Internal Combustion Engine Market - Forecasts from 2025 to 2030
Description
Internal Combustion Engine Market, growing at a 6.09% CAGR, is expected to grow to USD 424.795 billion in 2030 from USD 316.055 billion in 2025.
The internal combustion engine (ICE) is a heat engine that generates mechanical power through the controlled combustion of a fuel-air mixture within a confined chamber. The resulting high-pressure gases drive a piston, creating rotational force. This technology remains the dominant powertrain for a vast array of applications, including automobiles, trucks, marine vessels, generators, and agricultural machinery. The global ICE market is characterized by a complex interplay of persistent demand and significant long-term challenges, creating a landscape of constrained growth in certain segments despite ongoing volume production.
Conflicting Market Forces
The market's trajectory is being shaped by two opposing forces: sustained global vehicle production and the accelerating transition to electric mobility.
A primary factor supporting the ICE market is its entrenched position within the global transportation and industrial sectors. Internal combustion engines are valued for their ability to deliver high power and performance, a critical requirement for commercial and heavy-duty vehicles like trucks and buses that haul heavy loads. Their versatility in utilizing a range of fuels, including gasoline, diesel, and natural gas, along with a well-established refueling and service infrastructure, ensures their continued practicality and cost-effectiveness for many applications. Consequently, the overall production and sales volume of vehicles, particularly in developing economies and for specific vehicle classes like SUVs and pickup trucks, remains a key determinant of ICE demand. The health of the global automotive industry, therefore, provides a baseline of demand for internal combustion engines.
However, this demand is increasingly counterbalanced by the structural threat posed by the global shift toward electric vehicles (EVs). Growing environmental awareness regarding the impact of fossil fuels is driving consumer and regulatory preference for more sustainable transportation options. Electric vehicles, which produce zero tailpipe emissions, are becoming the preferred choice for an expanding segment of environmentally conscious consumers and are central to government decarbonization strategies. Rapid advancements in EV technology have simultaneously addressed historical concerns about range, reliability, and convenience. The rising market share of electric cars, which now represent a substantial portion of new vehicle sales in key markets, directly displaces demand for internal combustion engines. This technological disruption represents the most significant long-term challenge to the ICE market, compressing its growth potential in the light-duty vehicle segment.
Market Evolution and Regional Divergence
In response to these pressures, the ICE market is not static. Development continues to be driven by consumer and regulatory demands for better fuel efficiency, increased power, and lower emissions from traditional engines. This has led to ongoing technological refinements. However, the market is evolving into a more segmented landscape, with future growth increasingly concentrated in specific applications where electrification faces greater hurdles, such as heavy-duty transport, maritime, and off-road equipment, while its share in passenger cars is expected to gradually decline.
Geographical Market Outlook
The Asia Pacific region is expected to exhibit the most significant activity within the global internal combustion engine market. This is largely due to the region's massive and growing population, rapid urbanization, and escalating demand for transportation and power generation. The presence of major automotive manufacturing hubs in countries like China, India, and Japan ensures a continued high volume of ICE production for both domestic consumption and export.
The region's growth potential is further supported by its large population and expanding GDP from the transport sector, which fuels demand for all vehicle types. However, it is crucial to note that Asia Pacific is also the world's largest and fastest-growing market for electric vehicles. Therefore, while the region will account for a substantial share of global ICE production and sales in the near term due to its scale, it is simultaneously the epicenter of the electric transition. The long-term outlook for the ICE market in Asia Pacific is one of a contested landscape, where volume persists but faces increasing competitive pressure from electrification, reflecting the complex and transitional state of the global internal combustion engine market as a whole.
Key Benefits of this Report:
Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence
Report Coverage:
Historical data from 2022 to 2024 & forecast data from 2025 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.
Internal Combustion Engine Market Segmentation:
INTERNAL COMBUSTION ENGINE MARKET BY FUEL TYPE
Gasoline
Diesel
Others
INTERNAL COMBUSTION ENGINE MARKET BY IGNITION
Spark Ignition
Compression Ignition
INTERNAL COMBUSTION ENGINE MARKET BY STROKE TYPE
2-Stroke
4-Stroke
INTERNAL COMBUSTION ENGINE MARKET BY END-USER
Automotive
Aerospace & Defense
Marine
Others
INTERNAL COMBUSTION ENGINE MARKET BY GEOGRAPHY
North America
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
USA
Canada
Mexico
South America
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
Brazil
Argentina
Others
Europe
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
Saudi Arabia
UAE
Israel
Others
Asia Pacific
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
China
India
Japan
South Korea
Indonesia
Taiwan
Others
The internal combustion engine (ICE) is a heat engine that generates mechanical power through the controlled combustion of a fuel-air mixture within a confined chamber. The resulting high-pressure gases drive a piston, creating rotational force. This technology remains the dominant powertrain for a vast array of applications, including automobiles, trucks, marine vessels, generators, and agricultural machinery. The global ICE market is characterized by a complex interplay of persistent demand and significant long-term challenges, creating a landscape of constrained growth in certain segments despite ongoing volume production.
Conflicting Market Forces
The market's trajectory is being shaped by two opposing forces: sustained global vehicle production and the accelerating transition to electric mobility.
A primary factor supporting the ICE market is its entrenched position within the global transportation and industrial sectors. Internal combustion engines are valued for their ability to deliver high power and performance, a critical requirement for commercial and heavy-duty vehicles like trucks and buses that haul heavy loads. Their versatility in utilizing a range of fuels, including gasoline, diesel, and natural gas, along with a well-established refueling and service infrastructure, ensures their continued practicality and cost-effectiveness for many applications. Consequently, the overall production and sales volume of vehicles, particularly in developing economies and for specific vehicle classes like SUVs and pickup trucks, remains a key determinant of ICE demand. The health of the global automotive industry, therefore, provides a baseline of demand for internal combustion engines.
However, this demand is increasingly counterbalanced by the structural threat posed by the global shift toward electric vehicles (EVs). Growing environmental awareness regarding the impact of fossil fuels is driving consumer and regulatory preference for more sustainable transportation options. Electric vehicles, which produce zero tailpipe emissions, are becoming the preferred choice for an expanding segment of environmentally conscious consumers and are central to government decarbonization strategies. Rapid advancements in EV technology have simultaneously addressed historical concerns about range, reliability, and convenience. The rising market share of electric cars, which now represent a substantial portion of new vehicle sales in key markets, directly displaces demand for internal combustion engines. This technological disruption represents the most significant long-term challenge to the ICE market, compressing its growth potential in the light-duty vehicle segment.
Market Evolution and Regional Divergence
In response to these pressures, the ICE market is not static. Development continues to be driven by consumer and regulatory demands for better fuel efficiency, increased power, and lower emissions from traditional engines. This has led to ongoing technological refinements. However, the market is evolving into a more segmented landscape, with future growth increasingly concentrated in specific applications where electrification faces greater hurdles, such as heavy-duty transport, maritime, and off-road equipment, while its share in passenger cars is expected to gradually decline.
Geographical Market Outlook
The Asia Pacific region is expected to exhibit the most significant activity within the global internal combustion engine market. This is largely due to the region's massive and growing population, rapid urbanization, and escalating demand for transportation and power generation. The presence of major automotive manufacturing hubs in countries like China, India, and Japan ensures a continued high volume of ICE production for both domestic consumption and export.
The region's growth potential is further supported by its large population and expanding GDP from the transport sector, which fuels demand for all vehicle types. However, it is crucial to note that Asia Pacific is also the world's largest and fastest-growing market for electric vehicles. Therefore, while the region will account for a substantial share of global ICE production and sales in the near term due to its scale, it is simultaneously the epicenter of the electric transition. The long-term outlook for the ICE market in Asia Pacific is one of a contested landscape, where volume persists but faces increasing competitive pressure from electrification, reflecting the complex and transitional state of the global internal combustion engine market as a whole.
Key Benefits of this Report:
Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence
Report Coverage:
Historical data from 2022 to 2024 & forecast data from 2025 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.
Internal Combustion Engine Market Segmentation:
INTERNAL COMBUSTION ENGINE MARKET BY FUEL TYPE
Gasoline
Diesel
Others
INTERNAL COMBUSTION ENGINE MARKET BY IGNITION
Spark Ignition
Compression Ignition
INTERNAL COMBUSTION ENGINE MARKET BY STROKE TYPE
2-Stroke
4-Stroke
INTERNAL COMBUSTION ENGINE MARKET BY END-USER
Automotive
Aerospace & Defense
Marine
Others
INTERNAL COMBUSTION ENGINE MARKET BY GEOGRAPHY
North America
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
USA
Canada
Mexico
South America
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
Brazil
Argentina
Others
Europe
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
Saudi Arabia
UAE
Israel
Others
Asia Pacific
By Fuel Type
By Ignition
By Stroke Type
By End-User
By Country
China
India
Japan
South Korea
Indonesia
Taiwan
Others
Table of Contents
142 Pages
- 1. EXECUTIVE SUMMARY
- 2. MARKET SNAPSHOT
- 2.1. Market Overview
- 2.2. Market Definition
- 2.3. Scope of the Study
- 2.4. Market Segmentation
- 3. BUSINESS LANDSCAPE
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
- 3.4. Porter’s Five Forces Analysis
- 3.5. Industry Value Chain Analysis
- 3.6. Policies and Regulations
- 3.7. Strategic Recommendations
- 4. TECHNOLOGICAL OUTLOOK
- 5. INTERNAL COMBUSTION ENGINE MARKET BY FUEL TYPE
- 5.
- 1. Introduction
- 5.2. Gasoline
- 5.3. Diesel
- 5.4. Others
- 6. INTERNAL COMBUSTION ENGINE MARKET BY IGNITION
- 6.
- 1. Introduction
- 6.2. Spark Ignition
- 6.3. Compression Ignition
- 7. INTERNAL COMBUSTION ENGINE MARKET BY STROKE TYPE
- 7.
- 1. Introduction
- 7.2. 2-Stroke
- 7.3. 4-Stroke
- 8. INTERNAL COMBUSTION ENGINE MARKET BY END-USER
- 8.
- 1. Introduction
- 8.2. Automotive
- 8.3. Aerospace & Defense
- 8.4. Marine
- 8.5. Others
- 9. INTERNAL COMBUSTION ENGINE MARKET BY GEOGRAPHY
- 9.
- 1. Introduction
- 9.2. North America
- 9.2.1. By Fuel Type
- 9.2.2. By Ignition
- 9.2.3. By Stroke Type
- 9.2.4. By End-User
- 9.2.5. By Country
- 9.2.5.1. USA
- 9.2.5.2. Canada
- 9.2.5.3. Mexico
- 9.3. South America
- 9.3.1. By Fuel Type
- 9.3.2. By Ignition
- 9.3.3. By Stroke Type
- 9.3.4. By End-User
- 9.3.5. By Country
- 9.3.5.1. Brazil
- 9.3.5.2. Argentina
- 9.3.5.3. Others
- 9.4. Europe
- 9.4.1. By Fuel Type
- 9.4.2. By Ignition
- 9.4.3. By Stroke Type
- 9.4.4. By End-User
- 9.4.5. By Country
- 9.4.5.1. Germany
- 9.4.5.2. France
- 9.4.5.3. United Kingdom
- 9.4.5.4. Spain
- 9.4.5.5. Others
- 9.5. Middle East and Africa
- 9.5.1. By Fuel Type
- 9.5.2. By Ignition
- 9.5.3. By Stroke Type
- 9.5.4. By End-User
- 9.5.5. By Country
- 9.5.5.1. Saudi Arabia
- 9.5.5.2. UAE
- 9.5.5.3. Israel
- 9.5.5.4. Others
- 9.6. Asia Pacific
- 9.6.1. By Fuel Type
- 9.6.2. By Ignition
- 9.6.3. By Stroke Type
- 9.6.4. By End-User
- 9.6.5. By Country
- 9.6.5.1. China
- 9.6.5.2. India
- 9.6.5.3. Japan
- 9.6.5.4. South Korea
- 9.6.5.5. Indonesia
- 9.6.5.6. Taiwan
- 9.6.5.7. Others
- 10. COMPETITIVE ENVIRONMENT AND ANALYSIS
- 10.1. Major Players and Strategy Analysis
- 10.2. Market Share Analysis
- 10.3. Mergers, Acquisitions, Agreements, and Collaborations
- 10.4. Competitive Dashboard
- 11. COMPANY PROFILES
- 11.1. GUNT Hamburg
- 11.2. Cummins Inc.
- 11.3. Briggs & Stratton
- 11.4. Toyota Motor Corporation
- 11.5. Volkswagen AG
- 11.6. Ford Motor Company
- 11.7. Hyundai Motor Company
- 11.8. MITSUBISHI HEAVY INDUSTRIES, LTD.
- 11.9. Caterpillar Inc.
- 11.10. Suzuki Motor Corporation
- 12. APPENDIX
- 12.1. Currency
- 12.2. Assumptions
- 12.3. Base and Forecast Years Timeline
- 12.4. Key Benefits for the Stakeholders
- 12.5. Research Methodology
- 12.6. Abbreviations
- LIST OF FIGURES
- LIST OF TABLES
Pricing
Currency Rates
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