The Queen’s Award was in recognition for JCB’s TorqueLock system, which cuts fuel consumption on its backhoe loaders.
The Duke of Gloucester presented the award to Steve Carrington, managing director of the backhoe loader business unit, in a ceremony attended by hundreds of employees.
It is the 26thaward for the company in 42 years and the fifth for the backhoe loader unit.
JCB group chief executive officer Alan Blake said: "All of our Queen’s Awards are special but when they honour innovation, they take on extra significance because JCB’s success over the past 65 years has been built on innovation. It underpins everything we do.