Press Release

India Industrial Engines Market is Expected to Register a 6.61% CAGR Through 2031

Rapid Industrialization & Infrastructure Development and Growing Demand for Energy-Efficient & Environmentally Friendly Engines are likely to propel the market during the forecast period.


According to TechSci Research report, “India Industrial Engines Market – By Region, Competition, Forecast and Opportunities, 2021-2031F”, India Industrial Engines Market was valued at USD 6 Billion in 2025 and is expected to reach USD 8 Billion by 2031 with a CAGR of 6.61% during the forecast period.

The growing mechanization of agriculture and the booming construction industry in India are key factors driving the demand for industrial engines. As the country works toward improving agricultural productivity and expanding urban infrastructure, the use of machinery powered by industrial engines has become widespread.

In agriculture, engines power irrigation pumps, threshers, harvesters, tractors, and other equipment essential for efficient farming. The push for modernizing farming practices, combined with the government’s focus on increasing crop yields, drives the adoption of mechanized tools. This mechanization reduces labor dependency and improves operational efficiency, which benefits from the availability of reliable and powerful industrial engines.

Similarly, the construction sector, which is one of the fastest-growing in India, depends heavily on industrial engines. With massive infrastructure projects including roads, bridges, commercial complexes, and housing developments underway, the demand for construction machinery has surged. Equipment such as loaders, excavators, cranes, concrete mixers, and compressors all require robust engines to operate effectively.

The demand for compact and portable engines that can be used in remote or challenging locations also increases as construction moves beyond urban centers. Industrial engines must offer not only power but also fuel efficiency and ease of maintenance to meet the needs of these industries. Moreover, as India’s urban population expands, the need for affordable housing and infrastructure intensifies, ensuring continued growth in these sectors. This trend ensures steady demand for industrial engines to power various machines, supporting both large-scale industrial operations and smaller enterprises.


Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on " India Industrial Engines Market.” 


Based on End User, Agriculture dominated the India Industrial Engines market primarily because it is a cornerstone of the country’s economy and employs a significant portion of the population. India is one of the largest agricultural producers globally, with millions of farmers relying heavily on mechanized equipment powered by industrial engines to enhance productivity and efficiency. The extensive use of engines in irrigation pumps, tractors, threshers, harvesters, and other farm machinery drives consistent demand in this sector.

The mechanization of agriculture in India has been steadily increasing as farmers seek to reduce dependence on manual labor and improve crop yields. Industrial engines provide the necessary power to operate various equipment that facilitates timely sowing, irrigation, harvesting, and post-harvest processing. In particular, irrigation pumps powered by diesel or electric engines are critical in areas lacking adequate rainfall or irrigation infrastructure, ensuring water availability and crop sustainability. Additionally, government initiatives aimed at modernizing agriculture, such as subsidies for farm equipment and schemes promoting efficient water management, have further boosted the adoption of industrial engines in this sector. The push towards improving farm mechanization is also driven by the need to meet growing food demand due to India’s rising population.

The versatility and durability of industrial engines make them well-suited to the often harsh and varied conditions of rural India, including remote locations with limited electricity access. Diesel engines, known for their fuel efficiency and longevity, are especially preferred in agriculture for these reasons.

Based on Region, North India is emerging as the fastest-growing region in the India Industrial Engines market due to a combination of factors tied to its rapid industrial expansion, infrastructure development, and agricultural modernization. The region encompasses economically significant states like Uttar Pradesh, Haryana, Punjab, Rajasthan, and Delhi, which are witnessing substantial growth across various industrial sectors.

One key driver is the aggressive industrialization underway in North India. Many states have established industrial corridors, special economic zones (SEZs), and manufacturing hubs, attracting investment and boosting production activities. This industrial growth demands robust, reliable power sources for machinery, leading to increased adoption of industrial engines for manufacturing plants, construction equipment, and power generation units.

North India is a major agricultural belt, with mechanization playing an increasingly vital role in enhancing productivity. The rising use of irrigation pumps, tractors, threshers, and other mechanized equipment, all powered by industrial engines, is fueling demand. Government initiatives to support farmers through subsidies and modernization programs further accelerate this trend.

Infrastructure development is another critical factor. The region benefits from significant government-backed projects such as road expansion, urban development, and power infrastructure upgrades. Construction activities related to these projects require heavy machinery powered by industrial engines, boosting demand in the construction and infrastructure sectors. Moreover, the proximity of North India to key transportation hubs, including major ports, airports, and rail networks, facilitates efficient supply chain operations, enabling quicker distribution of industrial engines and spare parts. This logistical advantage attracts manufacturers and end-users alike.


Major companies operating in the India Industrial Engines Market are:

  • Kirloskar Oil Engines Limited
  • Cummins India Limited
  • Mahindra Powerol
  • Greaves Cotton Limited
  • Ashok Leyland Limited
  • Tata Motors Limited
  • Perkins Engines Company Limited
  • Volvo Group India


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The India Industrial Engines market presents significant growth opportunities driven by rapid industrialization, expanding infrastructure projects, and increasing mechanization across sectors such as agriculture, construction, and power generation. Growing demand for energy-efficient and environmentally compliant engines, coupled with government initiatives promoting sustainable manufacturing and cleaner fuel adoption, further amplifies market potential. Additionally, advancements in digital technologies and alternative fuel engines offer manufacturers avenues to innovate and capture emerging segments. As India continues its economic development and urbanization, the industrial engines market is poised for robust expansion, providing substantial opportunities for domestic and international players to invest and grow", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

India Industrial Engines Market, By Fuel Type (Diesel, Petrol, Gas), By Power (5 - 75 HP, 76 - 350 HP, 351 - 750 HP, Above 751 HP), By End User (Agriculture, Construction, Power Generation, Others) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Industrial Engines Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Industrial Engines Market.

 

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India Industrial Engines Market, By Fuel Type (Diesel, Petrol, Gas), By Power (5 - 75 HP, 76 - 350 HP, 351 - 750 HP, Above 751 HP), By End User (Agriculture, Construction, Power Generation, Others) By Region, Competition, Forecast & Opportunities, 2021-2031F

Power | Jun, 2025

Rapid Industrialization & Infrastructure Development and Growing Demand for Energy-Efficient & Environmentally Friendly Engines are likely to propel the market during the forecast period.

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