Global Off Highway Vehicle Engine Market - Analysis of Growth, Trends, and Forecast (2018 - 2023)
OFF-HIGHWAY VEHICLE ENGINE MARKET
The global off-highway vehicle engine market was valued at USD 27.56 billion in 2017 and is expected to witness a CAGR of 7.79%, during the forecast period 2018-2023.
Off-highway vehicle engines growth is dependent on the growth rate of agricultural and construction machinery industries. Rising agriculture mechanization trend in developing countries and spike in residential and commercial construction projects globally are driving the construction and agricultural machinery markets.
At the global level, the construction is anticipated to be one of the most profitable sectors over the next decade. The demand for construction machinery has increased in Europe as a whole. The ongoing recovery of Europe’s construction industry improved business in the mining and quarrying sectors, and a favorable economic environment with low-interest rates further stimulated investments.
INCREASE IN NEW CONSTRUCTION AND RENOVATION ACTIVITIES
The global construction industry is expected to witness significant growth in the coming years, with good opportunities in infrastructure, residential, and non-residential sectors. Some of the major factors driving the market are increasing construction of multi-family houses (with the growing trend of nuclear families); and increasing investments in construction of roads, highways, smart cities, metros, bridges, and expressways due to growing population and urbanization.
The year 2017 witnessed a steep rise in construction activity (building, residential, nonresidential, and engineering construction) globally. For instance, the total value of construction work done in Australia increased by 6.4% from the start of third quarter 2016 to end of third quarter 2017. Moreover, the same value for March (quarter) 2017 to June (quarter) 2017, stands at 9.0%.
Out of these, engineering construction projects have exhibited the steepest increase of 21.7% from March (quarter) 2017 to June (quarter) 2017. This is expected to be one of the chief drivers pushing the demand for construction machinery, in Australia.
The demand for construction machinery has increased in Europe as a whole. The ongoing recovery of Europe’s construction industry improved business in the mining and quarrying sectors, and a favorable economic environment with low-interest rates further stimulated investments. In 2016, the value of construction work in the UK continued to rise in 2016, reaching its highest level on record at Euro 99,266 million, fuelled by the continued growth in the private sector. These factors are driving the demand for machinery, even in 2018.
Construction is anticipated to be one of the most profitable sectors over the next decade, and is absolutely essential for the development of societies, across the world. Thus, these factors are expected to offer a significant boost to the market studied.
Construction Machinery of Power Output 100 -200 HP Expected to Dominate the Market
In 2017, the market for 100 -200 HP for construction machinery was valued at USD 6.81 billion. The current rise in road construction has increased the demand for motor grader market from a modest 830 units in 2016 to 1000 units in 2017 and is expected to reach 1200 units by 2018 in India. Demand is being seen across both the heavier (170-200 HP) and lighter class (140-150 HP) of motor graders.
The manufacturers of road construction equipment's like Liugong, CASE New Holland (CNH), ACE and SDLG are expanding their business by introducing machines ranging from 100 -200 HP. For instance, Liugong in India will soon be its 180 hp Liugong 4180 grader with a rated output of 220-240 cum/hr. Another example; CASE New Holland (CNH) is offering its 845 B dual 150-173 hp, 15-ton grader, and the variable 865 B 195-205-220 hp grader.
Deutz introduced a pair of four-cylinder diesel, the TCD 5.0. The TCD 5.0 will be launched globally in 2019 to meet the next EU Stage V emissions standard. The engine also complies with the United States Tier 4 Final. This particularly compact, turbocharged and charge-air-cooled, 5L diesel engine generates 135-200 hp. This engine is of highly compact design which makes it easy to install in various types of applications, particularly excavators and wheel loaders.
Recent Developments in the Market
March 2018: Detroit-built Mahindra Roxor off-road vehicle revealed.
The market is captured by Major players, like Yanmar Holdings, Cummins Komatsu, Deutz AG, MAN Engines, etc.,
Others in the competitive landscape include players, like Kubota Corporation, Weichai Power, Mahindra and Mahindra Ltd, JCB, ISUZU, Perkins, etc.
Reasons to Purchase this Report
Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis
Detailed analysis on the segment that is expected to register the highest growth rate
Study on the country that is expected to dominate the market
Identifying the latest developments, market shares and strategies employed by the major market players
3-month analyst support, along with the Market Estimate Sheet (in Excel)