Off-Highway Vehicle Engine Market to Grow at a CAGR of 6.1% over 2023-2030; Rising Agricultural and Construction Activities are Propelling the Market Growth

The off-highway vehicle engine market size was valued at USD 22.45 billion in 2022. The market is projected to grow from USD 23.59 billion in 2023 to USD 35.79 billion by 2030, exhibiting a CAGR of 6.1% during the forecast period. Fortune Business Insights™ presents this information in its report titled, “Off-Highway Vehicle Engine Market Size, Share & COVID-19 Impact Analysis, By Power Output (Construction Machinery (Less than 100 HP, 101-200 HP, 201-400 HP, and More than 400 HP) and Agriculture Machinery (Less than 30 HP, 31-50 HP, 51-80 HP, 81-140 HP, and More than 140 HP)), By Fuel Type (Diesel, Gasoline, and Others), and Regional Forecast, 2023-2030”.

Off-highway vehicles are designed for use in uneven land or terrains. These vehicles are used for various agricultural and construction activities such as raw material transportation and putting pesticides in narrow vineyards. The rising utilization of these engines is aiding the off-highway vehicle engine market growth during the forecast period.

Rising Agricultural and Construction Activities Propelled the Market Growth during COVID-19

During the COVID-19 pandemic, the market performed better than what was expected before the outbreak. Increased tractor sales across different regions have benefitted the market. Large spending in China’s construction equipment industry was one of the most important factors driving market performance during the forecast period. Some regions also experienced a drop in off-highway vehicle sales during the pandemic.

Caterpillar Introduced New 13-Litre Engine Platform for Off-Highway Applications

In March 2023, Caterpillar launched a new 13-liter engine platform for heavy-duty off-highway applications at CONEXPO-CON/AGG 2023. The engine is manufactured to strengthen value for third-party OEMs and equipment owners.

Rapid Urbanization to Propel Market Growth

Increasing population growth, per capita income, and rapid urbanization, specifically in developing countries, have raised the demand for infrastructure and are driving market growth. The rising involvement of private industry and government in infrastructure projects has propelled the demand for off-highway vehicle engines used in these projects. 

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

Alternative Fuel-Powered Off-Highway Vehicles Adoption is Driving the Market Growth

Due to consumers' environmental concerns, the adoption of off-highway vehicles powered by natural gas, electricity, and others has increased, expanding the market share during the forecast period. Most companies are now focusing on developing off-highway vehicles as future solutions. Rising government regulations on fossil-fuel-powered vehicles have influenced companies to develop alternative fuel-powered vehicles.

Joint Venture and Strategic Partnerships Propelling the Market Growth

The growing focus of key players on expanding their manufacturing operations expansion through strategic and joint ventures is driving the market. European OEMs' production capacity is mainly focused on Europe only. These OEMs do not even have 50% production footprint in other regions.

Notable Industry Development

• March 2023 – John Deere introduced new 85 P-tier Excavators during CONEXPO. It provides nearly 18% increase in horsepower compared to the 85 G-Tier model. 85 P-Tier also offers a turbo feature for high-altitude performance.

List of the Companies Profiled in the Report:

• Caterpillar Inc. (U.S.)


• Cummins Inc. (U.S.)


• Deutz AG (Germany)


• Kubota Corporation (Japan)


• Deere & Company (U.S.)


• Komatsu Ltd. (Japan)


• Hitachi Construction Machinery Co. Ltd. (Japan)


• AGCO Corporation (U.S.)


• JC Bamford Excavators Ltd. (U.K.)


• Mahindra & Mahindra Ltd. (India)

Further Report Findings-

• Asia Pacific dominated the market with the highest share in 2022. High growth in infrastructure activities such as housing and road construction has increased the demand for construction equipment, propelling the global market growth during the forecast period.


• Europe is estimated to grow significantly during the forecast period. The rising adoption of heavy-duty agricultural tractors in the region, propelling the demand for off-highway vehicle engines, is driving market growth.


• North America is also expected to grow significantly in the market over 2023-2030 due to increasing spending on municipal infrastructure projects contributing to the region's high demand for construction machinery. These municipal infrastructure projects are boosting off-highway vehicle engine production across North America.


• Europe and North America are estimated to present similar market trends during the forecast period.

Table of Segmentation: