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Heavy-duty vehicles, currently the second largest source of fuel consumption and carbon emissions are projected to be fastest growing mode in transportation sector in future. There is a clear need to increase fuel efficiency and lower emissions for these engines. The Opposed-Piston Engine (OP Engine) has the potential to address this growing need. In this paper, results are presented for a 9.8L three-cylinder two-stroke OP Engine that shows the potential of achieving 55% brake thermal efficiency (BTE), while simultaneously satisfying emission targets for tail pipe emissions. The two-stroke OP Engines are inherently more cost effective due to less engine parts. The OP Engine architecture presented in this paper can meet this performance without the use of waste heat recovery systems or turbo-compounding and hence is the most cost effective technology to deliver this level of fuel efficiency.