Fuel-Efficient Vehicles are Creating Opportunities in the Global Diesel Engine Market

18 November 2020

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 worlds 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 an 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 the 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.

Some Interesting Market Insights Include:

  1. The requirement for power generators is expected to surge albeit with slower rates on account of COVID-19 related economic slowdown.
  2. The introduction of more eco-friendly products is expected in the diesel engine industry, as the regulations tighten across countries. Thus, the competition is expected to heat up as vendors tend to focus on upgraded products at each strong season of sales.
  3. The market is expected to face margin pressures during the forecast period. Therefore, it is advisable to focus on making processes more robust and cut any wasteful expenditures.
  4. Procurement price renegotiation is recommended to overcome the high input costs. A realignment of the agreement with suppliers is anticipated to save significantly for vendors in terms cost.

Read: Diesel Engine Market Global Outlook and Forecast 2020-2025

Competitive Overview of the Global Diesel Engine Market

The global diesel engine market is highly divided with many local and international players in the market. The competitive strengths including well-recognized brands, full array of competitive products and features, a strong global presence, and customer service as well as a distribution network. Vendors compete based on product performance, service to clients, quality, innovation, and price. The global competitors, many regional and specialized local competitors characterize the competitive environment in the global diesel engine market. The market for non-automotive applications in diesel engines is dynamic, with various large and mid-sized firms participating with varied product offerings. The key competitors in the market are the Volvo group, Caterpillar, Cummins, among others. Diesel remains the leading form of fuel in gensets and is expected to offer tremendous growth opportunities in the power equipment market. Vendors are also expected to concentrate more on the growth potential in the fast-growing segments while retaining their positions in the slow-growing segments to exploit the opportunities.

Read: India Electric Two-Wheeler Market Industry Outlook and Forecast 2020-2025

Impact of COVID-19

The COVID-19 pandemic has not only affected the global economy but has negative influenced in 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 economy 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: Heat Pump Market Global Outlook and Forecast 2020-2025

 FAQs Facts about the Global Diesel Engine Market:

Q. What is the market size of the diesel engine?

A. The global diesel engine market is projected to reach revenues of over USD 240 billion by 2025.

Q. What is the market growth of diesel engine?

A. The global diesel engine market is projected to grow at a CAGR of over 3% during the forecasted period.

Q. What is the global market segmentation of the diesel engine?

A.  The global diesel engine market is segmented by application, power equipment by operation, power equipment by end-users, marine diesel engine by speed, and geography.

Q. What is the market insight of the diesel engine?

A. The diesel engine market share in the US is likely to reach revenues of over USD 37 billion by 2025 owing to the high dependence of the US truck industry on diesel engines.

Q. What are the major regions in the global diesel engine market?

A. The leading regions in the global diesel engine market include North America, Europe, APAC, Latin America, Middle East & Africa.

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