SOURCE: The Freedonia Group, Inc.

August 11, 2005 13:52 ET

US Diesel Engines Demand to Reach $16.3 Billion in 2009

CLEVELAND, OH -- (MARKET WIRE) -- August 11, 2005 -- US demand for diesel engines and related aftermarket parts is forecast to increase 4.2 percent annually through 2009 to $16.3 billion, a substantial improvement over the performance registered during the 1999-2004 period, when key diesel engine markets such as heavy-duty trucks experienced sharp production declines. Gains will be driven in general by continued expansion of the US economy. These and other trends are presented in "Diesel Engines," a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Although motor vehicle diesel engines will still comprise the largest product segment in 2009, off-highway diesel engines will grow faster, spurred in large part by renewed growth in such large markets as construction and agricultural equipment, both of which have a high degree of diesel engine penetration. The fastest-growing off-highway markets will be marine equipment and electric power generation, supported by heightened boat building and shipbuilding activity, as well as by rising interest in off-grid electric power sources -- an interest precipitated in part by the major blackout experienced in the Northeast US in August 2003.

Heavy-duty trucks will remain the largest motor vehicle market for diesel engines, despite projected declines in heavy-duty truck production through 2009. Light-duty trucks will continue to be the second-largest motor vehicle market and experience the most rapid growth, with the other motor vehicle market -- which includes specialty vehicles -- posting the second-largest gains. Additionally, technological innovations, many of which will be prompted by federally mandated emissions control regulations, will spur demand for new, cleaner-burning diesel engines and components at both the original equipment manufacturing and aftermarket levels in the motor vehicle and off-highway segments.

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