Small Internal Combustion Engine Market Forecast (2024-2031)
The small internal combustion engine market size is projected to reach US$ 6.5 billion by 2031 from US$ 4.5 billion in 2023. The market is projected to grow at register a CAGR of 4.6% in 2023–2031. Rising adoption of small internal combustion engines in agriculture, residential, and construction applications is fueling the growth of the global small internal combustion engine market.
Small Internal Combustion Engine Market Analysis
Rising demand for fuel-efficient and low-pollution emitting engines to reduce the amount of pollution from the air is propelling the market growth. The emergence of electric motors in transportation, automotive, and other industrial applications in the global market is one of the challenging factors hampering the market growth. Though small internal combustion engines, there is still an opportunity to sustain the growth pertaining its improved fuel efficiency. The increasing demand for miniaturization of power equipment for optimizing space and design is being fulfilled with small internal combustion engines.
Small Internal Combustion Engine Market Overview
Power generated by small internal combustion (IC) engines is through various types of fuels, such as diesel, gasoline, and Gas. Each fuel has a specific set of properties—such as density and volatility—which derive its use in the required application. Diesel-based engines are preferred for heavy applications or where the power requirement is high. In contrast, gasoline-based small IC engines are less damaging to the environment as they produce low emissions compared to others. Natural gas use in small engine combustion technology has the potential to resolve the high emission problems and it will help the manufacturers to meet new regulatory norms. There is an increase in the adoption of small internal combustion (IC) engines in South America, Asia, and Africa, while North America and Europe will be moving toward electric motors during the forecast period.
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Small Internal Combustion Engine Market: Strategic Insights
Market Size Value in US$ 4,450.14 Million in 2019 Market Size Value by US$ 5,280.83 Million by 2027 Growth rate CAGR of 4.5% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Small Internal Combustion Engine Market: Strategic Insights
| Market Size Value in | US$ 4,450.14 Million in 2019 |
| Market Size Value by | US$ 5,280.83 Million by 2027 |
| Growth rate | CAGR of 4.5% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Small Internal Combustion Engine Market Drivers and Opportunities
Increasing Consumption of Internal Combustion Engines in Developing Countries
Developing countries, including India, China, South Korea, and Brazil, are more dependent on fossil fuels for generating electricity, automotive, manufacturing, transportation, and other sectors. The increasing population and the lack of infrastructure development for electric technologies are the major factors supporting the small internal combustion engine market. Electric motors, electric power-sourced devices, and cars are still more expensive for customers than internal combustion engines. As a result, owing to price constraints, countries are not implementing any ban on internal combustion engines, which is supporting the market growth.
The emission norms are getting improved for small IC engines for which manufacturers are enhancing the solution. According to the data from World Bank Group for electricity access, in South Asia, around 91.6% of the population has access to electricity. Further, the electricity consumption for basic uses in countries—such as China and India—is increasing with the increasing population, owing to which countries are using fossil fuels for electricity generation. Such strong dominance of internal combustion (IC) engines in developing regions is expected to create an opportunity for the small internal combustion engine market to offer advanced solutions. For instance, as per the Bosch Ltd company, more than 80% vehicles sold in India by 2030 would be powered by internal combustion (IC) engines. Developing regions’ dependency on fossil fuels and internal combustion (IC) engines is a strong growth opportunity for the small IC engines market.
Integration of Turbocharging and Remote Monitoring in Small IC Engines
Turbocharging technology is already used in internal combustion (IC) engines of automotive vehicles to enhance power capacity for mid-power engines. Small internal combustion engine manufacturing companies are researching the adoption of turbocharging technology, in particular small engine requirements. The turbocharging technology is expected to be introduced for water pumps, rickshaws, lawnmowers, landscaping equipment, generators, and tractors during the forecast period. The turbocharging technology is supposed to provide 40–60% larger specific power output in smaller capacity engines. Such integration of turbochargers in small IC engines is anticipated create a new trend for the market in the coming years.
Further, with increasing digitalization in almost every industrial vertical, the small internal combustion engine market is also evolving with digital connectivity. For instance, Briggs & Stratton, LLC is offering an 8 kW Elite Series generator with Bluetooth connectivity and remote monitoring through mobile. It features InfoHub Portable Power technology, which provides remote monitoring of portable generators equipped with small internal combustion engines. Such connectivity options enhance the user and machine interface, which may create a new trend in the market.
Small Internal Combustion Engine Market Report Segmentation Analysis
Key segments that contributed to the derivation of the small internal combustion engine market analysis are fuel, cylinder, power output, and end-user.
- Based on fuel type, the small internal combustion engine market has been divided into gasoline, diesel, gas (CNG, LPG, LNG). The gasoline segment held a larger market share in 2023.
- Based on the cylinder, the small internal combustion engine market has been divided into 1, 2, 3, and 4. The 1-cylinder segment held a larger market share in 2023.
- On the basis of power output, the market has been segmented into 1-5 kW, 6-10 kW, 11-20 kW. The 11-20 kW segment dominated the market in 2023.
- Based on the end user, the market has been divided into power generation, manufacturing, oil & gas, transportation, and others. The transportation segment held a larger market share in 2023.
Small Internal Combustion Engine Market Share Analysis by Geography
The geographic scope of the small internal combustion engine market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America.
Asia Pacific will dominate the small internal combustion engine market in 2023. India and China are the leading internal combustion engine manufacturing countries in Asia Pacific. Rising disposable income in developing countries, especially in India and China, is leading to a large client base for small internal combustion engines, such as power generators, industrial engines, two-wheelers, and power tools, which is driving the small internal combustion engine market growth. China is a leading manufacturing hub for internal combustion engines, while India and Japan are also considered significant contributors to the regional growth.
Various APAC countries are characterized by the mass production of small IC engines required for manufacturing, power generation, and other industrial machinery. The rising number of manufacturing companies in India and China, owing to the strong availability of skilled human resources, is driving the growth of the small internal combustion engine market. An increase in sales of two-wheeler and advancement in engine fuel sources support the market growth. Further, owing to the increasing population in the region and the comparatively low economic capabilities of various nations have promoted the adoption of IC engines rather than electric energy.
Small Internal Combustion Engine Market Report Scope
Small Internal Combustion Engine Market News and Recent Developments
The small 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 small internal combustion engines market and strategies:
- In March 2023, Tata Cummins Green Energy Solutions established hydrogen ICE engines manufacturing plant for medium and heavy commercial vehicles. This facility will strengthen the position and presence of the company in Indian market.
- In January 2021, Caterpillar Marine signed a deal to supply marine engines for the US Navy’s new fleet of six YT 808-class tugs.
Small Internal Combustion Engine Market Report Coverage and Deliverables
The “Small Internal Combustion Engine Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, & country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed Porter’s Five Forces analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Fuel Type , Cylinders , Power Output , and End-Use Industry
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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