Diesel Engine Market Report 2025 (Global Edition)

Global Diesel Engine Market Report 2025 Market Size Split by Engine Type (Upto 2 L, 2-4 L, 4-8 L, 8-12 L, 12-16 L, 16-20 L, 20-24 L, Above 24 L), by Power Output (<50 HP, 50 HP - 80 HP, 80 HP - 120 HP...

Diesel Engine Market Report Description

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Competitive Landscape of the Diesel Engine Market

Leading businesses promote the market via strategic alliances, environmental compliance, and innovation. These sector leaders never stop funding R&D to produce cleaner, more technologically sophisticated, and more effective diesel engines. Modern technologies, including direct injection, turbocharging, and pollution control systems are being incorporated into diesel engines to increase fuel efficiency and lower hazardous emissions. This dedication to environmental responsibility aligns with consumers' aspirations for cleaner engines and the constantly changing global legislation.

Diesel Engine industry news

In March 2023, Caterpillar announced the creation of the CAT C13D to maximize the performance of heavy-duty off-highway applications. This new 13-liter diesel engine platform will provide best-in-class power density, torque, and fuel efficiency. With models available for less regulated markets, the C13D would meet the emissions regulations of higher regulated markets, including EU stage v, US EPA tier 4 final, China non-road IV, Korea stage V, and Japan 2014.

(Source: https://www.cat.com/en_US/campaigns/npi/c13d.html?utm_content=701ho000001eboaiaw_ipsd_an_google-search_0124_701ho000001ebokiaw&utm_source=google-jan&utm_medium=cpc&utm_campaign=701ho000001eboaiaw_ipsd_an_google-search_0124_701ho000001ebokiaw&utm_term=cat%20c13d&gad_source=1&gclid=Cj0KCQjw-r-vBhC-ARIsAGgUO2Dpkp3Qeq68j-CMy6uQjelhLFKsla0W-SekEvddgL8Pqh9m_IgnmycaAtfyEALw_wcB)

In June 2022, Together, WinGD and Hyundai Heavy Industries' Engine Machinery Division (EMD) produced the first WinGD engine that could run on ammonia, a significant advancement toward the decarbonization of shipping.

(Source: https://www.wingd.com/en/news-media/press-releases/wingd-and-hyundai-heavy-industries-collaborate-on-ammonia-two-stroke-engine-delivery/)

Top Companies Market Share in Diesel Engine Industry: (In no particular order of Rank)

• Caterpillar (US)
• Cummins Inc. (US)
• Volvo Penta (Sweden)
• Hyundai Heavy Industries (South Korea)
• MAN Energy Solutions (Germany)
• Doosan Infracore (South Korea)
• Mitsubishi Heavy Industries(Japan)
• Yanmar Holdings (Japan)
• FPT Industrial (Italy)
• IHI Power Systems (Japan)
• Wartsila (Finland)
• Kohler (US)
• Kubota (Japan)
• Rolls Royce Holdings (UK)
• Mahindra Powertrain (India)
• Guangzhou Diesel Engine Factory (China)
• Daihatsu Diesel Mfg. (Japan)
• CNPC Jichai Power Company Limited (China)
• The Liebherr Group (Switzerland)
•  Anglo Belgian Corporation (Belgium)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of Diesel Engine Market

Which Region Will Dominate the Diesel Engine Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue. Market demand is anticipated to be driven by the increasing demand brought on by the region's rapid infrastructure development and building. Furthermore, market expansion is anticipated to be fueled by the US's leading manufacturers. Canada's growing infrastructure and development projects are anticipated to increase demand for diesel engines in the local market.

Which is Expanding at the Fastest CAGR?

The Asia Pacific region is witnessing an increase in sales. The presence of developing countries like China and India brought about the expansion. The main forces behind demand development include population growth, urbanization, changes in the makeup of households, the rise of the middle class, and an increase in private consumption, especially in emerging economies. Growing demand for agricultural products and the expanding construction sector are predicted to drive demand for diesel engines. Additionally, the region's growing need for electricity generation and the establishment of power plants in several nations are anticipated to fuel market expansion throughout the projection period.

The current report Scope analyzes Diesel Engine Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Diesel Engine Market Analysis

According to Cognitive Market Research, the global Diesel engine market size was estimated at USD 64152.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 25660.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.7% from 2024 to 2031. The market for diesel engines in North America is anticipated to rise moderately, propelled by the ongoing need for dependable power across a range of industries, with an emphasis on increased efficiency and regulatory compliance. Diesel engines are key to the reliable running of agriculture, transportation, and construction industries. One of the main factors driving the industry is the requirement for constant power. The US is witnessing notable expansion in the off-highway diesel engine category, which includes construction and agricultural machinery, owing to a robust automotive industry and many market participants.

• According to Cognitive Market Research, the US had a major share in the Diesel engine market with a market size of USD 20246.43 million in 2024 and is projected to grow at a CAGR of 2.5% during the forecast period. The U.S. has a large and growing infrastructure sector, which creates a steady demand for these engines.
• The Canadian diesel engine market had a market share of USD 3079.31 million in 2024 and is projected to grow at a CAGR of 3.5% during the forecast period. Canada's rising biotechnology sector and supportive research infrastructure contribute to increased Diesel engine usage.
• The Mexico Diesel engine market is projected to grow at a CAGR of 3.2% during the forecast period, with a market size of USD 2335.14 million in 2024.

Europe Diesel Engine Market Analysis

According to Cognitive Market Research, with a market value of USD 64152.2 million in 2024, it is projected to expand at a compound annual growth rate (CAGR) of 3.0% from 2024 to 2031. Europe accounted for a share of over 30% of the global market size of USD 19245.66 million. It's crucial to remember that the European diesel engine market faces certain difficulties. In the long run, increased emphasis on electric vehicles and stricter emission standards may reduce demand. For the foreseeable future, the market is anticipated to remain buoyant due to the aspects above and continuous advancements. Hybrid powertrains, which combine electric and diesel motors, are gaining popularity. This can decrease emissions and increase fuel efficiency, especially in applications like buses and commercial vehicles.

• The United Kingdom's diesel engine market had a market share of USD 3233.27 million in 2024 and is projected to grow at a CAGR of 3.8% during the forecast period. The U.K. diesel engine market seems to be heading towards a niche role, focusing on non-road applications like power generation and specific industries while facing a decline in the automotive sector.
• The French diesel engine market is projected to grow at a CAGR of 2.2% during the forecast period, with a market size of USD 1770.60 million in 2024.
• According to Cognitive Market Research, the German diesel engine market size was valued at USD 3810.64 million in 2024 and is projected to grow at a CAGR of 3.2% during the forecast period. Germany's robust manufacturing sector relies heavily on diesel engines for powering generators, industrial machinery, and construction equipment. This demand for reliable and uninterrupted power supply is a major driver.
• The Italy Diesel engine market is projected to grow at a CAGR of 2.4% during the forecast period, with a market size of USD 1655.13 million in 2024.
• The Russian diesel engine market is projected to grow at a CAGR of 2.0% during the forecast period, with a market size of USD 2983.08 million in 2024.
• The Spain Diesel engine market is projected to grow at a CAGR of 2.1% during the forecast period, with a market size of USD 1578.14 million in 2024.
• The Luxembourg Diesel engine market is projected to grow at a CAGR of 3.1% during the forecast period, with a market size of USD 596.62 million in 2024.
• The Portugal Diesel engine market is projected to grow at a CAGR of 2.8% during the forecast period, with a market size of USD 404.16 million in 2024.
• The Greece Diesel engine market is projected to grow at a CAGR of 3.3% during the forecast period, with a market size of USD 230.95 million in 2024.
• The rest of Europe's Diesel engine market is projected to grow at a CAGR of 1.7% during the forecast period, with a market size of USD 2983.08 million in 2024.

 

Asia Pacific Diesel Engine Market Analysis

According to Cognitive Market Research, the global Diesel engine market size was estimated at USD 64152.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 14755.01 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031. Asia Pacific's developing nations are rapidly developing their infrastructure. This entails constructing new industrial facilities, transportation systems, and power plants. For these projects, diesel engines provide a dependable and effective energy source, particularly where access to grid electricity is scarce. The construction and manufacturing sectors are two of the main users of diesel engines. Growth in these industries is being fueled by the expanding economies of Asia Pacific, which is raising demand for diesel engines. In Asia Pacific, shipbuilding and maritime commerce are important industries. Diesel engines power the majority of fishing and commercial ships. The demand for marine diesel engines is driven by an increase in leisure cruises due to growing disposable incomes and increased shipping traffic.

• According to Cognitive Market Research, the China Diesel engine market size was valued at USD 6639.75 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. China's manufacturing sector is a major consumer of diesel engines for powering generators, factory equipment, and commercial vehicles like trucks. As industries expand, the need for diesel engines grows as well.
• The Japan Diesel engine market is projected to grow at a CAGR of 5.0% during the forecast period, with a market size of USD 2036.19 million in 2024.
• The India Diesel engine market had a market share of USD 1770.60 million in 2024 and is projected to grow at a CAGR of 8.3% during the forecast period. India's booming economy is fueling a surge in infrastructure projects like roads, railways, and buildings.
• The South Korean diesel engine market is projected to grow at a CAGR of 5.6% during the forecast period, with a market size of USD 1475.50 million in 2024.
• The Australian diesel engine market is projected to grow at a CAGR of 6.2% during the forecast period, with a market size of USD 767.26 million in 2024.
• The South East Asia Diesel engine market is projected to grow at a CAGR of 7.5% during the forecast period, with a market size of USD 1018.10 million in 2024.
• The Rest of the Asia Pacific Diesel engine market is projected to grow at a CAGR of 6.3% during the forecast period, with a market size of USD 1047.61 million in 2024.

South America Diesel Engine Market Analysis

According to Cognitive Market Research, the global diesel engine market size was estimated at USD 64152.2 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 3207.61 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.9% from 2024 to 2031. The expanding economies of Latin America mostly depend on the movement of products. Diesel engines power most trains, buses, and trucks. Strong and dependable diesel engines will become more and more in demand as global trade and e-commerce grow.  Improvements to roads, bridges, and buildings are urgently needed throughout Latin America due to the region's rapid urbanization. There is a sizable market for diesel engines since construction uses heavy machinery propelled by these engines. Manufacturing, mining, and agriculture are among the industries experiencing a surge in activity as the economies of Latin America develop diesel engines, power generators, industrial gear, and agricultural equipment.

• According to Cognitive Market Research, the Brazil Diesel engine market size was valued at USD 1372.86 million in 2024 and is projected to grow at a CAGR of 4.5% during the forecast period. Engine manufacturers are developing more fuel-efficient diesel engines to meet Brazil's growing demand for sustainable solutions while delivering the power and durability needed for these industries.
• The Argentina Diesel engine market had a market share of USD 538.88 million in 2024 and is projected to grow at a CAGR of 4.8% during the forecast period. Argentina has several upcoming infrastructure projects, including railway modernization and tunnel widening. These projects will require heavy machinery powered by diesel engines, boosting demand.
• The Colombia Diesel engine market is projected to grow at a CAGR of 3.7% during the forecast period, with a market size of USD 285.48 million in 2024.
• The Peru Diesel engine market is projected to grow at a CAGR of 4.1% during the forecast period, with a market size of USD 263.02 million in 2024.
• The Chile Diesel engine market is projected to grow at a CAGR of 4.2% during the forecast period, with a market size of USD 230.95 million in 2024.
• The Rest of the Latin America Diesel engine market is projected to grow at a CAGR of 3.0% during the forecast period, with a market size of USD 516.43 million in 2024.

 

Middle East Diesel Engine Market Analysis

According to Cognitive Market Research, the global Diesel engine market size was estimated at USD 64152.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 1283.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031. The electrical grid is unstable in several of the MEA region's nations. Due to this, there is a noticeable need for backup power options, often met by diesel generators running on diesel engines. The need for consistent and dependable power grows as economies expand and as industrial activity rises. Diesel engines are seen to be a tried-and-true solution for satisfying this need. Due to increased construction projects, diesel engines are increasingly needed in the MEA region to power machinery and equipment. Due to the factors above, the MEA diesel engine market is expected to increase in the near future. Long-term trends, nonetheless, point to the need for stronger laws and greener energy sources.

• According to Cognitive Market Research, the GCC Countries Diesel engine market size was valued at USD 549.14 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period. The ongoing investment in construction and infrastructure projects in the GCC will drive demand for diesel engines in heavy machinery.
• The Egypt Diesel engine market is projected to grow at a CAGR of 4.5% during the forecast period, with a market size of USD 134.72 million in 2024.
• The South African diesel engine market is projected to grow at a CAGR of 5.2% during the forecast period, with a market size of USD 202.72 million in 2024. South Africa suffers from frequent power outages, which disrupt businesses and essential services. Diesel generators powered by diesel engines provide a reliable backup solution.
• The Turkey Diesel engine market is projected to grow at a CAGR of 3.7% during the forecast period, with a market size of USD 110.34 million in 2024.
• The Nigerian diesel engine market is projected to grow at a CAGR of 3.3% during the forecast period, with a market size of USD 134.72 million in 2024.
• The Rest of the MEA Diesel engine market is projected to grow at a CAGR of 3.2% during the forecast period, with a market size of USD 151.40 million in 2024.

Diesel Engine Market Analysis

Diesel Engine Type Segment Analysis

According to Cognitive Market Research, up to 2 L held the major market share over the forecast period. Many sectors depend heavily on small diesel engines, usually those with up to two liters of displacement. These engines can power various applications because of their strong torque output, longevity, and fuel efficiency. There is an increasing need for mobile and adaptable machinery in the construction and agricultural industries, which compact diesel engines can power well. Engine producers are always working to create cleaner, more efficient engines to comply with ever-tougher emission rules, such as Euro VI. Modern technology like exhaust gas after-treatment systems and common rail fuel injection systems are being adopted.

4-8 L is the fastest-growing category over the forecast period. The market for 4–8 liter diesel engines meets the demand for strong, dependable engines in a range of off-highway uses. The industry is anticipated to increase moderately in the upcoming years despite several challenges. These engines are perfect for heavy-duty mining, forestry, agriculture, and construction equipment. Their strength and resilience  In some applications, diesel engines in this range can provide cheaper running costs than alternative fuels despite their initial prices; this is particularly advantageous for fleet managers who prioritize profitability. Make them appropriate for challenging jobs.

• Upto 2 L
• 2-4 L
• 4-8 L
• 8-12 L
• 12-16 L
• 16-20 L
• 20-24 L
• Above 24 L

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Diesel Engine Industry. Request a Free Sample PDF!

Diesel Engine Power Output Segment Analysis

According to Cognitive Market Research, 150 HP - 180 HP holds a prominent market share. In the upcoming years, it is anticipated that the primary drivers of the 150–180 HP diesel engine market will continue to be robust. The ongoing need for off-highway machinery, the requirement for cleaner emissions, and the increase in fuel prices bring this on. Regulations are in place to limit the emissions of nitrogen oxides (NOx) and particulate matter (PM) from diesel engines. Manufacturers are creating new technologies to comply with these rules, such as diesel particulate filters (DPF) and selective catalytic reduction (SCR).

50 HP - 80 HP is the fastest-growing category over the forecast period. Nitrogen oxide (NOx) and particulate matter (PM) emissions from diesel engines are subject to regulations. Cleaner-burning engines with high-pressure common rail fuel injection systems and exhaust gas after-treatment systems are in great demand. The construction industry is one of the main industries driving demand for 300–500 horsepower diesel engines. Numerous construction machinery employs these engines, including cranes, loaders, and excavators.

• <50 HP
• 50 HP - 80 HP
• 80 HP - 120 HP
• 120 HP - 150 HP
• 150 HP - 180 HP
• 180 HP - 220 HP
• 220 HP - 250 HP
• 250 HP - 300 HP
• 300 HP - 500 HP
• 500 HP - 750 HP
• 750 HP - 1,000 HP
• Above 1,000 HP

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Diesel Engine Application Segment Analysis

According to Cognitive Market Research, construction equipment holds a prominent market share. Numerous construction machinery employs diesel engines, such as pavers, cranes, loaders, bulldozers, and excavators. These tough applications are a perfect fit for them because of their strong torque production and capacity to support large loads. Digestor trucks, graders, and scrapers are earthmoving machinery running on diesel fuel. Diesel engines supply the continuous power required to move heavy loads of rock and dirt.

Genset is the fastest-growing category over the forecast period. An electrical generator powered by an engine is called a genset or generator set. In a power outage, generators supply primary electricity in remote areas or as backup power. Because diesel engines are dependable and long-lasting, diesel gensets are the most popular kind of genset. Rapid economic expansion in developing nations drives demand for diesel engines for various uses, including power generation and transportation.

• Construction Equipment
• Agriculture & Forestry Equipment
• Landscape & Maintenance Equipment
• Mining Equipment
• Military and Defense
• Industrial Trucks
• Power Sports
• Marine
• Genset

Author's Detail

Aarti Bagekari

Research Associate at Cognitive Market Research

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I am Aarti Bagekari, worked as a research associate with strong passion for transforming complex information into strategic insights. My strong analytical skills, coupled with a deep understanding of market dynamics and consumer behavior, empower me to identify hidden opportunities and proactively mitigate risks for clients. As a part of team, I possess a skills in data analysis, segmentation, competitive landscape.

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