Diesel Power Engine Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, South Korea, Japan, India - Size and Forecast 2024-2028

Diesel Power Engine Market Size 2024-2028 

The diesel power engine market size is forecast to increase by USD 39.1 billion at a CAGR of 3.21% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. Diesel generators continue to be preferred over natural gas engines in various sectors such as construction, healthcare, and telecommunication, owing to their superior fuel efficiency and reliability. The World Steel Association reports a steady increase in crude steel production, driving the demand for diesel power engines in this sector. Moreover, the growth in sectors such as crude steel production and the Smart City is expected to drive the demand for diesel power engines. Advancements in diesel power engine technology, including improved fuel injection systems and better combustion processes, are enabling higher efficiency and lower emissions. Strict emission regulations are pushing manufacturers to innovate and develop cleaner diesel engines. The market is expected to witness continued growth, driven by these trends and the need for sustainable energy solutions.

What will the size of the market be during the forecast period?

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• The power sector plays a pivotal role in ensuring the standard of living and economic growth in the United States. With increasing energy demand, the need for reliable and efficient power sources has become more crucial than ever. Among the various power generation technologies, diesel power engines have emerged as a preferred choice due to their versatility, reliability, and ability to provide uninterruptible power. Diesel power engines, a type of internal combustion engine, have gained significant traction in various sectors, including health care and telecommunication, due to their ability to operate during power outages, blackouts, brownouts, and voltage fluctuations.

• These engines are built with strong components such as pistons, cylinder blocks, crankshafts, spark plugs, and coils to ensure optimal performance and longevity. The power sector's dependence on diesel power engines is expected to grow as the demand for reliable and uninterrupted power sources continues to increase. The healthcare sector, for instance, requires uninterrupted power to ensure the smooth functioning of medical equipment and patient care. In the telecommunication sector, power outages can lead to significant financial losses and communication disruptions.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Automotive
  • Non-automotive
• End-user
  • Industrial
  • Commercial
  • Residential
• Geography
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • North America
    • US
  • Europe
  • Middle East and Africa
  • South America

By Application Insights

• The automotive segment is estimated to witness significant growth during the forecast period.

The market encompasses various applications, with a significant focus on the automotive sector, which consists of light-duty vehicles and heavy-duty vehicles. In the automotive segment, passenger cars and light commercial vehicles, which run on diesel power engines, are gaining popularity, particularly in developing countries, due to increasing disposable income and the cost-effectiveness of diesel fuel. On the other hand, heavy-duty vehicles, including medium-duty trucks and heavy-duty trucks, are widely used for freight transportation and construction projects. Beyond the automotive sector, diesel power engines are increasingly being adopted for power generation applications, particularly in off-grid and rural locations. These engines are used in hybrid power generation systems, alongside renewable energy sources like solar and wind, to ensure continuous power supply.

Furthermore, telecom towers in remote areas are another major application for diesel power engines, as they require uninterrupted power to maintain communication networks. Ultra-Low Sulfur Diesel (ULSD) is becoming increasingly popular due to its reduced environmental impact and improved engine performance. The standby segment of the market is expected to grow significantly, as these engines are used to provide backup power during power outages or when renewable energy sources are not available. 

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The automotive segment was valued at USD 147.80 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 50% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the Asia Pacific region, the expanding population and economic growth have led to a heightened demand for agricultural products. Consequently, the need for advanced agricultural equipment to meet this demand is also escalating. Governments are responding to this trend by implementing incentives, subsidies, and regulations to foster the development and modernization of agricultural machinery.

Moreover, the construction sector in APAC is poised for substantial expansion and holds a substantial share of the global construction industry. This growth is driven by urbanization, the development of large residential areas, and the construction of commercial buildings, hospitals, universities, and power plants. Quick power generation is essential for these applications, making diesel power engines a preferred choice for many industries in the region. The industrial and commercial sectors, in particular, rely heavily on diesel power engines for their energy needs. 

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Diesel Power Engine Market?

The advantages of diesel power engines over petrol engines is the key driver of the market.

• Diesel power engines provide superior fuel efficiency compared to petrol engines, making them a preferred choice for commercial applications. With diesel engines operating on the diesel cycle and having higher compression ratios of 15:20, they offer improved thermal efficiency and better fuel economy.

• Contrasted to petrol engines, which typically have lower compression ratios of around 8:10, the increased compression enables more complete combustion and results in enhanced fuel efficiency. This advantage is particularly significant in industries such as mining, construction, agriculture, transportation, data centers, and power generation, where reliability and longevity are essential. Contractual agreements and operational requirements in these sectors often prioritize fuel-efficient engines, making diesel power engines a go-to solution.

What are the market trends shaping the Diesel Power Engine Market?

Advancements in diesel power engines is the upcoming trend in the market.

• In the generator business, converting traditional diesel power engines into dual-fuel natural gas engines is a viable solution for cost-effective and eco-friendly energy production. This modification process is straightforward and does not require significant complications. The benefits of dual-fuel systems include the ability to switch between fuels, cost savings, and reduced emissions.

• However, there are drawbacks to consider, such as the lower power density delivery of spark-ignited engines. To achieve equivalent power, a larger engine is required, leading to a higher price point. Additionally, spark-ignited engines have distinct cam timing compared to diesel power engines, resulting in higher exhaust gas temperatures and increased valve seat wear rates when using dry gas fuel.

What challenges does Diesel Power Engine Market face during the growth?

Stringent emission regulations on diesel power engines is a key challenge affecting the market growth.

• The use of diesel power engines, particularly in sectors such as construction, health care, and telecommunication, has been a significant contributor to environmental concerns due to the harmful emissions they produce. These engines, fueled by diesel derived from crude oil, emit pollutants like nitrogen oxides, carbon monoxide, and hydrocarbons, which negatively impact the environment. To mitigate these issues, various regulations have been put in place.

• For instance, the United States Environmental Protection Agency (EPA) has established fuel standards for diesel, limiting the sulfur content to reduce emissions. This regulation requires the use of ultra-low-sulfur diesel (ULSD) fuel for diesel power engines. Similarly, emissions standards for highway vehicles with diesel engines are also enforced by the EPA. The World Steel Association, Smart City Mission, Water Body Rejuvenation, and Sewage Management in residential societies also benefit from the transition to cleaner energy sources, such as natural gas engines, as part of sustainability initiatives.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AB Volvo
• AGCO Corp.
• Anglo Belgian Corp.
• Aviation Industry Corp. of China Co. Ltd.
• Caterpillar Inc.
• China FAW Group Co. Ltd.
• Cooper Corp.
• Cummins Inc.
• Deere and Co.
• Ford Motor Co.
• Hyundai Motor Co.
• IHI Corp.
• Kohler Co.
• Kubota Corp.
• Mahindra and Mahindra Ltd.
• Mitsubishi Heavy Industries Ltd.
• Rolls Royce Holdings Plc
• Volkswagen AG
• Wartsila Corp.
• Yanmar Holdings Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market is witnessing significant growth due to the increasing energy demand in various sectors. Diesel engines are widely used in power generation applications, particularly in data centers and off-grid locations, to ensure uninterruptible power supply during power outages, blackouts, and brownouts. Voltage fluctuations are common in renewable energy sources like solar PVs and SOFC cells, making diesel generators an essential backup solution. The market is segmented into the standby, prime/continuous, and peak shaving segments based on application. The industrial segment dominates the market due to the high power rating requirements of industries like mining, chemical, and construction. The residential segment is also growing rapidly due to the increasing demand for backup power in large residential areas and commercial buildings.

Furthermore, diesel engines are preferred over gasoline engines due to their reliability and longevity. They consist of several components, including the piston, cylinder block, crankshaft, valve train, camshaft, connecting rods, cooling system, and lubricating system. Fuel-efficient diesel engines are increasingly being adopted to reduce carbon emissions and improve sustainability. The power sector is witnessing urbanization and the development of smart cities, leading to an increase in the demand for quick power generation. Diesel generators are used in various applications, including hospitals, power plants, and transportation, to ensure uninterrupted power supply. The market is expected to grow further due to contractual agreements and product lines in the generator business.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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