Diesel Power Engine Market- Global Industry Size, Share, Trends, Opportunities, and Forecast, 2018-2028

Diesel Power Engine Market- Global Industry Size, Share, Trends, Opportunities, and Forecast, 2018-2028

Global diesel power engine market is expected to grow during the forecast period, owing to the significant factors such as growing industrialization, rising demand for reliable power backup, and increasing investments in datacentres and commercial facilities.

The internal combustion engine known as the diesel power engine named after Rudolf Diesel ignites the fuel injected into the combustion chamber by raising the temperature of the air in the cylinder as a result of mechanical compression. All that is compressed in diesel engines is air. As a result, the air within the cylinder becomes so hot that when atomized diesel fuel is delivered into the combustion chamber, it spontaneously ignites.

Global Diesel Power Engine Market: Trends & Drivers

Rapid Infrastructure Development

Rapid industrialization has accelerated infrastructure construction globally in recent years. The infrastructure industry has become more digitalized as a result of Industry 4.0, which has sped up infrastructure construction. The expansion of the world economy depends on the construction of the necessary infrastructure, including ports, power plants, airports, and systems for the transportation of goods by road and rail. The manufacturing industry is more productive when a nation's infrastructure is built because it makes it easier to transfer raw materials and completed items. Additionally, a developed infrastructure fosters a favorable climate for investment, expanding the market.

The above-mentioned factors boost the economic growth of a country, which is good for its overall development. Diesel power engines are in high demand as a result of recent infrastructure development. Generally, heavy industrial equipment refers to heavy-duty vehicles used for construction and mining work, as heavy industrial equipment needs a diesel power engine to carry out heavy construction operations. Therefore, an increase in heavy industrial equipment will increase the demand for diesel power engines. In recent years, the US, China, India, South Korea, Brazil, the UK, Germany, Canada, and Saudi Arabia have developed rapidly in terms of infrastructure. According to Refinitiv, in 2020, 2,551 infrastructure projects were announced globally, accounting for USD 739 billion. These projects increased the demand for construction equipment, such as loaders, excavators, and dumpers. Infrastructure is growing in emerging economies as a result of local government’s incentives for industrial development and FDI. This increases the demand for heavy equipment, increasing diesel power engine demand.

Increasing Demand for Commercial Vehicles in Emerging Economies

The demand for commercial vehicles in India, China, Brazil, South Korea, Argentina, Mexico, and South Africa is growing because of rapid development in the automotive and infrastructure industries. The automotive market has developed immensely over the past decades in terms of research and development, production capacity, competitive standards, and continuous development. The infrastructure industry in emerging economies has developed rapidly because of factors such as low-cost labor, low-cost raw materials, government subsidiaries, and high foreign direct investment (FDI). In addition, developing nations, such as India and China, are the world’s top two populated countries, so the domestic market is large in these countries. Emerging countries have taken advantage of foreign direct investment and helped MNCs set up their assembly plants and execute large construction projects in their countries. New industrial policies being implemented by governments of developing nations have helped many MNCs to invest, which has ultimately increased the production capacity of various industries. Hence, the demand for commercial vehicles has started to increase, which, in turn, will positively impact the global diesel power engine market during the forecast period.

According to the International Organization of Motor Vehicle Manufacturers (OICA), since 2005, the automobile industry has shown rapid growth in emerging economies because of rapid industrialization and increased foreign direct investment (FDI). Therefore, it has positively impacted the growth of the transportation sector. In addition, during the COVID-19 pandemic, the transportation of food and medical supplies increased the demand for commercial vehicles.

Companies in the automotive sector have invested significantly in the development of new and efficient vehicles. According to the annual reports of respective companies, in 2020, Eicher Motors (India) invested USD 38.5 million, Tata Motors (India) invested USD 406.79 million, Ashok Leyland (India) invested USD 406.79 million, Maruti Suzuki (India) invested USD 80.7 million, Force Motors (India) invested USD 2.20 billion, and Hyundai (South Korea) invested USD 3.93 billion in research and development for vehicles that helped these companies to launch vehicles that are appealing to the market. Large investment in research and development enabled companies, such as Ashok Leyland, Tata motors, and Eicher Motors, to deliver quality vehicles with improved performance at reasonable prices, increasing the demand for commercial vehicles. In addition, European and American companies, such as Daimler Truck (Germany), Navistra (US), Isuzu Motors (Japan), PACCAR (US), Mack Trucks (US), and Volvo Trucks (Sweden), have started to invest in developing countries to monetize the high demand for commercial vehicles.

Increasing Demand for Biofuel as Fuel:

Contrary to traditional or fossil-based diesel fuel, biodiesel is a superior and more environment-friendly fuel. Vegetable oil, animal oil or fats, tallow, and leftover cooking oil are utilized as the primary raw ingredients in the creation of biodiesel. These oils are transformed into biodiesel by the transesterification process. In addition to being able to mix with petroleum diesel fuel in any ratio, biodiesel is made to be used as a substitute for it. The biggest benefit of using biodiesel is that diesel engines do not need to be modified in any specific way. Compared to diesel fuel made from petroleum, biodiesel produces less exhaust pollutants. Compared to normal diesel fuel, biodiesel is less harmful and safer. According to the International Energy Agency (IEA), the demand for biodiesel is expected to grow by 41% during 2021-2026. The policies related to emission regulations laid down by various governments are the major drivers of the increasing demand for biodiesel. The transportation sector is one of the major consumers of biodiesel as most of the commercial vehicles used for transportation run on diesel power engines. Various government regulations allow the blending of biodiesel with conventional diesel fuel. In addition, people across the globe are becoming aware of the benefits of biodiesel in terms of vehicle performance, safety, and exhaust emission. Therefore, all the above-mentioned factors are expected to increase the demand for biodiesel, which, in turn, will drive the demand for diesel power engines during the forecast period.

Significant Growth in Power Sector:

In recent years, the power generation sector has shown significant growth. Factors such as changing government policies, rapid industrialization, increasing population leading to an increase in per capita demand, and increasing use of renewable energy have boosted the growth of the power generation sector. If the current policy and technological advances trends continue, the global demand and consumption of electricity will grow significantly till 2050, when increasing population and economic growth will drive the power generation sector in the coming future.

Industrial development in emerging economies is one of the major factors that contribute to the growth of the power generation sector. Industrial development in developing countries in Asia and Latin America is high. Asian countries participate in global trade, which helps in their ability to draw the majority of FDI. Emerging economies develop at a rapid pace and advance their production and manufacturing processes by investing in R&D, which creates a competitive market environment. Emerging economies invest in sustainable practices, reduce air, soil, water, and marine plastic pollution, and promote low-carbon transport to strengthen their infrastructure and financial capacity. The power generation sector plays an important role in supporting this rapidly developing industrial sector.

Compared to other energy sources, the use of electricity in residential buildings is anticipated to increase more quickly. The US Energy Information Administration (EIA) predicts that by 2050, residential units will account for more than 50% of all energy use due to the rapid growth of the global population. Electricity usage in the business sector is anticipated to increase dramatically during the forecast period. The business sector's rising need for power is a result of rapid industrialization and an expanding economy. By 2050, electricity is anticipated to supply 60% of commercial energy requirements, according to the EIA.

Power generation from renewable energy sources is gaining popularity on a worldwide basis. According to projections, the demand for and usage of fossil fuels will decline as renewable energy sources over the course of the next several decades become the primary power generators. According to IEA data, renewable energy will make up 45% of the world's electricity generation by 2030, up from 30% in 2020. The contribution of renewable energy in the generation of power is expected to equal that of fossil fuels by the year 2020. Wind and solar photovoltaics are the two primary renewable energy sources used to generate electricity. Factors such as low costs, widespread availability, and supporting policies by various governments are the driving factors for solar and wind power generation. According to the IEA, it is expected that the capacity of wind and solar PV will grow by three times during the next decade. This significant rise in renewable power generation is projected to meet all electricity demand growth till 2030. Renewable technologies, such as hydropower, bioenergy, and geothermal, will contribute significantly to the growth of renewables. All the above-mentioned factors are projected to increase the demand for diesel engine generators, which, in turn, will positively impact the global diesel power engine market during the forecast period.

Market Segments

The global diesel power engine market is segmented into power rating, end-user, operation, and region. Based on power rating, the market is segmented into up to 0.5 MW, 0.6-2 MW, 2.1-5 MW, and above 5 MW. Based on end user, the market is segmented into industrial, commercial, and residential. Based on operation, the market is segmented into standby and prime/continuous. Based on region, the market is segmented into North America, Asia-Pacific, Europe, South America, and Middle East & Africa.

Market Players

• Major market players in the global diesel power engine market are Caterpillar Inc., Cummins Inc., Wartsila Oyj Abp, Rolls-Royce Holding PLC, Man SE, Mitsubishi Heavy Industries Ltd, Volvo AB, Hyundai Heavy Industries Co. Ltd, Doosan Corp., and Yanmar Holdings.

Report Scope:

In this report, the global diesel power engine market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• Diesel Power Engine Market, By Power Rating:
• Up to 0.5 MW
• 0.6-2 MW
• 2.1-5 MW
• Above 5 MW
• Diesel Power Engine Market, By End User:
• Industrial
• Commercial
• Residential
• Diesel Power Engine Market, By Operation:
• Standby
• Prime/Continuous
• Diesel Power Engine Market, By Region:
• North America
• United States
• Canada
• Mexico
• Europe
• France
• Germany
• United Kingdom
• Italy
• Spain
• Asia pacific
• China
• India
• Japan
• South Korea
• Australia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• South America
• Brazil
• Argentina
• Colombia

Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the global diesel power engine market.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Please Note: Report will be updated with the latest data and delivered to you within 3-5 working days of order. Single User license will be delivered in PDF format without printing rights