Off Highway Diesel Engine Market Outline, Surge and Forecast by Key Players 2017 – 2025

Off-Highway diesel engines refer to those engines that are designed to meet the needs of applications across sectors such as construction, mining and industrial. These engines deliver stable performance in extreme conditions such as dust, vibration, high altitudes and harsh climatic conditions thereby improving productivity and enhancing profitability. Such engines are also used in off-highway vehicles such as excavators, cranes, mixers, backhoes and forklifts in performing various tasks. These diesel engines are configured each time to meet the heavy-duty requirements for specific applications.

On the basis of end-use applications, the off-highway diesel engine market is segmented into mining, construction, and agricultural applications. On the basis of region, the off-highway diesel engine market revenue is primarily contributed by the North American region due to the presence of off-road emission standards such as California Air Resources Board (CARB) and U.S. Environmental Protection Agency (EPA), which drive their adoption across industries. Asia Pacific is expected to contribute to the growth of this market due to the increasing mining and construction activities in the region.

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The increasing government regulations for near-zero diesel emissions are the prime factors fuelling the growth of off-highway diesel engines market. For instance, U.S. EPA has implemented emission standards for all off-road vehicles, equipment and engines and supports the deployment of off-highway diesel engines that comply with such regulations. In addition to EPA, the CARB has implemented stringent regulations for handheld and non-handheld engines to control the exhaust emissions and control pollution related urban health problems.

Similarly, European Commission has implemented measures to reduce air pollutants from non-road mobile machineries, thereby encouraging the use of off-highway diesel engines. Another factor fuelling the growth of off-highway diesel engine market is the stiff competition in the mining industries to cut down costs on fuel prices and enhance profits. Therefore, the fleet operators and managers prefer the use of off-highway diesel engine so as to gain competitive advantage and sustain profitability. However, the costs associated with deploying such diesel engines are too high for small and medium sized fleet operators. Due to the low profit margins, they continue using the conventional machineries and equipment for executing the mining and construction activities. Also, countries with unstable mining policies hamper the regular use of such off-highway diesel engine equipment. These factors adversely affect the growth of off-highway diesel engine market.

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With the goal to comply with the changing emission standards and improve fuel efficiency, major players in the market are coming with new machinery and equipment. This helps them improve the product portfolio and further penetrate the international markets.

For instance, Volvo Construction Equipment, one of the major players in the market, on 28th July 2014, introduced H-series L110H and L120H wheel loaders that meet stringent emission regulations. It possesses the innovative optishift transmission system for improved fuel efficiency up to 18 percent.

The other prominent players in the market are:

  • Deere & Company (U.S.)
  • Scania AB (Sweden)
  • Perkins Engines (U.S.)
  • MTU Detroit Diesel (Australia)
  • Komatsu America Corporation (U.S.)
  • Cummins Inc. (U.S.)
  • CNH Industrial N.V (Italy)