Diesel Power Engine Market

Diesel Power Engine Market Outlook from 2024 to 2034

The global Diesel Power Engine Market size is estimated to reach a valuation of USD 9 billion by 2024. It is expected to attain a valuation of around USD 18.8 billion by 2034. The market is likely to expand at a CAGR of 7.6% in the forecast period 2024 to 2034.

Key Diesel Power Engine Market Trends

• The ability of diesel engines to offer high fuel efficiency compared to petrol-based engines, especially in construction equipment, buses, and trucks, is set to drive growth.
• The implementation of stringent norms by governments of several countries is expected to push the demand for diesel propulsion systems as these offer clean technology.
• Renowned automakers are integrating diesel engines into electric and hybrid powertrains to lower emissions and enhance efficiency in off-road machinery & commercial vehicles.
• Companies are focusing on research & development activities to discover new alternative fuels such as renewable diesel, synthetic diesel, and biodiesel to reduce the reliance on fossil fuels and lower greenhouse gas emissions.
• Diesel engine manufacturers are integrating connectivity solutions and digital technologies into these engines to allow for engine optimization, predictive maintenance, and real-time monitoring.

Attributes	Key Insights
Diesel Power Engine Market Anticipated Value (2023A)	USD 8.3 billion
Diesel Power Engine Market Estimated Valuation (2024E)	USD 9 billion
Projected Diesel Power Engine Market Size (2034F)	USD 18.8 billion
Value-based Diesel Power Engine Market CAGR (2024 to 2034)	7.6%

Significant Drivers of the Diesel Power Engine Market

• The ongoing expansion of several industries, such as agriculture, construction, and mining, is expected to bolster the demand for diesel-powered machinery owing to their high reliability and torque.
• The need for diesel engine technology is projected to surge with the growing demand for backup systems and powering generators in remote construction sites, telecommunications towers, and power plants.
• The marine propulsion industry is set to be one of the key end-users of diesel engines as these can provide robust performance, long range, and high efficiency in maritime transport and commercial shipping applications.
• The military and defense sector is projected to utilize small diesel engines in aircraft, ships, and vehicles to obtain high durability and fuel efficiency.
• The use of several diesel engine types is expected to increase in off-grid and remote locations to offer reliable power for rural electrification projects, oil & gas exploration, mining activities, and telecommunications.

2019 to 2023 Diesel Power Engine Market Insights Vs. 2024 to 2034 Forecast

The global diesel power engine market expanded at a CAGR of about 9.2% in the historical period 2019 to 2023. It will likely rise at a CAGR of 7.6% in the assessment period. The market stood at a valuation of USD 8.3 billion in 2023.

Historical CAGR (2019 to 2023)	9.2%
Forecast CAGR (2024 to 2034)	7.6%

Diesel Engine Market Growth Outlook from 2019 to 2023

• The ability of diesel engines to provide higher efficiency compared to gasoline engines, especially in industrial machinery, buses, and trucks, expanded their demand to reduce operating costs and fuel consumption.
• Favorable taxation norms, long driving range, and relatively low cost of ownership pushed the adoption of diesel engine power across Europe and North America.
• Constant infrastructure development, rapid urbanization, and transportation of consumer goods propelled the compression-ignition engine industry in the past.
• The demand for diesel engines rose due to the availability of diesel fuel in several regions of the world in abundance. As the availability increased across gas stations, diesel-powered vehicles started gaining traction.
• Diesel engine consumption across several commercial and industrial applications, including off-road machinery, railway locomotives, maritime propulsion, and power generation, increased from 2019 to 2023.

Diesel Engine Market Size Analysis from 2024 to 2034

• The demand for diesel engines capable of operating on hydrogen fuel cells or hydrogen-diesel blends is set to expand as the world moves toward a hydrogen economy. These engines are likely to help smoothly operate in the initial stage of hydrogen transition projects.
• The rapid development of unique biofuels and renewable diesel is expected to create new opportunities for diesel engine suppliers as these can help reduce carbon emissions. The innovative fuels are set to be used in diesel engines with zero to minimal transformations, providing a way to decarbonize the industrial and transportation sectors.
• Diesel engine-powered generators are likely to play a significant role in rural or remote areas where the availability of electricity grids is limited. These engines are estimated to offer reliable power for microgrid systems and electrification initiatives.
• Communities, private firms, and government agencies are expected to support diesel power generation projects to provide reliability and resilience during natural disasters like earthquakes or grid outages. Government bodies are projected to invest in diesel-powered emergency response vehicles and backup generators to help with the continuity of essential services.

Semi-annual Diesel Power Engine Market Overview

The table provides information about significant variations in growth rates and dynamic trends in the diesel power engine market. Readers can gain insights into changing consumer tastes and evolving market dynamics throughout an array of different periods.

The table offers an explanation of growth potential, scrutinizing the role that actual numbers and predictions have in determining the future path of the market.

Details	CAGR
H1 (2023 to 2033)	8.1%
H2 (2023 to 2033)	7.0%
H1 (2024 to 2034)	8.2%
H2 (2024 to 2034)	6.9%

Country-wise Insights

The section below highlights the CAGRs of the leading countries in the diesel power engine market. The three main countries pushing diesel power engine demand include Japan, the United Kingdom, and the United States.

According to the analysis, Japan is set to lead the diesel power engine market by showcasing a CAGR of 9.0% in the forecast period. The country is anticipated to be followed by the United Kingdom and the United States, with CAGRs of 8.5% and 7.9%, respectively.

Countries	CAGR (2024 to 2034)
United States	7.9%
United Kingdom	8.5%
China	6.8%
Japan	9.0%
South Korea	5.1%

The table below showcases the size of the top 5 countries present in the global diesel power engine market. Out of all the countries, the United States is expected to reach a valuation of USD 3.3 billion by 2034. Followed by the United States, China and Japan are anticipated to attain valuations of USD 2.6 billion and USD 2.1 billion, respectively.

Countries	Market Size (2034)
United States	USD 3.3 billion
United Kingdom	USD 781.7 million
China	USD 2.6 billion
Japan	USD 2.1 billion
South Korea	USD 692.8 million

Constant Diesel Engine Innovations in the United States to Spur Demand

The United States diesel power engine market is projected to attain a valuation of USD 3.3 billion by 2034. It will likely rise at a CAGR of 7.9% from 2024 to 2034. Factors pushing the diesel engine industry in the country are:

• The high demand for light-duty diesel vehicles such as pickup trucks and SUVs is estimated to propel the need for diesel power engines that would help provide high fuel efficiency.
• The ongoing expansion of diesel refueling infrastructures, such as fueling stations and truck stops in the United States, is estimated to push the adoption of diesel-powered equipment and vehicles.
• Increasing awareness among the general public about innovations in diesel engines, such as improved performance, low noise levels, and clean emissions, is projected to support their demand.
• The presence of a well-established freight and logistics industry in the United States is expected to bolster demand for diesel engines in delivery and long-haul trucking applications.

Infrastructure Development in China Spurs Demand for Heavy-duty Diesel Engines

It is estimated that China will generate a steady diesel power engine market share in the forecast period. The country is anticipated to expand at a CAGR of 6.8% from 2024 to 2034. Key factors augmenting the market include:

• China is witnessing several infrastructure development projects, such as the construction of ports, railways, and highways, which is expected to bolster the demand for industrial diesel engines.
• The mechanization and modernization of the agriculture sector in China is projected to push the requirement for diesel-powered machinery, including irrigation pumps, harvesters, and tractors.
• The demand for diesel power engines is anticipated to rise in China on the back of the constant export of diesel-based machinery and engines.

Japan Sees Diesel Engine Applications in Marine and Forestry Industries

Japan’s diesel power engine market is anticipated to witness a CAGR of 9.0% through 2034. The country is likely to expand considerably due to the following factors:

• Japan-based diesel engine manufacturers are set to invest huge sums in the development of hybrid diesel technology to obtain environmental benefits and fuel efficiency. They are aiming to attract companies looking for clean fuels for transportation applications.
• The marine diesel engine market in Japan is constantly flourishing as the marine industry relies on diesel engines for marine generators, auxiliary power, and ship propulsion.
• The forestry, agriculture, and construction industries in Japan are looking for diesel-powered equipment for applications like harvesters, tractors, and excavators.

Category-wise Insights

The below section shows the global trends in the diesel power engine industry in terms of operation and rated power. The standby segment is expected to lead the diesel power engine market based on operation.

It is set to showcase a CAGR of around 7.4% from 2024 to 2034. Based on the rated power, the up to 0.5 MW segment is anticipated to exhibit a dominant CAGR of 7.1% through 2034.

Segment	Value CAGR (2024 to 2034)
Standby (Operation)	7.4%
Up to 0.5 MW (Rated Power)	7.1%

Diesel Engine Power for Standby Operations to Witness High Growth

In terms of operation, the standby segment is projected to witness a CAGR of 7.4% from 2024 to 2034. The segment is likely to surge rapidly owing to the following factors:

• The demand for diesel engines for standby operations is increasing, especially in crucial applications such as emergency power backup systems. The unavailability or unreliability of grid power is set to create a high need for diesel generators to offer backup power.
• The ongoing expansion of IT infrastructure and data centers is projected to create a surging demand for diesel-powered generators to prevent data loss and downtime.

Diesel Engine Technology Rated Up to 0.5 MW Gains Impetus Worldwide

Based on rated power, the up to 0.5 MW category is estimated to exhibit a CAGR of around 7.1% through 2034. This growth is attributed to the following factors:

• The rising demand for distributed power generation solutions in remote areas is projected to drive the need for engines rated up to 0.5 MW. These are set to help provide a versatile and compact solution for telecommunications towers, small communities, off-grid installations, and industrial hubs.
• The high demand for certain power requirements is set to make diesel engines rated up to 0.5 MW ideal for a wide range of applications, such as continuous and standby operations.

Competitive Landscape

The global diesel power engine market is highly fragmented, with the presence of several key companies. They are mainly focusing on joining hands with renowned automakers to provide their in-house heavy-duty diesel engines.

Several automotive manufacturers worldwide are striving to increase sales of their diesel-powered vehicles to gain a competitive edge. They are constantly updating their old car models to include diesel engines and new features.

For instance:

• In January 2024, Tata Motors introduced its new Turbotronn 2.0 engine. The novel engine promises to offer high reliability and efficiency in the truck industry. It was manufactured for trucks between 19 and 42 tons. The engine is ideal for several trucking applications, including long-haul and inter-city transport.
• In January 2024, Tata Motors announced that it is planning to launch the diesel variant of Tata Curvv along with petrol-powered and all-electric versions. The company is aiming to push the adoption of diesel powertrains as the demand for diesel-powered SUVs is declining in India.
• In January 2024, Jaguar Land Rover introduced its new model of Range Rover Evoque in both diesel and petrol engine options. The updated model has several features, such as fog lights, air purifiers, wireless charging, and more. The vehicle also has a 48V mild-hybrid system that helps save energy amid braking.

Key Companies Profiled in the Diesel Power Engine Market Report

• Caterpillar Inc.
• Cummins, Inc.
• MAN SE
• Rolls-Royce Holdings plc.
• Wärtsilä Corp.
• Mitsubishi Heavy Industries, Ltd.
• Volvo Penta
• Hyundai Heavy Industries Co., Ltd.
• Doosan

Diesel Power Engine Market Outlook by Category

By Operation:

• Standby
• Prime
• Peak Shaving

By Rated Power:

• Up to 0.5 MW
• 0.5 to 1 MW
• 1 to 2 MW
• 2 to 5 MW
• Above 5 MW

By End-user:

• Industrial
• Commercial
• Residential

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa

Frequently Asked Questions

How big is the diesel engine market?

The diesel power engine market is set to reach USD 18.8 billion by 2034.

Who is the leading manufacturer of diesel engines?

Caterpillar Inc. and Cummins, Inc. are the leading manufacturers.

Is there a future for diesel engines?

The popularity of diesel engines is rising owing to their ability to offer high fuel economy.

How big is the diesel fuel engine market?

The diesel power engine market is expected to reach USD 9 billion in 2024.

At what CAGR would the diesel power engine market expand?

The diesel power engine market is set to expand at a CAGR of 7.6% through 2034.

Which is the leading operation segment in the diesel power engine market?

The standby segment is expected to lead the diesel power engine market.