Europe Industrial Engine Market Overview 2025

Europe Industrial Engine Market Was Valued at USD 7.69 Billion in 2024 and is Expected to Reach USD 10.15 Billion by the End of 2033, Growing at a CAGR of 2.91% Between 2025 and 2033.- Bossonresearch.com

Industrial engines, also known as industrial-grade engines, are internal combustion engines specifically designed and built for industrial applications. These engines are used to power a wide range of equipment and machinery in industrial settings, providing reliable and efficient performance for various tasks. They are essential components in machinery and equipment used in agriculture, construction, power generation, mining, oil and gas, rail and transportation, and other industries.

In 2024, the Europe Industrial Engines Market is valued at USD 7.69 billion, driven by a resurgence in infrastructure development, modernization of agricultural equipment, and regulatory compliance upgrades. The market is projected to grow at a compound annual growth rate (CAGR) of 2.91% from 2024 to 2033, reaching nearly USD 10.15 billion by the end of the forecast period. In addition to regulatory pressures such as the enforcement of EU Stage V emission norms, several structural forces are driving this market forward. Firstly, investment in electrification and hybrid machinery is encouraging OEMs to redesign engine platforms, stimulating engine replacement and retrofit markets. At the same time, demand from the power generation sector, especially for backup and peak-load engines, continues to grow due to energy security concerns. Moreover, automation and precision farming trends are catalyzing engine upgrades in agriculture, particularly in high-horsepower segments. Across all sectors, digital transformation is pushing for engines with built-in diagnostics, telematics, and performance monitoring.

The development of the industrial engines market in Europe is shaped by several interrelated trends. First, there is a marked shift toward low-emission and hybrid engines, as manufacturers respond to both regulatory constraints and corporate sustainability goals. For example, leading players such as Deutz and Volvo Penta are actively integrating electric or gas-hybrid modules into traditional diesel platforms to future-proof their offerings. Second, fuel diversification is becoming more prominent. Besides diesel, stakeholders are increasing their investments in natural gas, hydrogen-ready engines, and renewable fuels like HVO (Hydrotreated Vegetable Oil), thereby reducing dependency on traditional hydrocarbons. Third, digitalization of engine management is accelerating. Advanced control units, remote performance tracking, and predictive maintenance systems are becoming standard features, improving both uptime and operational efficiency. Additionally, modular and compact engine designs are gaining popularity due to space constraints in mobile equipment and the demand for multipurpose usage. Finally, regional expansion into Eastern Europe and the Balkans presents new growth opportunities, as these countries accelerate industrial development and upgrade aging fleets to meet EU standards. Together, these trends underline the market's evolution from a commodity engine supply sector to a dynamic, technology-intensive industry aligned with Europe's climate and productivity objectives.

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Europe Industrial Engine Market: Competitive Landscape

Based on estimates, the European industrial engine manufacturers market maintains a moderate concentration. The top five players-Deutz, Caterpillar, Cummins, Volvo Penta, and Kubota-hold over half the market, accounting for 54.55% in 2024, with a slight decrease to an estimated 51.33% in 2025. From 2023 to 2025, although leading manufacturers continue to dominate, market concentration shows a modest decline, reflecting gradual competitive diversification.
Key players in the Industrial Engine Market include:

Deutz

Caterpillar

Cummins

Volvo Penta

Kubota

John-Deere

Kohler Energy

Rolls-Royce Power Systems AG (MTU)

Hatz Diesel

FTP Industrial

Yanmar

MAN Energy Solutions

Isuzu

Scania AB

Toyota Industries

Mitsubishi Heavy Industries, Ltd.

Liebherr Group

Weichai Power

Power Solutions International (PSI)

JCB Power Systems

Others



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Bosson Research provides one-stop solution right from data collection to investment advice. The analysts at Bosson Research (BSR) dig out factors that help clients understand the significance and impact of market dynamics. Bosson Research (BSR) bring together the deepest intelligence across the widest set of capital-intensive industries and markets. By connecting data across variables, our analysts and industry specialists present our customers with a richer, highly integrated view of their world.

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About US:

Bosson Research (BSR) is a leading market research and consulting company, provides market intelligence, advisory service and market research reports for the automobile, electronics and semiconductor, and consumer good industry. The company assists its clients to strategize business policies and achieve sustainable growth in their respective market domain.

Bosson Research provides one-stop solution right from data collection to investment advice. The analysts at Bosson Research (BSR) dig out factors that help clients understand the significance and impact of market dynamics. Bosson Research (BSR) bring together the deepest intelligence across the widest set of capital-intensive industries and markets. By connecting data across variables, our analysts and industry specialists present our customers with a richer, highly integrated view of their world.

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