High-Speed Engine Market is expected to reach US$ 36,285.6 million by 2030

PRESS RELEASE BY The Insight Partners 29 Apr 2024

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Increasing Preferences for Alternate Fuel-powered Engines Fuels High-speed Engine Market Growth

According to our latest market study on “High-Speed Engine Market Forecast to 2030 - Global Analysis - by Speed (1,000-1,500 rpm;, 1,500-1,800 rpm;, and Above 1,800 rpm), Power Output (Less than 2 MW, 2-4 MW, and Above 4 MW), End User (Marine, Power Generation, Railway, Oil and Gas, and Others), and Geography" the high-speed engine market was valued at US$ 24,714.8 million in 2022 and is expected to reach US$ 36,285.6 million by 2030; it is anticipated to record a CAGR of 4.9% from 2022 to 2030.

The demand for alternative fuel-powered engines is growing worldwide owing to the rise in carbon footprints. As per the data published by the International Energy Agency in March 2024, the carbon emissions in 2023 witnessed 1.1% growth in emissions compared to 2022, reaching 35 billion metric tons of carbon emissions. To overcome this environmental issue, governments of many countries across the globe are taking initiatives to reduce their carbon emissions. There is an increased focus on the development and adoption of alternative fuel-powered engines. For instance, in March 2024, the European Union launched its alternative fuels initiative, Connecting Europe Facility (CEF) Transport, an alternative fuel infrastructure facility program with an allocated budget of approximately US$ 1 billion; the budget will be distributed between 2024 and 2026. Also, in 2022, the European Union presented a general approach to implement its FuelEU program that is focused on reducing 55% of carbon emissions by 2030. With the rise in such government initiatives, the need for alternative fuel high-speed engines is also increasing. As a result, many high-speed engine manufacturers started manufacturing alternative fuel-powered engines. For instance, in March 2023, Man Energy Solution received formal government approval for the 100% use of biofuel for its MAN 175D high-speed engine. In December 2023, The Department of Energy's Oak Ridge National Laboratory and Caterpillar Inc. signed a research and development agreement (CRADA) to examine using methanol as an alternate fuel source for four-stroke internal combustion marine engines. Thus, owing to the increasing preference for eco-friendly engines, the demand and adoption of alternative fuel-powered engines will grow, which is expected to fuel the high-speed engine market growth in the coming years.

High-speed Engine Market Share - by Region, 2022

High-speed Engine Market Share - by Region, 2022

High-Speed Engine Market Size and Share Report by 2031

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High-Speed Engine Market Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Speed (1,000-1,500 rpm; 1,500-1,800 rpm; and Above 1,800 rpm), Power Output (Less than 2 MW, 2-4 MW, and Above 4 MW), and End User (Marine, Power Generation, Railway, Oil and Gas, and Others), and Geography

Source: The Insight Partners Analysis

High-speed engines are increasingly used in the railway industry. Governments of various countries and private companies across the globe are investing heavily to expand and upgrade their railway fleet. In February 2024, MRS Logistica announced the procurement of 30 new locomotives from the Wabtec Corporation, under the MRS' railway fleet renewal strategy. The transaction is estimated to be more than US$ 50 million, with the first delivery set for 2024. In addition, in February 2024, CSX Corporation announced a contract with Wabtec for the 200 locomotives. Wabtec will install a range of digital solutions, innovations, and services on the locomotives as part of CSX's commitment to modernize its fleet and improve operations while lowering emissions through fuel-saving technology. In July 2022, Union Pacific signed the largest deal with Wabtec for the modernization of its fleet; for this contract, Union Pacific has invested approximately US$ 1 billion. Also, in March 2024, DB Cargo announced the procurement of 150 locomotives with dual fuel technology from Siemens Mobility.

On the other hand, countries such as Canada, India, Russia, and Germany are expanding their railway fleet for public transportation. In July 2023, Canadian National Railway and Wabtec Corporation signed an agreement to modernize an additional 60 locomotives in CN's existing fleet under Wabtec's modernization program. The investment reinforces CN's commitment to achieving long-term growth. In April 2023, Transmashholding (TMH), Russia's largest builder of locomotives and rail equipment, received a global contract to build, supply, and maintain 120 Vande Bharat express trains for the Indian Railways. Such government and private companies' locomotive expansion and upgradation initiatives are driving the high-speed engine industry as these engines are used as primary engines or auxiliary engines in locomotives.

Based on geography, the market is primarily segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. Asia Pacific held the largest high-speed engine market share in 2022. The market for high-speed engines in Asia Pacific is segmented into China, India, Japan, Australia, South Korea, and the Rest of APAC. The strong business ecosystem positions China as a manufacturing hub in the global market, which led to increased maritime transportation activities. Increasing cargo volume directly influences the demand for new vessels. Further, China is the world leader in electric vehicle manufacturing. As per the data published by the government of China in 2023, the country exported approximately US$ 600 million worth of battery-powered electric vehicles in April 2021; the number reached US$ 2.6 billion in April 2023. These statistics show the increased demand for transportation activities, ultimately increasing the demand for new vessels. As per the data provided by the Center for Strategic and International Studies in October 2023, the demand for Ro-Ro ships by transportation service providers in China has doubled since 2020. By 2025, the new orders for the Ro-Ro ships are projected to reach 60, all placed by these providers. Such expansions are leading to an increased usage of high-speed engines in the Ro-Ro ships, which is contributing to the growing high-speed engine market size.

India is one of the fastest-growing economies in Asia Pacific. The demand for high-speed engines is growing significantly in the aviation, marine, mining, and railway industries. Under the Make in India mission, the Government of India is focusing on reducing the country's yearly imports from other countries. The index of mineral production during 2021–2022 was 113.3, showing a significant increase of 12.17% compared to 2020–2021. This indicates a rise in mining activities across India. Apart from the mining sector, the government is focusing on strengthening its railway network with the addition of new locomotives. For instance, in January 2023, the Indian Railways Ministry placed an order for 1,200 locomotives to Siemens Mobility. As per Siemens Mobility, this order is the largest order ever received by the company. Thus, owing to government initiatives to expand and strengthen its economy, the demand for high-speed engines in the country is projected to increase during the forecast period.  

The high-speed engine market analysis is carried out by identifying and evaluating key players in the market across different regions. AB Volvo; Caterpillar Inc.; Cummins Inc.; MAN Energy Solutions SE; Mitsubishi Heavy Industries Ltd; Rolls-Royce Holdings Plc; Wartsila Corp.; Weichai Heavy Machinery Co., Ltd.; Yanmar Holdings Co., Ltd.; and Doosan Infracore Co., Ltd. are among the key players profiled in the high-speed engine market report.

The high-speed engine market report includes growth prospects owing to the current high-speed engine market trends and their foreseeable impact during the forecast period. Inorganic and organic strategies such as mergers and acquisitions are highly adopted by market players. The market initiative is a strategy adopted by companies to expand their footprint across the globe and to meet the growing customer demand. They also focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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