Europe Industrial Engine Market Research Report 2025 (Status and Outlook)
Report Overview:
Industrial engines, also known as industrial-grade engines, are internal combustion engines specifically designed and built for industrial applications. These engines are used to power a wide range of equipment and machinery in industrial settings, providing reliable and efficient performance for various tasks. They are essential components in machinery and equipment used in agriculture, construction, power generation, mining, oil and gas, rail and transportation, and other industries.
In 2024, the Europe Industrial Engines Market is valued at USD 7.69 billion, driven by a resurgence in infrastructure development, modernization of agricultural equipment, and regulatory compliance upgrades. The market is projected to grow at a compound annual growth rate (CAGR) of 2.91% from 2024 to 2033, reaching nearly USD 10.15 billion by the end of the forecast period. In addition to regulatory pressures such as the enforcement of EU Stage V emission norms, several structural forces are driving this market forward. Firstly, investment in electrification and hybrid machinery is encouraging OEMs to redesign engine platforms, stimulating engine replacement and retrofit markets. At the same time, demand from the power generation sector, especially for backup and peak-load engines, continues to grow due to energy security concerns. Moreover, automation and precision farming trends are catalyzing engine upgrades in agriculture, particularly in high-horsepower segments. Across all sectors, digital transformation is pushing for engines with built-in diagnostics, telematics, and performance monitoring.
The development of the industrial engines market in Europe is shaped by several interrelated trends. First, there is a marked shift toward low-emission and hybrid engines, as manufacturers respond to both regulatory constraints and corporate sustainability goals. For example, leading players such as Deutz and Volvo Penta are actively integrating electric or gas-hybrid modules into traditional diesel platforms to future-proof their offerings. Second, fuel diversification is becoming more prominent. Besides diesel, stakeholders are increasing their investments in natural gas, hydrogen-ready engines, and renewable fuels like HVO (Hydrotreated Vegetable Oil), thereby reducing dependency on traditional hydrocarbons. Third, digitalization of engine management is accelerating. Advanced control units, remote performance tracking, and predictive maintenance systems are becoming standard features, improving both uptime and operational efficiency. Additionally, modular and compact engine designs are gaining popularity due to space constraints in mobile equipment and the demand for multipurpose usage. Finally, regional expansion into Eastern Europe and the Balkans presents new growth opportunities, as these countries accelerate industrial development and upgrade aging fleets to meet EU standards. Together, these trends underline the market’s evolution from a commodity engine supply sector to a dynamic, technology-intensive industry aligned with Europe's climate and productivity objectives.
This report provides a deep insight into the Europe Industrial Engine market covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc.
The analysis helps the reader to shape the competition within the industries and strategies for the competitive environment to enhance the potential profit. Furthermore, it provides a simple framework for evaluating and accessing the position of the business organization. The report structure also focuses on the competitive landscape of the Europe Industrial Engine Market, this report introduces in detail the market share, market performance, product situation, operation situation, etc. of the main players, which helps the readers in the industry to identify the main competitors and deeply understand the competition pattern of the market.
In a word, this report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Industrial Engine market in any manner.
Europe Industrial Engine Market: Market Segmentation Analysis
The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.
Key Company
Deutz
Caterpillar
Cummins
Volvo Penta
Kubota
John-Deere
Kohler Energy
Rolls-Royce Power Systems AG (MTU)
Hatz Diesel
FTP Industrial
Yanmar
MAN Energy Solutions
Isuzu
Scania AB
Toyota Industries
Mitsubishi Heavy Industries, Ltd.
Liebherr Group
Weichai Power
Power Solutions International (PSI)
JCB Power Systems
Others
Market Segmentation (by Type)
Diesel Engines
Gasoline Engines
Others
Market Segmentation (by Application)
Agriculture
Construction
Power Generation
Mining Industry
Oil and Gas
Rail and Transportation
Others
Geographic Segmentation
• Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
Key Benefits of This Market Research:
• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Industrial Engine Market
• Overview of the regional outlook of the Industrial Engine Market:
Key Reasons to Buy this Report:
• Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change
• This enables you to anticipate market changes to remain ahead of your competitors
• You will be able to copy data from the Excel spreadsheet straight into your marketing plans, business presentations, or other strategic documents
• The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support
Customization of the Report
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Chapter Outline
Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.
Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Industrial Engine Market and its likely evolution in the short to mid-term, and long term.
Chapter 3 makes a detailed analysis of the Market's Competitive Landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.
Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.
Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.
Chapter 9 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.
Chapter 10 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.
Chapter 11 is the main points and conclusions of the report.
