Heavy Duty Engines Market Size

Heavy Duty Engines Market Size

Heavy Duty Engines Market size exceeded USD 45 billion in 2020 and is estimated to grow at over 5.9% CAGR from 2021 to 2027. Developments in heavy duty engines and the increasing demand from transportation companies will provide an opportunistic growth scenario.

New diesel heavy duty engine technologies have been developed for growing demand for lower fuel consumption and reduction carbon dioxide emissions. Variable Compression Ratio (VCR) technology is the most preferred technique for increasing the power density of reciprocating engines, curtailing engine exhaust emissions, and improving fuel economy. The application of variable compression ratio technology provides advantages such as the increase of power concentration and the reduction of CO2 emissions due to optimal combustion efficiency in the entire range of engine operating conditions.

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There is an immense demand for heavy commercial vehicles to handle freight growth which has been brought about by a COVID-19 recovering economy as well as government stimulus. Truck demand is strong as customers look to add more trucks to their fleets, but supply chain and procurement constraints are making it difficult for manufacturers to meet this demand.

Increasing costs of raw materials, such as steel & composites, and the ongoing semiconductor & component shortages are making it difficult for OEMs to produce the requested trucks. For instance, Volvo Group announced that semiconductor shortage is affecting its global business of truck production, and it will have to halt production across its manufacturing facilities. In February 2021, the U.S. government signed an executive order which aims to address this supply chain issue in the manufacturing industry.