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Manufacturing Strategy in China to Pave the Way for Small Engine Market Growth

Manufacturing Strategy in China to Pave the Way for Small Engine

Product Development & Innovation, Coupled with Increasing Sales of Single-Family Houses in the U.S., is Expected to Drive the Adoption of Small Engines

Report Synopsis

The report on the small engine market covers comprehensive information about market trends, volume (‘000 Units) and value (US$ Mn) projections, market dynamics, recent developments, and competition landscape regarding the global small engine market for the study period 2018 to 2026.

The global small engine market is expected to reach over US$ 5,628.2 Mn by the end of the forecast period, observing a value CAGR of 4.0%. Moreover, according to PMR volume analysis, the global small engine market is estimated to reach 15,513.1 Thousand Units by 2018 end and is anticipated to reach 21,446.9 thousand units by 2026, exhibiting a CAGR of 4.1% over the forecast period

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Reliability and Improved Efficiency of Small Engines

Product development and innovations are an indispensable trend in the small engine market. With the dominance of few players in the small engine market, other manufacturers, chiefly in China, are poised to develop small engines with better productivity and fuel-efficiency. Government regulations pertaining to the toxic emissions generated by small engines are also compelling manufacturers to improve the efficiency of small engines as per guidelines.

Further, changing weather conditions create a negative impact on the small engine market for gardening and landscaping. A lengthy run of winter weather in the U.S. with bouts of snow retards flowering and thus, hinders the purchase of gardening equipment and subsequently, small engines. Additionally, the trend in the small engine market associated with creating and maintaining the garden areas of sports grounds require increasingly superior quality small engines.

Increasing Sales of Single-Family Houses in the U.S. – A Primary Growth Driver

One additional factor contributing to the increasing sales of small engines is the increase in the sales of new single-family homes year on year since 2010, according to the U.S. Census Bureau. More new homes translate into an increase in the demand for small engines and lawn care equipment. Furthermore, even without a real estate boom, prevailing attitudes and trends indicate that the demand for small engines is likely continue to grow for years to come. Substantial opportunities are poised for businesses in the small engine market over the coming period of time.

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Moving ahead, with increasing urbanization, consumers will be progressively ready to spend their expendable earnings on recreational activities such as golf and landscaping services, which in turn is expected to benefit the sales of small engines in commercial and residential applications. According to the U.S. government regulations, community garden plots are also considered as an important part of society and thus, the use of these gardening tools favors the small engine market growth.

Small Engines with Engine Displacement 101 – 300 CC to Witness Notable Adoption Rate and Growth

With the prominence of small engines in gardening equipment, a wide range of small equipment use small engines with engine displacement ranging between 101 and 300 CC. Subsequently, the ever-growing demand for such equipment is surging the demand for small engines. In an analysis, the 101-300 CC small engines segment is assessed to observe a notable growth rate of 5.4%, mainly driven by the robust demand in North America.

Manufacturing Strategy in China to Pave the Way for Small Engine Market Growth

The high popularity of small engines, specifically in industrial applications, is foreseen to encourage the demand for small engines. Importantly, high growth rates in the demand for portable lighting have also been adding to the increase in small engine revenue. New players are marking their footprints across the globe by offering cheaper small engines, which is likely to impact the profitability of established players such as Briggs and Stratton, Kawasaki and Honda.

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Small Engine Market – Competitive Landscape

The global small engine market is highly consolidated where prominent players contribute a significant share in the global small engine market. The presence of a large number of players is intensifying competition at a country level in the global market. Moreover, budding players in the China small engine market are increasing, posing a significant challenge for the established players. Acquisitions, expansion of manufacturing facilities and product innovations in prominent regions such as ASEAN and China are some of the key assessed strategies opted by prominent stakeholders to sustain in the global small engine market.

In the past few years, significant developments from a competitive perspective have been witnessed in the small engine market. Prominent players covered in the small engine market report include Briggs & Stratton Corporation, Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., Jeemar Power Co., Ltd., Chongqing Fuchai Industry Group, Changchai Co., Ltd., Kohler Co., Kohler Co., Kubota Engine America Corporation, Loncin Motor Co., Ltd. and Generac Power Systems, Inc.

Persistence Market Research (PMR) is a third-platform research firm. Our research model is a unique collaboration of data analytics and market research methodology to help businesses achieve optimal performance. To support companies in overcoming complex business challenges, we follow a multi-disciplinary approach. At PMR, we unite various data streams from multi-dimensional sources. By deploying real-time data collection, big data, and customer experience analytics, we deliver business intelligence for organizations of all sizes.

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