Diesel engine: Key market research findings
- APAC dominates the market geographically
- On-road segment accounts for a majority of the market’s revenue
- Key vendors – Caterpillar, Cummins, MAN, and Mitsubishi
Technavio’s market research analysts predict the global market for diesel engines to grow at a CAGR of around 9% between 2016 and 2020. The growth of the market stems from the increased operational efficiency brought about by diesel engines. Diesel engines are commonly used for commercial purposes, since they offer better mileage, especially in the case of heavy-duty vehicles. Furthermore, diesel holds 15% more energy and provides more mileage than petrol owing to its high density. During 2015, APAC accounted for almost 45% of the overall market share to become the dominant shareholder in the global diesel engine market. Increased construction activities in the region are expected to propel the demand for diesel engines in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the diesel engine segments based on the end-user.
“According to our analysts, APAC is expected to emerge as a new market for diesel engines with a turbocharger. In a turbocharged diesel engine, the air entering the engine is compressed before the fuel is injected. The more the air flowing into the engine is compressed, more fuel is injected when compared to a similar engine size without a turbocharger. This leads to increased mechanical power and better efficiency during the combustion process,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
By 2020, the on-road segment will account for more than 87% of the overall market share to become the key revenue generator in the global market for diesel engines. The growth of this segment can be accredited to the demand for diesel engines for light vehicles, medium/heavy trucks, and light trucks. Diesel engine and truck manufacturers are focusing on R&D to achieve efficiency in two parameters, which are fuel efficiency and lower emissions to gain market shares and strengthen their foothold in the market.
The key vendors in the market include Caterpillar, Cummins, MAN, and Mitsubishi. The market is dominated by few large players. These players are focused on increasing their R&D expenditure so that they can design their products that comply with set standards and regulations. Also, they are trying to achieve cost advantage by shifting their manufacturing base to Asian countries such as China and India that offer the easy availability of raw materials and cheap labor cost.
A more detailed analysis is available in the Technavio report, Global Diesel Engine Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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