Revved up: Increased spending on transportation will drive demand for industry products

The Engine and Turbine Manufacturing industry is dependent on trade, especially demand from exports, which account for nearly half of industry revenue. Although revenue recovered slightly early on in the five-year period, volatility in key downstream markets led overall revenue to trend downward over the five years to 2017. Over the five years to 2022, greater overall truck transportation in the United States will drive domestic diesel engine sales. Increased consumer spending will spur demand for freight and on-highway transportation. As one of the industry's largest customers, increased freight trucking leads to more sales of diesel engines. As industry revenue grows, manufacturing operators will be able to invest in industrial equipment and machinery...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Greater overall truck transportation in the United States will drive domestic diesel engine sales
  • Global energy demand has increased more rapidly due to the strong growth of emerging economies
  • Manufacturers and industrial producers will demand more energy to produce goods
  • Industry Report - Industry Key Buyers Chapter

    The Engine and Turbine Manufacturing industry has a medium level of concentration, with the top three companies collectively holding 35.1% industry market share. Additionally, only 2.1% of industry establishments employ 500 or more workers. Over the five years to 2017, mergers and acquisitions have driven industry consolidation and increased concentration. In February 2015, major player General Electric (GE) bought Alstom SA's power business, which makes turbines for the power sector, for an estimated $9.5 billion. Likewise, fellow major players Caterpillar and Cummins each acquired industry-related manufacturers, with the former expanding rail-related holdings and the latter expanding distribution holdings in Canada. The...purchase to read more.

    Additional Insights for the Engine & Turbine Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Engine & Turbine Manufacturing Industry are

  • Quickly adopting new technology
  • Using the latest technologies
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Demand from truck transportation in the Engine & Turbine Manufacturing industry impact industry performance..

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    What's in this report

    What is the Engine & Turbine Manufacturing Industry?

    Operators in this industry manufacture turbines and equipment used for power transmission, such as generators, as well as diesel engines for highway vehicles and heavy-duty equipment. Parts and accessories are included, but wind turbines are excluded from this industry (see IBISWorld report 33361b).

    Industry Products
  • Diesel engines for trucks, marine and other engine equipment
  • Turbines and turbine generators sets
  • Mechanical power transmission equipment
  • Speed changers, drives and gears
  • Natural gas engines and other
  • Industry Activities
  • Manufacturing diesel, semidiesel and dual fuel engines
  • Manufacturing gas, steam and other turbines, generator sets and accessories
  • Manufacturing mechanical power transmission equipment
  • Manufacturing speed changers, drives and gears
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Demand from truck transportation
  • Private investment in industrial equipment and machinery
  • Electric power consumption
  • World price of steel

  • Current Performance
  • Trade importance
  • Global electricity demand
  • Downstream demand trends
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic growth continues
  • Superior technology and regulatory compliance
  • Modest export growth
  • Profitability
  • Table: Engine & Turbine Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Engine & Turbine Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Utilities
  • Construction
  • Manufacturing

  • Key Selling Industries
  • Ball Bearing Manufacturing
  • Iron & Steel Manufacturing
  • Metalworking Machinery Manufacturing
  • Screw, Nut & Bolt Manufacturing

  • Products & Services
  • Turbines and turbine generators sets
  • Diesel engines for trucks, marine and other engine equipment
  • Natural gas engines and other
  • Mechanical power transmission equipment
  • Speed changers, drives and gears
  • Chart: Engine & Turbine Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Trucking
  • Other forms of freight, heavy industry and agricultural machinery
  • Construction machinery manufacturing
  • Power generation
  • Energy efficiency and environmental regulations

  • Major Markets
  • Exports
  • Trucking and freight industries
  • Utilities and other electric power producers
  • Original equipment manufacturers
  • Chart: Major Market Segmentation for the Engine & Turbine Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Purchases
  • Wages
  • Profit
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Engine & Turbine Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Engine & Turbine Manufacturing Industry

  • Industry Globalization
    Caterpillar Inc., General Electric Company, Cummins Inc.,
  • Table: Caterpillar Inc. - financial performance
  • Table: General Electric Company - financial performance
  • Table: Cummins Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Engine & Turbine Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Engine & Turbine Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of steel (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A motor that converts thermal energy to mechanical work.
  • Integrated Gasification Combined Cycle (Igcc)
  • A technology that turns coal into gas, removing impurities before it is combusted and attempting to turn any pollutants into reusable byproducts.
  • Original Equipment Manufacturers (Oems)
  • A manufacturer of products or components that are purchased by a company and then retailed under the purchasing company's brand name.
  • Turbine
  • A rotary engine in which the kinetic energy of a moving fluid is converted into mechanical energy by causing a bladed rotor to rotate.
  • What Our Customers Say

    Why buy this report?

    The Engine & Turbine Manufacturing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Engine & Turbine Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Engine & Turbine Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Engine & Turbine Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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