Off-highway Vehicle Engine Market to Grow at a CAGR of 6.2% Over the Forecast Period; Increasing Construction and Infrastructure Activities Propels Market Expansion

The off-highway vehicle engine market size was valued at USD 53.77 billion in 2025. The market is projected to grow from USD 56.20 billion in 2026 to USD 90.92 billion by 2034, exhibiting a CAGR of 6.2% during the forecast period.

Fortune Business Insights™ presents this information in its report titled, “Off-highway Vehicle Engine Market Size, Share & Industry Analysis, By Power Output (Below 100 HP, 101–300 HP, and Above 300 HP), By Fuel Type (Diesel and Gasoline), By Cooling Type (Air-Cooled Engines and Water-Cooled Engines), By Vehicle Type (Construction Equipment, Agricultural Equipment, Mining Equipment, and Others), and Regional Forecast, 2026–2034”

Off-highway vehicle engine market focus on offering engines that are used by heavy duty vehicles that are operational outside the roadways in sites including mining, construction, forestry and agriculture. The market growth is driven by surging construction and infrastructure activities, mechanization across the agriculture industry, and growth in demand for these engines in heavy-duty applications. Additionally, the need for fuel efficiency, high-power and durable engines is also increasing across the heavy-duty applications. Strict regulations related to emissions and growing adoption of hybrid power trains also boosts the overall off-highway vehicle market growth.

Cummins Received Alternative Engine of the Year Award, Supporting Market Development

In November 2025, Cummins received POWERTRAIN International’s 2026 Alternative Engine of the Year award. This was associated with its X15 Off-Highway engine and the company also started limited production of the F4.5 Structural tractor engine at Agritechnica.

Increasing Mechanized Agriculture Practices and Infrastructure Development Augments Market Growth

The market growth is majorly driven by surging construction and infrastructure activities. Additionally, increasing agricultural mechanization and mining practices across emerging and developed economies also supports market development. Governments are increasingly investing in bridges, roads, railways, irrigation projects, smart cities and industrial zones, thus driving the demand for construction related equipment including loaders, excavators, graders and bulldozers. With full efficiency, productivity, and operational reliability evolving as a key priority, demand for modern off-highway engines is growing due to its high power output and standard emission performance.

On the other hand, stricter emission regulations and growing development cost of these engines is hindering market growth.

Top Players Focus on Expanding Facilities to Strengthen Their Market Presence

The market has a presence of different leading players focusing on emission compliance, fuel efficiency, durability and application specific product development. Companies also compete through a broad engine portfolio that serves sectors including agriculture, construction, industrial equipment and mining. Moreover, they are also investing in advanced diesel platforms, after-treatment systems, engine controls and hybrid-ready technology that meets the current regulatory standards.

Notable Industry Development

• February 2026: Cummins stated that it would display its 3.8L Power Unit, B6.7, and Next Gen X15 Off-Highway engines at CONEXPO-CON/AGG 2026. This will focus on small, medium, and large construction machinery use.

List of the Companies Profiled in the Report

• Cummins Inc. (U.S.)
• Caterpillar Inc. (U.S.)
• Deere & Company (U.S.)
• Kubota Corporation (Japan)
• Yanmar Holdings Co., Ltd. (Japan)
• DEUTZ AG (Germany)
• Volvo Penta (Sweden)
• Perkins Engines Company Limited (U.K.)
• FPT Industrial (Italy)
• MAN Engines (Germany)
• Kohler Co. (U.S.)
• Weichai Power Co., Ltd. (China)
• Doosan Infracore Co., Ltd. (South Korea)
• Isuzu Motors Limited (Japan)
• Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (Japan)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/off-highway-vehicle-engine-market-103589

Further Report Findings

• Asia Pacific held the largest off-highway vehicle engine market share, due to growing infrastructure expansion, strong mining activities and large-scale agricultural mechanization across Southeast Asia, China, India, and Japan.
• Market growth in North America is owing to an increase in demand for mining, agricultural and construction related equipment majorly in Canada and the U.S.
• Market expansion in Europe is due to strict emission regulations that encourage the adoption of modern and advanced hybrid, diesel and alternative-fuel engines.
• In terms of Power output, the 101-300 HP segment led the market due to its growing use in agriculture, material handling, construction and medium-duty mining equipment.
• On the basis of fuel type, the diesel segment dominates the market. This is owing to its increasing torque output, durability, fuel efficiency, and suitability for continuous heavy-duty operations.

Table of Segmentation