Internal Combustion Engine Market Trends and Forecast by 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
Market Size Value in US$ 55,176.7 Million in 2020 Market Size Value by US$ 73,842.5 Million by 2028 Growth rate CAGR of 3.7% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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Internal Combustion Engine Market: Strategic Insights
| Market Size Value in | US$ 55,176.7 Million in 2020 |
| Market Size Value by | US$ 73,842.5 Million by 2028 |
| Growth rate | CAGR of 3.7% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Fuel Type , Power Output , End-User , and Cylinders
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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