Internal Combustion Engine Market Size, Share, and Trends 2024 to 2033

Internal Combustion Engine Market Volume and Growth

The global internal combustion engine market demand was 1,98,641 thousand units in 2023, calculated at  2,16,995.43 thousand units in 2024 and is expected to reach around 4,80,712.93 thousand units by 2033, expanding at a CAGR of 9.24% from 2024 to 2033.

Internal Combustion Engine Market Key Takeaways

• Asia Pacific dominated the market with the largest revenue share of 42% in 2023. 
• North America is anticipated to grow at a soldi CAGR of 8.92% during the forecast period.
• By fuel type, the petroleum segment accounted for the highest revenue share of 82% in 2023.
• By fuel type, the natural gas segment is expected to grow at a significant CAGR of 9.04% during the forecast period. 
• By end-use, the automotive segment has held the largest revenue share of 69% of revenue share in 2023.
• By end-use, the aircraft segment is projected to expand at a remarkable CAGR of 8.52% during the forecast period.

Asia Pacific Internal Combustion Engine Market Volume and Growth 2024 to 2033

The Asia Pacific internal combustion engine market volume was estimated at 83,429.22 Thousand Units in 2023 and is projected to reach 20,4303 Thousand Units by 2033, registering a CAGR of 9.36% from 2024 to 2033.

Asia Pacific held the dominant share of the internal combustion engine market in 2023. The growth is attributed to the presence of major automotive manufacturers, increasing demand for both passenger and commercial vehicles, rapid growth of the aviation industry, fast-paced industrialization, rising adoption of agricultural mechanization, increased vehicle production, and a growing demand for fuel-efficient engines. However, the lack of charging infrastructure for electric vehicles and the high cost of electric motors are anticipated to be key drivers of market growth in the region.

In addition, developing countries are significant contributors to the market, such as Japan, China, and India, due to the rising demand for ICEs from various automotive and non-automotive applications such as cars, motorcycles, aircraft, boats, diesel generators, lawnmowers, motorcycles, locomotives, ships, and airplanes is anticipated to propel the internal combustion engine market growth in the region during the forecast period.

• According to the China Association of Automobile Manufacturers (CAAM), in October 2023, vehicle production and sales volumes totaled 2.891 million units and 2.853 million units, up 11.2 percent and 13.8 percent y/y, respectively. 
• In July 2024, Toyota unveiled a new and in-development internal combustion engine (ICE) that the company itself calls a “game-changer". These 1.5-litre and 2.0-litre four-cylinder engines are designed to be much more efficient than current offerings.
• According to the report published by the India Brand Equity Foundation (IBEF), In the first quarter of 2023-24, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was 6.01 million units.

North America is anticipated to grow notably in the internal combustion engine market during the forecast period. North America is home to prominent automobile manufacturers, including Caterpillar, AGCO Corporation, General Motors Company, Ford Motor Corporation, and others. The growth of the region is driven by the rising demand for hybrid electric vehicles, the rise in industrial activity, the rising focus on innovations in engine technology, the increasing demand for passenger and commercial vehicles, and the growing demand for effective and high-performance engines in industrial applications. Moreover, automotive companies are emphasizing redefining the design and volume of the ICE, making it smaller, lightweight, and more efficient to boost performance, bolstering the market growth. Thus, this is expected to propel the market growth in the region during the forecast period.

Market Overview

Generally, combustion is the chemical process of releasing energy from a fuel and oxidizer mixture. An internal combustion engine is a heat engine that generates power for various applications, particularly in transportation. An internal combustion engine produces energy via burning oil, fuel, or petrol with air in a confined space, and then the hot gaseous fuel is created to power the movement of engine parts. In the era of modern transportation and industrial machinery, the internal combustion engine plays a crucial role in driving vehicles and machinery. Internal combustion Engines (ICE) have gained immense popularity across various sectors, such as aerospace, industrial, and automotive.

Internal Combustion Engine Market Growth Factors

• The growing demand for low-emission engines owing to the increasing focus on lowering carbon emissions is expected to promote the internal combustion engine market expansion during the forecast period.
• The increasing industrialization, rising agricultural mechanization, and rapid growth of infrastructure development require robust equipment and machinery, powered by internal combustion engines are anticipated to contribute significantly to the global internal combustion engine market’s revenue.
• The rising investment by the prominent automotive market players in research and development to increase the effectiveness and performance of their engines.
• The significant innovations in engine technology coupled with the rising adoption of cutting-edge technologies such as hybridization are likely to boost the growth of the internal combustion engine market.

 Internal Combustion Engine Market Split of Off-highway Units

Internal Combustion Engine Market Scope

Internal Combustion Engine Market Dynamics

Driver

The rapid expansion of the automotive sector

The rapid expansion of the automotive sector globally is anticipated to propel the growth of the internal combustion engine market during the forecast period. An internal combustion engine (ICE) is a type of heat engine that converts the chemical energy of the fuel into mechanical energy. ICE is a common form of heat engine, and it is widely used in vehicles, trains, boats, ships, motorcycles, airplanes, and other industrial machines as the primary power source. 

Several government initiatives to control emissions and fuel efficiency are encouraging the development of cleaner ICE engines for vehicles. Additionally, the rising consumer inclination towards diesel engines over gasoline engines due to their reliability, durability, and superior fuel economy for long distances is anticipated to propel the internal combustion engine market growth. 

• In July 2024, Volkswagen, Europe’s largest carmaker, unveiled its plan to manufacture combustion engine-powered cars by investing Thousand Unitss. USD 65 Thousand Units to keep combustion cars competitive.

Restraint

Rising environmental concerns

The rising environmental concerns are projected to hamper the growth of the global internal combustion engine market in the coming years. The surge in environmental awareness about the long-term ecological impacts of fossil fuels is likely to influence the consumer to shift towards greener alternatives. Fossil fuel has limited reserves, which increases the fuel prices.

The stringent emissions regulations compel manufacturers to invest in advanced emissions control technologies, which can be expensive and technically challenging. In addition, the increasing adoption of electric vehicles due to zero emission of fumes from electric vehicles is likely to limit the expansion of the internal combustion engine market.

Opportunity

Rising adoption of cutting-edge technologies

The increasing adoption of cutting-edge technologies is projected to offer lucrative growth opportunities for the growth of the internal combustion engine market in the coming years. Technological improvement offers evolution to the internal combustion engine design, making it more powerful and efficient while using less fuel. ICE plays an indispensable role in the automotive industry's evolution.

The introduction of advanced technology, such as low-temperature combustion engines, has gained immense popularity in the market. Therefore, the increasing investment in engine technology innovation creates a robust manufacturing base and is anticipated to contribute to the growth of the internal combustion engine market.

• In May 2024, Toyota announced its collaboration with Mazda and Subaru on new internal combustion engines. Next-gen engines are intended to provide better efficiency and performance and be compatible with alternative fuels. Each brand will focus on its own "signature" engine, with Toyota working on two four-cylinders, Mazda working on rotary systems, and Subaru doing a hybrid boxer.

Fuel Type Insights

The petroleum segment accounted for the dominating share of the internal combustion engine market in 2023 and is expected to grow at the fastest rate during the forecast period. Petroleum-based fuels such as gasoline and diesel are the primary energy sources for internal combustion engines. Petroleum internal combustion engines make less vibration and noise. Petroleum fuels are highly used in the market. Diesel fuels are required in buses, trucks, and large industrial and agricultural machinery. Gasoline is heavily used in passenger cars and light commercial vehicles. There are several advantages offered by gasoline engines, such as being cheaper, lightweight, fewer emissions generation, and more efficient. Therefore, the increasing number of ICE-powered vehicles increases the demand for petroleum-based fuels.

The natural gas segment is expected to gain a significant share of the internal combustion engine market during the forecast period. Natural gas, such as Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and others. Natural gas is gaining momentum owing to its lower emissions in comparison with conventional petroleum fuels, reduced environmental impact, and promoted sustainability. Thus, the rising number of natural gas vehicles, especially in regions with stringent government emission standards, is projected to make a substantial contribution to the segment's growth.

End-use Insights

The automotive segment held the largest share of the internal combustion engine market in 2023 and is expected to sustain its position throughout the forecast period. Automotive market players are highly investing in developing efficient ICE to improve fuel economy, reduce emissions, and boost performance. The primary focus of automotive manufacturers is to achieve high returns on manufacturing investments. Such factors are expected to boost the segment’s growth during the forecast period.

• According to the data published by the Society of Indian Automobile Manufacturers (SIAM), the Auto industry produced a total of 2,59,31,867 vehicles, including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles, from April 2022 to March 2023, compared to the previous year's 2,30,40,066 units from April 2021 to March 2022.

The aircraft segment is expected to grow significantly in the internal combustion engine market during the forecast period. The growth of the segment is attributed to the robust growth of the aviation industry worldwide. Aircraft used for defense, tourism, logistics, and others require high-performing internal combustion engines. The rising focus is on lightweight, compact design and various technological advancements, including multi-fuel capability that improves fuel mileage. Thereby driving the segment’s growth.

Internal Combustion Engine Market Companies

• Volkswagen AG
• Toyota Industries Corporation
• Robert Bosch GmbH
• Shanghai Diesel Engine Co., Ltd.
• BMW
• Rolls-Royce
• Navistar International Corporation
• MAN SE
• Kirloskar Oil Engines Ltd.
• Detroit Diesel
• Cummins
• Caterpillar Incorporated
• Ashok Leyland Ltd
• AB Volvo
• Mahindra & Mahindra Ltd.
• Renault Group
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• General Motors
• Ford Motor Company
• AGCO Corporation

Recent Developments

• In June 2023, Rolls-Royce opened an MTU combustion engine assembly plant for its MTU Series 2000 engines in Kluftern. The new structure features a 1.2MW solar photovoltaic system, e-charging columns to promote greener mobility, and smart building control to maximize energy efficiency.
• In June 2023, General Motors Co. announced its plan to invest USD 632 million in Fort Wayne Assembly to prepare the plant for production of the next-generation internal combustion engine (ICE) full-volume light-duty trucks. This investment will enable the company to strengthen its industry-leading full-volume truck business. Product details and timing related to GM’s future trucks are not being released at this time.
• In February 2023, RIL announced India's first hydrogen combustion engine technology for heavy-duty vehicles. Reliance claims that it is a "unique and affordable" domestically developed technology solution that could change the course of green mobility in the future.
• In May 2024, Swedish auto manufacturer Volvo announced that it would start customer trials for trucks with hydrogen internal combustion engines in 2026, with a wider market launch planned for the end of the decade. 

Segments Covered in the Report

By Fuel Type 

• Petroleum
• Natural gas

By End-use 

• Automotive
• Marine
• Aircraft

By Geography

• North America 
• Europe 
• Asia Pacific 
• Latin America & Africa