Market Trends of Off Highway Vehicle Engine Industry
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.
