Heavy-Duty Diesel Engine Manufacturing in the US - Market Research Report (2014-2029)

Cruise Control: Growth is Expected as the Economy and Downstream Customers Recover

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Heavy-duty diesel engine manufacturers primarily make products used in freight trucks and industrial machinery. When COVID-19 hit, businesses were shut down, so consumer spending plunged. Businesses shipped fewer goods in response to lower consumer spending, so demand for trucks and diesel engines fell, causing revenue to plunge in 2020. As the economy recovered from the pandemic, businesses displayed record sales, resulting in high corporate profit. More profit enabled companies to invest more in manufacturing equipment, so demand for heavy-duty diesel engines rose, benefiting the industry. Rising interest rates have reduced home buying, so demand for construction has fallen. Weak construction demand has reduced the need for trucks carrying building materials, so revenue has been hampered in recent years. Lower steel prices have also hurt manufacturers, as they can't pass high costs onto consumers. Overall, revenue for heavy-duty diesel engine manufacturers is anticipated to decline at a CAGR of 3.2% during the current period, reaching $31.1 billion in 2023. Revenue is forecast to creep upward 0.9% in that year.

This industry manufactures heavy-duty diesel engines. A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition and burn fuel. This fuel is then injected into the combustion chamber. These engines are used in highway vehicles (i.e. freight trucks) and machinery.