Internal Combustion Engine Market Size, Share & Trends Analysis Report By Fuel Type (Petroleum, Natural Gas), By End-use (Automotive, Marine, Aircraft), By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global internal combustion engine market size was exhibited at USD 181.84 thousand in 2023 and is projected to hit around USD 442.47 thousand by 2033, growing at a CAGR of 9.3% during the forecast period of 2024 to 2033.

Key Takeaways:

• Asia Pacific dominated the market and accounted for the largest volume share of 42.0% in 2023.
• The automotive segment accounted for the largest volume share of 69.0% in 2023.
• The petroleum segment accounted for the dominant share of 81.6% in 2023.

Internal Combustion Engine Market: Overview

The internal combustion engine (ICE) has long been the heartbeat of the automotive and industrial sectors, propelling advancements and powering a multitude of applications. As we navigate the landscape of modern transportation and industrial machinery, it's essential to delve into a comprehensive overview of the internal combustion engine market, understanding its current state, key players, and future prospects.

Internal Combustion Engine Market Growth

The internal combustion engine (ICE) market is poised for sustained growth, propelled by several key factors. Firstly, the ever-expanding global automotive industry continues to be a primary driver, with increasing demand for vehicles across emerging economies. Furthermore, the versatility of ICE technology extends its applicability beyond automobiles, encompassing marine, industrial, and power generation sectors. Technological advancements, such as the development of more fuel-efficient engines and the integration of smart technologies, contribute to market expansion.

Internal Combustion Engine Market Report Scope

Internal Combustion Engine Market Dynamics

• Technological Advancements Driving Innovation:

The internal combustion engine market is undergoing a transformative phase fueled by rapid technological advancements. Innovations in combustion efficiency, materials science, and manufacturing processes are propelling the industry forward. Lightweight materials, advanced fuel injection systems, and precision engineering are becoming pivotal in enhancing engine performance and fuel efficiency. Additionally, the integration of smart technologies, such as IoT sensors and predictive maintenance solutions, is revolutionizing how internal combustion engines are monitored and optimized.

• Regulatory pressures and environmental sustainability:

One of the defining dynamics in the internal combustion engine market is the escalating emphasis on environmental sustainability, driven by stringent regulatory measures. Governments worldwide are enforcing increasingly stringent emission standards, compelling manufacturers to invest in cleaner and more fuel-efficient engine technologies. This push towards reducing carbon footprints has spurred the development of alternative fuels and hybrid solutions within the internal combustion engine sector. Moreover, the market is witnessing a paradigm shift with manufacturers exploring sustainable practices, such as biofuels and synthetic fuels, to align with global environmental goals.

Internal Combustion Engine Market Restraint

• Environmental Concerns and Stringent Emission Regulations:

One of the foremost challenges facing the internal combustion engine market is the intensifying scrutiny and stringent regulations related to environmental impact and emissions. As global awareness of climate change grows, governments and regulatory bodies are imposing increasingly stringent standards on exhaust emissions. This regulatory landscape poses a significant restraint on traditional internal combustion engines, prompting manufacturers to grapple with the development of cleaner combustion technologies and alternative fuels.

• Electrification Trends and the Rise of Alternative Propulsion:

The accelerating shift towards electrification in the automotive and industrial sectors presents a notable restraint for the Internal combustion engine market. The rise of electric vehicles (EVs) and hybrid technologies has challenged the long-standing dominance of traditional combustion engines. With the automotive industry and consumers increasingly embracing electric and hybrid alternatives, internal combustion engines face growing competition and a potential decline in market share. 

Internal Combustion Engine Market Opportunity

• Integration of Advanced Materials for Enhanced Efficiency:

A significant opportunity within the internal combustion engine market lies in the integration of advanced materials to enhance overall efficiency. Manufacturers are increasingly focusing on incorporating lightweight materials, such as high-strength alloys and composite materials, to reduce the weight of engine components. This not only contributes to fuel efficiency but also improves the overall performance of internal combustion engines. The utilization of cutting-edge materials allows for the design of more compact and powerful engines, catering to the demands of diverse applications, including automotive, aviation, and power generation.

• Emerging Markets and Industrial Applications:

The expansion of emerging markets and increased industrial applications present a promising opportunity for the internal combustion engine market. In regions experiencing rapid industrialization and infrastructure development, there is a growing demand for reliable and efficient power sources. Internal combustion engines, with their proven track record of versatility and adaptability, are well-suited to meet the power generation needs of these emerging economies. Additionally, the industrial sector continues to rely on internal combustion engines for various applications, including construction equipment, generators, and marine propulsion.

Internal Combustion Engine Market Challenges

• Stringent Emission Standards and Environmental Concerns:

One of the foremost challenges confronting the internal combustion engine market is the relentless pressure imposed by stringent emission standards and escalating environmental concerns. Governments worldwide are increasingly prioritizing environmental sustainability and imposing strict regulations to curb emissions from combustion engines. The quest for compliance with these stringent standards poses a significant challenge for manufacturers, necessitating substantial investments in research and development to develop cleaner combustion technologies.

• Electrification Trends and Market Shifts:

The surge in electrification trends poses a substantial challenge to the internal combustion engine market, particularly in the automotive sector. The rise of electric vehicles (EVs) and the push towards hybrid technologies have disrupted the traditional dominance of internal combustion engines. As consumers increasingly embrace electric alternatives, the market for conventional combustion engines faces a potential decline. This necessitates a strategic pivot for manufacturers towards diversification and the development of hybrid solutions to stay competitive. 

Segments Insights:

End-use Insights

The automotive segment accounted for the largest volume share of 69.0% in 2023 and is expected to expand at the fastest CAGR of 9.5% over the forecast period. This expansion is linked to rising consumer disposable income levels, which have increased car usage worldwide. Automotive manufacturers are focused on developing efficient internal combustion engines that offer high returns on manufacturing investments. Furthermore, technological advancements that increase IC engine fuel economy, emissions, and performance are expected to propel market growth during the forecast period.

The aircraft segment is expected to witness a significant CAGR of 8.5% over the forecast period. This segment is primarily driven by the commercial aviation industry's favorable market dynamics. Aircraft used for tourism, logistics, and defense require high-performing ICE, as it has higher torque. This internal combustion engine application in various industries is expected to encourage market growth. Furthermore, technical developments such as multi-fuel capability, which increases fuel mileage, will boost demand for the segment.

Fuel Type Insights

The petroleum segment accounted for the dominant share of 81.6% in 2023 and is expected to expand at the fastest CAGR of 9.2% over the forecast period due to the advantages of petroleum internal combustion engines, such as less vibration and noise. Moreover, technological advancements in the automotive industry are expected to increase revenue flow for the segment. This growth can be attributed to the benefits of gasoline engines, such as being efficient, cheaper, lightweight, and reducing emissions.

Although they have abundant availability and cost advantages, the natural gas segment has a lower market share. Compared to petroleum, the fuel type will take years to gain broad adoption because diesel and gasoline are used in most cars. Meanwhile, the demand for natural gas is expected to rise steadily in the foreseeable future as it is the cleanest burning of all hydrocarbons that helps reduce carbon emissions. Additionally, LNG is used as an alternative to diesel and heavy fuel oil in transport due to its low carbon emission levels.

The natural gas segment is expected to witness a significant CAGR of 9.0% over the forecast period. Natural gas is often more cost-effective than traditional fossil fuels. Natural gas prices have been relatively stable or lower in some regions than gasoline or diesel in recent years. This cost advantage can make natural gas an attractive option for vehicle fleet operators and businesses with large transportation needs.

Regional Insights

Asia Pacific dominated the market and accounted for the largest volume share of 42.0% in 2023. It is expected to expand at the fastest CAGR of 9.6% over the forecast period. The primary factors driving regional market growth are the presence of several automotive manufacturers and increased demand for passenger automobiles in some of the region's major countries, such as India and China.

Furthermore, the lack of electric vehicle charging infrastructure and the expensive cost of electric motors in the region support market growth. Using natural gas in ICE due to low emission is also aimed at making ICE a viable alternative to EVs. The aviation industry in the Asia Pacific is also booming, giving the aviation engines segment opportunities to expand during the forecast period.

North America is expected to expand at a CAGR of 8.9% during the forecast period due to the high rate of automobile adoption in the region. North America is home to major automobile manufacturers such as General Motors Company and Ford Motor Corporation. Car makers are constantly redefining the design and size of the ICE to make it lightweight and smaller, as well as more efficient in performance. Such technological iterations are positively driving market growth. Europe is expected to progress in the market for internal combustion engines due to stringent government laws relating to CO2 emissions and an increasing emphasis on the usage of electric cars in the region.

Recent Developments

• In June 2023, General Motors unveiled its plans to allocate a substantial investment of USD 632 million towards upgrading its Fort Wayne Assembly facility in Indiana. The investment aims to equip the plant to produce the next generation of full-sized ICE trucks. This strategic initiative highlights the company’s dedication to enhancing manufacturing capabilities and addressing the evolving needs of the automotive industry
• In April 2023, Mercedes introduced its final new combustion engine model, unveiling its sixth-generation E-Class. The vehicle would be manufactured in Germany and China and will hit the European market in the third quarter of 2023. While subsequent iterations of the E-Class will be constructed on a newly designed platform optimized for electric vehicles, the current generation will already offer hybrid options alongside traditional internal combustion engines
• In March 2023, Rolls-Royce Power Systems unveiled its ambition to craft a high-speed internal combustion engine prototype designed for maritime vessels. This innovative engine design is geared towards running on eco-friendly methanol, thus facilitating carbon dioxide-neutral operations. The collaborative venture, codenamed "MeOHmare," has brought together the expertise of Rolls-Royce, Woodward L'Orange, and WTZ Roßlau, with their collaborative efforts dating back to early 2023
• In March 2023, JCB Power Systems Ltd. unveiled an impressive hydrogen combustion engine, based on combustion technology that provides a cost-effective and environment-friendly alternative, with zero CO2 emissions at the point of use. The hydrogen-powered engine by JCB offers several advantages over traditional diesel or gasoline options. The engine utilizes hydrogen fuel during operation, producing only steam without CO2 emissions. Moreover, JCB's hydrogen prototype backhoe loader can perform all the functions of its diesel-powered counterpart
• In September 2023, Anglo Belgian Corporation NV, a Belgium-based company specializing in the development and production of medium-sized engines, completed the acquisition of E Van Wingen. By joining forces through this acquisition, Anglo aims to leverage both their combined efforts and capabilities to contribute to the ongoing energy transition
• In April 2022, Cummins Inc. completed the acquisition of Jacobs Vehicle Systems (JVS) from Altra Industrial Motion Corp. This strategic acquisition enables Cummins to leverage JVS's cutting-edge technologies, creating promising avenues for growth in their existing and upcoming advanced engine platforms. Furthermore, the integration of JVS into Cummins' portfolio ensures the availability of crucial USMCA-qualified engine components for current and aftermarket products, while expanding the range of offerings to customers worldwide
• In April 2021, Toyota Motor Corporation revealed its commitment to realizing a carbon-neutral mobility society by announcing the development of a hydrogen engine. As part of this initiative, Toyota installed the hydrogen engine on a racing vehicle based on the company’s Corolla Sport model. This endeavor signifies Toyota's dedication to advancing alternative energy solutions and exploring the potential of hydrogen-powered engines in achieving sustainable transportation

Some of the prominent players in the internal combustion engine market include:

• AB Volvo
• TOYOTA MOTOR CORPORATION
• Volkswagen Group
• Rolls-Royce plc
• Mahindra & Mahindra Ltd.
• Renault Group
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• MAN
• General Motors
• Ford Motor Company
• FCA US LLC
• Robert Bosch GmbH
• AGCO Corporation
• Caterpillar
• Shanghai Diesel Engine Co., Ltd.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global internal combustion engine market.

Fuel Type

• Petroleum
• Natural Gas

End-use

• Automotive
• Marine
• Aircraft

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)