Fuel-Efficient Vehicles are Creating Opportunities in the Global Diesel Engine Market
The global diesel engine market is likely to touch new growth heights due to the development of next-generation agriculture equipment, manufacturing, forestry, material processing, military, mining, utility vehicles, and locomotives and ships, expanding the usage of modern diesel engines. The sale of aftermarket products with the rise in the world’s stocks in the diesel engine market. Diesel models in industrial countries with low strict emission requirements are expected to gain higher market shares. The global diesel engine market size to cross USD 240 billion by 2025, growing at a CAGR of over 3% during the forecast period. The rising demand for diesel engines is anticipated to be guided primarily by the development in major regions, including Europe and APAC. The demand for diesel vehicles is less due to the ongoing lockdown measures across the globe. However, demand in the diesel engine market is expected to grow at a stable rate in the future. The demand for diesel engine vehicles over petrol and other fuels is estimated to rise, especially in the mining sector. At the same time, construction, agriculture, and heavy-duty diesel vehicles are also expected to drive the overall demand during the forecast period. Fuel efficiency has been one of the major drivers of the overall global diesel engine vehicle market. Diesel engines are more fuel-efficient and have higher torque than petrol engines of similar size, and diesel fuel contains about 10% to 15% more energy than petrol ones. Additionally, diesel cars are expected to go around 20 to 35 miles faster on a gallon of fuel than their petrol equivalent options.
Read - Europe Electric Two-wheeler Market - Industry Outlook & Forecast 2021-2026
Impact of COVID-19
The COVID-19 pandemic has not only affected the global economy but has a negative influence on the whole automotive and non-automotive market, including the sales and fuel prices of industrial and commercial vehicles. The slowdown in the automotive sector has also affected the demand in the global diesel engine market. The supply chain disruption, travel bans, and the state-wise lockdown has also impacted various markets, including the global diesel engine market. Moreover, the overall economic disruption due to the sudden COVID-19 pandemic has also compressed the global diesel engine market. The pandemic raging across the world has pushed the government in various countries to go for extreme lockdowns in major markets, combined with customer fear and economic instability that further led to a decline in revenue of the global diesel engine vehicle market.
Read - Base Oil Market - Global Outlook & Forecast 2022-2027