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United States Off-Highway Vehicle Engine Industry Forecast 2025 | Industrial Growth Analysis - Top 5 Companies are Kubota Corporation, MTU Friedrichshafen GmbH, Scania AB, Volvo CE, Weichai Power Co. Ltd
Off-Highway Vehicle Engine Industry
Japan: The Japan off-highway vehicle engine market is estimated at about USD 1.35 billion in 2024 and could reach roughly USD 2.01 billion by 2032, representing a CAGR of 5.2% (2024-2032).
DataM Intelligence has published a new research report on "off-Highway Vehicle Engine Market Size 2025". The report explores comprehensive and insightful Information about various key factors like Regional Growth, Segmentation, CAGR, Business Revenue Status of Top Key Players and Drivers. The purpose of this report is to provide a telescopic view of the current market size by value and volume, opportunities, and development status.
United States: Recent Industry Developments
✅ October 2025: Caterpillar unveiled a new generation of low-emission off-highway engines designed to meet Tier 5 regulatory standards.
✅ September 2025: Cummins introduced hydrogen internal combustion engines for construction and agricultural machinery applications.
✅ August 2025: John Deere expanded its hybrid engine lineup for off-highway vehicles, enhancing fuel efficiency and reducing carbon output.
Japan: Recent Industry Developments
✅ October 2025: Kubota developed next-gen diesel engines integrating AI-based monitoring for predictive maintenance in heavy machinery.
✅ September 2025: Yanmar launched hybrid powertrain systems for off-highway equipment to comply with Japan's new emission norms.
✅ August 2025: Mitsubishi Heavy Industries partnered with local OEMs to advance hydrogen-ready engines for industrial and construction vehicles.
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Latest M&A
Allison Transmission Holdings announced a definitive agreement in mid-2025 to acquire the Off-Highway business of Dana Incorporated for approximately $2.7 billion, expanding its drivetrain and propulsion solution portfolio in construction and agriculture sectors.
Private equity and strategic investors actively pursue acquisitions and partnerships with companies innovating in hybrid and electric powertrains for off-highway applications to meet tightening emission regulations.
Collaborations include investments in advanced telematics and engine control systems to improve efficiency and performance in heavy-duty off-road equipment.
Top Industry Players:
Caterpillar Inc., Cummins Inc., Deere & Company, Deutz AG, Kubota Corporation, MTU Friedrichshafen GmbH, Scania AB, Volvo CE, Weichai Power Co. Ltd., Yanmar Co. Ltd.
Key Industry Sector Development:
✅ CNH Industrial has begun production of a 2.8-litre engine (F28) at its Greater Noida facility in India, compliant with upcoming TREM V/CEV V emission norms - reinforcing localisation and emissions strategy in a key growth region.
✅ Komatsu Ltd. is conducting proof-of-concept testing of a 12-cylinder hydrogen internal-combustion engine in its HD785 dump truck in partnership with KEYOU GmbH, marking a significant pivot toward hydrogen-fuelled powertrains for heavy off-highway applications.
✅ JCB has received certification in multiple European countries for its fully hydrogen-powered off-highway combustion engine, signaling commercial viability of zero-emission internal-combustion solutions in construction and agricultural machines
Growth Forecast Projected:
The Global off-Highway Vehicle Engine Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
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Key Segments:
By Power Output: (Construction & Mining Equipment Engines (400 HP Engines), Agriculture Tractor Engines Market (140 HP Engines))
By Fuel Type: (Gasoline, Diesel, Others)
Regional Analysis for Market:
⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)
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Recent Product Launches
Cummins introduced a new fuel-agnostic engine series capable of running on diesel, biodiesel, and hydrogen blends delivering 24% better performance across five models ranging 75-300 hp.
John Deere unveiled several new hybrid-electric engine models in 2024-25 that reduce diesel consumption by over 20% in real-world tests across agriculture and construction machinery.
Yanmar launched a compact electrification unit targeting zero-emission solutions for compact off-highway vehicles, enhancing sustainability in farm and construction equipment.
Dumarey debuted its hydrogen V8 6.6L engine designed for heavy-duty construction equipment, buses, and rail applications, focusing on clean power and durability.
Advanced engine control software supporting off-highway vehicles continues to evolve with enhanced flexibility and real-time data processing gaining traction.
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