimer: Major Players sorted in no particular order
Off Highway Vehicle Engine Market News
- December 2022: At the Indian Auto Expo 2023, Cummins Inc. will showcase its fuel-agnostic solution based on its Destination Zero strategy. It will demonstrate the fuel-agnostic engine platform, which employs a common base engine with cylinder heads and fuel systems specifically tailored to fuels such as diesel, natural gas, renewable natural gas, and hydrogen.
- September 2021: Valvoline has addressed the needs of heavy-duty engines with a new product released in mid-July, heavy-duty diesel engines operating in severe conditions and extreme duty cycles.
- June 2021: Caterpillar Inc. and Nouveau Monde Graphite Inc. have announced a strategic partnership. Caterpillar Inc. intended to use this collaboration to develop, test, and manufacture Cat zero-emission machines for the Matawinie graphite mine.
- January 2021: Cummins India, the subsidiary of the US-based global company Cummins Inc, announced that it is all set to commence production of its state-of-the-art 4.5-liter engine system for wheeled equipment at its Pune plant.
Off Highway Vehicle Engine Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Output
5.1.1 Agricultural Machinery
5.1.1.1 Upto 30 HP
5.1.1.2 30-50 HP
5.1.1.3 50-70 HP
5.1.1.4 70+ HP
5.1.2 Construction Machinery
5.1.2.1 Upto 100 HP
5.1.2.2 100-120 HP
5.1.2.3 200-400 HP
5.1.2.4 400+ HP
5.2 Fuel Type
5.2.1 Gasoline
5.2.2 Diesel
5.2.3 Other Fuel Types
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 AGCO Corporation
6.2.2 Caterpillar Inc.
6.2.3 Cummins Inc.
6.2.4 Deere & Company
6.2.5 Deutz AG
6.2.6 Komatsu Ltd
6.2.7 Mahindra & Mahindra Limited (Mahindra Powertrain)
6.2.8 Scania AB
6.2.9 Volvo Penta
6.2.10 Yanmar Co. Ltd
6.2.11 Weichai Power Co. Ltd
6.2.12 Kubota Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Off Highway Vehicle Engine Industry Segmentation
An Off-highway Vehicle Engine is used in an off-highway vehicle (a motor vehicle that is not intended to be driven or moved on a public highway).
The Off-highway Vehicle Engine Market is Segmented by Power Output (Agricultural Machinery (up to 30 HP, 30-50 HP, 50-70 HP, and 70+ HP), Construction Machinery (up to 100 HP, 100-120 HP, 200-400 HP, 400+ HP), Fuel Type (Gasoline, Diesel, and Other Fuels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers market size and value for the Off-highway vehicle engine market in terms of Value (USD billion) for all the above segments.
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Off Highway Vehicle Engine Market Research FAQs
What is the current Off Highway Vehicle Engine Market size?
The Off Highway Vehicle Engine Market is projected to register a CAGR of 6.79% during the forecast period (2024-2029)
Who are the key players in Off Highway Vehicle Engine Market?
Yanmar Co. Ltd, Cummins Inc., Deutz AG, MAN and Volvo Penta are the major companies operating in the Off Highway Vehicle Engine Market.
Which is the fastest growing region in Off Highway Vehicle Engine Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Off Highway Vehicle Engine Market?
In 2024, the Asia-Pacific accounts for the largest market share in Off Highway Vehicle Engine Market.
What years does this Off Highway Vehicle Engine Market cover?
The report covers the Off Highway Vehicle Engine Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Off Highway Vehicle Engine Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Off Highway Vehicle Engine Industry Report
Statistics for the 2024 Off Highway Vehicle Engine market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Off Highway Vehicle Engine analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
