Engines Market
Engines Market Size, Share, Competitive Landscape and Trend Analysis Report by Fuel Type, Speed, Power Rating and Application: Global Opportunity and Industry Forecast (2025-2030)
Report ID:
1124
Industry:
Energy & Power
Published on:
Jan 2026
Engines Market Summary
Engines Market was a value of USD 377.83 Bn in 2024 and expected it to hit USD 499.5 Bn by 2030, with a CAGR of 4.8% during (2025-2030).
Engines Industry Trends and Analytical Insights -
Asia Pacific Engines Market was the largest revenue generating region market in year 2024, with market share accounted for 46.2%.
In 2024, By Fuel Type, Diesel dominated the Engines Market, accounted for 54.7% market shares.
Leading Key players for Engines Market in 2024 was Caterpillar Inc., Cummins Inc., General Electric Company (GE Aerospace), General Motors Company and Rolls-Royce plc.
Market Size & Forecast
Market Size 2024: USD 377.83 Billion
Projected Market Size 2030: USD 499.5 Billion
CAGR (2025-2030): 4.8%
Asia Pacific: Dominated market in 2024
Engines Market Overview
The Engines Industry showed great resilience and demand for new engines in 2024 by capitalising on the growth of various industries from transportation, industrial applications, marine uses, aviation, and power generation among other things. With approximately 65% of all installed engines was internal combustion engines, the major drivers were the construction and agriculture industries with heavy-duty vehicles, agricultural machinery, construction machinery, and back-up generators making up most of their production. Approximately 28% to 30% of the global demand for engines comes from industrial and off-road engines which reflects the strong construction and mining industries that was continue to be active in the years to come. Even though electric motor technology has started to gain traction over the past decades, engines with over 500 hp provided about 40% of the global revenue of engine manufacturers, thus illustrated the continued reliance of the energy sector on high power, energy-dense engines even in the year 2024.
The Asia-Pacific Engines Market had the highest market volume of all markets in 2024 due to good support from both China and India, which in total represented more than 60% of total nation volumes for Engine demand through vehicle assembly, industry development and the Marine transportation industry advancing, and also the use of generated power from additions of power plants. The North America Engines Market, with demand primarily driven by aviation engines, Gas turbine, Defense systems, and Industrial back-up power. European Engines Market driven primarily Marine drive, and Regulatory Low-combustion Industrial Engines (due to Regulations).
By 2024 Global Engines Market had a low growth potential as manufacturers continue to optimize technology for user applications and will develop products based on those user applications rather than regional growth. Diesel engines was represented the majority of engine deployments, accounted for more than 55% of all deployed engines, which were primarily in the heavy duty trucking, construction, mining, and marine markets whereas, gasoline engines accounted 25% of all engine deployments, primarily in passenger vehicles and light commercial vehicles while gas and dual-fuel engines combined, contributed to less than 15% of all engine installations, reflected an increase in the number of power generation and industrial facilities adopting engines that offer flexibility in fuel supply. Engines that meet advanced emissions regulations accounted for more than 70% of all new shipments, while digitally enabled engines with predictive maintenance capabilities were incorporated into approximately 40% of the newly commissioned units in industrial and marine applications, supporting an ongoing shift towards maximizing efficiency, reliability, and the improved lifecycle value of engines throughout the industry in 2024.
This extensive analysis by Jadhavar Business Intelligence Pvt Ltd provides consumers with a complete and actionable picture of the Global Engines Market, including market size, share, trends, and growth estimates from 2024 to 2030. It provides a complete overview of important locations and countries by Fuel Type, Speed, Power Rating and Application. Clients receive comprehensive market dynamics, business tool analysis (PORTER and PESTLE), a Technology roadmap, and regulatory updates. The study also includes country-specific projections, competitive benchmarking, Company profiles, and M&A activity, all of which aid in strategic planning, market entry analysis, and competitor positioning in Engines Industry.
Engines Market Dynamic’s
Demand from heavy-duty mobility alongside infrastructure expansions and the energy security needs drove the Engines Industry through 2024. Production volumes of commercial vehicles globally increased approximately 6%–7% annually. The growing volume of new builds in both freight and passenger commercial vehicles continues to increase demand for diesel and natural gas engines with high displacement ratings. Deployments of industrial and off-highway equipment growth increased almost 33% on top of the previous year. The development activity in construction and mining supported this growth. Additionally, more than 60% of new global installations for backup and captive power generation systems continue to be supplied by engine-based sources, especially in regions where power grid stability was lacking. Increased engine utilization continued in the aviation sector with nearly 12% growth in utilisation hours, resulting in an increase in replacement and maintenance needs across the aviation fleet.
Due to tighter emissions regulations, faster electrification, and increasing supply chain costs, the engines market in 2024 was under huge pressure. The average cost of manufacturing an engine increased by 12-15% as a result of compliance-related upgrades, with many diesel engines needing extensive after-treatment systems. The increase in use of electrified powertrains means that more than 18% of all new light vehicle drivetrains were electrified, which has limited the growth of internal combustion engine (ICE) volume in the passenger car segment. Volatile raw material prices led to an increase of 8-10% in component purchasing costs, and OEMs around the world reported a 5-7% longer lead time on critical components, which decreased production flexibility. The combination of these challenges has led to a decrease in margins for some end use categories and has slowed the ramp-up of capacity across multiple end use sectors.
The Engines Industry was expanding in new directions in 2024 by open to many different kinds of fuel, utilizing advanced technology, and had a much larger after-market service. The increase in orders for Gas/Dual Fuel and Hydrogen Designed engines for 2024 was generate almost one-fifth (20%) of all Power Generation & Industrial Engines. The demand for alternative fuels has fueled by companies that have made commitments to reduce their carbon footprint through decarbonizing strategies. The number of Hybridized engine systems for new heavy-duty engine platforms was approximately 15% of total launches in 2024. OEMs had investing heavily in AI-enabled diagnostics and Modular Engine architectures to allow them to increase their speed to Engines Market. The development of new products will allow OEMs to enhance their competitive position and create more value for their companies for years to come.
Expert Insight:
In 2024, the Engines Market remained structurally resilient, driven by sustained demand from heavy-duty transportation, industrial operations, marine, aviation, and power generation, where electrification penetration remains limited. Diesel engines and mid-range power systems continued to form the commercial backbone of the market, supported by infrastructure growth and energy security needs. At the same time, OEM focus on clean-combustion technologies, alternative fuels, digital monitoring, and aftermarket services highlighted a clear shift toward lifecycle optimization, positioning engines as a critical transitional technology in the global energy landscape.
Engines Market Segment Analysis
The Engines Market is segmented into Fuel Type, Speed, Power Rating and Application.
By Fuel Type
Based on Fuel Type segment the Engines Industry is segmented into Gasoline, Diesel, Natural Gas and Other fuels. Diesel has the largest market share of Engines Market, accounted for 54.7% in 2024. This dominance was driven by their ability to generate higher levels of torque than gasoline engines, fuel economy, and durability, which have made diesel engines the dominant engine type in heavy-duty commercial vehicles, construction and mining equipment, marine propulsion, and industrial power generation applications. Furthermore, diesel engines are important in many parts of the world that do not have adequate charging or natural gas infrastructure to support other forms of transportation. Continued investments made by Original Equipment Manufacturers (OEM) in developing improved Clean Diesel technologies and Emission Compliant Aftertreatment Systems have helped OEMs develop these systems to meet all applicable federal and state standards, which has further strengthened diesel’s position as a leader in the heavy-duty engine market, even as alternative fuels are becoming more popular.
By Power Rating
Based on Power Rating Segment, the Engines Market is segmented into Below 0.5 MW, 0.5 – 2.0 MW, 2.1 – 5.0 MW, 5.1 – 15.0 MW and Above 15 MW. Within the Power Rating segment, 0.5 – 2.0 MW appears the dominated sub segment have market share, accounted for 35.3% in 2024 for Engines Market. This dominance driven by The leadership characteristics associated with this segment of engines have contributed to their broad, multiple based uses across a wide variety of industries, including industrial captive power; data centres; commercial facilities; oil and gas operations; and marine auxiliary systems. In addition, this segment produces an engine that provides customers with the most effective balance of power output, fuel efficiency, and operational adaptability, which makes them viable for both prime and standby applications. The trend over the next few years toward increasing demand for grid-resilient power solutions and rapid deployment capabilities has also supported continued strength of this segment of power rating.
Engines Market Region Analysis
Asia pacific Engines Market was the dominant market in 2024 with a market share accounted for 46.2%. This dominance was driven by the high volume automotive manufacturing, rapid industrialization, and the building of large infrastructure throughout China Engines Market, India Engines Market and Southeast Asia Engines Market. China accounted for more than 30% of total engine consumption in the region with a major focus on construction equipment, industrial engines, marine applications, and on-site energy production. India came next in terms of significant demand from the commercial vehicle market, Agriculture, Railways, and distributed generation sectors. Evidence to support the Region's Leadership Position in 2024 included relatively low manufacturing costs, growing number of domestic OEMs, and ongoing government infrastructure investment in the Asia-Pacific Region.
In addition to Asia-Pacific, North America Engines Market constituted nearly one-fourth (approximately 25%) of all global engine consumption, fueled by the need for aviation, military programs/distribution, industrial engines, gas turbine electric generating systems, and data centre back-up power supply. Approximately one-fifth (approximately 20%) of total global engine requirements came from Europe Engines Market due to the prevalence of high-efficiency automotive engines, large ship engine propulsion systems, and advanced low-emission industrial engines that had been developed due to stringent regulatory requirements. The combined total share of total global engine consumption represented by the Middle East and Africa Engines Market, and Latin America Engines Market was approximately 10%, based primarily on growth from oil and gas industry, electricity generation, shipping, agriculture, and mining activities. The regional patterns of global Engines Industry consumption throughout 2024 were found to be reflective of an equilibrium between established industrial markets and volume-driven growth developing from the developing markets.
Engines Market Competitive Analysis
Caterpillar Inc., Cummins Inc., GE Aerospace, Rolls-Royce plc and Toyota Motor Corporation were the leaders in the Engine Market in 2024 represented a very powerful competitive position considering their strong global presence, outstanding engineering capabilities and many different types of products that were produced by these companies. Caterpillar and Cummins were the leaders in the Industrial and Power Generation and Heavy Duty Engine markets through their vast aftermarket network and have a huge market presence. GE Aerospace and Rolls-Royce have been the leaders in the Aviation Engine market by developing a wide variety of high-performance aircraft engines and offering long-term service agreements. Toyota, Honda, and General Motors leveraged their high volume manufacturing capabilities and their ability to combine Powertrain strategies to maintain their leadership position.
The maritime, commercial vehicle, and large industrial engine applications have traditionally dominated by leading manufacturers such as AB Volvo, Scania, MAN Energy Solutions and Wärtsilä. Other large engine manufacturers, including Mitsubishi Heavy Industries and Kawasaki Heavy Industries, were similarly strong competitors in these segments. Manufacturers including Deutz, Perkins (a subsidiary of Caterpillar Inc.), Kubota, Yanmar, and Volvo Penta were more focused on the off-highway and compact engine market segments, competing largely on the basis of reliability and cost-effective solutions. As a result, the primary drivers of competition in the industry were technology specialization, compliance with emissions regulations, and after-product support throughout 2024.
Engines Market Scope:
Engines Market Key Players –
Cummins Inc.
General Motors Company
Rolls-Royce plc
Honeywell International Inc.
AB Volvo
Honda Motor Co., Ltd.
Toyota Motor Corporation
MAN Energy Solutions
Wärtsilä Corporation
Perkins Engines
Volvo Penta
Deutz AG
Kawasaki Heavy Industries, Ltd.
Kubota Corporation
Yanmar Holdings Co., Ltd.
CFM International
Frequently Ask Questions –
1) Who are the major Key players of Engines Market?
Ans - The Major Key players of Engines Market are Caterpillar Inc., Cummins Inc., General Electric Company (GE Aerospace), General Motors Company and Rolls-Royce plc.
2) Which Region accounted highest share of the Engines Market in 2024?
Ans – Asia pacific region accounted highest share of the Engines Market.
3) What was the market size of Engines Market in 2024?
Ans – In 2024, market size of the Engines Market is USD 377.83 Billion.
4) Which Segment is expected to lead the market during forecast period?
Ans – Fuel Type Segment was the top segment holds the largest share in Engines Market during forecast period.
5) What will be the market size of Engines Market in 2030?
Ans- The market size of Engines Market in 2030 will be USD 499.5 Billion.