Diesel Engines Market by Speed (Low, Medium, High), Power Rating (Below 0.5 MW, 0.5-1.0 MW, 1.1-2.0 MW, 2.1-5.0 MW, Above 5.0 MW), End User (Power Generation, Marine, Locomotive, Mining, Oil & Gas, Construction) & Region - Global Forecast to 2028
[277 Pages Report] The global diesel engines market in terms of revenue was estimated to be worth $63.9 billion in 2023 and is poised to reach $78.8 billion by 2028, growing at a CAGR of 4.3% from 2023 to 2028. Boost in production and manufacturing demand in the medium to long term will generate demand for continuous and reliable power supply. However, the loss of consistent power supply would result in plant downtime and hence heavy losses. The performance of power generation and oil & gas plus mining industries is expected to drive the growth of the diesel engine market.
To know about the assumptions considered for the study, Request for Free Sample Report
To know about the assumptions considered for the study, download the pdf brochure
Diesel Engines Market Dynamics
Driver: Increasing urbanization and industrialization
According to the UN, as of 2022, 50% of the global population lives in urban areas and is projected to increase to 68% by 2050. North America, South America, and Europe remain the most urbanized regions, while rapid urbanization is expected in Africa and Asia Pacific during the forecast period. Urbanization requires the development of basic support infrastructure and power T&D networks. The rising demand for modern infrastructure in urban areas has increased activity in the construction, chemical & petrochemical, food & beverage, and utilities sectors. Power reliability is one of the key growth factors for the industries, which can be achieved using diesel engines as a primary or backup source of power generation.
Restraint: High fuel costs and operation & maintenance costs
Diesel fuel is costly compared to alternatives such as gasoline and other fuels, especially for longer-duration operations. Preventive maintenance requires regular servicing and refilling of the lubrication, cooling, fueling systems, starting batteries, and fuel filters. These costs add up to the total operating and maintenance costs of diesel engines and are higher than the operating cost of renewable technologies. Moreover, factors such as extreme temperatures, weather, and saltwater (in marine applications) can increase the frequency of maintenance activities. On the contrary, new emerging technologies, such as battery energy systems for backup power solutions, have no fuel costs and are easy to maintain and operate. With the growing competition from these emerging technologies, high fuel costs and operation and maintenance costs of diesel engines can be major restraints for market growth.
Opportunity: Growth in hybrid power generation in rural and remote locations
Hybrid power generation can meet the power requirement of remote areas or off-grid locations, such as remote industrial units, telecom towers, small villages and islands. Most off-grid sites are located in developing regions such as Africa and Asia Pacific, where electrification is not absolute. However, the growing power demand can be met by deploying hybrid power systems designed according to the individual power requirements of residential and non-residential customers. Diesel generators are combined with renewable sources (wind, solar, or both) by the hybrid power systems to ensure a 24*7 power supply to off-grid sites with fewer interruptions. For example, the wind-diesel system generates electricity using wind turbines and diesel generators. This system helps reduce fuel consumption and operating costs. Therefore, hybrid power generation is expected to gain momentum during the forecast period for an adequate and reliable power supply.
Challenge: Rising demand for natural gas in power generation applications
The advancement of oil & gas drilling and extraction technologies in the recent past has made shale gas more economical. This advancement has also resulted in abundant natural gas production, resulting in a sharp downturn in the natural gas prices in the US market and price corrections in the global market. The low natural gas prices compared to diesel prices have encouraged the increased use of natural gas engines for electricity generation. Utilities have since embraced natural gas-fired power plants as the cheapest sources of large-scale electricity generation. Most of capacity growth would take place at the expense of coal and nuclear power generation, whose share is expected to reduce.
Diesel Engines Ecosystem
Prominent companies in this market include well-established raw material providers/suppliers, component manufacturers, diesel engine manufacturers/assemblers, distributors, end users, and post-sales services. These companies have been operating in the market for several years and possess state-of-the-art technologies, substabtial R&D investments, a diversified product portfolio, and strong global sales and marketing networks. Caterpillar (US), Cummins Inc. (US), Volvo Penta (Sweden), Hyundai Heavy Industries (South Korea), and MAN Energy Solutions (Germany) are some of the prominent companies in this market.
By speeds, high-speed engines followed by medium-speed engines are expected to be the fastest-growing market segment during the forecast period.
This report segments the diesel engines market based on speed into low, medium, and high. 720–1,200 rpm is considered under the medium-speed diesel engines. High speed is bifurcated into two segments, 1200–1800 rpm and above 1800 rpm. High-speed diesel engines have wide applications in marines, power generation, and other sectors. Medium- and slow-speed engines are known for fuel flexibility and can operate on low-grade fuels. Medium-speed engines are common on smaller ships and power plants, driving electrical generators and propellers. The medium-speed marine diesel engine is usually used on amphibious warfare ships like landing craft utility (LCU), main auxiliary engineering ships, and Tugboats.
By End User, the power generation segment is expected to be the largest during the forecast period
The diesel engines market has been categorized based on end-users into power generation, marines, locomotives, mining, oil & gas, construction, and others. Diesel engines are used for emergency standby, prime/continuous, and peak shaving operations across the end users as needed. Increasing demand for uninterrupted power supply to support manufacturing and processing activities is expected to aid the demand growth for diesel engines for power generation applications.
“Asia Pacific is projected to be the fastest-growing region during the forecast period”
Asia Pacific is expected to fastest growing region in the diesel engines market between 2023–2028, followed by North America and Europe. The rising number of boats, crafts, and vessels will contribute to the growth of propulsion systems and small marine engines in the Asia Pacific region. The demand for small marine engines in the defense sector is also expected to increase because of the ongoing territorial conflicts among countries such as China, the Philippines, North Korea, Japan, India, Vietnam, Pakistan, and Afghanistan, thereby driving the diesel engine market in the region for marine applications. Hence, these factors are expected to fuel the growth of the diesel engine market in the Asia Pacific region.
Key Market Players
Global players dominate the market. The major players in the diesel engines market are Caterpillar (US), Cummins Inc. (US), Volvo Penta (Sweden), Hyundai Heavy Industries (South Korea), and MAN Energy Solutions (Germany). Strategies such as product launches, agreements, and contracts are followed by these companies to capture a significant share of the market.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Report Metric |
Details |
Market size available for years |
2021–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/Billion) |
Segments covered |
Speed, Power Rating, End-User, and Region |
Geographies covered |
Asia Pacific, North America, Europe, South America, Middle East & Africa |
Companies covered |
Caterpillar (US), Cummins Inc. (US), Volvo Penta (Sweden), Hyundai Heavy Industries (South Korea), MAN Energy Solutions (Germany), Doosan Infracore (South Korea), Mitsubishi Heavy Industries(Japan), Yanmar Holdings (Japan), FPT Industrial (Italy), IHI Power Systems (Japan), Wartsila (Finland), Kohler (US), Kubota (Japan), Rolls Royce Holdings (UK), Mahindra Powertrain (India), Guangzhou Diesel Engine Factory (China), Daihatsu Diesel Mfg. (Japan), CNPC Jichai Power Company Limited (China), The Liebherr Group (Switzerland), Anglo Belgian Corporation (Belgium) |
This research report categorizes the market by speed, power rating, end user, and region.
On the basis of speed, the diesel engines market has been segmented as follows:
- Low (Up to 720 rpm)
- Medium (720–1200 rpm)
- High (1200–1800 rpm, Above 1800 rpm)
On the basis of power rating, the diesel engine market has been segmented as follows:
- Below 0.5 MW
- 0.5–1.0 MW
- 1.1–2.0 MW
- 2.1–5.0 MW
- Above 5.0 MW
On the basis of end user, the diesel engine market has been segmented as follows:
- Power generation
- Marines
- Locomotives
- Oil & Gas
- Mining
- Construction
- Others
On the basis of region, the diesel engine market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- South America
- Middle East & Africa
Recent Developments
- In March 2023, Caterpillar announced the development of the CAT C13D, a new 13-liter diesel engine platform designed to achieve best-in-class power density, torque, and fuel efficiency for optimizing the performance of heavy-duty off-highway applications. The C13D would meet the emissions standards of higher regulated markets, such as EU stage v, US EPA tier 4 final, China non-road IV, Korea stage V, and Japan 2014, with models available for lesser regulated markets.
- In June 2022, WinGD and Hyundai Heavy Industries’ Engine Machinery Division (EMD) collaborated on delivering the first WinGD engine capable of running on ammonia, providing a vital step in shipping’s progress toward decarbonization.
- In February 2021, Cummins provided Isuzu with midrange B6.7 diesel platforms for medium-size trucks to meet global customer needs. Cummins and Isuzu would closely work together to integrate the engine with Isuzu’s chassis and to meet Japan’s emission regulations.
Frequently Asked Questions (FAQ):
What is the current size of the diesel engines market?
The current market size of the diesel engines market is USD 61.6 billion in 2022.
What are the major drivers for the diesel engines market?
The boost in demand for reliable and uninterrupted power supply is the major driving factor for the diesel engine market.
Which is the largest region during the forecasted diesel engines market period?
Asia Pacific is expected to dominate the diesel engine market between 2023–2028. The increase in defense spending and the rise in domestic ship production are key factors contributing to the growth of the diesel engines market in the region.
Which is the largest segment in the diesel engines market during the forecasted period?
High-speed engines are expected to be the largest market during the forecast period. High-speed engines have vast applications in power generation and the marine industry. Hence it is the largest segment in the diesel engines market.
Which is the fastest segment by the end user during the forecasted period in the diesel engines market?
Due to increasing industrialization and urbanization, power generation is expected to be the fastest market during the forecast period.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved major activities in estimating the current size of the diesel engines market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the diesel engines market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the diesel engine market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The diesel engines market comprises several stakeholders such as raw material providers/suppliers, component manufacturers, diesel engine manufacturers/assemblers, distributors, end users, and post-sales services in the supply chain. The demand side of this market is characterized by the investments in the purchase of diesel engines by the different end users. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the diesel engine market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Diesel Engines Market Size: Top-Down Approach
To know about the assumptions considered for the study, Request for Free Sample Report
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
An engine is a machine for converting various energy forms into mechanical force and motion. Diesel engines work on the basis of compression ignition technology and are considered one of the most reliable and capable fossil fuel-based power generation technologies. These engines are coupled with an alternator to generate power as and when demanded. They are used for continuous and intermittent power supply to various end users such as oil & gas, mining, locomotive, etc.
Key Stakeholders
- Utilities
- Oil & Gas Companies
- Power Generation Companies
- Heavy Industries
- Railway Companies
- Shipbuilding Industry
- Government and Research Organizations
- Third-party Testing Companies
- Diesel Power Engine Manufacturers, Dealers, and Suppliers
- Organizations, Forums, Alliances, and Associations Related to Various End User Verticals
- State and National Regulatory Authorities
Objectives of the Study
- To define, describe, analyze, and forecast the diesel engines market, by speed, power rating, and end user, in terms of value and volume
- To describe and forecast the diesel engine market in key regions—Asia Pacific, North America, Europe, South America, and the Middle East & Africa, along with respective countries, in terms of value and volume
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the market growth
- To strategically analyze the power diesel engine market with respect to individual growth trends, future market expansions, and the contribution of each market segment to the overall market growth
- To analyze opportunities in the market for stakeholders by identifying high-growth market segments and sketching the competitive landscape of market leaders
- To strategically profile the key players and comprehensively analyze their respective market shares
- To analyze strategic approaches such as investments and expansions; mergers and acquisitions; product launches; contracts and agreements; and joint ventures and collaborations in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Diesel Engines Market