Industrial Engine Market

Global Industrial Engine Market Snapshot

According to Persistence Industry Research's most recent market estimate, the global market for industrial engines would be worth US$ 175,082.1 Mn by 2023. The market for industrial engines is predicted to reach US$ 319,511.8 Mn by 2033 with a steady growth rate of 6.2%.

Industrial engines have become increasingly important in recent years. Their demand comes from industries that need reliable auxiliary power, such as the construction industry which is seeing an unprecedented growth across many countries. These engines are used as back up power sources when primary power sources fail, and also for their portability when used in mining operations. While there are several types of industrial engines available on the market today, gasoline and diesel engines remain the most popular by far due to their durability and heavy-duty design.

The ability to customize these industrial engines according to customer requirements has made them even more attractive for potential buyers. Companies can now order engines with specific power ratings or engine sizes depending on what type of job they will be doing. In addition, new technologies like digital control systems allow users to monitor engine performance from a distance and make necessary adjustments if needed.

Industrial engines are utilized in a variety of industrial applications that are tailored to their needs. They are employed in the production of electricity, general manufacturing, oil and gas, marine transportation, agricultural use, off-road vehicles, construction, and mining and metallurgy. Multiple chances for market expansion are presented by the booming demand for auxiliary power and construction equipment. Over the next few years, it is also anticipated that significant investments in the mining and construction industries would drive up market demand.

Historical (2017-22) v/s Forecast (2023-33) Market Outlook for Industrial Engine Market

According to historical data, the market for industrial engines expanded at a compound annual growth rate (CAGR) of 3.4% between 2017 and 2022. In terms of the economy and society, the coronavirus pandemic has had a significant impact on several industries, including Energy and Power, Automotive, Aerospace, and Construction. A decline in sales, a cash flow and liquidity crisis, and ownership over a sizeable piece of the commercial portfolio in these industries have all hurt manufacturers. Conditions like these have impeded the expansion of the sector because Industrial Engines are widely used in these industries.

The market for industrial engines is anticipated to grow more quickly than in the past. The market is anticipated to progress at a CAGR of 6.2% over the forecast period. Industrial Engine use has greatly expanded as a result of an increase in industrial and construction operations brought on by the quick recovery of key world economies following the COVID-19 pandemic. It is predicted that this will increase demand directly.

On the other side, The world is in the midst of a shift towards renewable energy sources and solar technology has become one of the leading contenders. Governments are actively looking to invest in policies and programs that promote the use of clean, renewable solar energy. These initiatives could have significant implications for many industries, including those that rely on gasoline and diesel engines for heavy duty operations.

Market Dynamics

Significant Market Traction for Off-road Diesel Engines to Pave the Growth of the market.

The growing use of off-road vehicle engines is a result of the globalization of agricultural and construction equipment. Rapid urbanization and an increase in infrastructure projects in both the residential and non-residential sectors have fueled the need for construction equipment. Demand for agricultural equipment like power tillers and heavy-duty tractors has surged as a result of government initiatives to boost farm mechanization, particularly in developing countries. Therefore, these factors are to blame for the increase in demand for engines for off-road vehicles used in construction and agricultural operations.

On the other hand, the International Council for Clean Transportation (ICCT) projects that the yearly demand for diesel engines in non-road applications would rise from 3.6 million units in 2018 to 3.9 million by 2024. 97% of engines developed at that time are anticipated to comply with Tier 3 or higher emissions requirements. All of these trends indicate that there will be a strong demand for off-road vehicle engines, which will lead to a healthy pace of market expansion.

Thriving Demand From the Construction Industry to Augment the Growth

Construction equipment is used for anything from paving roads to creating ports to raising building heights. The unrivaled power and dependability of engines, along with their efficiency and reduced pollution, are crucial characteristics that have guaranteed these engines' hegemonic position.

The mobility of heavy equipment and materials has been made possible by these strong engines. Because of the decreased need for human labor and increased output, the sector has been encouraged to use cutting-edge tools, including off-highway engines. Off-highway engine manufacturers are in a position to take advantage of numerous opportunities due to the handling of heavy loads, the construction of complicated infrastructure, the reduction of project time, and the efficient use of power. Because of this, the need for off-highway engines in the modern construction industry is anticipated to increase.

High Maintainance cost to Constraint the market.

Industrial Engine sales are likely to be negatively impacted due to the combination of high maintenance costs, carbon emissions, and high capital costs associated with their operation. Many consumers are now opting for alternative power sources that have lower operational costs and fewer environmental impacts.

The majority of engines currently on sale use diesel or gasoline as fuel sources, both of which produce large amounts of carbon emissions while running. This is increasingly becoming a concern for many consumers who are more aware than ever about climate change. In addition to this, these engines also require expensive ongoing maintenance in order to keep them running at optimum efficiency levels, making them a less attractive option when compared to other power sources such as electric or hydrogen fuel cell technology which require significantly less maintenance and have zero emissions.

Country-wise Insights

What is the Market outlook For Industrial Engines in the U.S.?

Due to the booming end-use sector expansion, the U.S. Industrial Engine Industry has demonstrated substantial share of 23.8% in 2022, and the market is consistently demonstrating spikes. Contrarily, over the projected period, growth in application sectors including energy and electricity, automotive, agriculture, and other industrial sectors will be boosted by favorable government policies combined with significant government spending. In the upcoming years, these advances will result in rising demand for industrial engines.

Engine manufacturers are fairly prevalent in the US. These competitors control a larger portion of the industrial engine market. Regarding the new engine offerings, there have been major supplier-side developments. U.S. producers provide improved crankshaft designs, higher durability, streamlined designs, less complicated installations, and a range of package sizes.

What Is the Growth Outlook of the Industrial Engine Market in China?

China is profitably expanding in the global industrial engine market. The optimistic outlook for the sector, with a growth rate of 7.4% for the Industrial Engine business, indicates that China will hold a substantial market share in 2022. Due to the significant capital expenditures and capacity expansions made by the major key players over the coming years, there will be a significant increase in demand for industrial engines.

Category-wise Insights

What is the Market Outlook of the 4 Stroke Engine Market Segment in the Industrial Engine Market?

By Operation Segment, 4 Stroke Engine is one of the key growth segments of the Industrial Engines market and is estimated to hold a 64.1% market share in 2022. The most prevalent form of internal combustion engine used in a variety of vehicles is the four-stroke engine. They have been used in mobile electric generators in addition to being utilized in buses, trucks, and other types of vehicles. They are also employed in pumping systems. These engines are frequently seen in marine and aircraft engines. The market for 4-stroke engines is predicted to grow somewhat during the next few years, although developments will still be noticeable.

How does the Power Generation Sector Fairing in the Industrial Engine market?

Based on end use, Power Generation Sector is gaining traction in the market, The Power Generation industry is estimated to utilize 18.2% of the Industrial Engines produced globally. In the power generation sector, the demand for industrial engines is prominent due to their use in diesel and gas generator sets. To provide standby or continuous power supply to critical loads, the end users rely on high-speed diesel or gas engines. High-priority loads such as hospitals, data centers, and industries require a continuous uninterrupted source of power supply. Diesel and gas generator sets are used by these end users as an emergency backup in the event of loss of supply from the grid. Many industries and commercial establishments use generator sets with high-speed engines for standby backup power. In regions with poor electrification rates such as sub-Saharan Africa and a few south Asian countries, these generator sets are used for continuous or prime power supply as well.

Competitive Landscape

Key Players To meet end-user demand, invest money across the globe to improve their Industrial Engine production capacity. There are now a variety of market players as a result of the numerous technological developments and the big competitors' intensified efforts to grow through mergers, strategic alliances, and partnerships. Players are working extremely hard to create and implement cutting-edge technical improvements to stay one step ahead of the competition. With all of these developments, the Industrial Engine market has a substantial potential for growth on a global scale in the years to come.

For instance,

• In November 2021, Kohler has unveiled new small diesel engines for both mobile and stationary applications. The new Kohler Small Displacement (KSD) engines will have a 1.391-liter engine capacity and a maximum power output of 18.4 kW. They will come in models with natural aspiration, turbochargers, and turbochargers with charge-air cooling.
• In Feb 2021, Yanmar Group, a maker of diesel engines, launched its first location in India thanks to a joint venture between a Mahindra subsidiary and the Japanese Sumitomo Corporation.

Scope of Report

Industrial Engine Market Segmentation

By Engine Type

• 50HP-500HP
• 500HP-10,000HP
• Above 10,000HP

By Fuel Type

• Diesel
• Gasoline

By Cooling Type

• Air Cooled
• Water Cooled

By Operation

• 2 Stroke
• 4 Stroke

By End-Use

• Power Generation
• General Manufacturing
• Oil & Gas
• Marine
• Agriculture/Off-road vehicles
• Construction
• Mining & Metallurgy

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa

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