1 Global Small Engine Market Insight Analysis
The global Small Engine Market, valued at 11305.9 M USD in 2024, is projected to exhibit a CAGR of 4.02% from 2024 to 2033.
A Small Engine is a lightweight, portable, low-power, compact engine with an independent power source. Small engine power of less than 56kW, it operates with a small motor and power source. Small engines consume less fuel, so it is widely used in many industries.
Figure Global Small Engine Market Size (M USD) and CAGR (2024-2033)
2 Small Engine Market Growth Drivers and Restraints
The small engine market is influenced by a multitude of factors that either stimulate growth or impose limitations on the industry’s expansion. Among the key drivers, the increasing demand for landscaping and gardening services stands out. As urbanization progresses and the awareness for green spaces grows, there is a rising need for equipment such as lawn mowers, trimmers, and leaf blowers, all of which rely on small engines. This demand is further amplified by the global trend towards sustainable living and environmental conservation, which encourages the use of eco-friendly gardening practices.
Another significant driver is the rapid urbanization, which has led to a surge in demand for compact and versatile small engines. As living spaces become more confined, especially in densely populated urban areas, there is a need for engines that are not only compact but also efficient in their operation. This trend is particularly evident in the increased use of portable generators, small construction machines, and electric scooters.
However, the market is not without its challenges. Strict emission regulations and regulatory controls pose a significant restraint on the market. With growing environmental concerns, governments worldwide are implementing stricter emission standards, which require small engine manufacturers to invest in cleaner technology. This can lead to increased production costs and may limit the market’s growth to some extent.
Fluctuating raw material prices and the finite nature of crude oil resources also present a challenge. Small engines rely heavily on metals and petroleum products, and any fluctuation in these commodity prices can impact the production costs and, consequently, the market dynamics. The unpredictability in the supply of these raw materials due to geopolitical conflicts and climate change adds another layer of complexity to the market.
3 Technological Innovations and Mergers in the Small Engine Market
Technological innovation is a pivotal force shaping the small engine market. Advances in combustion technology and engine structure have led to improvements in fuel efficiency and a reduction in emissions. Modern small engines now incorporate technologies such as electronic injection, common rail, turbochargers, and intercoolers, which have significantly improved their performance in terms of weight, noise, and smoke emissions.
The integration of digital technologies, including electronic control units, sensors, and connectivity, is transforming small engines into smarter, more efficient devices. These “smart” small engines offer advantages such as performance optimization, real-time diagnostics, and improved fuel efficiency. As consumers demand more complex and connected solutions, the integration of smart technologies is becoming a key differentiator for manufacturers in a highly competitive market.
In terms of corporate activities, mergers and acquisitions are reshaping the competitive landscape of the small engine market. Companies are engaging in strategic acquisitions to expand their product portfolios, enter new markets, and strengthen their market positions. For instance, Kohler Co.’s establishment of Kohler Energy as an independent business, with Platinum Equity as the majority owner, is a move aimed at enhancing the company’s performance in the global energy resilience marketplace.
Similarly, Kubota’s acquisition of B.C. TECHNIQUE AGRO-ORGANIQUE SAS, a French weeding implement manufacturer, demonstrates the company’s commitment to reducing the environmental impact of agricultural chemicals and promoting sustainable agricultural practices. These strategic moves not only impact the companies involved but also influence the direction of the entire industry, driving it towards more sustainable and technologically advanced solutions.
4 Global Small Engine Market Size by Type
The global small engine market is categorized into two primary types: gasoline engines and diesel engines, each contributing significantly to the market’s revenue. In 2024, the market is anticipated to generate substantial revenue, with distinct performance indicators for each engine type.
Gasoline engines, known for their affordability, quiet operation, and lower service and repair costs, are expected to command a considerable share of the market. With an estimated revenue of 5492.4 M USD in 2024, gasoline engines hold a dominant position, accounting for 48.58% of the total market revenue. This type of engine is particularly popular in applications requiring lower power output and where noise pollution is a concern, such as in gardening equipment and some agricultural machinery.
On the other hand, diesel engines, recognized for their longer lifecycle and fuel efficiency, are projected to generate a revenue of 5813.5 M USD in the same year. Although diesel engines have a higher market price compared to gasoline engines, their revenue share is slightly higher at 51.42%. This can be attributed to the higher power output and fuel efficiency of diesel engines, making them suitable for heavy-duty applications such as construction equipment and large agricultural machinery.
The average price per unit for gasoline engines in 2024 is forecasted to be 243 USD, reflecting a slight decrease from previous years due to technological advancements and increased competition. Conversely, diesel engines are expected to have a higher average price per unit at 958 USD, indicating the higher investment required for their acquisition and the robustness they offer in return.
The market shares and revenue figures for each engine type underscore the importance of understanding the specific needs of different applications. While gasoline engines cater to the need for lower emissions and noise in urban and residential settings, diesel engines fulfill the demand for power and durability in more industrial and agricultural sectors.
Table Global Small Engine Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Gasoline Engines | 5492.4 | 48.58% |
Diesel Engines | 5813.5 | 51.42% |
5 Global Small Engine Market Size by Application
Gardening equipment, a significant application of small engines, is expected to generate a revenue of 1738.0 M USD, holding a market share of 15.37%. This application includes equipment such as lawn mowers, leaf blowers, and trimmers, which are essential for maintaining lawns and gardens. The demand for these engines is driven by the growing emphasis on landscaping and the need for efficient gardening solutions in both residential and commercial sectors.
Agricultural equipment, another crucial application, is projected to generate the highest revenue of 3194.7 M USD, capturing a market share of 28.26%. Small engines in this category power machinery such as sprayers, lawn mowers, and farm equipment, playing a vital role in modern agriculture by increasing efficiency and reducing manual labor.
Construction equipment, which includes applications like drilling, cutting, and water pumps, is expected to generate a revenue of 3575.2 M USD, with a market share of 31.62%. The growth in this segment is attributed to the rapid urbanization and infrastructure development, which require powerful and reliable engine support.
Table Global Small Engine Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Gardening Equipment | 1738.0 | 15.37% |
Agricultural Equipment | 3194.7 | 28.26% |
Construction Equipment | 3575.2 | 31.62% |
Others | 2798.0 | 24.75% |
6 Global Small Engine Market Size by Region
Asia Pacific is expected to generate the highest revenue of $6,352.7 million and hold a market share of 56.19% due to strong economic growth and rapid industrial expansion. The dominance of the region can be attributed to the rapid industrialization of countries such as China and India and the growing demand for construction and agricultural equipment.
North America follows closely with an expected revenue of $3,234.1 million and a market share of 28.61%. The emerging markets in the region and the demand for energy-efficient gardening equipment drive this market share.
Europe, known for its advanced manufacturing and agricultural sectors, is expected to generate revenue of $1,332.7 million and hold a market share of 11.79%. The focus on sustainability and technological innovation in the region has driven the demand for small engines.
Latin America and the Middle East and Africa are expected to generate lower revenues of $243.1 million and $143.4 million, respectively, with market shares of 2.15% and 1.27%, respectively. Despite the lower contribution of these regions, they are witnessing growth due to the increase in industrial activities and the drive for agricultural modernization.
The market shares and revenue distribution of each region reflects the economic development and industrial demand of each region. Asia Pacific leads with its strong industrial base, while North America and Europe contribute greatly due to their mature markets and technological advancements. Although Latin America, the Middle East, and Africa have smaller market shares, they show growth potential as industries expand. Understanding these regional dynamics is essential for stakeholders to formulate market strategies effectively.
Figure Global Small Engine Market Size (M USD) by Region in 2024
7 Global Small Engine Market Analysis by Major Players
7.1 Briggs & Stratton
Company Introduction and Business Overview:
Briggs & Stratton, established in 1908 and headquartered in the USA, is recognized as the world’s largest producer of engines for outdoor power equipment.
The company is a leading designer, manufacturer, and marketer of lithium-ion batteries, standby generators, energy storage systems, lawn and garden products, and job site products through its diverse brand portfolio.
Products:
Briggs & Stratton offers a range of small engine products, including the E Series Engines, known for their simplicity, reliability, and features like Prime ‘N Pull™ for easy starting and Lo-Tone™ Muffler for low noise operation.
Market Performance in 2024:
In 2024, Briggs & Stratton reported a revenue of 1627.2 M USD with a gross margin of 20.35%.
7.2 Yanmar
Company Introduction and Business Overview:
Yanmar, founded in 1912 and based in Japan, is a global provider of diesel engines, accessories, and finishing equipment for various applications.
Yanmar designs and manufactures engines for pleasure craft, commercial marine vessels, industrial use, agricultural machinery, construction equipment, and cogeneration power systems.
Products:
The L100W engine, a product of Yanmar, is designed with direct injection technology for maximum combustion efficiency and environmental compliance, showcasing the company’s commitment to power and sustainability.
Market Performance in 2024:
Yanmar achieved a revenue of 1308.8 M USD in 2024, with a gross margin of 16.25%.
7.3 Kubota
Company Introduction and Business Overview:
Kubota, with a history dating back to 1890 and headquartered in Japan, is a manufacturer and seller of small to midsize agricultural and construction equipment, as well as water treatment equipment.
Kubota’s product range includes compact/utility tractors, mini excavators, compact track loaders, engines, and rice farming equipment, serving both agricultural and industrial sectors.
Products:
Kubota’s “ultra-small” series engines are known for their high power output relative to their size, meeting industry demands for diesel engine volume and power.
Market Performance in 2024:
In 2024, Kubota recorded a revenue of 1245.6 M USD and a gross margin of 17.39%.