The small engine market consists of engines with displacement volume usually between 25–999 cm3 that are used to power various outdoor power equipment such as lawn mowers, chain saws, generators, trimmers, and tillers among others. Small engines offer advantages such as ease of use, mobility, cost-effectiveness, and low maintenance over larger engines. Growing residential and commercial construction activities coupled with rising disposable incomes have led to greater demand for landscaping and gardening services, thereby propelling the sales of outdoor power equipment and small engines.
The global small engine market is estimated to be valued at USD 19.34 Billion in 2025 and is expected to reach USD 24.77 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.6% from 2025 to 2032.
Key Takeaways
Key Players: Key players operating in the small engine market include Briggs & Stratton Corp, Honda Motor Co., Ltd., Kawasaki Heavy Industries, Ltd., Kohler Co., Kubota Corporation, Yamaha Motor Co., Ltd., and Loncin Motor.
Key Opportunities: Stringent emission regulations on gasoline-powered equipment presents an Small engine market opportunity for manufacturers to focus on developing electric-powered alternatives. Additionally, the Asia Pacific region excluding Japan is expected to present lucrative growth opportunities owing to rising disposable incomes and construction activities.
Global Expansion: Major players are expanding their global footprint through partnerships, mergers, and acquisitions to leverage growth opportunities in emerging markets of Asia, Central and South America, and Africa. For instance, Kohler partnered with multiple distributors to expand sales and service networks across China.
Market Drivers
- Rising demand for landscaping and gardening services from both residential and commercial sectors is a key factor stimulating demand for outdoor power equipment and small engines.
- Growing construction of homes and commercial buildings in developing regions of Asia Pacific, Latin America, and Middle East and Africa is propelling the sales of various construction equipment that utilize small engines.
Market Restraints
- Stringent emission regulations imposed by environmental agencies on gasoline-powered small engines is a major challenge for engine manufacturers. The compliance with new regulations increases manufacturing costs.
- Volatility in raw material prices such as steel and aluminum affects profit margins of small engine manufacturers. Fluctuating fuel prices also impact the operating costs of end-use equipment.
Segment Analysis
Lawnmowers segment currently dominates the small engine market. It accounts for around 35% of the total market share owing to its wide application in gardens, parks and other commercial landscaping activities. The demand for lawnmowers have increased significantly in recent years due to shifting preferences towards outdoor and backyard activities among individuals. Generators segment holds the second largest share and is expected to witness steady growth. Rising power outages in many parts of the world have necessitated the use of generators for backup power requirements. Various industrial, commercial and residential users rely on generators during power failures.
The Asia Pacific region presently accounts for more than 40% of the global small engine market. Increasing purchasing power, growth of the indoor and outdoor power equipment industry and rapid urbanization are driving the Asia Pacific market. Countries like China, India and Japan are major markets in the region. North America is another prominent regional market. Favorable government policies and high living standards have augmented the sales of small engine based products in the US and copyright. Europe holds a significant share and the demand is expected to rise at a moderate pace during the forecast period.
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