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.
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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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