Construction Equipment Engines Market by Product Type (Diesel Engines, Gasoline Engines, Hybrid Engines, Electric Engines), Engine Capacity (Below 100 HP, 100 HP – 250 HP, 250 HP – 400 HP, Above 400 HP), Application (Excavators, Bulldozers, Cranes, Loaders, Backhoes, Dump Trucks), End-User Industry (Construction, Mining, Oil & Gas, Agriculture, Forestry), and Fuel Type (Diesel, Gasoline, Natural Gas, Electric), Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Construction Equipment Engines Market was valued at USD 4.8 Billion in 2024-e and will surpass USD 10.0 Billion by 2030; growing at a CAGR of 11.0% during 2025-2030.

The construction equipment engines market is witnessing significant advancements driven by technological innovation and an ever-increasing demand for efficient, reliable, and environmentally friendly machinery. With industries such as construction, mining, and agriculture booming globally, the need for high-performance engines is surging. The rise in infrastructure development and mechanization has boosted demand for specialized engines tailored to meet specific industry needs. The market is being shaped by a shift toward hybrid and electric engines, as companies aim to reduce emissions and improve fuel efficiency. Diesel engines continue to dominate due to their high power output, but the growing emphasis on sustainability is pushing the market toward diversified fuel types.

Diesel Engines Segment is Largest Owing to High Power Output and Reliability

Diesel engines continue to lead the market in terms of market share due to their power, durability, and cost-effectiveness. These engines are widely used in heavy machinery such as excavators, bulldozers, and cranes, which require substantial power to operate efficiently. Diesel engines' ability to handle high loads and their proven reliability in harsh environments make them the go-to choice for industries such as construction, mining, and oil & gas. The lower operational cost of diesel engines compared to gasoline or electric engines further solidifies their dominance in the market.

Despite the rise of hybrid and electric engines, diesel remains the preferred fuel type for construction equipment engines. The robust infrastructure for diesel fuel availability and the cost-effective nature of diesel engines for heavy-duty applications ensure their sustained dominance. Diesel engines are expected to continue leading the market in the foreseeable future, though they may face competition from emerging technologies focused on sustainability and emissions reduction.

Engine Capacity Segment Above 400 HP is Fastest Growing Due to Increased Machinery Demand

The engine capacity segment of engines above 400 HP is experiencing rapid growth, driven by the increasing demand for high-performance construction machinery. These engines are used in large-scale equipment such as mining trucks, heavy-duty bulldozers, and industrial cranes, which require a substantial power output for efficient operations. With the growing trend of mechanization in construction and mining, equipment with engines above 400 HP is becoming indispensable for large infrastructure projects and mining operations.

The shift towards engines with higher capacities is also being driven by the need for faster and more efficient project completion. These engines provide superior power for heavy lifting, material transport, and other critical operations. As construction projects expand in scale and complexity, the demand for engines in the above-400 HP range will continue to grow, positioning this segment as a key driver of market expansion.

Excavators Segment is Largest in Application Due to Versatility and Demand for Earthworks

Excavators remain the largest application segment within the construction equipment engines market. Excavators are used extensively in construction and mining for earthworks, trenching, and material handling, making them essential to many infrastructure and excavation projects. The demand for excavators is driven by their versatility and critical role in large-scale projects, such as road construction, building foundations, and land development. Their ability to perform various tasks with ease, including digging, lifting, and grading, has cemented their status as a key piece of construction equipment.

Additionally, excavators are now being equipped with advanced engines to improve fuel efficiency, reduce emissions, and enhance overall performance. The shift toward electric and hybrid engines for excavators, especially in urban construction projects, is also contributing to their growing presence in the market. As infrastructure projects become more complex and require greater machinery efficiency, excavators with advanced engines will continue to dominate the application segment.

Construction Industry is Largest End-User Industry Due to Continuous Infrastructure Development

The construction industry is the largest end-user of construction equipment engines, owing to the ongoing global infrastructure boom. The need for new residential, commercial, and industrial buildings, along with the development of roads, bridges, and other public utilities, is driving the demand for heavy machinery. Excavators, bulldozers, and cranes powered by robust engines are essential for completing large-scale construction projects within time and budget constraints. As construction companies increasingly rely on mechanization to meet project deadlines, the market for construction equipment engines is expected to remain strong in this segment.

Construction projects are also becoming more technologically advanced, with an increasing focus on automation and precision. This is pushing manufacturers to develop engines that offer enhanced performance and lower environmental impact. The construction industry’s need for versatile and powerful machinery will continue to drive the demand for construction equipment engines, solidifying its position as the largest end-user sector.

Diesel Fuel Segment is Largest Due to Cost-Effectiveness and Global Availability

Diesel remains the dominant fuel type in the construction equipment engines market. Diesel engines are widely regarded for their high fuel efficiency and ability to produce high torque, making them ideal for heavy-duty construction and mining operations. Diesel-powered engines also provide better performance under load, which is a crucial factor in large-scale machinery used in construction. Additionally, diesel is widely available and more cost-effective than gasoline, making it a preferred choice for construction equipment in many parts of the world.

The infrastructure to support diesel engines is well-established globally, which further drives the preference for diesel-powered equipment. As governments increasingly introduce stringent emissions regulations, the focus is shifting to cleaner and more efficient diesel engines. However, the growing trend toward hybrid and electric engines is gradually reshaping the fuel type dynamics, though diesel is expected to maintain its lead in the construction equipment engines market for the foreseeable future.

Asia Pacific is the Fastest Growing Region Due to Rapid Industrialization

The Asia Pacific region is the fastest-growing market for construction equipment engines. The rapid pace of industrialization, urbanization, and infrastructure development in countries like China, India, and Japan is driving the demand for construction machinery powered by high-performance engines. The region’s large-scale infrastructure projects, such as smart cities, transportation networks, and commercial developments, are major contributors to this growth. Additionally, the expansion of the mining and oil & gas sectors in the region further fuels the need for robust construction equipment engines.

As the region continues to grow economically, there will be a corresponding increase in the demand for construction equipment powered by advanced engines. This growth is being supported by investments in technological advancements in engine efficiency and emission control, which align with the region’s increasing focus on sustainability and environmental regulations. The Asia Pacific market is poised to remain the fastest growing in the coming years, with China and India leading the way in terms of demand.

Leading Companies and Competitive Landscape

The construction equipment engines market is highly competitive, with key players such as Caterpillar Inc., Cummins Inc., Perkins Engines, and Volvo Penta dominating the space. These companies are focusing on developing more fuel-efficient and environmentally friendly engines to meet the evolving demands of the construction industry. Innovation in hybrid and electric engines is also a key strategy for companies looking to expand their market share and cater to the growing demand for sustainable machinery.

In addition to technological advancements, strategic partnerships and acquisitions are driving growth in the market. Companies are increasingly collaborating with OEMs (Original Equipment Manufacturers) and end-users to deliver tailored solutions. The competitive landscape is characterized by constant research and development, aimed at enhancing engine performance, reducing emissions, and increasing fuel efficiency to meet regulatory requirements.

List of Leading Companies:

• Caterpillar Inc.
• Cummins Inc.
• Perkins Engines Company Limited
• Volvo Penta
• Yanmar Co., Ltd.
• MTU Friedrichshafen
• Kubota Corporation
• Scania AB
• Deutz AG
• Isuzu Motors Ltd.
• Mitsubishi Heavy Industries Engine & Turbocharger Ltd.
• Honda Motor Co., Ltd.
• John Deere
• Hino Motors, Ltd.
• Kohler Co.

Recent Developments:

• Cummins Inc. announced the launch of its new hybrid engine technology for construction machinery, which aims to reduce fuel consumption and CO2 emissions.
• Caterpillar Inc. entered a partnership with a leading battery supplier to accelerate the development of electric-powered construction equipment engines.
• Volvo Penta unveiled its next-generation hybrid engines for excavators, offering improved fuel efficiency and reduced carbon footprint for construction companies.
• Deutz AG introduced a new line of high-efficiency diesel engines designed specifically for use in construction vehicles, enhancing performance and reliability.
• Kubota Corporation signed an agreement to acquire a prominent electric engine technology firm to strengthen its position in the growing electric construction equipment market.

Report Scope: