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A Tale of Two Vehicles: Freedonia Analyzes Diesel Engine Demand in the Motor Vehicle Market

by Corinne Gangloff

September 5, 2019

The Freedonia Group’s new Global Diesel Engine study finds that the motor vehicle market will remain the largest market for diesel engines in 2023, accounting for 61% of all diesel engine demand in that year. However, the prospects for the two major motor vehicle segments – light vehicles and medium and heavy vehicles – vary greatly:

  • Diesel engine demand for light vehicles – which include passenger cars, pickup trucks, and SUVs – will continue to suffer as a result of the lingering effects of prior emission controversies and the rise of hybrid and electric vehicles, which offer even greater fuel efficiency and tend to be more environmentally friendly.
  • Medium and heavy vehicles – which include commercial trucks and buses ­– will fare much better, as diesel engines are better able than other types of engines to provide the necessary power for commercial trucks and buses to perform.

The medium and heavy vehicle market will also see increasing demand for higher value diesel engines due to the phase-in of more stringent emission standards throughout the world. This will be especially noticeable in buses, as governments upgrade their public transportation systems in order to reduce their environmental impact.

Contact Corinne Gangloff for an interview with analysts Kyle Peters and Austin Farley.

The Freedonia Group study Global Diesel Engines offers a comprehensive view of the global market for diesel engines, including data analysis of historical demand trends and forecasts for 2023 by product, market, and global region, as well as major national market. Furthermore, the study provides in-depth profiles of industry leaders, including market share by company and relevant merger and acquisition activity.

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