The Europe Small Nonroad Diesel Engines Market was valued at US$ 892.4 million in 2024 and is projected to reach US$ 1.2 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 5.1% during the forecast period (2024–2030). This growth is being driven by expanding infrastructure projects, stringent emission regulations like EU Stage V, and the rising demand for efficient power solutions in agriculture, construction, and industrial applications across the region.
As the off-road machinery sector evolves toward greater environmental compliance and operational efficiency, the focus turns to the leading manufacturers powering compact equipment with advanced diesel technologies. These companies are at the forefront of integrating emission control systems, enhancing fuel economy, and developing durable engines for nonroad use. In this blog, we profile the Top 10 Companies in the Europe Small Nonroad Diesel Engines Market—a blend of global giants, European specialists, and innovators shaping the future of compact diesel power for off-highway operations.
🔟 1. Yanmar Co., Ltd.
Headquarters: Osaka, Japan (with major European operations in Netherlands)
Key Offering: Air-cooled and water-cooled small diesel engines for tractors, generators, and construction equipment
Yanmar stands out as a pioneer in compact diesel engines, with a strong presence in Europe through its dedicated facilities and partnerships. The company supplies reliable engines that meet the latest EU emission standards, serving a wide array of nonroad applications from agricultural tractors to compact excavators. Their focus on compact designs and low-noise operation makes them a preferred choice for European manufacturers seeking efficient power sources that balance performance and compliance.
Innovation Initiatives:
- Advanced common-rail fuel injection systems for improved fuel efficiency up to 20% over previous generations
- Integration of exhaust gas recirculation (EGR) and diesel particulate filters (DPF) for Stage V compliance
- Collaborations with European OEMs to develop hybrid-ready diesel platforms for future off-road machinery
Download FREE Sample Report: Europe Small Nonroad Diesel Engines Market – View in Detailed Research Report
9️⃣ 2. Kubota Corporation
Headquarters: Osaka, Japan (European HQ in Belgium)
Key Offering: Water-cooled diesel engines for loaders, forklifts, and gensets with power outputs from 10 to 50 kW
Kubota has built a robust reputation in Europe for its durable small nonroad diesel engines, particularly in the agricultural and construction sectors. Their engines are engineered for high torque at low speeds, ideal for heavy-duty off-road tasks, and incorporate advanced cooling systems to ensure longevity in demanding conditions. With a market share bolstered by local assembly plants, Kubota continues to expand its footprint by addressing the region’s push for greener machinery.
Innovation Initiatives:
- Development of engines with up to 15% better fuel economy through electronic control units (ECUs)
- Selective catalytic reduction (SCR) technologies to reduce NOx emissions in compliance with EU norms
- Investment in R&D for biofuel-compatible engines to support sustainable farming practices
8️⃣ 3. Caterpillar Inc.
Headquarters: Irving, Texas, USA (European operations in UK and Belgium)
Key Offering: Compact diesel engines for loaders, excavators, and industrial applications with integrated aftertreatment
Caterpillar’s small nonroad diesel engines are renowned for their robustness and integration into a wide range of off-road equipment across Europe. The company leverages its global expertise to deliver engines that excel in fuel efficiency and emission control, powering construction sites from Germany to Italy. Their emphasis on telematics-enabled engines allows for real-time monitoring, helping operators optimize performance and reduce downtime in harsh environments.
Innovation Initiatives:
- Engines featuring variable geometry turbochargers for enhanced power density and efficiency
- Comprehensive aftertreatment systems achieving over 95% emission reduction to meet Stage V requirements
- Partnerships with European infrastructure projects to test and deploy low-emission diesel solutions
7️⃣ 4. Cummins Inc.
Headquarters: Columbus, Indiana, USA (European HQ in UK)
Key Offering: Air-cooled and water-cooled engines for gensets, tractors, and forklifts with modular designs
As a key player in Europe’s small nonroad diesel market, Cummins provides versatile engines that prioritize reliability and ease of maintenance. Their products are widely used in industrial and agricultural settings, benefiting from the company’s extensive service network across the continent. Cummins is actively advancing technologies that align with Europe’s environmental goals, ensuring their engines remain competitive in a regulated landscape.
Innovation Initiatives:
- High-pressure common-rail systems improving fuel efficiency by 10-15% in compact applications
- DocSIS-compliant aftertreatment for seamless Stage V integration without compromising power
- Focus on digital diagnostics to enhance maintenance efficiency for fleet operators
Download FREE Sample Report: Europe Small Nonroad Diesel Engines Market – View in Detailed Research Report
6️⃣ 5. Deutz AG
Headquarters: Cologne, Germany
Key Offering: Water-cooled diesel engines for construction equipment and gensets, up to 100 kW
Deutz, a German powerhouse, dominates the European market with engines tailored for nonroad use in construction and agriculture. Their off-highway engines are celebrated for their compact size, high power-to-weight ratio, and adherence to the strictest emission standards. With deep roots in Europe, Deutz benefits from proximity to major customers, enabling rapid innovation and customization for regional needs like urban infrastructure development.
Innovation Initiatives:
- TCD series engines with 42% improved fuel efficiency through optimized combustion
- Full compliance with EU Stage V via integrated DPF and SCR systems
- Expansion of hydrogen-ready diesel hybrid concepts for future-proof applications
5️⃣ 6. Kohler Co.
Headquarters: Kohler, Wisconsin, USA (European operations in Italy and Germany)
Key Offering: Air-cooled diesel engines for forklifts, loaders, and small industrial machinery
Kohler has carved a niche in Europe’s small nonroad diesel segment with engines that emphasize simplicity, low emissions, and robust performance. Their products power a variety of compact equipment, from warehouse forklifts to garden tractors, and are designed for easy integration into existing machinery lines. Kohler’s commitment to innovation helps them navigate the challenges of regulatory compliance while maintaining cost-effectiveness for end-users.
Innovation Initiatives:
- KDI series with advanced EFI for 25% lower fuel consumption
- Built-in emission controls ensuring 95% compliance with Stage V without external add-ons
- Telematics integrations for predictive maintenance in agricultural fleets
4️⃣ 7. Isuzu Motors Ltd.
Headquarters: Tokyo, Japan (European base in UK)
Key Offering: Compact water-cooled diesels for gensets and construction loaders
Isuzu brings Japanese precision to Europe’s nonroad diesel market, supplying engines known for their durability and low vibration. These engines are integral to industrial gensets and off-road vehicles, particularly in demanding sectors like mining support and utilities. Isuzu’s strategy includes enhancing engine modularity to meet diverse European specifications, supporting the continent’s infrastructure boom.
Innovation Initiatives:
- 4JJ series engines with 38% better technology integration for emission reduction
- SCR and DPF combinations for full EU compliance in small packages
- R&D in lightweight materials to boost engine efficiency and reduce vehicle weight
Download FREE Sample Report: Europe Small Nonroad Diesel Engines Market – View in Detailed Research Report
3️⃣ 8. John Deere
Headquarters: Moline, Illinois, USA (European HQ in Netherlands)
Key Offering: PowerTech diesel engines for tractors and loaders with precision agriculture features
John Deere’s small nonroad diesels are synonymous with agricultural excellence in Europe, powering tractors and harvesters that drive modern farming. Their engines incorporate smart technologies for optimized performance, helping farmers achieve higher yields with lower environmental impact. As infrastructure and agribusiness grow, John Deere’s focus on reliability positions them as a leader in sustainable off-road power.
Innovation Initiatives:
- Interim Tier 4/Stage V engines with 20% fuel savings via integrated controls
- Advanced air management systems for cleaner combustion and reduced particulates
- Connectivity features linking engines to farm management software for efficiency gains
2️⃣ 9. Volvo Penta
Headquarters: Gothenburg, Sweden
Key Offering: D2 and D3 series water-cooled diesels for industrial and marine-off-road hybrids
Volvo Penta, a Swedish innovator, excels in Europe’s small nonroad diesel market by delivering engines that blend high performance with eco-friendly designs. Their products are used in construction loaders and gensets, benefiting from Volvo’s expertise in heavy machinery. With a strong emphasis on Scandinavian engineering, they lead in creating engines that support the EU’s green deal objectives through superior emission controls.
Innovation Initiatives:
- Engines achieving up to 30% lower emissions with electronic fuel management
- Modular aftertreatment for easy upgrades to Stage V and beyond
- Hybrid integration pilots for reduced diesel dependency in urban construction
1️⃣ 10. Perkins Engines Company Limited
Headquarters: Peterborough, UK
Key Offering: 400 and 1100 series small diesels for forklifts, gensets, and tractors
Perkins tops the list as a European stalwart, producing small nonroad diesel engines that power essential equipment across the continent. Their UK-based manufacturing ensures quick adaptation to local regulations, and their engines are valued for outstanding durability in construction and industrial settings. Perkins’ global supply chain and focus on customer support solidify their leadership in driving Europe’s off-road efficiency.
Innovation Initiatives:
- 400D series with 42% enhanced fuel efficiency through optimized turbocharging
- Comprehensive Stage V solutions including DOC, DPF, and SCR for 95% emission compliance
- Digital twin technology for performance optimization and predictive reliability
Read Full Report: Europe Small Nonroad Diesel Engines Market – View in Detailed Research Report
🌍 Outlook: The Future of Europe Small Nonroad Diesel Engines Is Efficient and Eco-Friendly
The Europe small nonroad diesel engines market is experiencing significant transformation. Traditional diesel power remains dominant, but the sector is channeling substantial investments into emission-reducing technologies, fuel-efficient designs, and integrated systems to meet evolving regulatory demands and support sustainable development.
📈 Key Trends Shaping the Market:
- Accelerated adoption of Stage V compliant engines across the EU, with Germany leading at 35% market share
- Growing emphasis on fuel efficiency improvements, targeting 42% gains through advanced injection and turbo systems
- Integration of digital technologies for 38% enhanced performance monitoring in construction and agriculture
- Regulatory incentives driving innovation, with the construction sector accounting for 48% of demand
Market Trends Affecting Europe Small Nonroad Diesel Engines
- Stringent Emission Regulations (EU Stage V) — Manufacturers are prioritizing aftertreatment systems like DPF and SCR to achieve 95% compliance, reshaping engine designs and increasing costs but ensuring market access. Deutz and Perkins are leading with integrated solutions.
- Fuel Efficiency Advancements — With improvements up to 42%, companies are adopting common-rail and variable valve timing; Yanmar’s EFI systems exemplify this shift, helping operators cut operational expenses amid rising fuel prices.
- Technology Integration and Connectivity — IoT-enabled engines for remote diagnostics and telematics are gaining traction at 38% adoption rate; Caterpillar’s integrations allow for real-time data, boosting maintenance efficiency in fleets.
- Growing Demand from Infrastructure and Agriculture — Europe’s infrastructure boom and sustainable farming initiatives are fueling 5.1% CAGR, with compact engines for loaders and tractors seeing heightened use; Kubota’s modular designs support this modular equipment trend.
- Hybrid and Alternative Power Transitions — While diesel dominates, pilots for diesel-electric hybrids are emerging to reduce emissions further; Volvo Penta’s initiatives highlight how manufacturers are preparing for a multi-fuel future in off-road applications.
Read Full Report: Europe Small Nonroad Diesel Engines Market – View in Detailed Research Report
The companies listed above are not only powering Europe’s off-road machinery—they’re spearheading the transition to efficient, low-emission operations across construction, agriculture, and industry.