“The Off Highway Vehicle Engine market value was US$ 37.21 Billion in 2023 and is likely to grow at a robust CAGR of 6.79% in the long run to reach US$ 54.67 Billion in 2032”.
Market Dynamics
Introduction
The off-highway vehicle engine market encompasses engines designed for vehicles used in non-paved environments, such as agricultural, construction, and mining equipment. It is characterized by a focus on diesel engines, increasing adoption of electric and hybrid technologies, compliance with emission regulations, and ongoing technological advancements for improved efficiency and sustainability.
Recent Market JVs and Acquisitions:
A huge number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years.
- In December 2022, at the Indian Auto Expo 2023, Cummins Inc., the American manufacturing company will demonstrate its fuel-agnostic solution, in line with the company’s Destination Zero program. A case in point is the fuel-agnostic engine platform that features a shared base engine; differentiated cylinder heads and fuel systems optimizable for different fuels including diesel, natural gas, renewable natural gas, and hydrogen.
- In September 2021, In response to the calls for services in heavy-duty engines, Valvoline launched a new product in mid-July – heavy-duty diesel engines under severe operating conditions and other heavy-duty-cycling operations.
- In June 2021, Caterpillar Inc. and Nouveau Monde Graphite Inc. entered into a strategic cooperation agreement. The idea was to harness this collaboration to build, trial, and assemble Cat zero-emission machines for use at the Matawinie graphite mine.
- In January 2021, Global auto component major Cummins India, a wholly owned subsidiary of Cummins Inc, announced it is readying to roll out its new 4.5-litre engine system for wheeled equipment from its Pune facility.
Recent Product Development:
- In January 2024, Bosch Rexroth entered into a partnership agreement with Modine a thermal management solution supplier. The cooperation was to create thermal systems Modine EVantage for electrification of off-highway apparatuses, which would complement the Bosch Rexroth eLION product range for electrified machinery in various markets.
- In June 2023, Zero Nox Inc., an off-road and industrial vehicle electrification company signed a product development deal with Kubota Corporation. This is in line with the electrification of products used in off-highway applications.
- In June 2023, Collaboration between Forsee Power and Vensys Group to decarbonize off-highway vehicles with thermal equipment. Forsee Power is a smart battery systems company and on the other hand, Vensys Group offers electrohydraulic solutions used in agriculture and construction industries.
- In April 2023, there again, New Holland presented its new multifunctional TE6 range of straddle tractors for vineyards and other crops that are planted in narrow rows. According to the company, the new range is planned to be introduced by the end of the year 2023.
- In March 2023, During CONEXPO, John Deere launched the P-Tier machines to the market, introducing New 85 P-Tier Excavators. A further enhancement has been made to the new 85 P-Tier with an approximate increase of 18% in horsepower compared to the 85 G-Tier. Better still, it also provides a turbo option for high altitude flying.
- In June 2022, Mahindra Tractors released six new tractor model ranges utilizing its latest Yuvo Tech+ brand. The new model has been somewhere in the development process at Mahindra’s Research Valley (MRV) Chennai and has been supported by the newly launched ELS 4-cylinder and m-ZIP 3-cylinder engine.
- In April 2021, the first of 2021, JCB announced 45 new or improved machines. The rationale of the new product announcements is EU Stage V emissions-compliant diesel engines.
- In February 2021, Kohler released the Kohler KDI 3404TCR SCR Engine it is a four-stroke inline diesel, a self-preposition hammer with a high-pressure injection system, and a turbocharger.
Market Segments' Analysis
Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Power Output-Type Analysis
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Agriculture Machinery [ Less Than 30 HP, 31-50 HP, 51-80 HP, 81-140 HP, And More Than 140 HP] and Construction Machinery [Less Than 100 HP, 101-200 HP, 201-400 HP, And More Than 400 HP]
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Construction machinery is expected to be the demand generator for the off-highway vehicle engine market.
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Engine -Type Analysis
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Diesel Engines, Gasoline Engines, Hybrid Engines, and Electric Powertrain
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Diesel engines are anticipated to contribute the largest share of the off-highway vehicle engine market.
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Region Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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The Asia-Pacific is expected to maintain its reign over the forecast period, whereas Europe is likely to grow fastest.
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By Power Output Type
“Construction machinery is expected to remain dominant during the forecast period”.
- The power output of the highway vehicle engine market is segmented into agriculture machinery [ less than 30 hp, 31-50 hp, 51-80 hp, 81-140 hp, and more than 140 hp] and construction machinery [less than 100 hp, 101-200 hp, 201-400 hp, and more than 400 hp].
- The construction machinery segment occupied the largest portion of the market in 2023. An upsurge in infrastructural developments and construction activities in emerging economies, increased urbanization, and greater emphasis of governments on the development of smart cities is likely to fuel the market over the forecast period.
- The demand for backhoe loaders, dozers, and excavators is highest in the world for 101-200 HP engines for optimum operation. Therefore the 101-200 HP construction machinery market was the largest.
- The agricultural machinery segment is expected to show the highest level of growth during the analysis period. The growing interest of the government towards farm mechanization which results in the growing inclination of the farmers towards increasing the convenience of the farming operations is predicted to foster the growth of the off-highway vehicle engines in the global market.
- However, the industry expects the 51-80 HP segment to display higher CAGR, as APAC, holding the largest agricultural machinery segmental, demands more medium-duty tractors.
By Engine Type
“Diesel engine is expected to capture the largest market share of the global off-highway vehicle engine market during the forecast period”.
- The market is segmented into diesel engines, gasoline engines, hybrid engines, and electric powertrains.
- Diesel engines captured the largest share of the market owing to the increasing requirement of diesel engines for off-highway vehicle engines for bearing high loads and power-delivering capacities in agricultural and construction sectors is fueling the market expansion.
- Furthermore, the companies are concentrated on improving the highly efficient diesel engines in off-highway. For example, in February 2023, Cummins introduced a diesel engine called X10, offering 75% fewer NOx emissions and is expected to be released in 2026. These are the factors that put the segment growth into motion.
- The electric powertrains segment is expected to have the highest CAGR in the market. The use of heavy electric equipment in construction such as excavators and loaders has slowly been adopted in the recent past years. Major OEMs including Komatsu and Caterpillar which dominate the majority of the market are expanding their electric construction equipment product offering, making them more commercially feasible amongst prospective buyers. It results in the positive growth of this segment.
Regional Analysis
“The Asia-Pacific is expected to remain the largest market for off-highway vehicle engines during the forecast period”.
- Asia Pacific is dominating the Off Highway Vehicle Engine market in 2023, due to the leading manufacturers involved in the production of EVs having located their production facilities in Asia-pacific, BYD, Tesla, Nissan, and General Motors which in result have boosted the consumption of Off Highway Vehicle Engine.
- Europe is expected to grow at the highest CAGR during the forecast period due to more utilization of heavy-duty agricultural tractors and exponential growth of non-residential construction services that use off-highway vehicle engines.
- North America is also expected to have good growth, due to increased government spending on municipal projects that have led to increased use of construction machinery that in turn drives the use of off-highway vehicle engines.
Key Players
The market is highly fragmented, with the presence of over 100 players across the region. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the off-highway vehicle engine market. Some of the major players are highly integrated in the market.
Here is the list of the Top Players (Based on Dominance)
- Hitachi Rail
- Kubota
- AGCO Corporation
- MAN
- Cummins
- Deere and Company
- Caterpillar
- Mahindra and Mahindra
- Volvo Penta
- Massey Ferguson
- Yanmar
- Deutz AG
- J. C. Bamford Excavators
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global off-highway vehicle engine market is segmented into the following categories:
Off-Highway Vehicle Engine Market, by Power Output Type
- Construction Machinery (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Agriculture Machinery (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Vehicle Engine Market, by Engine Type
- Diesel Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Gasoline Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Hybrid Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Electric Powertrain (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Vehicle Engine Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Off Highway Vehicle Engine market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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