Off-Highway Vehicle Engine Market size is projected to reach USD 15,809 million by 2027, exhibiting a CAGR of 7.1% during the forecast period. Implementation of agriculture mechanization programs in developing nations will act as a powerful growth driver for this market.
Fortune Business Insights™ in its report, titled “Off-Highway Vehicle Engine Market Size, Share & COVID-19 Impact Analysis, By Power Output (HP) (Construction: Less than 100, 101-200, 201-400, More than 400; Agriculture: Less than 30, 31-50, 51-80, 81-140, More than 140), By Fuel Type (Diesel, Gasoline, Others), and Regional Forecast, 2020-2027”. Developing economies are heavily dependent on agriculture, and with their growing populations, the need for high farm yield is dire. To meet this challenge, governments and international organizations have been initiating various schemes to promote mechanization in the agriculture sector.
For example, in India, under the Sub-Mission on Agricultural Mechanization, the government released INR 553crore to state governments in August 2020 to boost inclusive growth and productivity in agriculture through mechanization. Similarly, in Africa, the African Union is aggressively promoting the adoption of sustainable mechanization across the continent under its Comprehensive Africa Agriculture Development Program. Off-highway vehicles such as tractors and harvesters are thus expected to play a pivotal role in augmenting agricultural productivity in these regions.
According to the report, the global market value stood at USD 12,509 million in 2019. The report also offers the following:
- Piecemeal study of the various factors driving the market for off-highway vehicle engine;
- Microscopic analysis of the market’s restraining factors;
- Comprehensive examination of all the market segments; and
- Tangible research into the regional and competitive dynamics influencing market growth.
Increasing Focus on Sustainable Engines to Feed Market Growth
With traditional diesel engines used in heavy equipment emerging as major polluters, off-highway vehicle engine manufacturers are focusing on developing sustainable engines. For example, in April 2020, Komatsu Mining Corp. field tested its P&H 2650CX Hybrid Shovel, which exhibited the machine’s ability to lower fuel consumption by 40-50% compare to hydraulic excavators, while retaining its production capacity. Some companies are also innovating new technologies to optimize electrification of electric and hybrid vehicles in agriculture.
Danfoss Editron, for instance, launched a novel 3D configurator in February 2020 that enables users to design their own electric or hybrid engine, including choices of drivetrain models and battery packs, as per individual requirements. Introduction of smart technologies in engine designing is thus expected to boost the off-highway vehicle engine market growth.