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.

 Construction Equipment Engines Market   Size

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.

 Construction Equipment Engines Market   Size by Region 2030

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:

Report Features

Description

Market Size (2024-e)

USD 4.8 Billion

Forecasted Value (2030)

USD 10.0 Billion

CAGR (2025 – 2030)

11.0%

Base Year for Estimation

2024-e

Historic Year

2023

Forecast Period

2025 – 2030

Report Coverage

Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments

Segments Covered

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)

Regional Analysis

North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), Middle East & Africa (Saudi Arabia, UAE, Rest of Middle East & Africa)

Major 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.

Customization Scope

Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements

Frequently Asked Questions

The Construction Equipment Engines Market was valued at USD 4.8 Billion in 2024-e and is expected to grow at a CAGR of over 11.0% from 2025 to 2030.

The growth of the construction equipment engines market is driven by rising infrastructure development, technological advancements, and increasing demand for fuel-efficient engines.

Diesel engines are the most widely used in construction equipment due to their high efficiency and power output, making them suitable for heavy-duty operations.

The shift towards electric engines is growing in importance, driven by sustainability concerns, but diesel engines remain dominant due to their proven power and reliability in construction applications.

The Asia Pacific region is witnessing the highest demand for construction equipment engines, driven by rapid urbanization and large-scale infrastructure projects.

1. Introduction

   1.1. Market Definition

   1.2. Scope of the Study

   1.3. Research Assumptions

   1.4. Study Limitations

2. Research Methodology

   2.1. Research Approach

      2.1.1. Top-Down Method

      2.1.2. Bottom-Up Method

      2.1.3. Factor Impact Analysis

  2.2. Insights & Data Collection Process

      2.2.1. Secondary Research

      2.2.2. Primary Research

   2.3. Data Mining Process

      2.3.1. Data Analysis

      2.3.2. Data Validation and Revalidation

      2.3.3. Data Triangulation

3. Executive Summary

   3.1. Major Markets & Segments

   3.2. Highest Growing Regions and Respective Countries

   3.3. Impact of Growth Drivers & Inhibitors

   3.4. Regulatory Overview by Country

4. Construction Equipment Engines Market, by Product Type (Market Size & Forecast: USD Million, 2023 – 2030)

   4.1. Diesel Engines

   4.2. Gasoline Engines

   4.3. Hybrid Engines

   4.4. Electric Engines

5. Construction Equipment Engines Market, by Engine Capacity (Market Size & Forecast: USD Million, 2023 – 2030)

   5.1. Below 100 HP

   5.2. 100 HP – 250 HP

   5.3. 250 HP – 400 HP

   5.4. Above 400 HP

6. Construction Equipment Engines Market, by Application (Market Size & Forecast: USD Million, 2023 – 2030)

   6.1. Excavators

   6.2. Bulldozers

   6.3. Cranes

   6.4. Loaders

   6.5. Backhoes

   6.6. Dump Trucks

7. Construction Equipment Engines Market, by End-User Industry (Market Size & Forecast: USD Million, 2023 – 2030)

   7.1. Construction

   7.2. Mining

   7.3. Oil & Gas

   7.4. Agriculture

   7.5. Forestry

8. Construction Equipment Engines Market, by Fuel Type (Market Size & Forecast: USD Million, 2023 – 2030)

   8.1. Diesel

   8.2. Gasoline

   8.3. Natural Gas

   8.4. Electric

9. Regional Analysis (Market Size & Forecast: USD Million, 2023 – 2030)

   9.1. Regional Overview

   9.2. North America

      9.2.1. Regional Trends & Growth Drivers

      9.2.2. Barriers & Challenges

      9.2.3. Opportunities

      9.2.4. Factor Impact Analysis

      9.2.5. Technology Trends

      9.2.6. North America Construction Equipment Engines Market, by Product Type

      9.2.7. North America Construction Equipment Engines Market, by Engine Capacity

      9.2.8. North America Construction Equipment Engines Market, by Application

      9.2.9. North America Construction Equipment Engines Market, by End-User Industry

      9.2.10. North America Construction Equipment Engines Market, by Fuel Type

      9.2.11. By Country

         9.2.11.1. US

               9.2.11.1.1. US Construction Equipment Engines Market, by Product Type

               9.2.11.1.2. US Construction Equipment Engines Market, by Engine Capacity

               9.2.11.1.3. US Construction Equipment Engines Market, by Application

               9.2.11.1.4. US Construction Equipment Engines Market, by End-User Industry

               9.2.11.1.5. US Construction Equipment Engines Market, by Fuel Type

         9.2.11.2. Canada

         9.2.11.3. Mexico

    *Similar segmentation will be provided for each region and country

   9.3. Europe

   9.4. Asia-Pacific

   9.5. Latin America

   9.6. Middle East & Africa

10. Competitive Landscape

   10.1. Overview of the Key Players

   10.2. Competitive Ecosystem

      10.2.1. Level of Fragmentation

      10.2.2. Market Consolidation

      10.2.3. Product Innovation

   10.3. Company Share Analysis

   10.4. Company Benchmarking Matrix

      10.4.1. Strategic Overview

      10.4.2. Product Innovations

   10.5. Start-up Ecosystem

   10.6. Strategic Competitive Insights/ Customer Imperatives

   10.7. ESG Matrix/ Sustainability Matrix

   10.8. Manufacturing Network

      10.8.1. Locations

      10.8.2. Supply Chain and Logistics

      10.8.3. Product Flexibility/Customization

      10.8.4. Digital Transformation and Connectivity

      10.8.5. Environmental and Regulatory Compliance

   10.9. Technology Readiness Level Matrix

   10.10. Technology Maturity Curve

   10.11. Buying Criteria

11. Company Profiles

   11.1. Caterpillar Inc.

      11.1.1. Company Overview

      11.1.2. Company Financials

      11.1.3. Product/Service Portfolio

      11.1.4. Recent Developments

      11.1.5. IMR Analysis

    *Similar information will be provided for other companies 

   11.2. Cummins Inc.

   11.3. Perkins Engines Company Limited

   11.4. Volvo Penta

   11.5. Yanmar Co., Ltd.

   11.6. MTU Friedrichshafen

   11.7. Kubota Corporation

   11.8. Scania AB

   11.9. Deutz AG

   11.10. Isuzu Motors Ltd.

   11.11. Mitsubishi Heavy Industries Engine & Turbocharger Ltd.

   11.12. Honda Motor Co., Ltd.

   11.13. John Deere

   11.14. Hino Motors, Ltd.

   11.15. Kohler Co.

12. Appendix

 

A comprehensive market research approach was employed to gather and analyze data on the Construction Equipment Engines Market . In the process, the analysis was also done to analyze the parent market and relevant adjacencies to measure the impact of them on the Construction Equipment Engines Market . The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.

Research Approach -

Secondary Research

Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.

Primary Research

Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the E-Waste Management ecosystem. The primary research objectives included:

  • Validating findings and assumptions derived from secondary research
  • Gathering qualitative and quantitative data on market trends, drivers, and challenges
  • Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
  • Assessing the supply-side landscape, including technological advancements and recent developments

Market Size Assessment

A combination of top-down and bottom-up approaches was utilized to analyze the overall size of the Construction Equipment Engines Market . These methods were also employed to assess the size of various subsegments within the market. The market size assessment methodology encompassed the following steps:

  1. Identification of key industry players and relevant revenues through extensive secondary research
  2. Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
  3. Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources

Bottom Up and Top Down -

Data Triangulation

To ensure the accuracy and reliability of the market size, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size assessment.

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