CONEXPO Provides NA Market Outlook
We talked with many industry representatives at CONEXPO, and we generally heard that the North American construction equipment market is performing relatively well and that it is expected to experience low single-digit growth in the near term, with demand remaining stable. Demand continues to be supported by infrastructure investment and ongoing construction activity.
OEM representatives said their cautious forecasts were affected by factors such as interest rates, inflation, tariffs and global supply chain disruptions.
Tariffs were repeatedly mentioned as one of the main uncertainties affecting the industry. Frequent policy changes are impacting equipment pricing, sourcing strategies, and global supply chains. Manufacturers are adjusting sourcing strategies and regional production to mitigate tariff exposure.
The industry is moving toward a dual technology pathway. Electrification continues emerging in compact equipment and adoption is increasing slowly as customers become more familiar with EV solutions. Advanced diesel engines remain dominant in medium and large machines, and according to experts, diesel will remain the dominant technology for a long time.
OEMs said they are investing heavily in new engine platforms, efficiency improvements, telematics and connectivity.
We were able to identify a number of trends, based on field interviews and observations conducted during OEM and engine manufacturer booth visits.
Powertrain, Engine Technology Trends
Diesel engines remain the dominant power solution for medium and large construction equipment. Large equipment used in remote areas still requires internal combustion engines due to power needs and operational constraints. According to interviews made by PSR, diesel will continue to be the preferred power solution.
Manufacturers continue to improve fuel efficiency, simplify engine architecture, and enhance durability. Manufacturers showcased different alternative power solutions and are still exploring and testing hydrogen combustion engines, hybrid systems, and introducing multi-fuel platforms (hydrogenated vegetable oil, hydrogen, biodiesel, and natural gas) to the market.
Several companies presented prototype hydrogen engine concepts, although these technologies remain in testing phases or with some few customers. One of the key operational challenges for hydrogen equipment is the lack of fueling infrastructure. As an example, Power Systems Research analysts interviewed executives of JCB, and the company explained that its hydrogen combustion engine technology is already on the field with a limited number of customers, although the market is still at an early stage of deployment.
JCB has developed a mobile hydrogen refueling unit in conjunction with a supplier company that delivers hydrogen directly to job sites, so the fuel logistics is handled as part of a service package supporting early adopters. The main takeaway from the interview is that hydrogen combustion technology is technically viable but still constrained by fueling infrastructure.
Regarding multi-fuel platforms, major manufacturers like Perkins and Cummins showcased engines designed to run on low-carbon fuels, including hydrogen, HVO, and natural gas, aiming to provide flexible, lower-emission solutions without sacrificing performance. Cummins next generation X15, and Perkins 2600 Series were showcased at the venue. FPT showcased it´s multi-fuel XCursor 13. Isuzu also presented it´s multi-fuel engine concepts based on its established engine architecture.
Electrification Trends
Compact equipment segments show the highest experimentation with electrification and alternative power solutions, while large machines such as dozers and large excavators continue to rely primarily on diesel power due to high energy requirements.
Electrification is primarily being applied to compact equipment used in urban environments, as well as in some remote applications supported by portable power stations or battery storage units.
Battery-electric prototypes and electric power units were showcased, with some already available in the market and others currently being tested as potential replacements for diesel engines in smaller and medium-sized equipment.
There is a growing trend toward presenting these technologies, and several new models were introduced during the show by different OEMs and engine manufacturers. Examples include the Perkins battery-electric power unit, the Komatsu electric micro excavator PC01E-2 made in Japan, the JLG scissor lift ES1930M Micro-Sized, the mini track loader TL100EV from Case, and the Dynapac CC1000e electric vibratory roller.
Charging infrastructure and operational limitations continue to restrict wider adoption of electric equipment across the broader construction equipment market.
Additional technologies presented included autonomous and robotic equipment, such as the RogueX3, Bobcats third-generation autonomous compact loader concept. This machine was introduced to explore the future of compact construction equipment through electrification, autonomy, and modular machine architecture.
OEM & Engine Manufacturer Highlights
While walking the CONEXPO, we saw several interesting engine platforms and alternative power technologies at engine manufacturer booths. Interestingly, a number of the innovative products were diesel powered.
Diesel Engines
| Manufacturer | Engine Model | Displacement | Power | Notes |
| Cummins | F3.8 Power Unit | 3.8 L | 74–173 hp | Modular power unit for off‑highway equipment |
| Cummins | X15 Next Generation | ~15 L | Up to ~700 hp | Heavy‑duty multi-fuel engine platform |
| Perkins | 904J‑E36TA | 3.6 L | ~134 hp | High power density compact diesel engine |
| Perkins | 2606J‑E13TA | ~13 L | ~690 hp | Large industrial diesel engine platform and multi-fuel |
| Kubota | V5009 | 5.0 L | ~210 hp | Stage V / Tier 4 Final diesel engine |
| John Deere | JD5 | 5.0 L | 125–268 hp | Mid‑range diesel engine platform (under development) |
| John Deere | JD8 | 7.5 L | 250–389 hp | Heavy‑duty diesel engine platform (under development) |
| Kawasaki | GEOTORQ | 2.4 L | ~95 hp | Gasoline engine alternative to small diesel |
| Hyundai | DX05 | 5 L | 230hp | Diesel engines |
| Hyundai | DX08 | 7.5 L | 341hp | Diesel engines |
| Komatsu | DBA127 | 12.74 L | 563 hp | Industrial diesel engine platform |
| Rehlko | Command Pro EFI ECH936, ECH938, ECH941 | 999 cc | 36-41hp | Gasoline engine |
| Hatz | F Series | 0.952-1.758 L | — | Diesel engines |
Alternative Fuel and Electrified Power Systems
| Manufacturer | Engine / System | Technology | Status |
| Deutz | TCD 12.8 | Diesel, HVO certified | 390 kW, 6-cylinder, 12.809 L |
| JCB | Hydrogen ICE | Hydrogen combustion engine | 4 cylinder, 74 hp @ 2000rpm |
| FPT | XCursor 13 Hydrogen | Hydrogen internal combustion | 12.9 L, In-Line 6-cylinder, 512hp |
| Hyundai | H2ICE Hydrogen Engine | Hydrogen ICE | In-Line 6-cylinder, 11.1 L displacement, Euro 6 (Zero-CO2), EPA Tier 4 Final, EU Stage V |
| Perkins | 1206 Hydrogen Hybrid IOPU | Hybrid hydrogen power unit | Prototype |
| Perkins | Battery Electric Power Unit | Battery electric drivetrain | Prototype |
