Market Size of Off Highway Vehicle Engine Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.79 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Off Highway Vehicle Engine Market Analysis
The Off-highway Vehicle Engine market was valued at USD 37.21 billion and is expected to reach USD 54.67 billion over five years by registering a CAGR of 6.79% during the forecast period.
The COVID-19 pandemic has hindered the growth of the off-highway vehicle engine market due to trade restrictions imposed by various governments worldwide. Off-highway vehicle sales have declined due to the global outbreak of COVID-19, resulting in a decline in off-highway vehicle engine sales. However, post-pandemic, due to the easing of the lockdown globally, there has been an increase in the production and sales of Off-highway vehicles, which also results in the increasing production of engines for off-highway vehicles.
Off-highway vehicle engine growth depends on the growth rate of agricultural and construction machinery industries. Rising agriculture mechanization trends in developing countries and a spike in residential and commercial construction projects globally are driving the construction and agricultural machinery markets.
An increase in demand and production of off-road vehicles is projected to boost the off-highway engine market during the forecast period. 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 expenditures are anticipated to restrain the off-highway engine market significantly. 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, construction is anticipated to be one of the most profitable sectors over the next decade. The recovery of the Asia-Pacific construction industry improved business in the mining and quarrying sectors, and a favorable economic environment with low-interest rates is likely to stimulate investments in the market further. 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.
