Diesel Power Engine Market Report and Forecast 2025-2034

The global diesel power engine market size reached nearly USD 8.75 Billion in 2024. The market is projected to grow at a CAGR of 4.70% between 2025 and 2034 to reach a value of around USD 13.85 Billion by 2034.

Key Trends in the Market

A diesel power engine refers to a kind of internal combustion engine which converts diesel fuel energy into rotatory mechanical energy. Diesel engine design can be based on a two-stroke or four-stroke cycle.

• The growing applications of diesel power engines in various sectors, such as agriculture, marine, mining, and construction, among others, owing to the increasing demand for electricity, are driving the diesel power engine market growth.
• Increasing demand for diesel power engines in the healthcare sector to power life support machines and prepare hospitals against power outages is adding to the market growth. In addition, the rising healthcare expenditure by governments is a key driver of the market.
• Diesel power engine is a crucial power backup solution in data centres. In this regard, the rapid development of data centres across developing countries is one of the key diesel power engine market trends.

Market Segmentation

Diesel Power Engine Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Breakup by Operation

• Standby
• Prime
• Peak Shaving

Breakup by Power Rating

• Below 1 MW
• 1 to 5 MW
• More than 5 MW

Breakup by End Use

• Industrial
• Commercial
• Residential

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Share by Operation

The standby segment accounts for a significant portion of the diesel power engine market share. This can be attributed to the rapid start capability of standby diesel power engines, making them ideal for emergency situations requiring immediate power supply.

The rising applications of diesel power engines across construction sites are also propelling the growth of the segment forward. In addition, rapid urbanisation and the increasing population levels in emerging economies are expected to heighten the adoption of diesel power engines in the forecast period.

Market Share by Region

As per the diesel power engine market analysis, the Asia Pacific is likely to experience a healthy growth. Rapid industrialisation across emerging economies such as India and China, coupled with a strong foothold of local diesel engine manufacturers, is driving the market growth in the region. Rising investments in residential construction projects in various countries, like India, Indonesia, and China, are further escalating the installation of diesel power engines.

Competitive Landscape

The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the global diesel power engine market report, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

Caterpillar Inc.

Caterpillar Inc . is a company which manufactures construction and mining equipment, diesel and natural gas engines, and industrial turbines, among other products. It was founded in 1925 and is headquartered in Texas, the United States.

Cummins Inc.

Cummins Inc. is a multinational corporation which manufactures and sells engines and filtration and power generation products, among others. The company was founded in 1919 and is headquartered in Indiana, the United States.

Kohler Co.

Kohler Co. is a company which manufactures solutions such as diesel engines, industrial generators, and continuous power solutions, among others. It was founded in 1873 and is headquartered in Wisconsin, the United States.

Other diesel power engine market players include AB Volvo, Mitsubishi Heavy Industries, Ltd., Wärtsilä Corporation, KUBOTA Corporation, IHI Corporation, Yanmar Holdings Co., Ltd, and Daihatsu Diesel Mfg.Co.,Ltd., among others.