Industrial Engine Market

Global Market Study on Industrial Engines: Water-cooled Engines to Be Highly Preferred across Geographies

Industrial Engine Market Segmented By 50HP-500HP above 10,000HP Industrial Engines with Diesel Industrial Engines, Gasoline Industrial Engines Fuel and Air-cooled Industrial Engines, Water-cooled Industrial Engines Cooling

Key Questions Answered in Report

  • What is the expected growth rate for the industrial engine market through 2031?

    By value, Persistence Market Research has projected over 6% CAGR for industrial engine sales during 2021-2031. In terms of volume, demand is expected to increase at around 6% CAGRover the same period.

  • Which are the most lucrative markets for industrial engine?

    As per Persistence Market Research projections, China, Japan, South Korea, India, and Thailand are markets expanding at high CAGRs. Together, East Asia and North America are projected to hold nearly 50% market share through 2031.

  • Who are the prominent industrial engine manufacturers?

    Top suppliers of industrial engine include tier-1 companies such as Mitsubishi, Caterpillar, Deere & Company, Honda Motor Co. Ltd, Hyundai, SIEMENS Energy, Cummins, Kubota and Yanmar, which together accounted for around 70% share of global revenue in 2020.

Find Out More about the Report Coverage


  • Briggs & Stratton
  • Honda Motor Co., Ltd
  • Kawasaki Heavy Industries, Ltd.
  • Chongqing Fuchai Industry Group
  • Changchai Co., Ltd.
  • Kohler Co.

Report Also Addresses:

  • Market Estimates and Forecasts (2016-2031)
  • Key Drivers and Restraints Shaping Market Growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand Share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Industrial Engines and How to Navigate
  • Recommendation on Key Winning Strategies

Customize this Report

Explore Intelligence Tailored to Your Business Goals.

Sales of Industrial Engines from 2016 to 2020 Vs Market Projections for 2021 to 2031

From 2016 to 2020, sales of industrial engines increased at a CAGR of around 3%. Especially in countries where power generation and mining industries are booming with respect to absorption machines, there were also significant developments at the supplier end.

Improvements in 2-stroke and 4-stroke industrial engines will further expand market prospects. Since governments have developed emission standards, consequent changes in industrial engines have also taken place.

Persistence Market Research expects the global industrial engine market to expand at over 6% CAGR through 2031.

Market Research Methodology - Perfected through Years of Diligence

A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.

Get actionable insights on Ship Repair And Maintenance Services Market

What are the Key Opportunities for Industrial Engine Manufacturers?

Rising use of off-road vehicle engines can be attributed to global expansion of construction and agricultural machinery. Rapid urbanization combined with increase in infrastructure activities in both, residential and non-residential sectors, has fueled demand for construction machinery.

Furthermore, government initiatives, particularly in developing countries, to increase farm mechanization, have boosted demand for agricultural machinery such as power tillers and heavy-duty tractors. As a result, these factors are responsible for increasing demand for engines used in off-road vehicles that are used in construction and agricultural activities.

Explore Persistence Market Research’s expertise in promulgation of the business !

What are the Roadblocks for Industrial Engine Suppliers?

Infrastructure investments, particularly in construction machinery, have increased in recent years as a result of greater need for environmental sustainability. However, higher capacity performance is still not comparable to diesel engines, and, as such large off-road diesel engines are widely used in agricultural and construction equipment.

Off-road vehicles powered by diesel engines, on the other hand, emit significant amounts of pollution. According to a study conducted by the United States Environmental Protection Agency, off-road diesel engines emit significant amounts of NOx and particulate matter. Furthermore, operating costs are a factor likely to limit market growth.

Which Region Offers the Largest Opportunity for Sales of Industrial Engines?

With an absolute dollar opportunity of around US$ 900 Mn, North America is expected to be the most lucrative market for industrial engine suppliers. The U.S. is leading the North American market, and is expected to witness high growth during 2021-2031. Presence of key market participants is influencing the market dynamics in the region.


Country-wise Insights

Why is the U.S. a Lucrative Market for Industrial Engine Manufacturers?

The market in the U.S. grew by 2% from 2016-2020. In the U.S. presence of engine manufacturers is very high. These players dominate a larger market share of industrial engines. There have been notable developments from the supplier side with regards to new engine offerings.

Improved crankshaft design, increased durability, simplified design, reducing installation complexities, and various package sizes are offered by U.S. manufacturers such as Caterpillar Inc.

What is the Potential for Industrial Engines in Germany?

The market in Germany is approximately one-tenth of the European market. Components for diesel engines and other industrial engines are available especially for commercial industrial applications.

Vast developments of marine engines and evolution of heavy-duty diesel engines has led the market to grow multifold in the past few years. Suppliers in Germany are specialized in providing heavy-duty engine components such as crankcases, crankshafts, cylinder heads, connecting rods, camshafts, oil and water pumps, cylinder liners, oil coolers, compressors/parts, and valve train parts for niche applications.

Why is Japan an Important Market for Industrial Engines?

The market in Japan is expected to be valued at around 342 Mn in 2021. In the current scenario, efforts are continuously being made to deliver advanced models of engines for civil and military applications in the country. Suppliers are engaged in partnerships and acquired licenses for manufacturing with European and American manufacturers.

Large-scale development of super-alloys for engine components and engine materials is ongoing as part of national programs in the country. There is also larger emphasis to target the gas engine market and cater to current and future engine material technologies in Japan.

What’s Driving Sales of Industrial Engines in China?

China comprises nearly 7% share of the global market for industrial engines. The regulatory environment in China is shaping with the development of emission standards for diesel mobile non-road engines.

Latest guidelines state that constant speed diesel engines must be tested over NRSC and variable speed engines over NRTC, and that there should be no visible smoke during DPF regeneration. This has led many companies to pour in significant investments to improve engine designs and benefit from market growth in China.

Category-wise Insights

Which Type of Industrial Engine Witnesses Most Demand?

The market share of 50HP-500HP industrial engines is nearly 45% of the total market for industrial engines. Growing popularity of 50HP-500HP engines in agricultural and general manufacturing has led to rising demand across regions.

Why are Diesel-powered Industrial Engines Popular?

Diesel-powered engines have high growth potential backed by supplier-side developments. The segment holds nearly 60% share of the total market based on fuel.

Diesel-powered engines are used in a number of industrial applications, such as marine engines, power generation, oil & gas, and mining. Global regulatory background is also supporting the growth of this segment.

What Makes End Users Prefer Water-cooled Industrial Engines?

Water-cooled industrial engines were valued at nearly US$ 90 Bn in 2020. This technology is comparatively economical because water-cooled engines improve thermal efficiency and prevent overheating. They also help maintain engine temperature, and hence, are preferred by a lot of end users.

Will the Popularity of 4-stroke Industrial Engines Keep Rising?

Sales of 4-stroke industrial engines were valued at nearly US$ 95 Bn in 2020. It has been estimated that market growth for these engines will be moderate over the coming years, but developments will be seen largely. These engine are mostly used in power generation.

Which Application of Industrial Engines is Most Popular?

The market for power generation was valued at around USD 30 Bn in 2020. With rising energy crisis, focus on deploying more energy-conservative methods will call for power generation options. This will positively influence demand on a global scale.

Competitive Landscape

The industrial engine market is highly competitive with top players holding nearly 70% of the global market. New product launches and expansion of production facilities are found to be some of the key developments in this space.

Key strategic partnership and collaboration initiatives are observed to be followed by many players.

  • In April 2020, MAN Energy Solutions was commissioned by Kawasaki Heavy Industries, Ltd. to supply two MAN dual-fuel engines to a Japanese power plant. The power plant is owned and operated by Okinawa Electric Power Company (OEPC).
  • In Feb 2021, Yanmar Group from Japan inaugurated its first diesel engine manufacturing facility in India at an industrial park that was developed as a JV between a Mahindra subsidiary and Sumitomo Corporation of Japan.

Some of the leading companies operating in this space are:

  • Briggs & Stratton
  • Honda Motor Co., Ltd
  • Kawasaki Heavy Industries, Ltd.
  • Chongqing Fuchai Industry Group
  • Changchai Co., Ltd.
  • Kohler Co.
  • Motorenfabrik Hatz GmbH & Co. KG
  • Loncin Motor Co., Ltd.
  • Lifan Power USA
  • Fuzhou Launtop M&E Co.,Ltd.,
  • Caterpillar (engine) USA
  • Shanghai Diesel Engine Co., Ltd.
  • Cummins
  • Ingersoll Rand
  • CO., LTD.
  • CNH Industrial
  • Hyundai
  • Kirloskar
  • Yanmar
  • SIEMENS Energy
  • Mitsubishi
  • Perkins Engine
  • Kubota
  • Doosan
  • Wärtsilä
  • Deere &Company

 *The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Report Scope



Forecast Period


Historical Data Available for


Market Analysis

  • US$ Million for Value
  • ‘000 Units for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South AsiaPacific
  • The Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Oceania
  • Turkey
  • Northern Africa
  • South Africa

Key Segments Covered

  • Engine
  • Fuel
  • Cooling
  • Operation
  • End-use Industry
  • Region

Key Companies Profiled

  • Briggs & Stratton
  • Honda Motor Co. Ltd
  • Kawasaki Heavy Industries Ltd.
  • Chongqing Fuchai Industry Group
  • Changchai Co. Ltd.
  • Kohler Co.
  • Motorenfabrik Hatz GmbH & Co. KG
  • Loncin Motor Co. Ltd.
  • Lifan Power USA
  • Fuzhou Launtop M&E Co. Ltd.,
  • Caterpillar (engine) USA
  • Shanghai Diesel Engine Co. Ltd.
  • Cummins
  • Ingersoll Rand CO. LTD.
  • CNH Industrial
  • Hyundai
  • Kirloskar
  • Yanmar
  • SIEMENS Energy
  • Mitsubishi
  • Perkins Engine
  • Kubota
  • Doosan
  • Wärtsilä
  • Deere &Company


Available upon Request

Enquiry before Buying

  • Is this research conducted by Persistence Market Research?

    Yes, the research has been conducted by expert analysts of Persistence Market Research through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Persistence Market Research?

    Persistence Market Research follows a methodology that encompasses demand-side assessment of the market, and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

    Persistence Market Research speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample, and it will be sent to you through an email.

  • How can I buy this report?

    Persistence Market Research provides a secure online payment system to buy reports seamlessly. You can buy the report securely and safely.

Key Market Segments Covered

By Engine

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

By Fuel

  • Diesel Industrial Engines
  • Gasoline Industrial Engines

By Cooling

  • Air-cooled Industrial Engines
  • Water-cooled Industrial Engines

By Operation

  • 2-stroke Industrial Engines
  • 4-stroke Industrial Engines

By End-use Industry

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

By Region

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

Media Release


Press Brake Machine Market

Sales of press brake machines are projected to increase at a CAGR of 6.1% across the 2022-2032 assessment period and reach a market value of US$ 1.03 Bn by the end of 2032..

Bandsaw Machine Market

Worldwide revenue from bandsaw machine sales is expected to increase from US$ 3.2 Bn at present to US$ 4.7 Bn by the end of 2032.

Waterjet Cutting Machine Consumables Market

Garnet has a varied range of industrial application, out of which, it is estimated to hold around 35% share in the waterjet cutting machine consumables market, globally. This demand for abrasives is anticipated to rise, precisely for abrasive blasting media and waterjet cutting..

Ride-On Mowers Market

Ride-on mowers industry is expected to reach US$ 6 billion by 2032, expanding at a CAGR of 4.7% between 2022 and 2032..

Our Clients

Our Clients