Market Insight-Europe Industrial Engine Market Overview 2025
Europe Industrial Engine Market Was Valued at USD 7.69 Billion in 2024 and is Expected to Reach USD 10.15 Billion by the End of 2033, Growing at a CAGR of 2.91% Between 2025 and 2033.– Bossonresearch.com
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.
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Figure 1. Europe Industrial Engine Market Size (M USD)
Figure 2. Company Assessment Quadrant
Market Segment Executive Summary
Figure 3. Evaluation Matrix of Segment Market Development Potential (Type)
Europe Industrial Engine Market: Competitive Landscape
Based on estimates, the European industrial engine manufacturers market maintains a moderate concentration. The top five players—Deutz, Caterpillar, Cummins, Volvo Penta, and Kubota—hold over half the market, accounting for 54.55% in 2024, with a slight decrease to an estimated 51.33% in 2025. From 2023 to 2025, although leading manufacturers continue to dominate, market concentration shows a modest decline, reflecting gradual competitive diversification.
Figure 4. Europe Industrial Engines Revenue Share by Manufacturers in 2024
Key players in the Industrial Engine Market include:
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
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