Off-highway Vehicle Engine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Off-highway Vehicle Engine Market is Segmented by Power Output (Agricultural Machinery (upto 30 HP, 30-50 HP, 50-70 HP, and 70+ HP), Construction Machinery (upto 100 HP, 100-120 HP, 200-400 HP, 400+ HP), Fuel Type (Gasoline, Diesel, and Other Fuels), and Geography.

Market Snapshot

off highway vehicle engine market
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >7.6 %

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Market Overview

The off-highway vehicle engine market is expected to register a CAGR of over 7.6%, during the forecast period, 2020-2025. 

  • 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.
  • At the global level, the construction is anticipated to be one of the most profitable sectors over the next decade. The demand for construction machinery has increased in Europe as a whole. The recovery of European construction industry improved business in the mining and quarrying sectors, and a favorable economic environment with low-interest rates further stimulated investments.
  • The global construction industry is expected to witness significant growth in the coming years, with good opportunities in infrastructure, residential, and non-residential sectors. Some of the major factors driving the market are increasing construction of multi-family houses (with the growing trend of nuclear families); and increasing investments in construction of roads, highways, smart cities, metros, bridges, and expressways due to growing population and urbanization.

Scope of the Report

In the scope of the market, only engines operated in agricultural and construction machinery have been considered.

The off-highway vehicle engine market study includes power output as well as fuel type.

Power Output
Agricultural Machinery
Upto 30 HP
30-50 HP
50-70 HP
70+ HP
Construction Machinery
Upto 100 HP
100-120 HP
200-400 HP
400+ HP
Fuel Type
Other Fuel Types
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

50-70 HP - Largest Segment by Power Output in Agricultural Machinery

The market for 50-70 HP engines for agricultural machinery is expected to grow at a fast pace, witnessing a CAGR of  over 7.7%, during the forecast period.

  • Agricultural machineries under 50-70 HP category includes majorly tractors and medium size combine harvesters.
  • The medium size combine harvesters, with an average of 4.8m length, 2.2m width ,and 2.8m height, have been widely used in rice fields, especially in ASEAN countries, like Philippines, Indonesia, Vietnam, and India. Thus, Asia-Pacific covered a major share of more than 80% for the medium size combine harvester market in 2017.The prominent suppliers of medium size combine harvesters in the Asia-Pacific market includes Kubota Corporation and Yanmar Co. Ltd.
  • According to CEMA, the tractor sales of 50-70 HP remained stable in Europe in 2017, as only a few EU countries, like Spain, Denmark, and the United Kingdom, recorded increased sales of tractors for 50-70 HP. For instance, the United Kingdom registered 12,033 tractor units (more than 50 HP) in 2017, a 13.5% increase from 2016.
  • The United States and Canada registered a decline in the sales of 50-70 HP tractors, however noticed an increased sales of tractors below 40HP in 2017.
  • 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 tractors industry.
  • The growing demand for more than 50 HP tractors in Asia-Pacific and recovery in the European agricultural machinery market are anticipated to boost 50-70 HP agricultural machinery during the forecast period.
Off-highway Vehicle Engine_segment

Asia-Pacific Continues to Dominate the Global Market

The market for excavators and other types of construction machinery is anticipated to strengthen in China over the forecast period. Government spending on municipal infrastructure projects is the key reason for healthy sales of construction machinery in 2018. For instance, cities around the country are expanding subways and other urban transportation systems.

In 2018, China is expected to continue the implementation of proactive and sound monetary policies and the development plans of Guangdong, Hong Kong, and Macao Bay Area.

Additionally, as the restrictions on foreign investment in land development, high-end hotels, office buildings, international exhibition centers, and the construction and operation of large theme parks has also been lifted in China. This is expected to increase the constructional activities in the country as well as increase the demand for high-performance construction equipment during the forecast period.

Similarly, in India, growing investments in the infrastructure sector and other strategic initiatives of the government are expected to boost the construction sector in the country. This, in turn, is expected to boost the demand for and usage of construction machinery in the country. Additionally, India is one of the largest tractor markets in the world, with 41-50 hp being the largest selling segment. Tractors and power tillers play a significant role in the overall development of the agricultural sector in the country.

Off-highway Vehicle Engine_geography

Competitive Landscape

The market is 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.

Komatsu off-highway engines are classified under Cummins, as the company has entered into a joint venture agreement with Cummins, to manufacture diesel engines.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Power Output

      1. 5.1.1 Agricultural Machinery

        1. Upto 30 HP

        2. 30-50 HP

        3. 50-70 HP

        4. 70+ HP

      2. 5.1.2 Construction Machinery

        1. Upto 100 HP

        2. 100-120 HP

        3. 200-400 HP

        4. 400+ HP

    2. 5.2 Fuel Type

      1. 5.2.1 Gasoline

      2. 5.2.2 Diesel

      3. 5.2.3 Other Fuel Types

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Russia

        5. Spain

        6. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 AGCO Corporation

      2. 6.2.2 Caterpillar Inc.

      3. 6.2.3 Cummins Inc.

      4. 6.2.4 Deere & Company

      5. 6.2.5 Deutz AG

      6. 6.2.6 Komatsu Ltd

      7. 6.2.7 Mahindra & Mahindra Limited (Mahindra Powertrain)

      8. 6.2.8 Scania AB

      9. 6.2.9 AB Volvo

      10. 6.2.10 Yanmar Co. Ltd

      11. 6.2.11 Weichai Power Co. Ltd

      12. 6.2.12 Kubota Corp



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Frequently Asked Questions

The Off Highway Vehicle Engine Market market is studied from 2018 - 2026.

The Off Highway Vehicle Engine Market is growing at a CAGR of >7.6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Yanmar Co. Ltd, Cummins Inc., Deutz AG, MAN are the major companies operating in Off Highway Vehicle Engine Market.

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