Internal combustion engines that utilize diesel as fuel are known as diesel engines, these engines are also known as compression ignition engines. Moreover, diesel engines are integrated in heavy vehicles owing to their capability to produce higher torque, as compared to that produced by gasoline or any other engine.

Key manufacturers operating in the global diesel engine market for automotive include:
Cummins Inc., Kubota Corporation, ISUZU MOTORS LIMITED, Yanmar Co., Ltd., and Fiat Powertrain Technologies S.p.A.

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Demand for diesel engines is likely to decline during the forecast period, owing to rise in stringency of emission norms and increased emphasis by governing bodies on the production as well as adoption of hybrid and electric vehicles. Surge in pollution across the globe is a major issue that is likely to drive the adoption of electric vehicles. According to a study by the World Bank, higher pollution levels resulted in around 9 million premature deaths in 2016, and the air quality index of major industrial regions has been declining consistently. According to the World Health Organization, 9 out of 10 people are breathing air with high level of pollutants. Asia Pacific and Europe are facing the major issues regarding the quality of air due to emission of large amount of pollutants from manufacturing industries in these regions. Some organizations in the U.S., such as EPA (Environment Protection Agency) and Environmental Defense Fund (EDF), have estimated that one-third of the total air pollution is collectively contributed by vehicles running on the road.

Consequently, the production of the diesel engines is being minimized since 2014 in order to improve the air quality index and lower pollution levels. High maintenance and higher emission from diesel engines are key factors restraining the diesel engine market for automotive. Higher duties on diesel engines due to their higher weight increases the cost of these vehicles, which in turn, in some cases, is likely to hamper the diesel engine market for automotive.

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