Engine Technology Forum: Industry insights, observations, outlook for 2026

The Engine Technology Forum issued in mid-January its outlook for the engine industry in 2026.

“Last year underscored the importance of engine technology being at the forefront of sustaining our economy and achieving several of our new national objectives,” said Allen Schaeffer, executive director of ETF. “From U.S. leadership in artificial intelligence to unleashing our energy resources, advanced engines are at the center of today’s progress and tomorrow’s possibilities.”

Heavy-duty engine, equipment and truck makers are rapidly transforming to deliver cleaner and more efficient power solutions across every sector of the economy.

ETF, which represents the leaders in advanced engines, technology and fuels, offers the following observations on 2026:

• As the industry adapts to new trade and economic conditions, the benefits of investment in new commercial trucks, farm machines and construction equipment are greater than ever. Thanks to advancements in engines and other technologies, new machines, trucks and equipment are more efficient, enabling greater productivity while using less fuel and achieving near-zero emissions. Removing barriers and offering incentives for investments in new equipment will boost U.S. economic productivity in both the near and long term.

• The new national focus on leading the world in artificial intelligence will again be a dominating force. Manufacturers of engines and advanced power systems are expanding their capabilities to meet demand for large-scale power-system solutions for the rapidly growing universe of data centers.

• The year will further illuminate how traditional manufacturers of engines, equipment and trucks have transformed into system and solutions providers. Built on big data and a deeply cultivated understanding of their customers’ needs in farm, construction and freight transport, manufacturers no longer just make the engine, vehicle, or machine—they connect the fields, highways and jobsites with autonomy and artificial intelligence. This delivers significant gains in productivity and efficiency, boosting economic returns.

• Advanced engines and fuels help customers meet their own economic and sustainability goals more effectively than ever before. Having achieved near-zero emissions and boosted efficiency across virtually all sizes and configurations, a key strength of engine technology is its ability to utilize and optimize for a wide range of fuels—from traditional fossil fuels to renewable fuels like renewable diesel, biodiesel and renewable natural gas. Continued exploration of new fuels, such as hydrogen for use in internal-combustion engines, adds further dimension and future capability.

• Resolutions are needed on fuel and emissions policies to provide certainty for industry and its customers. There is high anticipation for the timely resolution of key rules governing renewable fuels and related tax policy for fuel producers. The clean-fuels sector has the capacity to deliver more renewable biofuels as part of unleashing American energy. Likewise, the industry anticipates the timely proposal and resolution of adjustments to the 2027 heavy-duty engine emissions rule. Eliminating regulatory uncertainty will drive investments in new technology and boost economic growth.

“We approach 2026 with great optimism for whatever it holds,” Schaeffer said. “If the past year has taught us anything, it is that engines work—under changing times, new demands and evolving circumstances. They work in completing the toughest tasks and serve as solutions to some of our biggest national challenges.”