Small Engine Market size is anticipated to reach USD 14 Billion by the end of 2036, growing at a CAGR of 5% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of small engine was USD 7 Billion. The expanding commercial and residential industries are driving up demand for outdoor power equipment globally. For instance, in 2020 global commercial industry is poised to garner a revenue of USD 34 trillion. Instead of using their traditional ways, homeowners and construction contractors are renting outdoor power equipment. These pieces of equipment are less expensive to hire and require little upkeep. To minimize greenhouse gas emissions, this type of equipment is typically fitted with small engines that mostly run on natural gas. Increased use of this equipment fuels the expansion of the worldwide market.
Small engines are usually 2- or 4-stroke parts that run smaller cars like mopeds and dirt bikes as well as outdoor equipment like generators, lawnmowers, and tractors. Small engines are compact, have a straightforward design, and operate well. It can endure for many years if well provided for. Therefore, the longer lifespan is expected to bolster the growth of the small engines market.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 7% |
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Base Year Market Size (2023) |
~ USD 7 Billion |
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Forecast Year Market Size (2036) |
~ USD 14 Billion |
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Regional Scope |
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Energy Source (Liquid Filling Petrol, Diesel, Compressed Natural Gas (CNG), Liquid Petroleum Gas (LPG))
Diesel segment in the small engine market is expected to hold a share of 43% during the forecast period. The growth can be attributed to the demonstration of its extensive use in a variety of small engine applications, especially in heavy-duty and industrial machinery. The growing consumption of diesel globally is escalating the growth of the segment. For instance, in March 2024, the United States consumed approximately 3.77 million barrels of diesel fuel on average per day. The increase in emphasis on greener and more ecologically friendly fuel options is the reason for this growth. Higher compression puts strain on diesel engines, which are designed to tolerate it. As a result, they often require fewer major repairs before breaking down than gas-powered vehicles. Diesel engines heat up more quickly than gas-powered engines do as the compression ratio increases. There are fewer trips to the gas pump to fill up because there is a production of more energy and less fuel. Therefore, these factors are accelerating the growth of the segment.
End-use (Lawnmower, Snow Blower, Garden Tiller, Chainsaw, Go Cart, Pressure Washer, Water Pump)
Water pump segment in the small engine market is anticipated to hold a share of 28% during the forecast period. The increase in demand for water pumps in important industries including construction, agriculture, and residential buildings can be attributed to the growth.
Because compact engines require less maintenance, there is an increasing demand for them in water pumps for outstanding irrigation lifetime and efficiency. For instance, a study on small engine cooling systems demonstrates that overheating issues can be avoided and the system's overall efficacy can be boosted by modifying the flow rates per specific criteria. The results further demonstrate that this modification can be achieved by designing a controlled electric water pump. Therefore, the growing demand for electric water pumps is contributing to the growth of the small engines market. Throughout the projection period, the water pump section is probably expected to grow significantly.
Our in-depth analysis of the global market includes the following segments:
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Energy Source |
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Engine Type |
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Engine Displacement |
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Application |
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End-use |
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Distribution Channel |
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APAC Market Forecast
Small engine market in Asia Pacific is expected to hold the largest share of 36% during the forecast period. The growth can be attributed to the growing number of public parks and botanical gardens. In this region, there is a sharp rise in demand for equipment with cutting-edge technology. This region is experiencing a significant increase in industrialization, along with rising commercial and residential sectors. The increasing demand for various industrial and gardening equipment is driving up the manufacturing of various components, including tiny gas engines, in this region. Concrete vibrators, portable generators, and other tools are in greater demand as the construction industry moves toward renting equipment.
North American Market Statistics
North American small engine market is poised to hold a share of 27% by the end to 2036. The manufacturing and construction sectors are growing at a faster rate. In these industries in North America, renting equipment is becoming more and more common. In this region, there is a strong need for landscape services that include outdoor equipment. The building industries in this region are heavily invested in by the United States and Canada. Also, the region experiences heavy snowfall which is a major factor for the market growth. As per a report, the amount of snow cover in North America in January 2023 was 15.51 million square kilometers, a little increase from the same month the year before. Therefore, snow blowers, powered by small engines, are used extensively in this region to remove snow.
Author Credits: Rushikesh, Richa Gupta
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