Rapid urbanization in developing countries and technological advancements in diesel engines are projected to fuel the growth of the global diesel engine market at a CAGR of 6.34% during the forecast period 2023 to 2030

Market Research Future (MRFR) has published on the “Global Diesel Engine Market”.

The global diesel engine market is estimated to register a CAGR of 6.34% during the forecast period of 2023 to 2030.

MRFR recognizes the following companies as the key players in the global diesel engine market — Caterpillar Inc. (US), AGCO Corporation (US), Deere & Company (US), Cummins Inc. (US), Mitsubishi Heavy Industries, Ltd (Japan), Ford Motor Company (US), General Motors Company (US), AB Volvo (Sweden), and others.

Diesel Engine Market Highlights

The global diesel engine market is accounted for to register a CAGR of 6.34 % during the forecast period and is estimated to reach USD 273.76 billion by 2030.

Urbanisation is a key megatrend in the Asia-Pacific area, creating economic possibilities in the quest for a more sustainable future. According to the Committee for European Construction Equipment (CECE), the construction business is one of the most important economic sectors in the European area, accounting for over 9% of the EU GDP. Furthermore, building and construction activity throughout the Middle East and Africa is increasing. 

The Egyptian government has made significant investments in infrastructure projects in the healthcare and transportation sectors. As a result, rapid urbanization in developing countries will drive the global diesel engine market throughout the forecast period. Furthermore, The increasingly stringent regulatory regulations for diesel engines across the world have fuelled developments in engine design and after-treatment technologies to reduce air pollutant emissions. 

For example, hybridization in some machines with a duty cycle of repetitive work and a considerable idle interval can result in higher productivity and fuel savings in construction equipment improvements. Furthermore, construction equipment makers are increasingly using connection, telematics, and GPS-guided smart technology to increase productivity and cut fuel consumption while reducing greenhouse gas and other pollutants. 

Cummins, for example, created PrevenTech, an innovative remote engine monitoring and analytics system that improves the operating efficiency of diesel engines used in mining, maritime, construction, and other sectors. Thus, the technological advancements in diesel engines will bolster the market growth in the forecast period.

Segment Analysis

The global diesel engine market has been segmented based on power rating and end user.

Based on power rating, the market is segmented into 0.5-1 MW, 1-2 MW, 2-4 MW, and Above 4 MW. The 0.5-1 MW segment attributed to holding the largest market share in 2022 with a market share of ~57.73% revenue as estimated by MRFR analysts.

Based on end user, the global diesel engine market has been segmented into construction, agriculture, marine, power plants and others. The construction was expected to hold the largest market share in 2022. Diesel engines are heavily used construction equipment due to their heavy torque, fuel efficiency and effective performance, making it suitable for heavy-duty applications. The durability and reliability of diesel engines is expected to further proper market demand for diesel engines in the construction industry. Further, we estimate that the market segment will continue to dominate market revenue growth during the forecast period. It has been identified that the segment market yet witnesses continuous advancement in technology and innovations.

Regional Analysis

The global diesel engine market, based on region, has been divided into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. North America consists of US, Mexico and Canada. The Europe market comprises of Germany, France, UK, Italy, and the rest of Europe. The global diesel engine market in Asia-Pacific has been segmented into China, India, South Korea, Philippines, Vietnam, Indonesia, Malaysia, Myanmar, Thailand, Singapore, and the rest of Asia-Pacific. The Middle East & Africa market comprises of Saudi Arabia, UAE, South Africa, and rest of Middle East & Africa. While the Latin America market consists of Brazil, Argentina, and rest of South America.

Rapidly increased industrial application, and growing construction industry along with presence of prominent players in the market are boosting the growth of the North America region.

Moreover, the Europe market has been persistently growing owing to shift towards alternative technologies, growing marine and shipping industry as well as favorable taxation policies.

Furthermore, the Asia-Pacific market has been persistently growing owing to increasing urbanization with presence of emerging nations and growing demand in the agriculture industry presence of substantial oil & gas reserves onshore and offshore and growing deepwater exploration activities.  

Additionally, market factors, such as the increasing construction and infrastructural development and increasing demand for power generation are driving the Middle East & Africa region’s growth.

Also, market factors, such as the increasing industrial sector growth and growing agricultural requirements are driving the Latin America region’s growth.

Key Findings of the Study

• The global diesel engine market is expected to reach USD 273.76 billion by 2030, at a CAGR of 6.34 % during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market.


• Based on power rating, the 0.5-1MW global diesel engine market segment was attributed to holding the largest market in 2022, with an approximate market share of 57.3%.


• — Caterpillar Inc. (US), AGCO Corporation (US), Deere & Company (US), Cummins Inc. (US), Mitsubishi Heavy Industries, Ltd (Japan), Ford Motor Company (US), General Motors Company (US), AB Volvo (Sweden) are the key market players.