As per MRFR analysis, the India Diesel Engines Market Size was estimated at 18.3 (USD Billion) in 2023.The India Diesel Engines Market Industry is expected to grow from 19.76(USD Billion) in 2024 to 37.21 (USD Billion) by 2035. The India Diesel Engines Market CAGR (growth rate) is expected to be around 5.923% during the forecast period (2025 - 2035).
Several important market factors have a big effect on the India Diesel Engines Market. More and more people use diesel engines for farming, transportation, and construction, which is pushing manufacturers to produce new ideas and make engines work better. The government's emphasis on building infrastructure, especially via programs like "Make in India," is what is fuelling growth.
Also, more people are learning about how fuel-efficient and cost-effective diesel engines are, which is leading to their use in more places, such as in commercial vehicles and for power production. The India Diesel Engines Market has much potential since more and more industries are being automated and mechanized.
This change is forcing industries like agriculture to switch out old machines for new diesel engines, which will make them more productive and efficient. Also, the growing e-commerce and logistics industries are increasing the need for freight transport trucks, which use diesel engines.
The Indian government's promise to improve infrastructure in rural regions makes it much easier for diesel engines to be used in distant places. There has been a clear trend toward cleaner and more efficient diesel engines lately, thanks to stiffer rules around emissions. The new BS-VI emission rules, which require less nitrogen oxides and particulate matter, are changing how diesel engines are made in India.
In addition, companies are investing in technology that makes gasoline more efficient and has less of an effect on the environment, which is in line with global aspirations for sustainability. Overall, the India Diesel Engines Market is changing quickly, which shows how much the government is focusing on modernizing and making industrial activities more environmentally friendly.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The India Diesel Engines Market Industry is experiencing significant growth driven by the increasing demand for commercial vehicles. The Government of India aims to enhance the logistics and transport sector, which is evident from the National Logistics Policy aiming to reduce logistics costs from 13-14% of GDP to under 10% by 2022. This shift is expected to drive substantial demand for diesel engines, as they are primarily used in heavy-duty vehicles like trucks and buses.
According to the Society of Indian Automobile Manufacturers, the commercial vehicles segment has shown a growth of around 27% in sales over the past financial year, indicating a robust demand for diesel-powered vehicles. As companies like Tata Motors and Mahindra & Mahindra innovate and improve their diesel engine technologies, their contribution to the market growth becomes substantial, reflecting an optimistic outlook for the India Diesel Engines Market.
The rapid infrastructure development initiatives in India are significantly impacting the India Diesel Engines Market Industry. The Government of India has allocated over USD 1.4 trillion investment for infrastructure development as part of the National Infrastructure Pipeline, which includes highways, railways, and airports.
These projects require a vast number of construction and heavy-duty vehicles that rely heavily on diesel engines. Moreover, the Ministry of Road Transport and Highways reports that over 90% of freight movement in India is done via roadways, which predominantly utilizes diesel engines.The expansion of infrastructure projects means an increased need for reliable diesel engines, suggesting a continuous growth trajectory for this market.
Technological advancements in diesel engine design and efficiency are driving growth in the India Diesel Engines Market Industry. Innovations in engine technologies such as fuel injection systems, turbocharging, and electronic controls are improving fuel efficiency and lowering emissions.
The Bureau of Indian Standards has set stringent emission standards, which has prompted manufacturers like Ashok Leyland and Eicher Motors to invest heavily in Research and Development to create cleaner and more efficient engines.The adoption of Euro IV and Bharat Stage VI standards necessitates the development of advanced diesel engines, thus spurring market growth. This shift not only leads to compliance with regulatory requirements but also attracts environmentally-conscious consumers, enhancing the market’s appeal.
Agriculture is a key sector in India, contributing a significant percentage to the country's GDP, and this sector's growth fuels the India Diesel Engines Market Industry. With around 70% of the Indian population involved in agriculture, the demand for diesel engines to power agricultural machinery like tractors and harvesters is on the rise.
According to the Indian Ministry of Agriculture, there was a reported increase in agricultural production over the past few years, leading to greater mechanization of farming practices.Manufacturers are responding to this demand by introducing high-efficiency diesel engines tailored for agricultural use, indicating a viable growth perspective for the market in the agricultural segment specifically. Thus, the correlation between rising agricultural activities and diesel engine demand creates strong potential for market expansion.
Diesel Engines Market Power Rating Insights
The India Diesel Engines Market, particularly within the Power Rating segment, showcases diverse opportunities and key dynamics that reflect the country's industrial growth and energy demands. Power Rating in this market can be broadly categorized into different ranges such as 0.5-1 MW, 1-2 MW, 2-4 MW, and Above 4 MW, each playing a crucial role in various applications across sectors like agriculture, construction, and manufacturing.
The 0.5-1 MW range is particularly significant in agricultural applications, where reliable energy is essential for irrigation and other farming processes, catering to India's vast agricultural landscape. As one moves into the 1-2 MW segment, these engines are often utilized in medium-sized manufacturing setups that require constant energy supply for seamless operations. The consistent demand for this range stems from its balance between power needs and operational efficiency.
The 2-4 MW power rating segment is noteworthy as it primarily services heavy industries including marine, mining, and large-scale manufacturing operations, highlighting its importance in driving high-load operations and ensuring productivity.Going beyond the 4 MW threshold, engines in this category are predominantly employed in large-scale power generation operations, thus playing a pivotal role in supporting India's overall energy infrastructure.
This segment meets the growing energy requirements of cities and industries, facilitating stable power supply and promoting industrial growth in line with national energy policies. The competitive landscape in these segments reflects ongoing advancements in technology, emphasizing greater efficiency and environmental compliance, which are critical in the face of India's renewable energy goals.Overall, the India Diesel Engines Market segmentation, particularly within Power Rating, reflects a multifaceted approach geared toward meeting diverse energy needs across numerous industries.
Fueling growth with the push for energy resilience and industrial expansion, each of these categories showcases distinct characteristics that contribute to India's economic landscape. Furthermore, a combination of domestic demand, governmental support, and evolving technologies foster favorable conditions for growth, enabling significant advancements while addressing environmental concerns through innovation in diesel engine technologies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Diesel Engines Market End User Insights
The End User segment of the India Diesel Engines Market plays a crucial role in driving the overall growth of the industry, significantly contributing to diverse sectors such as construction, agriculture, marine, power generation, and others. The construction segment is pivotal as it relies heavily on diesel engines for machinery like excavators and cranes, enhancing operational efficiency.
Agriculture is another vital area, where diesel engines power tractors and irrigation systems, facilitating higher productivity and support for India’s large agrarian economy.The marine sector utilizes diesel engines for propulsion in various vessel types, contributing to trade and fisheries. Power plants, both independent and for industrial use, depend on diesel engines for reliable backup power generation, particularly in regions with inconsistent grid supply.
The 'Others' segment encompasses applications in industries like transportation and manufacturing, showcasing the versatility of diesel engines across multiple applications. As the India Diesel Engines Market evolves, factors such as urbanization, industrial growth, and government initiatives towards infrastructure development are expected to bolster these segments, steered by a growing demand for efficiency and reliability in operations across various end users.
The India Diesel Engines Market is marked by significant growth driven by increasing demand across various sectors including agriculture, construction, and transportation. This market is characterized by a diverse range of manufacturers, each striving to capture a larger share through innovation, technological advancements, and strategic partnerships. Competitive dynamics are influenced by factors such as pricing strategies, product offerings, and customer service levels.
The market is also shaped by regulatory frameworks related to emissions and environmental standards, compelling companies to enhance their offerings to align with sustainability goals. As players navigate these competitive waters, key strategies involve leveraging research and development to improve fuel efficiency and overall performance, thereby aligning with the evolving preferences of consumers in India.Deere & Company has carved a notable presence within the India Diesel Engines Market, primarily recognized for its robust range of agricultural equipment powered by high-performance diesel engines.
The company's strength lies in its advanced technological edge, as it focuses on providing efficient, reliable, and powerful engines that meet the demanding requirements of Indian farmers and enterprises. Deere & Company's commitment to quality and innovation enables it to stand out in the competitive landscape, as it consistently invests in research and development to enhance the performance and sustainability of its diesel engines.
Moreover, it has established an extensive dealer network across India, which reinforces its market penetration and customer reach, contributing to brand loyalty and enhancing customer satisfaction.Kirloskar Oil Engines is a prominent player in the India Diesel Engines Market, focusing on offering a comprehensive range of diesel engines that cater to various applications, including agricultural, industrial, and power generation sectors. Known for its commitment to quality and reliability, Kirloskar Oil Engines has a formidable market presence that is supported by a strong manufacturing capability and strategic partnerships.
Their key products include a wide array of diesel engines, providing solutions that adhere to local market requirements. Strengthened by years of industry experience, Kirloskar Oil Engines has also engaged in mergers and acquisitions to bolster its technological prowess and expand its product portfolio. Furthermore, their consistent emphasis on customer service and after-sales support positions them favorably in the market, enabling them to build long-term relationships with clients across India and allowing them to weather competitive pressures effectively.
The India Diesel Engines Market has witnessed several significant developments recently. In June 2023, Mahindra and Mahindra announced the launch of a new range of diesel engines aimed at enhancing the efficiency and performance of their agricultural equipment. Cummins India also introduced advanced diesel engine technology in July 2023, focusing on reducing emissions to comply with new government regulations. In terms of mergers and acquisitions, Ashok Leyland and Toyota Industries have been reportedly engaging in discussions for strategic partnerships to leverage technology for hybrid diesel engines, with developments active as of August 2023.
Furthermore, the market valuation of diesel engine manufacturers is on the rise, with Kirloskar Oil Engines and Perkins Engines experiencing notable growth due to increased demand in the construction and agricultural sectors. The government's push for infrastructure development has further fueled this demand, reflecting positively on companies like Bharat Benz and JCB India. Over the past two to three years, the diesel engine segment has been pivotal in supporting economic growth, with companies investing in Research and Development to innovate and meet evolving consumer needs.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 18.3(USD Billion) |
| MARKET SIZE 2024 | 19.76(USD Billion) |
| MARKET SIZE 2035 | 37.21(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 5.923% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Deere & Company, Kirloskar Oil Engines, Perkins Engines, Lombardini, Bharat Benz, JCB India, Mahindra & Mahindra, AGCO Corporation, Cummins India, Isuzu Motors, Toyota Industries, Ashok Leyland, Yanmar Holdings, Tata Motors, Honda Power Equipment |
| SEGMENTS COVERED | Power Rating, End User |
| KEY MARKET OPPORTUNITIES | Growing demand for transportation, Increasing agricultural mechanization, Expansion of industrial applications, Government infrastructure initiatives, Adoption of cleaner diesel technologies |
| KEY MARKET DYNAMICS | growing demand for transportation, increasing agricultural machinery usage, stringent emission regulations, rising energy needs, cost-effective fuel efficiency |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Diesel Engines Market is expected to be valued at 19.76 USD Billion by 2024.
By 2035, the India Diesel Engines Market is projected to reach 37.21 USD Billion.
The expected CAGR for the India Diesel Engines Market from 2025 to 2035 is 5.923%.
Major players in the India Diesel Engines Market include Deere & Company, Kirloskar Oil Engines, Perkins Engines, and Mahindra & Mahindra.
The 0.5-1 MW power rating segment is valued at 4.5 USD Billion in 2024.
The 1-2 MW power rating segment is projected to be valued at 11.5 USD Billion by 2035.
There are significant growth opportunities driven by rising infrastructure projects and industrial demands.
The Above 4 MW power rating segment is valued at 3.46 USD Billion in 2024 and 6.71 USD Billion in 2035.
The diesel engines market is crucial for applications in agriculture, construction, and transportation.
Key trends include advancements in engine technology and a shift towards fuel efficiency and sustainability.
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