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Off Highway Vehicle Engine Market Size (2024 - 2029)

The off-highway vehicle engine market is experiencing growth driven by the recovery and expansion of agricultural and construction machinery industries, particularly in developing regions. The easing of pandemic-related restrictions has led to increased production and sales of off-highway vehicles, subsequently boosting engine demand. Automation in sectors such as agriculture, construction, and mining is further propelling the market. However, challenges such as high costs and stringent regulatory measures aimed at reducing carbon emissions pose potential constraints. Despite these challenges, the market is expected to benefit from investments in the construction sector and the modernization of agricultural practices through mechanization, particularly in the Asia-Pacific region.

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Market Size of Off Highway Vehicle Engine Industry

Off-Highway Vehicle Engine Market Summary
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

Off-Highway Vehicle Engine Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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.

Power Output
Agricultural Machinery
Upto 30 HP
30-50 HP
50-70 HP
70+ HP
Construction Machinery
Upto 100 HP
100-120 HP
200-400 HP
400+ HP
Fuel Type
Gasoline
Diesel
Other Fuel Types
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa
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Off Highway Vehicle Engine Market Size Summary

The off-highway vehicle engine market is poised for significant growth, driven by the recovery and expansion of the agricultural and construction machinery sectors. The easing of COVID-19 restrictions has led to increased production and sales of off-highway vehicles, which in turn boosts engine demand. The market is further propelled by rising mechanization in agriculture and a surge in construction projects globally. However, challenges such as high costs and maintenance expenses, along with stringent regulatory norms aimed at reducing carbon emissions, pose potential restraints. Despite these challenges, the market is expected to benefit from advancements in technology and the trend towards vehicle electrification, which promises long-term cost savings and reduced environmental impact.

Regionally, the Asia-Pacific area is anticipated to be a key driver of market growth, with significant investments in infrastructure and agriculture modernization. The demand for off-highway engines is expected to rise alongside the construction industry's expansion and the increasing use of medium-sized combine harvesters in countries like India, Vietnam, and Indonesia. The market is moderately consolidated, with major players like Yanmar Co. Ltd, Cummins, and Caterpillar Inc. leading the charge. These companies are actively pursuing innovative strategies and partnerships to enhance their market position and meet the evolving demands of the industry. As the market continues to evolve, the focus on high-performance and environmentally friendly solutions is likely to shape its future trajectory.

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Off Highway Vehicle Engine Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Output

      1. 2.1.1 Agricultural Machinery

        1. 2.1.1.1 Upto 30 HP

        2. 2.1.1.2 30-50 HP

        3. 2.1.1.3 50-70 HP

        4. 2.1.1.4 70+ HP

      2. 2.1.2 Construction Machinery

        1. 2.1.2.1 Upto 100 HP

        2. 2.1.2.2 100-120 HP

        3. 2.1.2.3 200-400 HP

        4. 2.1.2.4 400+ HP

    2. 2.2 Fuel Type

      1. 2.2.1 Gasoline

      2. 2.2.2 Diesel

      3. 2.2.3 Other Fuel Types

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Rest of North America

      2. 2.3.2 Europe

        1. 2.3.2.1 Germany

        2. 2.3.2.2 United Kingdom

        3. 2.3.2.3 France

        4. 2.3.2.4 Russia

        5. 2.3.2.5 Spain

        6. 2.3.2.6 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 Japan

        3. 2.3.3.3 India

        4. 2.3.3.4 South Korea

        5. 2.3.3.5 Rest of Asia-Pacific

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle-East and Africa

        1. 2.3.5.1 Saudi Arabia

        2. 2.3.5.2 South Africa

        3. 2.3.5.3 Rest of Middle-East and Africa

Off Highway Vehicle Engine Market Size FAQs

The Off Highway Vehicle Engine Market is projected to register a CAGR of 6.79% during the forecast period (2024-2029)

Yanmar Co. Ltd, Cummins Inc., Deutz AG, MAN and Volvo Penta are the major companies operating in the Off Highway Vehicle Engine Market.

Off Highway Vehicle Engine Market Report Snapshots

Off Highway Vehicle Engine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)