Diesel Power Engine Market Forecasts to 2030 – Global Analysis By Fuel Type (Conventional Diesel, Biodiesel, Natural Gas and Other Fuel Types), Engine Type, Component, Application and By Geography

According to Stratistics MRC, the Global Diesel Power Engine Market is accounted for $8.01 billion in 2024 and is expected to reach $14.58 billion by 2030 growing at a CAGR of 8.6% during the forecast period. A Diesel Power Engine is an internal combustion engine that runs on diesel fuel. It uses compression to ignite the air-fuel mixture, making it more efficient than gasoline engines. The engine operates by compressing air in a cylinder, causing the air to heat up, and then injecting diesel fuel into the compressed air, which ignites due to the high temperature. This process results in power generation for various applications.

According to China’s National Bureau of Statistics, diesel fuel consumption in the country reached 167 million tons in 2023, a 5% increase from 2022.

Market Dynamics:

Driver:

Rising demand for heavy-duty vehicles

Diesel engines provide higher torque and fuel efficiency, essential for heavy-load handling and long-distance travel, which is vital for industries like logistics, construction, and mining. Additionally, diesel engines are known for their durability, low operating costs, and ability to operate under demanding conditions, making them ideal for heavy-duty applications. As global trade and infrastructure development grow, the demand for diesel-powered heavy-duty vehicles is expected to continue expanding.

Restraint:

Increasing shift toward electric vehicles

As consumers and businesses embrace environmentally friendly alternatives, governments are implementing stricter emission standards and offering incentives for EV adoption. This shift not only limits the need for diesel engines in the automotive sector but also accelerates the transition toward cleaner energy solutions in commercial and industrial applications. As EV infrastructure grows and battery technology improves, the diesel engine market faces increased competition and regulatory challenges, hindering its expansion.

Opportunity:

Increase in infrastructure development

Diesel engines are widely used in equipment such as cranes, excavators, bulldozers, and trucks, which are essential for large-scale infrastructure projects. Additionally, diesel engines provide the reliability and power needed to operate in tough conditions. As governments and private companies invest heavily in building roads, bridges, urban developments, and energy infrastructure, the demand for robust and efficient diesel-powered machines continues to rise, driving the market's expansion.

Threat:

Higher upfront cost

Diesel Power Engines have a higher upfront cost due to their complex components, such as high-compression cylinders, turbochargers, and advanced fuel injection systems, which are required for better efficiency and durability. Additionally, they often require more robust materials to handle higher stress levels. As a result, the higher upfront investment hampers market growth by making diesel engines less attractive compared to lower-cost alternatives like gasoline engines or emerging electric vehicles.

Covid-19 Impact

The covid-19 pandemic had a mixed impact on the diesel power engine market. During the initial lockdowns, demand for diesel engines in sectors like transportation and construction declined due to halted operations and supply chain disruptions. However, as economies began recovering, the demand for diesel-powered commercial vehicles and machinery surged driven by infrastructure projects. Long-term, there is a growing shift towards cleaner alternatives and tighter emission regulations, which may dampen the market's growth potential.

The multi-cylinder segment is expected to be the largest during the forecast period

The multi-cylinder segment is predicted to secure the largest market share throughout the forecast period. Multi-cylinder diesel engines feature multiple cylinders, typically ranging from 4 to 12, to enhance power output, fuel efficiency, and engine performance. By distributing the engine's workload across several cylinders, these engines can generate higher torque, which is ideal for heavy-duty applications. These engines are known for their reliability, fuel efficiency, and ability to handle larger loads, making them crucial for demanding industrial and transportation sectors.

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

The automotive segment is anticipated to witness the highest CAGR during the forecast period. Diesel power engines are widely used in automotive applications, particularly for heavy-duty vehicles like trucks, buses, and SUVs, due to their superior fuel efficiency and high torque output. These engines offer better fuel economy compared to gasoline engines, making them ideal for long-distance travel and commercial transportation. Diesel engines provide enhanced towing capabilities and are well-suited for demanding road conditions.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period due to rapid industrialization, increasing demand for transportation, and infrastructure development. Countries like China, India, and Japan are major contributors, with diesel engines powering heavy-duty vehicles, construction equipment, and industrial machinery. The region benefits from a large number of commercial and agricultural sectors relying on diesel-powered engines. The market is expected to witness steady growth, fueled by ongoing infrastructure projects and industrial needs.

Region with highest CAGR:

North America is expected to witness the highest CAGR over the forecast period driven by the strong demand for diesel-powered commercial vehicles, industrial machinery, and power generation equipment. The U.S. and Canada are key markets, where diesel engines are preferred for their high torque and fuel efficiency, particularly in the transportation and construction sectors. Additionally, the region's focus on energy security and infrastructure development supports market growth.

Key players in the market

Some of the key players profiled in the Diesel Power Engine Market include Caterpillar Inc., Cummins Inc., Rolls-Royce Holdings plc, Mitsubishi Heavy Industries Limited, Wärtsilä Corporation, Volvo Group, Kohler Corporation, Perkins Engines Company Limited, Hitachi Corporation, Komatsu Corporation, Greaves Cotton Limited, John Deere & Company, MAN Energy Solutions, MTU Friedrichshafen GmbH, Yanmar Corporation, Deutz AG, Doosan Infracore Corporation, Scania AB, Hatz Diesel and Weichai Power Corporation.

Key Developments:

In January 2025, Cummins has launched the next-generation 6.7L Turbo Diesel engine system for the 2025 Ram Heavy Duty Trucks, further solidifying its longstanding partnership with Ram Trucks. This new engine system is designed to offer significant performance, fuel efficiency, and emissions improvements, building on the success of their 35-year collaboration.

In April 2024, Weichai Power made a significant breakthrough in diesel engine technology by unveiling the world's first diesel engine with a base engine brake thermal efficiency of 53.09%. This efficiency is significantly higher than the typical efficiency of traditional diesel engines, which is generally around 40-45%.

Fuel Types Covered:
• Conventional Diesel
• Biodiesel
• Natural Gas
• Other Fuel Types

Engine Types Covered:
• Single Cylinder
• Multi-Cylinder

Components Covered:
• Engine Block
• Cylinder Head
• Crankshaft
• Fuel Injection System
• Turbocharger
• Exhaust Systems
• Cooling System
• Other Components

Applications Covered:
• Automotive
• Marine
• Construction Equipment
• Agriculture
• Power Generation
• Railways
• Industrial & Commercial Use
• Mining
• Other Applications

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 2022, 2023, 2024, 2026, and 2030
- 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