Diesel Power Engine Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)

The Report Covers the Diesel Power Engine Market Size and Share, and It is Segmented by End User (Industrial, Commercial, and Residential), Application (Standby, Prime, and Peak Shaving), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Report Offers the Market Size and Forecasts for the Diesel Power Engine Market in Revenue (USD) for all the Above Segments.

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Diesel Power Engine Market Size

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Diesel Power Engine Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 11.55 Billion
Market Size (2029) USD 15.74 Billion
CAGR (2024 - 2029) 6.39 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Diesel Power Engine Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Diesel Power Engine Market Analysis

The Diesel Power Engine Market size is estimated at USD 11.55 billion in 2024, and is expected to reach USD 15.74 billion by 2029, growing at a CAGR of 6.39% during the forecast period (2024-2029).

  • Over the medium period, factors such as the increasing demand from the industrial sector and rising power outages have increased the demand for diesel generators, thereby driving the diesel power engine market.
  • On the other hand, the abundance of natural gas, coupled with its environmental soundness, has led to an increasing shift toward natural gas engines as an alternative to diesel engines in various end-user industries and is expected to restrain the growth of the diesel engine market during the forecast period.
  • Nevertheless, the increasing popularity of hybrid power diesel generators presents immense opportunities for the diesel power engine market players in the coming years.
  • Asia-Pacific is expected to be the largest and fastest-growing market, with the majority of the demand coming from countries like India and China.

Diesel Power Engine Market Trends

The Industrial Segment to Dominate the Market

  • • Diesel power generation is the most appropriate standby source for the industrial sector. Generally, the industrial sector consumes more power for its business operations. A diesel power engine offers better reliability and enhances the quality of the power supply.
  • • The demand for electricity is growing worldwide. Rapid industrial expansions and commercial infrastructure development are increasing the utilization of diesel power engines. Significant industries that rely heavily on the power generated from diesel engines are the construction sector, manufacturing, health care, oil and gas, telecommunication and data centers, etc.
  • Diesel generators are equipped with advanced technologies for monitoring electric current, which help automatically start when there are power distortions and failures and revert to switch-off mode when the power comes back.
  • The diesel engine's low volatility rate makes it the finest option in mining fields. Especially in mining fields, heavy-duty activities need a perfect power source and backup. Hence, mining industries rely on diesel-powered engines for better durability. The healthcare segment uses sensitive equipment such as oxygen ventilators, infusion pumps, ECG machines, and defibrillators to treat patients. There is a need for a quality power supply to avoid interruptions. Diesel power engines are hospitals' most reliable backup power sources for uninterrupted power.
  • In the construction sector, projects often stall due to power failures. Constant power interruptions result in delayed project execution, which leads to financial loss. There is a need for a diesel power engine to ensure safety and better power supply on construction sites.
  • Disruptions of power in the manufacturing industry lead to low-volume production and result in the offering of low-standard products. When a blackout occurs in manufacturing divisions, it generally affects all the processes. Hence, the production units rely on the diesel power engine to avoid such failures, which acts as the best power source.
  • The iron and steel industry also uses diesel power engines as backup power in case of power requirements or power shutdown. According to the World Steel Association, as of December 2022, China was the world leader in crude steel production, with 77.9 million metric tonnes produced, a 10% decrease from the previous year. India, Japan, the United States, and Russia trailed far behind.
  • Therefore, based on the abovementioned factors, the industrial segment is expected to dominate the diesel power engine market during the forecast period.
Diesel Power Engine Market: Crude Steel-Producing Countries, in million metric tons, by Major Countries, Global, as of December 2022

Asia-Pacific to Dominate the Market

  • The increasing infrastructural developments and electricity demand in Asia-Pacific, with the huge increase in average energy consumption rate and GDP growth rate, are expected to promulgate the diesel power engine market.
  • China is the leading diesel generator market in Asia-Pacific owing to increasing infrastructure projects, widening power demand-supply gap, expanding manufacturing facilities across the nation, and rising commercial office spaces.
  • The construction industry in China, one of the largest in the world, has experienced significant growth over the last few decades. Rapid industrialization in China has led to a surge in construction activities, including residential, commercial, and infrastructure construction. The Chinese economy is beginning to recover from the effects of the COVID-19 pandemic as new projects are pushed forward.
  • In April 2023, the Chinese government announced that it was set to increase its spending on large construction and infrastructure projects by USD 1.8 trillion Y-o-Y to help regional economies recover from the pandemic. The growing construction activities require machinery fitted with diesel engines; this is expected to promote the growth of the market.
  • The Indian government has been focusing on developing infrastructure and construction services through focused policies such as open FDI norms, smart city missions, and large budget allocation to the infrastructure sector. In January 2023, the government and the Construction Industry Development Council (CIDC) approved the development of 21 greenfield airports in the country. The growth in the construction sector will, in turn, need diesel generators to power backup, which will create avenues for the development of the market.
  • Under the Smart City Mission, as of November 2022, more than 12.0 million houses were sanctioned under the PMAY-U Mission, out of which more than 6.4 million were completed. The rest are in various stages of construction/grounding. As of 2024, 1174 projects worth USD 855.12 million of Water Body Rejuvenation, Water Supply, Sewage & Sewage Management, and Parks & Green Space Development are ongoing under the AMRUT 2.0 mission. Many of the residential societies in India are equipped with diesel generator (DG) sets to supply electricity during power outages. Thus, such commitments are expected to increase the demand for diesel engines during the forecast period.
  • Moreover, the growing energy demands of the burgeoning manufacturing industry are expected to provide a huge impetus to the generator business in Asia-Pacific. As a result, Asia-Pacific is expected to witness the fastest growth in the global diesel power engine market during the forecast period.
Diesel Power Engine Market: Growth Rate by Region, 2024-2029

Diesel Power Engine Industry Overview

The diesel power engine market is semi fragmented. Some of the key players in this market (in no particular order) include Caterpillar Inc., Cummins Inc., Kohler Co., Volvo AB, and Mitsubishi Heavy Industries Ltd.

Diesel Power Engine Market Leaders

  1. Caterpillar Inc.

  2. Cummins Inc.

  3. Volvo AB

  4. Kohler Co

  5. Mitsubishi Heavy Industries, Ltd.

*Disclaimer: Major Players sorted in no particular order

Diesel Power Engine Market Concentration
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Diesel Power Engine Market News

  • October 2023: Mitsubishi Heavy Industries Engine & Turbocharger Ltd (MHIET), a part of Mitsubishi Heavy Industries (MHI) Group, approved the use of unblended Hydrotreated Vegetable Oil (HVO) that complies with EN15940 and blends with diesel fuel. Approved engine series include SM, SD, SB, SA, SH, SR, and SU series for all applications, including power systems and marine.
  • August 2023: United H2 Limited (UHL) and its subsidiary H2i Technology launched hydrogen injection kits for diesel-fueled combustion engines. 
  • May 2023: Caterpillar announced the introduction of two new industrial diesel power units (IPU). The new engines are intended for construction, material handling, and other off-highway applications in the 74 to 134-hp power range while meeting the emissions standards of higher regulated markets. These new engines meet the emissions standards of EU Stage V, US EPA Tier 4 Final, China Non-road IV, Korea Stage V, and Japan 2014. With the addition of these power units, Caterpillar offers industrial engines from 48 to 950 hp, addressing the emission standards of higher regulated markets. These kits will be used within diesel-powered combustion engines to reduce carbon emissions and fuel costs for consumers and industries operating within the oil and gas and mining sectors. As per the company, hydrogen systems could reduce exhaust smoke from diesel engines by 49% and exhaust opacity by 50%.

Diesel Power Engine Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast, till 2029

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

        1. 4.5.1.1 Increasing Demand From Industrial Sector

        2. 4.5.1.2 Rising Power Outages To Increase The Demand For Diesel Generators

      2. 4.5.2 Restraints

        1. 4.5.2.1 Increasing Shift Toward Cleaner Energy Resources

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By End User

      1. 5.1.1 Industrial

      2. 5.1.2 Commercial

      3. 5.1.3 Residential

    2. 5.2 By Application

      1. 5.2.1 Standby

      2. 5.2.2 Prime

      3. 5.2.3 Peak Shaving

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 France

        3. 5.3.2.3 Germany

        4. 5.3.2.4 Spain

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 ASEAN Countries

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 Nigeria

        3. 5.3.5.3 South Africa

        4. 5.3.5.4 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Caterpillar Inc.

      2. 6.3.2 Cummins Inc.

      3. 6.3.3 Kohler Co

      4. 6.3.4 Volvo AB

      5. 6.3.5 Mitsubishi Heavy Industries Ltd

      6. 6.3.6 Wartsila Oyj Abp

      7. 6.3.7 Hyundai Heavy Industries Co. Ltd

      8. 6.3.8 Man SE

      9. 6.3.9 Rolls-Royce Holding PLC

      10. 6.3.10 YANMAR HOLDINGS Co. Ltd

    4. *List Not Exhaustive
    5. 6.4 Market Ranking/Share (%) Analysis

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Popularity Of Hybrid Power Diesel Generators

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Diesel Power Engine Industry Segmentation

A diesel power engine is an internal combustion engine in which compressed air is heated to a high enough temperature to ignite diesel fuel pumped into the cylinder, where combustion and expansion operate a piston.

The diesel power engine market is segmented by end user, application, and geography. By end user, the market is segmented into industrial, commercial, and residential. By application, the market is segmented into standby, prime, and peak shaving. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The report also covers the market size and forecasts for the diesel power engine market across major regions. For each segment, the market sizing and forecasts were made based on revenue (USD).

By End User
Industrial
Commercial
Residential
By Application
Standby
Prime
Peak Shaving
By Geography
North America
United States
Canada
Rest of North America
Europe
United Kingdom
France
Germany
Spain
Rest of Europe
Asia-Pacific
China
India
ASEAN Countries
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
Nigeria
South Africa
Rest of Middle East and Africa
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Diesel Power Engine Market Research FAQs

The Diesel Power Engine Market size is expected to reach USD 11.55 billion in 2024 and grow at a CAGR of 6.39% to reach USD 15.74 billion by 2029.

In 2024, the Diesel Power Engine Market size is expected to reach USD 11.55 billion.

Caterpillar Inc., Cummins Inc., Volvo AB, Kohler Co and Mitsubishi Heavy Industries, Ltd. are the major companies operating in the Diesel Power Engine Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Diesel Power Engine Market.

In 2023, the Diesel Power Engine Market size was estimated at USD 10.81 billion. The report covers the Diesel Power Engine Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Diesel Power Engine Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The future trends in the Diesel Power Engine Market are a) Development of more fuel-efficient and cleaner diesel engines b) Increasing focus on hybrid power generation systems combining diesel with renewables c) Growth in the use of diesel engines in remote locations

The key challenges faced by the Diesel Power Engine Market are a) High fuel costs and operation and maintenance costs compared to renewable energy alternatives b) Stringent emission regulations c) Growing competition from natural gas engines for power generation

Diesel Power Engine Industry Report

The global diesel engines market is set for expansion, driven by diverse factors across various segments such as power generation, marine, locomotive, mining, oil & gas, and construction. High-speed and medium-speed diesel engines, crucial for applications in marine and power generation, are seeing significant demand. The diesel engine market size is expected to grow, particularly in the power generation segment, which is anticipated to dominate due to the critical need for continuous power to support manufacturing and processing activities. Geographically, the Asia Pacific region is projected to experience rapid growth in the diesel power engine market, fueled by increased maritime activities and demands from the defense sector due to regional conflicts. Urbanization and industrialization are pushing the need for reliable power and infrastructure, shaping market dynamics. However, the diesel engine market faces challenges such as high fuel and operational costs and a growing preference for natural gas in power generation. Opportunities in hybrid power generation in remote areas and the expansion of the diesel engine market in developing regions are emerging trends. For detailed statistics and market analysis, Mordor Intelligence™ offers a comprehensive overview and forecast outlook, available as a free report PDF download. Key stakeholders include diesel engine manufacturers who are pivotal in driving forward market innovations and solutions.

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Diesel Power Engine Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)