New research published by The Fredonia Group Inc. forecasts worldwide diesel engine sales to increase 7.7% annually through 2017, to a total market of $248.5 billion. This would be a significant increase over the market’s rate of expansion for 2017-2012, according to the authors of World Diesel Engines.The 486-page study is
Higher production of medium- and heavy-trucks, buses, and off-highway equipment is seen as the primary factor in the sector’s growth, in combination with a rebound in light vehicle output in Western Europe, as well as increasing popularity for diesel-powered passenger cars, in particular in the U.S. and India. Each of these trends, and others, are examined in the 486-page study, now available for purchase from the market-research group.
“In 2012, the Asia/Pacific region was the largest user of diesel engines bya wide margin,” according to Fredonia’s analyst Matthew Raskind. “This is due primarily to the massive Chinese, Indian, and Japanese markets, which represent three of the five largest national buyers of diesel engines on a global scale.”
China and India will also be among the fastest expanding national markets through 2017, driven by rapidly rising production of diesel-powered motor vehicles and off-highway machinery.
Regional sales gains will be limited to some extent by a sharp decline in the Japanese market. This is the result of falling motor vehicle output in Japan as that nation’s automakers shift their manufacturing capacity overseas.
In Western Europe, demand for diesel engines will rebound following the region’s current economic recovery in the region’s economy following the debt crisis and recession of 2012.
Diesel light vehicles produced Europe are identified by the report as “the gold standard” for diesel passenger cars, and production volumes are seen increasing due to rising sales in the home region, the growing popularity of such vehicles in the U.S. market and in several large developing nations.
North American diesel-engine sales increases through 2017 will be centered on large medium- and heavy-duty vehicles, and off-highway machinery. The sales increases will be aided by improved economic conditions, and the consequent increases in construction and mining projects worldwide.