Market Size of Off Highway Vehicle Engine Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
CAGR | 6.79 % |
Fastest Growing Market | Europe |
Largest Market | Asia-Pacific |
Market Concentration | Medium |
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.
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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.
Off Highway Vehicle Engine Market Size - Table of Contents
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1. MARKET DYNAMICS
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2. MARKET SEGMENTATION
Off Highway Vehicle Engine Market Size 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.