Off Highway Vehicle Engine Market Expected to Reach USD 66.21 Billion by 2030; Strong Growth Driven by Infrastructure & Mechanisation Trends - Mordor intelligence

Introduction

The Off Highway Vehicle Engine Market size is estimated at USD 47.94 billion in 2025, and is expected to reach USD 66.21 billion by 2030, at a CAGR of 6.65% during the forecast period (2025-2030). Rising demand across construction, agriculture and mining equipment is driving the engine market size, as machine-owners look to replace or upgrade power units to meet stronger performance and compliance requirements. This growth reflects a convergence of macro-factors rising infrastructure spending, increased mechanisation of farms, and stricter emissions standards each influencing the off highway vehicle engine market analysis at its core.

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Key Market Trends

Infrastructure-led engine demand: A major driver in the off highway vehicle engine market is the surge in global infrastructure programmes. Government-backed spending on roads, bridges and transit systems across emerging and developed economies is generating strong demand for construction-equipment engines. This, in turn, supports growth in engine manufacturing and replacement cycles.

Mechanisation of agriculture: The off-highway vehicle engine market size is also increasing thanks to accelerating mechanisation in the agriculture sector, especially in Asia-Pacific and Sub-Saharan Africa. As farms adopt more tractors and implement mechanised harvesting, demand for specialised off-road engines rises.

Dominance of diesel, but rising alternatives: In the off highway vehicle engine market share by fuel type, diesel continues to dominate (over 89% in recent years) because of its high torque and established infrastructure. At the same time, hybrid-electric and fuel-cell engines are emerging, signalling the start of a transition in the off highway vehicle engine market.

Regulation and emissions focus: Stricter rules (such as Stage V in Europe and Tier 5 in North America) play a key role in shaping the off highway vehicle engine market analysis. Engine makers must integrate emissions-control systems, increase efficiency and adapt fuel compatibility (e.g., renewable diesel).

Regional variation and growth pockets: The off highway vehicle engine market growth differs by region Asia-Pacific is the largest in revenue and Europe is among the fastest-growing, as identified in recent research.

Mid-range engine power segment growing strongly: In terms of power output, the 31-70 HP segment is the largest in the off highway vehicle engine market share and is growing at one of the highest rates, driven by compact equipment used in urban and agricultural settings.

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Market Segmentation

By Vehicle Type
-Agricultural Machinery
-Construction Equipment
-Mining Equipment
-Forestry & Material-Handling Equipment

By Power Output (HP)
-Less than or equal to 30 HP
-31-70 HP
-71-120 HP
-121-400 HP
-More than 400 HP

By Fuel Type
-Diesel
-Gasoline
-Natural-/Bio-Gas
-Hybrid-Electric & Fuel-Cell

By Engine Displacement (L)
-Less than or equal 2 L
-1 to 3.5 L
-3.6 to 7 L
-More than 7 L

By Propulsion Technology
-Conventional ICE
-Hybrid
-Battery-Electric
-Fuel-Cell Electric

By Geography
-North America
-South America
-Europe
-Asia pacific
-Middle east&Africa

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Key Players

Cummins Inc.
Caterpillar Inc.
Deere & Company
Weichai Power Co.
Komatsu Ltd

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Conclusion

The market for off highway vehicle engines is in a phase of meaningful expansion, underpinned by infrastructure growth, agricultural mechanisation, emissions regulation and evolving fuel technologies. With the market size projected to climb from ~USD 47.94 billion in 2025 to about USD 66.21 billion by 2030, the off highway vehicle engine market size and off highway vehicle engine market share outlook highlight compelling opportunities ahead.

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