Off-highway engine is a machine designed to convert one form of energy into mechanical energy and is used in off-road vehicles. Heat engines burn fuel to create heat that is then used to power vehicles. Off-road vehicles are a type of vehicle that are capable of driving on and off tiled or pebbly surfaces. They are generally characterized as having large tires with deep, open treads, and a flexible suspension. The most common use of these vehicles is for exploration in areas distant from asphalt roads. The use of higher clearance and higher power vehicles enables access to trails and forest roads that have rough and low traction surfaces.

Increase in demand and production of off-road vehicles is projected to boost the off-highway engine market during the forecast period. Demand for all-terrain vehicles (ATVs) is increasing due to their suitability for activities such as trekking and travelling in the exploration area.

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The off-highway engine market can be segmented based on fuel type, end-use industry, engine capacity, and geography.

Off-highway engines primarily use two kinds of fuel: petrol and diesel. Based on fuel type the off-highway engine market can be classified into petrol engine and diesel engine. Both kinds of fuel are used in IC (Internal Combustion) engines to generate mechanical energy.

Off-highway engines have applications in various sectors such as agriculture, construction, infrastructure, mining, and all-terrain vehicles. Farm tractors and load-carrying (crop carrying) vehicles are some off-highway vehicles used in agriculture. Excavators and stone crushers are some off-highway vehicles used in construction and infrastructure. Quads, quad bikes, and RZR are types of all-terrain vehicles.

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Based on engine capacity, off-highway vehicles can be categorized into less than 5L, 5L to 10L, and more than 10L. Capacity is measured by the volume of engine bore, in which the heating of fuel takes place. Heavy-duty vehicles possess higher capacity engines for improved performance of the vehicle.

In terms of geography, the off-highway engine market can be segmented into North America, Europe, Asia Pacific, and Rest of the World (ROW). Asia Pacific accounts for a prominent share of the global off-highway engine market, owing to the high adoption rate of off-highway vehicles and the booming automotive sector leading to an increased production of off-highway engines, especially in China and India.

Some of the key players operating in the global off-highway engine market are Caterpillar Inc., Cummins Inc., Deutz AG, Kubota Corporation, J. C. Bamford Excavators Ltd., Deere and Company, Hitachi Construction Machinery Co. Ltd., AGCO Corporation, Mahindra and Mahindra Ltd., and Massey Ferguson Ltd.