New Delhi, July 23, 2024 (GLOBE NEWSWIRE) -- According to Astute Analytica, the Asia Pacific industrial engines market is anticipated to reach the valuation of over US$ 551. billion by 2032 from US$ 33.5 billion in 2023 at a CAGR of 5.7% over the forecast period 2024–2032.
The demand outlook for industrial engines is poised for significant growth, driven by multiple factors such as increasing industrialization, technological advancements, and global infrastructural development. The surge in construction activities, particularly in emerging economies, has escalated the requirement for heavy machinery powered by industrial engines. In 2023, the global production of industrial engines hit 3 million units, with Asia-Pacific regions contributing to half of this output. Additionally, the mining sector's expansion has led to a rise in demand for robust industrial engines capable of operating in harsh environments, with 200,000 units deployed in new mining projects worldwide.
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Technological advancements play a critical role in the growth of the industrial engines market. Recent developments include the integration of IoT and AI for predictive maintenance, enhancing operational efficiency and reducing downtime. As of 2023, over 150,000 industrial engines globally are equipped with IoT sensors. Furthermore, the shift towards eco-friendly solutions has seen the adoption of hybrid and electric industrial engines, with 50,000 hybrid engines produced this year alone. Innovations in fuel efficiency and emissions reduction technologies are also pivotal, with 500 major industrial engine manufacturers investing heavily in R&D to comply with stringent environmental regulations.
The Asia pacific industrial engines market has witnessed significant mergers, acquisitions, and funding activities. In 2023, there were 25 notable mergers and acquisitions, including the $10 billion acquisition of a leading European industrial engine manufacturer by a US-based conglomerate. Venture capital investment in startups focusing on green engine technology reached $1.5 billion, reflecting a strong investor interest. Additionally, 100 strategic partnerships were formed to foster innovation and market expansion. Companies are also increasing their production capacities, with 20 new manufacturing facilities established globally in 2023, ensuring they meet the rising demand and continue to drive the sector forward.
Key Findings in Asia Pacific Industrial Engines Market
| Market Forecast (2032) | US$ 55.1 Billion |
| CAGR | 5.7% |
| By Fuel Type | Disel (60.9%) |
| By Engine Type | 50-500HP (43.8%) |
| By Cooling | Water Cooled (77.6%) |
| By Operation | 4 Stroke (61.6%) |
| By Distribution | OEMs (66.4%) |
| By End Use | Power Generation (18.8%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Diesel Engines are the Unrivaled Powerhouse Fueling Industrial engines market Growth, Controls Over 60.9% Stake
Diesel engines have emerged as the predominant choice for industrial applications over gasoline and natural gas due to their superior efficiency, durability, and cost-effectiveness. Several factors contribute to this dominance. Diesel engines are renowned for their fuel efficiency, offering significant cost savings in industries where fuel consumption is high. Diesel fuel also has a higher energy density, providing more power output per liter compared to gasoline and natural gas. This results in more robust performance and longer operational periods for industrial machinery. Additionally, diesel engines are known for their longevity and lower maintenance requirements, often outlasting gasoline engines by several years. The reliability of diesel engines in harsh working conditions makes them the preferred choice in sectors like construction, mining, and transportation.
Key factors behind the growth in demand and popularity of diesel engines in the Asia Pacific industrial engines market include advancements in technology and global economic trends. The advent of cleaner and more efficient diesel technologies, such as common rail direct injection (CRDI) and turbocharging, has significantly reduced emissions while enhancing performance. In 2023, over 1.5 million new industrial engines incorporated advanced diesel technology (International Energy Agency, 2023). Furthermore, the global industrial engines market is experiencing robust growth, driven by increasing infrastructure development and manufacturing activities. Diesel's dominance is also bolstered by its extensive global supply chain and distribution network, ensuring widespread availability and stable pricing. In 2023, global diesel consumption reached 1.8 billion barrels (BP Statistical Review, 2023). The diesel engine market saw sales of over $15,018 million in 2023 alone. The U.S. Department of Energy reported that diesel engines power more than 90% of the world's construction and mining equipment, and over 75% of all heavy-duty trucks. With 15 million industrial diesel engines in operation globally (Diesel Technology Forum, 2023), diesel continues to play a critical role in powering global industry. Additionally, the demand for diesel engines in agricultural machinery reached 8 million units in 2023 (Agriculture Equipment Market Report, 2023). These factors collectively enable diesel to maintain its stronghold in the industrial engines market, reflecting its critical role in powering global industry.
Industrial Engines in the Power Output of 50-500HP Keeping the Market Moving Forward with Revenue Share of Over 43.8%
The industrial engines with power output between 50 and 500 horsepower (HP) have emerged as a dominant force in their category across Asia Pacific region due to their unparalleled versatility and efficiency. These engines cater to a broad spectrum of applications, ranging from agriculture and construction to mining and marine industries. As of 2023, the demand for these engines has surged due to their optimal balance between power and fuel efficiency, making them ideal for medium-sized tasks that require robust performance without the excessive bulk and expense of larger engines. The adaptability of 50-500HP engines allows them to be utilized in various machinery, including tractors, excavators, and pumps, thus driving their popularity. For instance, over 800,000 units were utilized globally in the construction sector alone, underscoring their critical role in infrastructure development. Moreover, the agricultural sector reported the deployment of 650,000 units to enhance productivity and operational efficiency in the Asia Pacific industrial engines market.
Key factors behind the growth in demand include advancements in engine technology, which have significantly improved fuel efficiency and reduced emissions, meeting stringent environmental regulations. This range of engines also offers a lower total cost of ownership, making them a cost-effective solution for businesses seeking reliable power sources without incurring high operational costs. The global market for 50-500HP engines saw a sales increase, with over 1.2 million units sold in the last fiscal year, primarily driven by the booming construction and agricultural sectors. The mining industry also contributed to this growth, with 300,000 units deployed to support mineral extraction operations. In the marine sector, these engines powered 400,000 vessels, highlighting their importance in commercial and recreational boating. Furthermore, the demand for backup power solutions saw 200,000 units being integrated into emergency power systems, ensuring operational continuity during outages. This multifaceted application range underscores the unparalleled dominance and sustained growth of industrial engines within the 50-500HP category.
China to Remain the Leader in Asia Pacific Industrial engines market, Controls Over 27.9% Revenue Stake
China's status as the leading consumer of industrial engines in the Asia Pacific region is underpinned by its massive industrial base and relentless drive towards modernization and infrastructure development. In 2023, China's industrial output reached a staggering $5.5 trillion, demonstrating the nation's unparalleled production capacity. The country's industrial sector is bolstered by significant investments in technology and infrastructure, with an impressive $1.2 trillion allocated to manufacturing advancements and $900 billion towards infrastructure projects. Additionally, China produced 30 million motor vehicles, including industrial machinery, and generated 1.1 billion tons of steel, reflecting its dominance in heavy industries across the Asia Pacific industrial engines market.
The key end-user industries driving the demand for industrial engines in China include automotive manufacturing, construction, and energy. The automotive sector, producing 25 million cars and 5 million commercial vehicles annually, heavily relies on industrial engines for assembly lines and manufacturing processes. Construction, fueled by $800 billion in new projects, demands robust machinery, while the energy sector, which saw the installation of 50 gigawatts of new power capacity, requires reliable engines for power generation and distribution. Furthermore, China’s shipbuilding industry, which launched 23 million gross tons of ships in 2023, is another significant consumer of industrial engines.
Several factors contribute to China's dominance in industrial engines market consumption. The nation's vast population of 1.4 billion supports a large labor force and consumer market, driving industrial growth. Strategic government policies, such as the Made in China 2025 initiative, aim to upgrade manufacturing capabilities and reduce reliance on imports, fostering domestic engine production. Additionally, China's Belt and Road Initiative, with $4 trillion in investments, expands infrastructure globally, increasing demand for industrial engines. The continuous urbanization, with 60 million people moving to cities annually, further spurs construction and manufacturing activities, reinforcing China's leadership in industrial engine consumption.
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Top 4 Players Control over 52% Market Share, Cummins Takes the Charge with Over 15% Market Share
The industrial engines market is dominated by a few key players, including Cummins, Hyundai, CNH Industrial, and Ingersoll Rand, which collectively accounted for over 52% of the market share in 2023. Cummins, holding the largest share at 15.4%, has established itself as a global leader in power solutions, offering a diverse range of products from diesel and natural gas engines to electrified power systems and hydrogen production technologies. Cummins' extensive network of over 600 company-owned and independent distributors, along with approximately 7,200 dealers in 190 countries, underscores its significant market presence and ability to meet diverse customer needs. Despite facing legal challenges, such as the $1.675 billion fine for Clean Air Act violations, Cummins continues to demonstrate robust financial performance, with a notable 9.95% year-on-year revenue increase in the fourth quarter of 2023.
Hyundai, another major player, leverages its strong brand reputation and technological advancements to maintain a competitive edge in the industrial engines market. Hyundai's engines are known for their reliability and efficiency, catering to various industries, including construction, marine, and power generation. The company's strategic focus on innovation and sustainability has enabled it to capture a significant market share. Hyundai's commitment to developing eco-friendly technologies and its investment in research and development have positioned it well to meet the growing demand for cleaner and more efficient power solutions.
CNH Industrial and Ingersoll Rand also play crucial roles in the industrial engine sector. CNH Industrial, with its extensive portfolio of agricultural and construction equipment, benefits from its strong market presence and brand recognition. The company's engines are integral to its machinery, providing reliable power and performance. Ingersoll Rand, known for its industrial equipment and solutions, has a diverse product range that includes engines for various applications. Both companies have capitalized on their established customer bases and global distribution networks to maintain their competitive positions. Their focus on innovation, quality, and customer service continues to drive their success in the Asia Pacific’s industrial engines market.
Key Companies:
- Caterpillar (engines) USA
- Changchai Co., Ltd.
- Chongqing Fuchai Industry Group
- CNH Industrial
- Cummins
- DAIHATSU DIESEL MFG. CO., LTD.
- Fuzhou Launtop M&E Co.,Ltd.,
- Honda Motor Co.Ltd
- Hyundai
- Ingersoll Rand
- JEEMAR POWER CO., LTD
- Kawasaki Heavy Industries, Ltd.
- Kirloskar
- Kohler Co.
- Lifan Power USA
- Loncin Motor Co., Ltd.
- Mitsubishi
- Motorenfabrik Hatz GmbH & Co. KG
- SIEMENS Energy
- Shanghai Diesel Engine Co., Ltd.
- Other prominent players
Market Segmentation Overview:
By Fuel Type
- Weather Based Diesel
- Gasoline
- Natural Gas
By Engine Type
- 50HP-500HP
- 500HP-10,000HP
- Above 10,000HP
By Cooling
- Air Cooled
- Water Cooled
By Operation
- 2 Stroke
- 4 Stroke
By Distribution Channel
- Aftermarkets
- OEMs
By End Use
- Power Generation
- General Manufacturing
- Oil & Gas
- Marine
- Agriculture/Off-road vehicles
- Construction
- Mining & Metallurgy
- Others
By Country
- China
- India
- Japan
- Australia & New Zealand
- South Korea
- ASEAN
- Singapore
- Philippines
- Vietnam
- Indonesia
- Malaysia
- Rest of Asia Pacific
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