Diesel Power Engine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Diesel Power Engine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Diesel Power Engine Market size is expected to grow from USD 8.50 billion by the end of this year to USD 10.54 billion after five years, at a CAGR of 4.40% during the forecast period.

Key Highlights

• Over the medium period, factors such as the demand for reliable electricity and the development of commercial and industrial infrastructures are driving the diesel power engine market.
• On the other hand, the abundance of natural gas, coupled with its environmental soundness, has led to an increasing shift towards natural gas engines as an alternative to diesel engines in various end user industries and is expected to restrain the growth of the diesel engine market during the forecast period.
• Nevertheless, rising electrification projects in Africa, such as Western Africa Regional Off-Grid Electrification Project, present immense opportunities for the diesel power engine market players in the coming years.
• Asia-Pacific is expected to be the largest and fastest-growing market, with the majority of the demand coming from countries like India, China, etc.

Diesel Power Engine Market Trends

The Industrial Segment to Dominate the Market

• Diesel power generation is most appropriate as a standby source for the industrial sector. Generally, the industrial sector consumes more power for its business operations. A diesel power engine offers better reliability and enhances the quality of the power supply.
• The electricity demand is growing across the world. Rapid industrial expansions and commercial infrastructure development are increasing the utilisation of diesel power engines. Significant industries which rely heavily on the power generated from diesel engines are the construction sector, manufacturing, health care, oil and gas, telecommunication and data centres, etc.
• Diesel generators are equipped with advanced technologies for continuously monitoring electric current and automatically start when there are power distortions and failures and revert to switch-off mode when the power comes back.
• The diesel engine's low volatility rate makes it the finest option in mining fields. Especially in mining fields, heavy-duty activities need a perfect power source and backup. Hence mining industries rely on the diesel power engine for better durability. Also, the healthcare segment uses sensitive equipment such as oxygen ventilators, infusion pumps, ECG machines, and defibrillators to treat patients. There is a need for a quality power supply to avoid interruptions. Diesel power engines are hospitals' most reliable backup power sources for uninterrupted power.
• In the construction sector, projects often stall due to power failures. Constant power interruptions result in delayed project execution, which leads to financial loss. There is a need for a diesel power engine to ensure safety and better power supply on construction sites.
• Disruptions of power in the manufacturing industry lead to low-volume production and result in the offering of low-standard products. When a blackout occurs in manufacturing divisions, they generally affect all the processes. Hence, the production units rely on the diesel power engine to avoid such failures, which acts as the best power source.
• The iron and steel industry also uses diesel power engines as backup power in case of power requirements or power shutdown. According to the World Steel Association, as of December 2022, China upholds the world leader in crude steel production, with 77.9 million metric tonnes produced, a 10% decrease from the previous year. India, Japan, the United States, and Russia trail far behind.
• Therefore, based on the abovementioned factors, the industrial segment will dominate the diesel power engine market during the forecast period.

Asia-Pacific to Dominate the Market

• The increasing infrastructural developments and electricity demand in Asia-Pacific, with the huge increase in average energy consumption rate and GDP growth rate, is expected to promulgate the diesel power engine market.
• The massive increase in power consumption in developing countries, such as China and India, with inadequate power infrastructure, is likely to make steady power supply a serious challenge. Thus, the demand for steady power boosts the sales of generators in several sectors, especially the industrial and commercial segments in the region.
• With increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces, China is leading the diesel power engine market.
• The diesel power engine also finds a huge space in the heavy-duty land-based transportation sector. The transportation sector is growing rapidly year-on-year owing to multiple factors, such as the increase in e-commerce, industrialization, etc. This application segment is rapidly growing in almost every country in the region.
• The Indian government is focusing on improving the economy through increased infrastructure spending, mainly on roads, railways, and metro rail. With a new metro rail policy on the anvil and every large city in India looking to construct a metro rail network, diesel power engines have immense growth opportunities in metro rail projects.
• On top of that, government regulations such as the ban on diesel-based vehicles older than 10 years in Delhi, India, are likely to aid in the growth of the market. Diesel-based vehicles are very lucrative in the Indian market owing to their higher fuel economy. This factor, coupled with shortened life of such vehicles by the government regulations, is likely to provide a boost to the market indirectly due to the higher turnaround of such vehicles.
• Moreover, the growing energy demands of the burgeoning manufacturing industry are expected to provide huge impetus to the generators business in the Asia-Pacific region. As a result, Asia-Pacific is expected to witness the fastest growth in the global diesel power engine market during the forecast period.

Diesel Power Engine Industry Overview

The diesel power engine market is moderately fragmented. Some of the key players in this market (in no particular order) include Caterpillar Inc., Cummins Inc., Kohler Co., Volvo AB, and Mitsubishi Heavy Industries Ltd.

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