DIESEL ENGINES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 - 2032)

Global Diesel Engines Market Size and Forecast – 2025-2032

The Global Diesel Engines Market is estimated to be valued at USD 213.72 Bn in 2025 and is expected to reach USD 292.79 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2025 to 2032.

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Key Takeaways of the Global Diesel Engines Market

• The multi cylinder segment leads the market, holding an estimated share of 86. 2% in 2025.
• The automotive segment leads the market, holding an estimated share of 54.4% in 2025.
• Asia Pacific is estimated to lead the market with a share of 48.3%in 2025. North America, holding a share of 22.3% in 2025, is projected to be the fastest growing region.

Market Overview

The market is seeing a trend towards cleaner and more environmentally friendly solutions, with manufacturers developing engines that comply with stringent emission regulations. Also, the integration of advanced technologies, such as turbocharging, fuel injection systems, and engine control units, will improve engine performance and fuel efficiency. The adoption of hybrid and electric powertrains in the automotive sector may limit the growth of the diesel engines market to some extent in the long term. However, the market is expected to maintain its dominance in heavy-duty applications.

Current Events and Its Impact

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Segmental Insights

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Global Diesel Engines Market Insights by Type - Multi Cylinder Segment Leads Due to its Versatility

Multi Cylinder segment is estimated to contribute the highest share of 86.2% in the market in 2025. Multi cylinder diesel engines have become the preferred choice for many end-users due to their superior performance, fuel efficiency, and durability. These engines are designed to deliver high power output while consuming less fuel, making them an economical and environmentally friendly option.

The increasing demand for heavy-duty vehicles in the transportation and construction sectors is adding to segment growth. These engines can handle heavy loads and operating in challenging conditions, making them useful for trucks, buses, and construction equipment.

Moreover, the stringent emission regulations imposed by governments across the globe have compelled manufacturers to develop cleaner and more efficient diesel engines. Multi cylinder engines include advanced emission control technologies, such as selective catalytic reduction (SCR) and diesel particulate filters (DPF). This has made them a more attractive option for companies looking to comply with emission standards while maintaining high performance.

Global Diesel Engines Market Insights, by End User – The Automotive Segment Leads Due to the Increasing Demand for Diesel-powered Vehicles

The Automotive segment is projected to contribute the highest share of 54.4% in the diesel engines market in 2025. Diesel engines have long been the preferred choice for the automotive industry. The high torque output and fuel efficiency of diesel engines make them suitable for heavy-duty applications, such as trucks, buses, and off-highway vehicles. Additionally, the advancements in diesel engine technology, such as common rail fuel injection and turbocharging, have improved the performance and refinement of diesel cars, making them more appealing to a wider range of customers.

The stringent fuel efficiency and emission regulations in the automotive industry have also played a crucial role in the growth of the diesel engines market. Diesel engines have the advantage of being able to meet these regulations more easily than gasoline engines, thanks to their inherent efficiency and the availability of advanced emission control technologies. This has encouraged automakers to invest in the development of cleaner and more efficient diesel engines, further driving the growth of the automotive segment.

Price Analysis of the Diesel Engines Market

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Regional Insights

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Asia Pacific Diesel Engines Market Analysis and Trends

Asia Pacific, holding a share of 48.3% in 2025, dominates the global diesel engines market. The region's vast population, rapid industrialization, and expanding infrastructure projects have driven the demand for diesel engines across various sectors. Countries like China and India have emerged as manufacturing powerhouses, with a strong presence of diesel engine manufacturers. The region's focus on energy efficiency and emission reduction has also propelled the adoption of advanced diesel engine technologies. For instance, in April 2024, Weichai Power, based in China, launched the world's most efficient diesel engine with 53.09% thermal efficiency.

North America Diesel Engines Market Analysis and Trends

North America, holding a share of 22.3% in 2025, exhibits the fastest growth in the global diesel engines market, driven by its well-established industrial base, high demand across transportation, construction, and power generation sectors, and ongoing technological advancements. Demand from the logistics and freight transportation industry remains robust, particularly with the continued reliance on heavy-duty diesel trucks across long-haul routes.

The presence of global diesel engine leaders such as Cummins, Caterpillar, and Deere & Company, combined with an extensive aftermarket and service network, reinforces North America's strategic role in shaping the diesel engine landscape. For instance, in February 2024, Cummins Inc. announced to launch its X15N series diesel engines, integrating advanced aftertreatment systems and variable turbocharging to meet 2027 EPA standards.

Global Diesel Engines Market Outlook for Key Countries

U.S. Diesel Engines Market Analysis and Trends

The U.S. diesel engines market remains significant, driven by the country's robust industrial sector, transportation industry, and construction activities. Major players in the market, such as Cummins Inc. and Caterpillar Inc., continue to innovate and offer advanced diesel engine solutions to cater to the evolving needs of customers. The increasing focus on emission regulations and fuel efficiency has led to the development of cleaner and more efficient diesel engines in the country.

Germany Diesel Engines Market Analysis and Trends

Germany diesel engines market is characterized by its strong automotive industry and technological advancements. The country is home to renowned automotive manufacturers who have been at the forefront of developing cutting-edge diesel engine technologies. The emphasis on reducing emissions and improving fuel economy has driven the adoption of advanced diesel engines in both passenger and commercial vehicles. Additionally, Germany's robust export market has contributed to the growth of its diesel engine industry.

China Diesel Engines Market Analysis and Trends

China continues to lead the global diesel engines market, driven by its vast industrial base, expanding infrastructure, and supportive government policies. The country's thriving manufacturing sector, including the production of construction equipment, agricultural equipment, and power generation systems, has fueled the demand for diesel engines. Chinese manufacturers have also made significant strides in developing and exporting diesel engines, catering to both domestic and international markets.

India Diesel Engines Market Analysis and Trends

India's market for diesel engines has witnessed substantial growth, supported by the country's increasing industrialization, infrastructure development, and agricultural mechanization. The government's focus on promoting manufacturing through initiatives like "Make in India" has further boosted the diesel engine industry. Indian manufacturers have been investing in research and development to improve the efficiency and emission standards of diesel engines, aligning with global trends.

Japa Diesel Engines Market Analysis and Trends

Japan diesel engines market is known for its technological advancements and stringent emission standards. Japanese manufacturers have been at the forefront of developing clean diesel technologies, such as advanced fuel injection systems and aftertreatment solutions. The country's automotive industry, including leading players like Toyota and Nissan, has played a significant role in driving innovation in diesel engine technology. Japan's expertise in diesel engines has also made it a key exporter to global markets.

Market Players, Key Development, and Competitive Intelligence

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Key Developments

• In May 2025, Tata Motors acquired the licensing rights for Fiat’s 2.0-litre Multijet diesel engine. This powertrain is used by Tata in SUVs like Harrier and Safari. Fiat uses this engine for Jeep Compass and Meridian and supplies the same to MG Motor India for Hector and Hector Plus.
• In March 2025, Lomarlabs, the innovation arm of Lomar Shipping, has announced a strategic collaboration with Newlight, a technology company specialising in hybrid hydrogen-diesel engine retrofits, to accelerate the adoption of cost-effective, lower-emission solutions for the shipping industry. This collaboration will focus on retrofitting conventional diesel engines to operate on a hydrogen-diesel mix, reducing fuel consumption on average by 20%.
• In January 2025, Cummins Inc. unveiled the new 2025 6.7-liter Turbo Diesel Pickup engine system for Ram Heavy Duty.
• In November 2023, China Weichai and Germany Bosch Group signed a strategic cooperation agreement on technological innovation in the area of new energy, high thermal efficiency diesel engine and intelligent transport.

Top Strategies Followed by Global Diesel Engines Market Players

• Established players are investing heavily in R&D to develop engines with improved fuel efficiency, reduced emissions, and enhanced durability.
  • Cummins is investing heavily in fuel-agnostic engine platforms, including diesel-hydrogen hybrids, to meet future emissions regulations (EPA 2027 & Euro 7)

• Mid-level players in the market are focusing on delivering cost-effective solutions to target price-sensitive consumers.
  • Kirloskar expanded its diesel genset line in the 15–125 kVA range, optimized for fuel efficiency and cost in rural and semi-urban Indian regions.

• Small-scale players are specializing in specific segments, such as marine or industrial engines, to differentiate themselves from larger competitors.
  • Greaves Cotton Ltd. (India) focuses on compact diesel engines for 3-wheelers and small agricultural machinery.

Market Report Scope

Diesel Engines Market Report Coverage

Global Diesel Engines Market Driver – Rising demand for heavy-duty vehicles

As the construction, mining, and transportation sectors continue to expand, the need for powerful and efficient diesel engines has become more critical than ever. These engines are known for their high torque output, durability, and reliability, making them the preferred choice for heavy-duty applications. The increasing urbanization and industrialization in developing countries have further fueled the demand for heavy-duty vehicles, such as trucks, buses, and construction equipment. For instance, in 2023, Volvo Trucks announced a surge in orders and deliveries for its FH16 and FMX heavy-duty diesel truck lines, especially in logistics, construction, and mining sectors across North America, India, and Southeast Asia. Moreover, the growing emphasis on infrastructure development projects, including roads, bridges, and railways, has also contributed to the rising demand for diesel engines in these vehicles.

Global Diesel Engines Market Opportunity – Emergence of Low-Emission & Dual/Hybrid Fuel Engines

Manufacturers are increasingly focusing on developing innovative technologies that reduce emissions without compromising on performance and efficiency. Low-emission diesel engines incorporate advanced combustion techniques, such as high-pressure common rail fuel injection systems and turbocharging, which optimize fuel consumption and minimize pollutant output. Additionally, the development of dual-fuel and hybrid engines that combine diesel with alternative fuels, such as natural gas or biofuels, presents a promising avenue for growth. These engines offer the benefits of reduced emissions, lower operating costs, and increased fuel flexibility. For instance, in May 2024, Cummins Inc. and Isuzu Motors Limited unveiled a new 6.7-liter engine, the “Isuzu DB6A,” designed for Isuzu’s new medium-duty truck lineup.

The market for low-emission and dual/hybrid fuel engines is expected to grow as industries, such as marine, power generation, and off-highway equipment, seek to comply with environmental regulations while maintaining the reliability and durability associated with diesel engines. Furthermore, the increasing demand for fuel-efficient and eco-friendly solutions in emerging economies presents a significant opportunity for manufacturers to expand their market presence and capitalize on the growing trend of sustainable technologies in the diesel engine industry.

Analyst Opinion (Expert Opinion)

• Despite rising pressure from electrification, diesel engine makers are not standing still—thermal efficiency breakthroughs (e.g., Weichai’s 53.09%) and hybrid-diesel innovations signal a shift toward cleaner combustion. The integration of smart control systems, low-NOx aftertreatment, and fuel-flexible architectures is extending diesel's relevance across key sectors.
• From mining and agriculture to heavy-duty logistics and remote power generation, industries with high torque and low infrastructure dependency continue to rely on diesel engines. Electrification is slow in these segments, and diesel’s durability, fuel availability, and power density keep it dominant in regions like Southeast Asia, Africa, and parts of Latin America.
• Growing infrastructure and rural electrification projects, especially across Asia and Sub-Saharan Africa, are fueling demand for medium-capacity diesel generator sets. As grid reliability remains inconsistent in many developing economies, diesel gensets remain a critical stopgap—creating steady, long-term demand across public and private sectors.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2020 - 2032)
  • Multi Cylinder
  • Single Cylinder
•  End User Insights (Revenue, USD Bn, 2020 - 2032)
  • Automotive
  • Construction
  • Industrial/Power Generation
  • Agriculture
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Cummins
  • Caterpillar
  • Volvo (Volvo Penta)
  • Mercedes
  • MAN SE
  • Mitsubishi Heavy Industries
  • Deutz
  • Yanmar
  • Kubota
  • Weichai Power
  • Quanchai
  • Changchai
  • Yunnei Power
  • FAW
  • Kohler

Sources

Primary Research Interviews

Stakeholders

• OEM Engine Manufacturers (e.g., Product Managers and R&D Engineers)
• Diesel Genset Suppliers and Distributors
• Heavy Machinery Rental Firms (serving construction and mining)
• Fleet Maintenance Operators (Logistics and Transport Firms)
• Agricultural Equipment Dealers and Buyers (esp. in India and LATAM)
• Energy Infrastructure Companies using off-grid diesel systems
• Maritime Equipment Manufacturers and Marine Diesel Integrators

Databases

• North American Heavy-Duty Engine Emissions Database (NAHDE)
• India Energy Equipment Registry (IEER)
• ASEAN Diesel Engine Outlook Archive
• Global Freight Machinery Procurement Tracker (GFMPT)
• Industrial Equipment Lifecycle Data Consortium (IELDC)

Magazines

• Diesel Power World
• Heavy Equipment & Engine Digest
• Fleet & Fuel Management Weekly
• Machinery Dynamics International
• Off-Grid Power Solutions Quarterly

Journals

• Journal of Internal Combustion Innovation
• Applied Energy Systems Engineering Journal
• International Journal of Diesel & Hybrid Technologies
• Clean Combustion & Emission Control Journal
• Journal of Smart Heavy Machinery

Newspapers

• The Industrial Times
• Energy Equipment Daily
• Global Engineering News
• Asia Machinery Outlook
• The North American Transport Journal

Associations

• Diesel Engine Manufacturers Alliance (DEMA)
• Asia-Pacific Combustion Engineering Society (APCES)
• Global Association of Powertrain Innovators (GAPI)
• American Society of Engine Efficiency and Innovation (ASEEI)
• Federation of Industrial Equipment Suppliers (FIES)

Public Domain Sources

• U.S. Census Bureau
• EUROSTAT
• United Nations Economic Commission for Europe (UNECE)
• World Bank
• ResearchGate

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of Information (last 8 years)