Diesel Engine Market Forecasts to 2030 - Global Analysis By Speed (High (1200-1800 rpm, Above 1800 rpm), Medium (720-1200 rpm) and Low (Up to 720 rpm)), Power Rating, Operation, Application, End User and By Geography

According to Stratistics MRC, the Global Diesel Engine Market is accounted for $63.9 billion in 2023 and is expected to reach $98.1 billion by 2030 growing at a CAGR of 6.3% during the forecast period. An internal combustion engine, the diesel engine compresses the air inside a cylindrical vessel to ignite the fuel, transforming chemical energy into mechanical energy. Large ships, locomotives and goods trucks are all powered by this energy source. Diesel engines are increasingly favoured by end users due to their higher operational performance and fuel efficiency. Diesel engines may be constructed to satisfy a variety of power and performance needs, from small generators to massive marine vessels, making them adaptable and versatile as well. They are a popular option for a variety of applications because of their versatility.

According to the EIA's International Energy Outlook 2019, global energy demand is anticipated to rise by 2.11% annually until 2040. According to World Energy Outlook, in Sub-Saharan Africa, the electrification rate is 35%, but only 19% of the rural areas are electrified, leaving 550 million people without access to electricity.

Market Dynamics:

Driver:

Expansion of the automotive industry

The expansion of the automobile industry is one of the primary drivers driving market growth. Diesel engines are in high demand because they have various benefits over petrol engines, including better fuel efficiency, reduced pollutants, and higher power output. As the demand for automobiles rises, so does the demand for diesel engines. This increase has been fueled by a variety of variables, including as economic development, expanding urbanisation, and rising consumer preference for personal transportation.

Restraint:

The availability of alternative sources of energy

Alternative power generating and storage technologies include SOFC cells, solar PVs, renewable energy, batteries, and fuel cells in many industrialised countries. Additionally, the growth of renewable energy sources like solar and wind has reduced the price of energy production per unit. Compared to renewable energy sources, the cost of producing diesel power is two to three times higher. Consequently, this factor is impeding market expansion.

Opportunity:

Increasing the production of hybrid electricity

The required electricity can be sent to off-the-grid or remote locations, such as telecom towers, remote industrial sites, tiny settlements, islands, and more via hybrid power generation. The majority of the off-grid areas are found in developing countries where electricity is not commonplace. Such remote locations' energy requirements are met by hybrid power systems that combine diesel generators and renewable energy sources. As a result, this is the main element driving the market's expansion.

Threat:

High fuel costs

Diesel fuel is more expensive than substitutes like petrol and other fuels, especially for longer-duration activities. Regular servicing and refuelling of the lubrication, cooling, fueling, starting batteries, and fuel filters are necessary for preventive maintenance. These expenses are greater than the operating costs of renewable technologies and add up to the overall operating and maintenance costs of diesel engines. High fuel prices as well as the operating and maintenance expenses of diesel engines are the factors hampering the segment growth.

COVID-19 Impact:

Diesel engine sales were negatively impacted by the COVID-19 outbreak. Due to disruptions mostly in the shipping industry, the pandemic caused the supply chain to break down, affecting everything from the production of diesel engines to the transportation required for their delivery. The developments of commercial and industrial infrastructures as well as the requirement for dependable electricity are driving the market for diesel power engines in terms of market expansion.

The standby segment is expected to be the largest during the forecast period

The standby segment is expected to be the largest during the forecast period. Emergency power supplies are typically provided by standby diesel engines. The consumer can temporarily rely on diesel-powered generators to meet demand in the case of a grid outage. Standby diesel engines are the most preferable option among the other types due to their qualities, including quick starting, low starting costs for generators powered by diesel engines, and the lack of significant commercially viable alternatives.

The industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment is expected to have the highest CAGR during the forecast period, due to growing demand for constant and reliable power supply from these end-users. Diesel power generation is most appropriate as a 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.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period, owing to increasing infrastructural developments and electricity demand. The rising level of life, urbanisation, and expanding population are all factors contributing to the market's expansion in the area. Due to their massive increase in power consumption, developing countries with weak power infrastructure are expected to have a difficult time ensuring a steady supply of electricity.

Region with highest CAGR:

Europe is projected to hold the highest CAGR over the forecast period. The market growth is anticipated to be further impacted by rising penetration across a variety of application sectors, such as construction, cars, electricity & gas, etc. Additionally, governments all over the world have put restrictions in place to reduce the emissions from diesel engines, which has prompted manufacturers to experiment with the development of diesel engines.

Key players in the market:

Some of the key players in Diesel Engine market include: Hyundai Heavy Industries Co. Ltd, Cummins Inc., Doosan Corp., Kohler Co, Deere & Company, Caterpillar Inc., Man SE, Mitsubishi Heavy Industries Ltd, Wartsila Oyj Abp, Ford Motor Company, Rolls-Royce Holding PLC, General Motors Company, Delphi Automotive System Private Limited, AGCO Corporation, Continental AG, Yanmar Co., Ltd. and Kubota Corporation.

Key Developments:

• In March 2023, Caterpillar announced the development of the CAT C13D, a new 13-liter diesel engine platform designed to achieve best-in-class power density, torque, and fuel efficiency for optimizing the performance of heavy-duty off-highway applications.

• In June 2022, WinGD and Hyundai announced partner on development of ammonia engine. Winterthur Gas and Diesel (WinGD) collaborated with the Engine Machinery Division (EMD) of Hyundai Heavy Industries (HHI) to develop a two-stroke engine that can run using ammonia.

• In January 2022, Caterpillar company announced the launch of a new line of drop-in engines. Caterpillar had introduced a range of drop-in engines that are ready to use right out of the box due to their easy installation, and reliable and robust construction.

Speeds Covered:

• High (1200-1800 rpm, Above 1800 rpm)
• Medium (720-1200 rpm)
• Low (Up to 720 rpm)

Power Ratings Covered:

• Above 5.0 MW
• 2.1-5.0 MW
• 1.1-2.0 MW
• 0.5-1.0 MW
• Below 0.5 MW

Operations Covered:

• Prime
• Standby
• Peak Shaving

Processing Types Covered:

• Edge Computing
• Cloud Computing

Applications Covered:

• Automotive
• Non-Automotive
• Other Applications

End Users Covered:

• Commercial
• Industrial
• Residential
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances