|Fastest Growing Market:||Europe|
|Largest Market:||Asia Pacific|
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The Off-highway Vehicle Engine market was valued at USD 37.21 billion in 2021 and is expected to reach USD 54.67 billion in 2027 by registering a CAGR of 6.79% during the forecast period (2022 - 2027).
Off-highway vehicle engines growth is dependent on the growth rate of agricultural and construction machinery industries. Rising agriculture mechanization trend in developing countries and spike in residential and commercial construction projects globally are driving the construction and agricultural machinery markets.
Increase in demand and production of off-road vehicles is projected to boost the off-highway engine market during the forecast period. Demand for all-terrain vehicles (ATVs) is increasing due to their suitability for activities such as trekking and travelling in the exploration area. Moreover, a rise in automation in various industries such as agriculture, construction, mining, infrastructure and others has increased the use of off-road vehicles in these sectors.
However, high cost and maintenance expenditure are anticipated to significantly restrain the off-highway engine market. Regulatory bodies are imposing rigorous norms globally to reduce carbon emissions from automobiles. Off-highway Engines can be modified to reduce carbon emissions from vehicles. This is estimated to drive the off-highway engine market.
At the global level, the construction is anticipated to be one of the most profitable sectors over the next decade. The recovery of Europe’s construction industry improved business in the mining and quarrying sectors, and a favorable economic environment with low-interest rates likely to further stimulate investments into the market. Extensive modernization of agriculture by incorporating mechanization of farming practices is primarily to drive demand for off-highway engines across Asia-pacific during the forecast period.
Scope of the Report
The Off-highway Vehicle Engine market report covers the latest trends, COVID-19 impact, and technological developments in the market. The market is segmented by Power Output, Construction machinery, Fuel type, and Geography.
By Power Output type, the market is segmented into Agricultural Machinery and Construction Machinery. By Agriculture machinery type, the market is further segmented as upto 30 HP, 30-50 HP, 50-70 HP, and 70+ HP. By Construction Machinery , the market is further segmented as upto 100 HP, 100-120 HP, 200-400 HP, 400+ HP.
By Fuel Type, the market is segmented into Gasoline, Diesel, and Other Fuels. By Geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, market sizing and forecast have been done on basis of value (USD billion).
|Other Fuel Types|
Key Market Trends
50-70 HP of Agriculture Machinery Likely to be Largest Segment by Power Output
The market for 50-70 HP engines for agricultural machinery is expected to grow at a fast pace, witnessing a decent growth during the forecast period. Agricultural machineries under 50-70 hp category includes majorly tractors and medium-sized combine harvesters. Compact and tiny engines with better power output will boost the market growth.
These engines have a wide range of applications, from personal lawn care to modest farm operations. Consumers are turning to these tools to save time and money as technology advances and farming becomes more scientific. These engines are being used in a variety of applications, including tiny snowmobiles, golf karts, power sports, lawn movers, and pumps. The market for off-highway engines is being driven by their utility and cost-effectiveness across areas.
The medium-sized combine harvesters have an average of 4.8m length, 2.2m width, and 2.8m height that have been widely used in rice fields, especially in the ASEAN countries, like Philippines, Indonesia, Vietnam, and India. The prominent suppliers of medium-sized combine harvesters in the Asia-Pacific market includes Kubota Corporation and Yanmar Co. Ltd.
India is one of the emerging markets in the agricultural sector, which has consistently experiencing demand for more than 50 hp tractors over past three years, owing to the strong government support to Indian farmers in purchasing agricultural machineries, in order to achieve high agricultural economy in the country and rapid improvement in the tractors industry.
The growing demand for more than 50 hp tractors in Asia-Pacific and recovery in the global agricultural machinery market are anticipated to boost 50-70 hp agricultural machinery during the forecast period.
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Asia-Pacific Region Likely to Dominate the Global Market
Despite volatile growth in the real estate sector, significant development of rail & road infrastructure by the countries across Asia-pacific region in order to withstand the demand stemming from the growing industrial and service sectors has resulted in a significant growth of of construction industry in the recent years. These rising infrastructural activities elevated the necessity of off-highway vehicles and such demand for their engines picked up momentum simultaneously.
As the construction industry is dominated by state-owned and private enterprises, increased government and private spending in this regard is pushing the industry toward global primacy. The market for excavators and other types of construction machinery is anticipated to strengthen in countries like India, China, Japan, etc over the forecast period. Furthermore, growing global marine traffic and the construction of significant warehousing industry in China are projected to provide a corpus opportunity for off-highway engines.
Additionally, with the increasing investments in public infrastructure, renewable energy, infrastructure, and commercial projects, the off-highway vehicle engines segment is expected to record growth at a moderate pace over the next five years, thereby improving both consumer and investor confidence.
Agricultural mechanization is expected to receive major stimulus from the recently announced self-reliance program titled Aatmanirbhar Bharat unveiled in 2020. According to the Ministry of Agriculture and Farmers Welfare, Government of India, in FY 2020-2021, INR 1033 crores (USD 140 million) is allocated towards mechanization, thus expected to fuel prospects for off-highway engines.
Such factors expected to increase the demand for high-performance equipment in the country, thus driving the off-highway engine market.
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The market is moderately consolidated one as majority market shares are captured by some of the major players, like Yanmar Co. Ltd, Cummins, Deutz AG, Man Engines & Components Inc., Deere & Company, Caterpillar Inc., Volvo Penta, etc. The players operating in the market are focusing on various growth startegies to gain competitive edge over other players. For instance,
- In August 2019, John Deere opened its new Intelligent Solutions Group 134,000 square-foot facility in Urbandale for collaboration, testing, and development of technology for John Deere precision products and services.
- In February 2019, Caterpillar Inc. developed new Cat C13B leverages a proven, reliable core engine with over 109 million off-highway field hours combined with design improvements to create customer value, allowing OEMs to downsize their engine platforms, lower installation costs, and maximize uptime.
- In January 2019, Cummins introduced QSK60 Stage 5 engine, which is part of its 560-2611 kW (750-3500 hp) mining line up. The QSK60 is available from 1398-2125 kW (1875-2850 hp) for excavator and dump truck use with durability of approximately 4.2 million liters (1.1 million US gallons to overhaul).
Caterpillar Inc, Komatsu, Volvo CE, Hitachi Construction, John Deere, and Others are some of the key players in the market.
Yanmar Co. Ltd
- In January 2021, Cummins India, the subsidiary of the US-based global company Cummins Inc, announced that it is all set to commence production of its state-of-the-art 4.5 litre engine system for wheeled equipment at its Pune plant.
- In September 2021, Valvoline has addressed the needs of heavy-duty engines with a new product it released in mid-July, Valvoline All-Terrain for off-highway, heavy-duty diesel engines operating in severe conditions and extreme duty cycles. All-Terrain offers wear protection in extreme load regimes, enhanced viscosity and oxidation stability,etc.
- In October 2020, Cummins Inc. launched an EPA 2021-compliant product with the X15 Efficiency Series, which demonstrated up to 3.5% better fuel economy compared with the 2019 product. In 2021, X15 Efficiency Series customers with EX ratings — the Endurant HD transmission and GPS look-ahead data — stand to gain an additional 1.5% in fuel economy.
- In January 2020, Kubota Corporation has unveiled the prototypes of electric tractors and electric compact construction machinery (mini excavators), which are currently under development, at the new product exhibition held in Kyoto City. The company will proceed to continuous development by conducting demonstration experiments and analyzing the needs of local users.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Output
5.1.1 Agricultural Machinery
220.127.116.11 Upto 30 HP
18.104.22.168 30-50 HP
22.214.171.124 50-70 HP
126.96.36.199 70+ HP
5.1.2 Construction Machinery
188.8.131.52 Upto 100 HP
184.108.40.206 100-120 HP
220.127.116.11 200-400 HP
18.104.22.168 400+ HP
5.2 Fuel Type
5.2.3 Other Fuel Types
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.4 South America
22.214.171.124 Rest of South America
5.3.5 Middle-East and Africa
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 AGCO Corporation
6.2.2 Caterpillar Inc.
6.2.3 Cummins Inc.
6.2.4 Deere & Company
6.2.5 Deutz AG
6.2.6 Komatsu Ltd
6.2.7 Mahindra & Mahindra Limited (Mahindra Powertrain)
6.2.8 Scania AB
6.2.9 Volvo Penta
6.2.10 Yanmar Co. Ltd
6.2.11 Weichai Power Co. Ltd
6.2.12 Kubota Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Frequently Asked Questions
What is the study period of this market?
The Off Highway Vehicle Engine Market market is studied from 2018 - 2027.
What is the growth rate of Off Highway Vehicle Engine Market?
The Off Highway Vehicle Engine Market is growing at a CAGR of 6.79% over the next 5 years.
What is Off Highway Vehicle Engine Market size in 2018?
The Off Highway Vehicle Engine Market is valued at 37 Billion USD in 2018.
What is Off Highway Vehicle Engine Market size in 2027?
The Off Highway Vehicle Engine Market is valued at 54 Billion USD in 2027.
Which region has highest growth rate in Off Highway Vehicle Engine Market?
Europe is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Off Highway Vehicle Engine Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Off Highway Vehicle Engine Market?
Yanmar Co. Ltd, Cummins Inc., Deutz AG, MAN, Volvo Penta are the major companies operating in Off Highway Vehicle Engine Market.