Global Diesel Engine Market Size By Type (Internal Combustion Engine, External Combustion Engine), By Power Output, By Application, By End-User, By Geographic Scope And Forecast

Diesel Engine Market Size And Forecast

Diesel Engine Market size was valued at USD 31.09 Billion in 2024 and is projected to reach USD 52.24 Billion by 2032, growing at a CAGR of 6.70% from 2026 to 2032.

A diesel engine is an internal combustion engine that uses compression ignition to burn fuel. Unlike gasoline engines that use spark plugs for ignition, diesel engines compress air to a high temperature, causing the injected diesel fuel to ignite. This process results in a more efficient combustion, providing greater fuel economy and torque.

A diesel engine is an internal combustion engine that uses compression ignition to burn fuel. Unlike gasoline engines that use spark plugs for ignition, diesel engines compress air to a high temperature, causing the injected diesel fuel to ignite. This process results in a more efficient combustion, providing greater fuel economy and torque.

Global Diesel Engine Market Dynamics

The key market dynamics that are shaping the global diesel engine market include:

Key Market Drivers

Fuel Efficiency: Diesel engines are known for their superior fuel efficiency compared to gasoline engines, providing more miles per gallon. This efficiency is particularly valued in commercial and industrial applications, where fuel costs significantly impact operational expenses. The European Automobile Manufacturers Association (ACEA) reported in early 2024 that the average CO2 emissions from new diesel cars in the EU were 121.5 g/km in 2023, compared to 130.0 g/km for gasoline cars, highlighting diesel's efficiency advantage.

High Torque and Power: Diesel engines deliver high torque at low RPMs, making them ideal for heavy-duty applications. This characteristic is essential for industries such as construction, agriculture, and transportation, where powerful and reliable performance is required. The U.S. Environmental Protection Agency (EPA) noted in its 2023 Automotive Trends Report that diesel engines in light trucks produced an average of 450 lb.-ft of torque, compared to 350 lb-ft for gasoline engines.

Durability and Longevity: Diesel engines are built to withstand high compression and tough operating conditions, resulting in longer lifespans. Their durability reduces the frequency of replacements and maintenance, offering cost savings over time for businesses and consumers. A study published by the National Highway Traffic Safety Administration (NHTSA) in late 2023 found that diesel-powered vehicles had an average lifespan of 250,000-300,000 miles, compared to 150,000-200,000 miles for gasoline vehicles.

Growing Commercial Vehicle Demand: The increasing need for commercial vehicles, particularly in emerging economies, drives the demand for diesel engines. These engines power trucks, buses, and delivery vans that are crucial for logistics and transportation sectors. The International Organization of Motor Vehicle Manufacturers (OICA) reported that global commercial vehicle production reached 28.5 million units in 2023, a 4% increase from 2022.

Advancements in Clean Diesel Technology: Innovations aimed at reducing diesel engine emissions and improving efficiency are boosting market growth. Technologies such as selective catalytic reduction (SCR) and diesel particulate filters (DPFs) help meet stringent environmental regulations while maintaining performance. The California Air Resources Board (CARB) reported in early 2024 that NOx emissions from new diesel trucks had decreased by 98% compared to pre-2010 models, thanks to advancements in clean diesel technology.

Key Challenges:

Rising Popularity of Electric Vehicles (EVs): The growing adoption of electric vehicles, driven by environmental concerns and government incentives, poses a significant threat to the diesel engine market, potentially reducing its share in the automotive sector.

High Development Costs: Developing and implementing advanced technologies to make diesel engines cleaner and more efficient involves substantial financial investments, which can be a barrier, especially for smaller manufacturers.

Public Perception and Environmental Impact: Negative public perception of diesel engines due to their association with pollution and health issues can impact market demand, as consumers and businesses increasingly prioritize eco-friendly alternatives.

Volatility in Fuel Prices: Fluctuations in diesel fuel prices can affect the total cost of ownership and operational expenses, influencing market dynamics and potentially driving users towards more stable and predictable energy sources.

Key Trends

Advancements in Clean Diesel Technologies: The diesel engine market is witnessing significant advancements in clean diesel technologies, such as selective catalytic reduction (SCR) and diesel particulate filters (DPFs), aimed at reducing emissions and improving fuel efficiency to meet stringent environmental regulations. The U.S. Environmental Protection Agency (EPA) reported in its 2023 Automotive Trends Report that NOx emissions from new heavy-duty diesel engines have decreased by 99% compared to 1988 models, largely due to advancements in clean diesel technologies.

Integration of Hybrid Systems: There is a growing trend towards integrating diesel engines with hybrid systems in commercial vehicles. This combination enhances fuel efficiency and reduces emissions, making it a viable option for applications where electric-only solutions are not yet feasible. The International Council on Clean Transportation (ICCT) reported in December 2023 that sales of diesel-hybrid commercial vehicles in Europe increased by 35% year-over-year in 2023.

Increased Adoption of Biofuels: The use of biodiesel and renewable diesel fuels is gaining traction as a way to reduce the carbon footprint of diesel engines. This trend aligns with global efforts to transition to more sustainable and environmentally friendly energy sources without completely phasing out diesel technology. The U.S. Energy Information Administration (EIA) reported that biodiesel production in the United States reached 2.5 billion gallons in 2023, a 15% increase from 2022.

Global Diesel Engine Market Regional Analysis

Here is a more detailed regional analysis of the global diesel engine market:

North America

North America holds a significant share of the diesel engine market due to robust industrial activities, a strong commercial vehicle sector, and stringent emissions regulations. According to the U.S. Energy Information Administration (EIA), as of December 2023, diesel fuel accounted for approximately 26% of total petroleum consumption in the United States.

The United States and Canada are key contributors, driven by ongoing advancements in clean diesel technologies and a focus on improving fuel efficiency and reducing emissions. The U.S. Environmental Protection Agency (EPA) finalized new emissions standards for heavy-duty vehicles in December 2023, set to take effect for model year 2027. These standards are expected to drive further innovations in clean diesel technology.

The region's commitment to meeting rigorous environmental standards and investing in technological innovations supports its prominent position in the global diesel engine market. A study by the Diesel Technology Forum published in March 2024 found that nearly 50% of commercial trucks on U.S. roads are now powered by the newest generation of clean diesel technology, up from 43% in 2022.

Asia Pacific

The Asia-Pacific region is experiencing rapid growth in the diesel engine market, driven by industrialization, urbanization, and the expanding automotive and construction sectors. According to the Asian Development Bank, infrastructure investments in developing Asia are projected to reach USD 26 Trillion between 2016 and 2030, driving demand for diesel-powered construction equipment.

Key markets such as China, India, and Japan are contributing significantly due to increasing demand for commercial vehicles and infrastructure development. According to China's National Bureau of Statistics, diesel fuel consumption in the country reached 167 million tons in 2023, a 5% increase from 2022.

Additionally, the region's focus on improving air quality and integrating cleaner technologies supports ongoing market expansion and innovation in diesel engine solutions. India's Bharat Stage VI Stage 2 emissions norms came into effect in April 2023, further tightening regulations for diesel vehicles and promoting the adoption of advanced emissions control technologies.

Global Diesel Engine Market: Segmentation Analysis

The Global Diesel Engine Market is Segmented on the basis of Type, Application, Power Output, and Geography.

Diesel Engine Market, By Type

• Internal Combustion Engine (ICE)
• External Combustion Engine

Based on Type, the Global Diesel Engine Market is bifurcated into Internal Combustion Engines (ICE), and External Combustion Engines. The internal combustion engine (ICE) segment dominates the diesel engine market, primarily due to its widespread use in automotive, industrial, and commercial applications. The ICE's established technology and efficiency in providing high power and torque make it the preferred choice. However, the external combustion engine segment is rapidly growing, driven by advancements in technology that improve efficiency and reduce emissions, making it an attractive alternative for niche applications and emerging markets focused on sustainable energy solutions.

Diesel Engine Market, By Application

• Stationary Engines
• Off-Highway
• On-Highway

Based on Product Type, the Global Diesel Engine Market is bifurcated into Stationary Engines, Off-Highway, and On-Highway. The on-highway segment dominates the diesel engine market, driven by its extensive use in commercial vehicles such as trucks, buses, and delivery vans, which require reliable and powerful engines for transportation and logistics. However, the off-highway segment is rapidly growing, fueled by increased industrial and construction activities that demand robust diesel engines for machinery and equipment, as well as advancements in technology that enhance engine performance and efficiency in challenging environments.

Diesel Engine Market, By Power Output

• Low Power (Up To 100 kW)
• Medium Power (100 kW to 350 kW)
• High Power (Above 350 kW)

Based on Power Output, the Global Diesel Engine Market is bifurcated into Low Power (Up to 100 kW), Medium Power (100 kW to 350 kW), and High Power (Above 350 kW). The medium power (100 kW to 350 kW) segment currently dominates the diesel engine market due to its broad application across commercial vehicles, industrial machinery, and construction equipment, providing a balance between performance and efficiency. However, the high power (above 350 kW) segment is rapidly growing, driven by increasing demand for engines in heavy-duty applications such as large construction equipment, power generation, and marine propulsion, where high power and reliability are essential for optimal performance.

Diesel Engine Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Global Diesel Engine Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. North America dominates the diesel engine market due to its well-established industrial base, extensive use in commercial vehicles, and stringent emissions regulations driving advancements in clean diesel technologies. Conversely, the Asia Pacific region is rapidly growing, propelled by rapid industrialization, urbanization, and increasing demand for diesel engines in automotive and construction sectors, as well as ongoing efforts to improve air quality and integrate cleaner technologies.

Key Players

The "Global Diesel Engine Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Caterpillar, Inc. Cummins, Inc., MAN SE, Rolls-Royce Holdings plc. Wartsila Corp, Mitsubishi Heavy Industries, Ltd., Volvo Penta, Hyundai Heavy Industries Co., Ltd., Doosan, Yanmar Co., Ltd.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Diesel Engine Market Key Developments

• In March 2023, Cummins Inc. unveiled its new X15N natural gas engine, which offers enhanced fuel efficiency and reduced emissions compared to traditional diesel engines, reflecting the industry's shift towards cleaner alternatives.
• In June 2023, Caterpillar Inc. announced the launch of its new C13D diesel engine, designed with improved power output and fuel efficiency, targeting the heavy-duty trucking and construction sectors.
• In August 2023, Volvo Group introduced its latest diesel engine model with advanced emissions control technology, meeting the new stringent Euro VI regulations and offering improved performance and lower environmental impact.