The Engines Market in North America, 2019 to 2023 - Projected to Reach $3.7 Billion with Cummins, Caterpillar, Wartsila, Rolls-Royce, Yanmar, and Mitsubishi Heavy Industries Leading
The North America engines market is projected to reach USD 3.7 billion by 2023, at a CAGR of 4.52% from an estimated USD 2.9 billion in 2018.
This can be attributed to an increase in the number of power outages, growing demand for uninterrupted & reliable power supply for industrial applications. The high maintenance and operating costs, stringent emission norms can hinder the growth of the market. The North America engines market is segmented, by type, into power generation (emergency & standby, prime power, peak shaving) and marine engines (recreational, commercial).
301-500 HP segment, by power rating, is expected to be the fastest growing North America engines market during the forecast period
The 301-500 HP segment is estimated to be the fastest growing segment during the forecast period. The 301-500 HP engines are mainly used by end-users such as data centers, hospitals, commercial complexes, and residential buildings. These end-users deploy diesel power engines for standby and prime power generation.
These engines can act as standby operation for minor overhauls and interruption of power in plants, thereby reducing the plant downtime and cost. The demand for gensets in Canada is basically due to large new offshore discoveries off the coasts of Newfoundland and Labrador states. The growth in the industrial applications has driven the demand specifically for the 301-500 HP segment.
The main production growth is projected to come from natural gas units due to the increase in shale gas production in the US and gas from oil sands in Canada. Emergency generators are the most attractive application owing to numerous events hosted by the nation as well as due to grid maintenance activities.
Power generation segment, by type, is expected to be the fastest growing North America engines market during the forecast period
The power generation segment is expected to grow at the fastest rate between 2018 and 2023. Increasing gas-based generation, distributed power generation, increasing number of power outages, and need for reliable power are some of the major factors driving the growth of the power generation segment.
For example, in the US, the power outages increased by 9% in 2016 as compared to 2015 and in Canada, the increase was about 23% in 2016 as compared to 2015. Notable ones are Central California Blackout of 2013, Southwest Blackout of 2011, and Northeast Blackout of 2003.
For data centers and IT facilities, there is less dependency on power utilities these days due to power backup facilities. The T&D expenditure in the US is projected to grow from approximately USD 35 billion in 2013 to USD 48 billion by 2020.
US: The fastest growing North America engines market
The US is expected to be the largest and fastest North America engines market by 2023 and is projected to grow at the highest CAGR. The main production growth is projected to come from natural gas units due to the increase in shale gas production in the US and gas from oil sands in Canada.
Emergency generators are the most attractive application owing to numerous events hosted by the nation as well as due to grid maintenance activities. Therefore, increasing focus on construction and event activities would drive the North America engines market.
The leading players in the North America engines include Cummins (US), Caterpillar (US), Wartsila (Finland), Rolls-Royce (UK), Yanmar (Japan), and Mitsubishi Heavy Industries (Japan).
Topics Covered
1. Introduction 1.1 Objectives of the Study 1.2 Definition 1.3 Market Scope 1.3.1 Markets Covered 1.3.2 Years Considered for the Study 1.4 Currency 1.5 Stakeholders
2. Research Methodology Scope 2.1 Market Size Estimation 2.2 Statistics 2.2.1 Power Generation 2.2.2 Marine 2.3 Some of the Insights of Industry Experts
3. Executive Summary
4. Premium Insights 4.1 Attractive Opportunities in the North America Engines Market During the Forecast Period 4.2 North America Engines Market, By Type & Power Rating 4.3 North America Engines Market, By Type 4.4 North America Engines Market, By Power Rating
5. Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 5.2.1.1 Need for Reliable and Uninterrupted Power 5.2.1.2 Rise in Demand for Commercial Vessels Due to Increase in Seaborne Trade 5.2.1.3 Growth in Commercial Infrastructure 5.2.2 Restraints 5.2.2.1 High Maintenance and Operating Cost 5.2.2.2 Availability of Alternate Energy Sources and Growth of Renewable Power 5.2.3 Opportunities 5.2.3.1 Rise in Demand for Hybrid Fuel Engines 5.2.3.2 Increased Exploration Activities in Ultra-Deep Water and Arctic Region 5.2.4 Challenges 5.2.4.1 Remanufactured or Low-Cost Engines 5.2.4.2 Stringent Environmental and Governmental Regulations
6. North America Engines Market, By Type 6.1 Power Generation 6.1.1 New Emission Reforms and Need for Reliable and Uninterrupted Power is Driving Power Generation Engines Market 6.2 Marine 6.2.1 Increased Boat Building Activities in the US and the Increased Seaborne Trade in Canada to Drive Marine Engines Market
7. North America Engines Market, By Power Rating 7.1 Introduction 7.2 0-60 HP 7.2.1 Rise of Commercial and Industrial Sector is Driving the Market 7.3 60-100 HP 7.3.1 Growing Demand From Cogeneration, Auxiliary Power, and Rental Applications is Expected to Drive the Market 7.4 101-300 HP 7.4.1 Growing Demand From Industrial Applications is Driving the Market 7.5 301-500 HP 7.5.1 Major Applications in Inland Waterways, Commercial Fishing, and Passenger Transport Ships is Expectedto Drive the Market 7.6 501-700 HP 7.6.1 Increasing Use in Commercial Ships, Workboats, Large Fishing Boats, Motor Yachts is Expected to Drive the Market 7.7 Above 700 HP 7.7.1 Increasing Use in Heavy Operations in Marine Commercial Shipping and Power Generation to Drive the Market
8. North America Engines Market, By Country 8.1 US 8.1.1 Aging Coal-Fired Power Plants, Drop in Natural Gas Prices, and Emissions Reduction Are the Key Drivers 8.2 Canada 8.2.1 Large New Offshore Discoveries Off the Coasts of Newfoundland and Labrador States to Drive Engines Market
9. Competitive Landscape 9.1 Overview 9.2 Ranking of Players and Industry Concentration, 2017 9.3 Vendor Dive, 2017 9.4 Competitive Scenario 9.4.1 New Product Launches 9.4.2 Contracts & Agreements 9.4.3 Investments and Expansions 9.4.4 Mergers & Acquisitions 9.4.5 Others
10. Company Profiles 10.1 Company Benchmarking 10.2 Cummins 10.3 Caterpillar 10.4 Rolls-Royce 10.5 Wartsila 10.6 John Deere 10.7 Kohler 10.8 Yanmar 10.9 Mitsubishi Heavy Industries 10.10 Volvo Group 10.11 Doosan 10.12 Man SE 10.13 Deutz AG
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Related Topics: Engines and Engine Parts
Source: GlobeNewswire PR
(March 7, 2019 - 4:49 AM EST)
