Internal Combustion Engine Market Forecast and Growth 2031

The Internal Combustion Engine Market size is projected to reach US$ 84,170.16 million by 2031 from US$ 59,807.81 million in 2023. The market is expected to register a CAGR of 4.4% % in 2023–2031. The fueling acceptance of natural gas for power generation in, industrial, and commercial sectors is likely to remain key internal combustion engine market trends.

Internal Combustion Engine Market Analysis

Expanding demand for natural gas-powered engines in applications in heavy industries such as metal, food processing, and chemicals is driving the market significantly. Further, developing concerns regarding emissions and improving regulatory standards are assisting the market growth in the automotive sector. In the internal combustion engine market, automotive, mid-stream oil and gas, remote, heavy industries, light manufacturing, utilities, off-road, datacenters, MUSH, and commercial are end users.

Internal Combustion Engine Market Overview

Increasing global warming is a major environmental concern worldwide. The governments of various nations are imposing certain restrictions to control the emissions of diesel and petrol engines; thus, the growing emphasis on environment-friendly alternatives is compelling engine manufacturers to develop technologies to make internal combustion engines more effective and produce less emissions. Manufacturers and customers are now shifting their attention towards the application of alternate fuels in internal combustion engines. For example, natural gas-driven internal combustion engines emit less emissions to produce a necessary amount of power with high efficiency. The emission monitoring and regulatory agencies from various nations are enforcing stringent regulations on the usage of diesel engines and generators. To meet these regulatory standards, several industries are implementing gas engines and generators for power generation.

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Internal Combustion Engine Market: Strategic Insights

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Internal Combustion Engine Market Drivers and Opportunities

Rise in Production of Natural Gas to Favour Internal Combustion Engine Market

The demand for gas engines is increasing in the power generation sector with new emission control policies. The industrial sector, including metals, chemicals, and manufacturing industries, is a major contributor to the escalating demand for gas engines. The generation of natural gas, which is one type of fuel required for internal combustion engines, is growing at a significant rate. The industrial sector, including metals, chemicals, and manufacturing industries, is a major contributor to the accelerating demand for internal combustion engines. The generation of natural gas, which is necessary for operating internal combustion engines, is rising at a substantial rate. Major applications such as electricity generation, heating, and vehicle functioning are strengthening the requirement for natural gas internal combustion engines. Hence, to offer a resolution for sudden power outages, utility service companies are utilizing gas generators to manage peak loads. Thus, the constant surge in demand from developing countries is one of the key factors driving the internal combustion engine market growth.

Rising Adoption of Gas Engines in Developing Nations– An Opportunity in the Gas Engine Market

The increase in population and the lack of supporting infrastructure for electric technologies are the major factors supporting the internal combustion engine market. Electric devices, electric motors, solar plants, and wind projects are more costly than gas engines, which is compelling the preference of various nations toward gas engines as an environment-friendly alternative. Further, developments in the emission standards for diesel engines for which various end-use industries are shifting to gas engines for low emissions. Emerging nations are effectively inclining towards adopting natural gas for power generation. Thus, the growing popularity of natural gas is anticipated to offer lucrative opportunities for the internal combustion engine market.

Internal Combustion Engine Market Report Segmentation Analysis

Key segments that contributed to the derivation of the internal combustion engine market analysis are fuel type, power output, and end-user.

• Based on the fuel type, the internal combustion engine market has been divided into diesel, gasoline, and natural gas. The gasoline segment held a larger market share in 2023.
• In terms of power output, the market has been segmented into 100-300 kW, 300-500 kW, 0.5-1 MW, 1-5 MW, 5-15 MW, 15-25 MW, and 25 MW and above. The 100-300 kW segment dominated the market in 2023.
• In terms of end-user, the market has been segmented into industrial, marine, power generation, aerospace, and defense, automotive, off-road, and others. The automotive segment dominated the market in 2023.
• In terms of cylinders, the market has been segmented into 1, 2, 3, and 4. The 4 cylinders segment dominated the market in 2023.

Internal Combustion Engine Market Share Analysis by Geography

The geographic scope of the Internal Combustion Engine Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

The internal combustion engine market in the Asia Pacific is segmented into India, Japan, Australia, China, South Korea, and the Rest of Asia Pacific. China is one of the leading internal combustion engine manufacturing countries in this region, while India and Japan are also considered substantial contributors to regional growth. Due to the increasing population in developing nations like India and China, there is an increasing demand for electricity; thus, end users such as power generating plants, remote plants and manufacturing industries are utilizing internal combustion engines for power generation. The rising number of manufacturing companies in India and China is characterized by the mass production of internal combustion engines for automobile and power generation, owing to the substantial availability of skilled human resources. Due to the high cost of electric energy engines and the lack of supporting infrastructure, there is a rise in the adoption of conventional internal combustion engines, which has supplemented the market growth. Moreover, governments of various nations in the region are majorly promoting natural gas application in internal combustion engines for low emissions.

Internal Combustion Engine Market Regional Insights

The regional trends and factors influencing the Internal Combustion Engine Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Internal Combustion Engine Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Internal Combustion Engine Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Internal Combustion Engine Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Internal Combustion Engine Market are:

1. INNIO Jenbacher GmBH & Co OG
2. Caterpillar Inc.
3. Cummins Inc.
4. Fairbanks Morse, LLC
5. Kawasaki Heavy Industries, Ltd.
6. Liebherr

Disclaimer: The companies listed above are not ranked in any particular order.

 

Internal Combustion Engine Market News and Recent Developments

The Internal Combustion Engine Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:

• In May 2022, Caterpillar Inc. announced a three-year project with Minnesota-based District Energy St. Paul to demonstrate a hydrogen-driven combined heat and power system. (Source: Caterpillar Inc., Press Release/Company Website/Newsletter)
• In May 2024, Cummins Inc. announced the initiation of production of its hydrogen internal combustion engines for Tata Motors in Jamshedpur, India. (Source: Cummins Inc., Press Release/Company Website/Newsletter)

Internal Combustion Engine Market Report Coverage and Deliverables

The “Internal Combustion Engine Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering the following areas:

• Internal Combustion Engine Marketsize and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Internal Combustion Engine Market Trends
• Detailed PEST and SWOT analysis
• Internal Combustion Engine Market analysis covering key market trends, Global and regional framework, major players, regulations, and recent market developments
• Internal Combustion Engine Industry, landscape and competition analysis, covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles