Diesel Engines Market Forecasts to 2028 – Global Analysis By Type (Two Stroke Diesel Engine and Four Stroke Diesel Engine), Vehicle Type (Passenger Vehicle, Commercial Vehicle, Agricultural Vehicle and Construction Vehicle), Speed, Power Rating, Applicati

Diesel Engines Market Forecasts to 2028 – Global Analysis By Type (Two Stroke Diesel Engine and Four Stroke Diesel Engine), Vehicle Type (Passenger Vehicle, Commercial Vehicle, Agricultural Vehicle and Construction Vehicle), Speed, Power Rating, Application, End User and By Geography

According to Stratistics MRC, the Global Diesel Engines Market is accounted for $6.89 billion in 2022 and is expected to reach $9.02 billion by 2028 growing at a CAGR of 4.5% during the forecast period. The diesel engine is an internal combustion machine that compresses the air inside a cylindrical vessel to ignite the fuel, transforming chemical energy into mechanical energy. Large ships, trains, and freight trucks are all powered by this energy source. Diesel engines are preferred for various applications due to their many advantages. Diesel engines are increasingly preferred by end users due to their higher operating performance and fuel efficiency. Diesel engines may be built to satisfy a variety of power and performance needs, making them flexible and adaptable. Compared to gasoline engines, they produce less carbon dioxide and have a smaller carbon impact.

According to the reports of EPA, the US EPA mandated that the diesel standard for non-road diesel engines must be Ultra-Low Sulfur Diesel (ULSD).

Market Dynamics

Driver

Rising demand for modern infrastructure

The creation of fundamental support infrastructure and electricity T&D networks is necessary for urbanization. The construction, chemical & petrochemical, food & beverage, and utilities industries have seen increasing activity as a result of the rising need for modern infrastructure in metropolitan areas. Diesel engines may be used as a major or backup source of power generation to ensure power dependability, one of the important development determinants for the businesses. The market for diesel engines is expanding due to rising urbanization and industrialisation.

Restraint

High fuel & maintenance costs

Compared to cheaper fuels like gasoline and other alternatives, diesel is more expensive. Regular service and replenishing of the lubrication, cooling, fuelling, starting batteries, and fuel filters are necessary for preventive maintenance. These expenses are more than the operating costs of renewable technologies and add up to the overall operating and maintenance costs of diesel engines. High fuel prices as well as the operating and maintenance expenses of diesel engines might be significant market development inhibitors given the increasing competition from new technologies.

Opportunity

Growth in hybrid power generation

Isolated or off-grid places, such as isolated industrial units, telecom towers, tiny settlements, and islands, can have their power needs met by hybrid power generation. The specific power needs of residential and non-residential consumers are taken into account while designing hybrid power systems. To provide a continuous power supply to off-grid areas with fewer disruptions, hybrid power systems combine diesel engines with renewable energy sources (wind, solar, or both). This technology lowers operational expenses and fuel consumption. As a result, hybrid power generation is anticipated to pick up steam throughout the projection period in order to provide a sufficient and consistent supply of electricity.

Threat

Competition from alternative energy sources

There are a variety of fuels that might be used in addition to or in instead of diesel, including biodiesel, butanol, producing gas, dimethyl ether, and hydrogen. For use in diesel cars, biodiesel is a sustainable fuel that may be produced from vegetable oils, animal fats, or recycled cooking grease. For usage in fuel cell automobiles, hydrogen is a potentially emissions-free alternative fuel that can be created from local resources. The market expansion for diesel engines is hampered by all these viable alternatives.

Covid-19 Impact

Many nations enacted lockdown rules in the first quarter of 2020 as the corona virus sickness started to spread over the world in an effort to reduce infection rates. The world's businesses were all shut down. Major Tier I and II providers including Caterpillar, Cummins, Wartsila, Rolls Royce Holdings, and MAN SE are present in the diesel power engine industry. These vendor's production sites are dispersed throughout a number of different nations. The firm's revenue completely decreased. The market for diesel engines was severely impacted by the epidemic, and demand has now increased.

The 0.5 MW–1 MW segment is expected to be the largest during the forecast period

The 0.5 MW-1 MW market is predicted to develop profitably. Large residential facilities, business complexes, hospitals, small data centers, and other commercial end users are the main consumers of diesel power engines in this size range. The biggest energy consumers in office buildings and commercial complexes are lighting and HVAC loads. The rise in demand for backup power is promoting the segment's expansion.

The commercial segment is expected to have the highest CAGR during the forecast period

The commercial segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the growing expenditures in the commercial sector, particularly in hospitals and data centers. Major corporations like Microsoft, Amazon, Alphabet, Apple, and Facebook have experienced a significant increase in demand. These businesses spend billions on emergency backup power, which is necessary for data centers to remain operational despite outages in the main power grid supply. The commercial segment is anticipated to rise as a result of these investments and improvements.

Region with largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to meet the address the need for dependable backup and prime power supplies for businesses, residential end users and industrial facilities. The demand for energy is increasing as a result of urbanization, rising standards of living, and industrialization. Because of the continuous territorial disputes between nations like China, Korea, Japan, India, Pakistan, and Afghanistan, the need for small marine engines in the military industry is also anticipated to rise. These elements are anticipated to stimulate the market for diesel engines in the Asia Pacific area.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the rising infrastructure needs and power consumption. The large rise in power demand in emerging nations with weak power infrastructure, like China and India, is projected to make reliable power supply a severe problem, which boosted the sales of generators in a number of industries. The heavy-duty land-based transportation industry is another place where the diesel power engine finds a lot of use. Due to their better fuel efficiency, diesel-powered automobiles are particularly profitable in the Indian market. These elements, in addition to government regulations, are probably going to help the market.

Key players in the market

Some of the key players profiled in the Diesel Engines Market include Robert Bosch GmbH, Cummins Inc , Kubota Corporation, ISUZU Motors Limited, Yanmar Co., Ltd, Continental AG, Rolls-Royce, Fiat Powertrain Technologies S.p.A., AGCO Corporation, Deere & Company, Delphi Automotive System Private Limited, Mitsubishi Heavy Industries, Ltd., Ford Motor Company, General Motors Company, Volvo Penta, MAN Energy Solutions, Hyundai Heavy Industries, J C Bamford Excavators Ltd, Caterpillar and Doosan Infracore.

Key Developments

In May 2023, Bosch Engineering and Ligier Automotive established strategic development partnership for high-performance vehicles with a hydrogen engine. The first step of the joint activities is to construct a demonstration vehicle based on the Ligier JS2 R.

In March 2023, Hyundai Heavy Industries, an affiliate of HD Hyundai, announced that it has become the world’s first company whose cumulative production of two-stroke marine engines exceeds 200 million horsepower output.

In March 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a part of Mitsubishi Heavy Industries (MHI) Group, announced to launch SGP M2000, a new natural gas engine cogeneration system with generation output of 2,000kW. The new package encloses a 16-cylinder natural gas-fired engine modelled G16NB that boasts electrical efficiency of 44.3%.

In February 2023, Cummins Inc. announced it will showcase the next generation of integrated Powertrain and digital connectivity at the American Trucking Associations’ Technology & Maintenance Council’s annual meeting and transportation exhibition.

In January 2023, General Motors Co. announced plans to invest $918 million in four U.S. manufacturing sites, including $854 million to prepare these facilities to produce the company’s sixth generation Small Block V-8 engine and an additional $64 million in Rochester, New York and Defiance, Ohio for castings and components to support EV production.

Types Covered
• Two Stroke Diesel Engine
• Four Stroke Diesel Engine

Vehicle Types Covered
• Passenger Vehicle
• Commercial Vehicle
• Agricultural Vehicle
• Construction Vehicle

Speeds Covered
• Low
• Medium
• High

Power Ratings Covered
• Up to 0.5 MW
• 0.5 MW–1 MW
• 1 MW–2 MW
• 2 MW–5 MW
• Above 5 MW

Applications Covered
• Standby
• Prime
• Peak Shaving

End Users Covered
• Power generation
• Marines
• Locomotives
• Oil & Gas
• Mining
• Construction
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements