Internal Combustion Engine Market Share, Size, Growth Report 2028

Internal Combustion Engine Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Fuel Type (Diesel, Gasoline, and Natural Gas), Power Output (100-300 kW, 300-500 kW, 0.5-1 MW, 1-5 MW, 5-15 MW, 15-25 MW, and 25 MW and above), End-User (Industrial, Marine, Power Generation, Aerospace and Defense, Automotive, Off-Road, and Others), and Cylinders (1, 2, 3, and 4)

  • Report Code : TIPRE00022630
  • Category : Energy and Power
  • Status : Published
  • No. of Pages : 219
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[Research Report] The internal combustion engine market was valued at US$ 55,176.7 million in 2020 and is projected to reach US$ 73,842.5 million by 2028; it is expected to grow at a CAGR of 3.7% from 2021 to 2028.

Technological advancements are bringing evolution in internal combustion engines, allowing them to offer high power outputs with improved fuel efficiency. Meanwhile, the engines will continue to be vital in the development of the automotive industry. Further, they have a potential for improvement in various areas such as thermal efficiency, emissions, and electrification. The internal combustion engine allows manufacturers to produce small form factor machine or tools, for example road vehicles, lawn cutters, chainsaws, etc. which has industrial application, motorboats and ships which has marine application while heavy power output engine used in power generation.

Impact of COVID-19 Pandemic on Internal Combustion Engine Market

The COVID-19 outbreak has severely disrupted the supply chain and manufacturing of industrial engines and other related equipment. The emergence of the outbreak across the world caused lockdown in many countries, which has led the industry experts to analyze that the industry would face up to a quarter of lag in industrial equipment supply chain. The crisis is expected to create tremors through 2020 till mid-2021. The energy & power industry is likely to pick up pace sooner as governments across the globe lifted the various containment measures steadily to revive the economy. The production of the internal combustion engines is anticipated to gain pace from the second half of 2021, which is further foreseen to positively influence the industrial equipment manufacturing including internal combustion engine.

Lucrative Regions for Internal Combustion Engine Providers

Internal Combustion Engine Market Insights

Rising Demand for Power Production

Through various technological advancements and innovations, there is a gradual evolution in internal combustion engines, allowing them to offer high power outputs with improved fuel efficiency. Although, there has been an increase in demand for electric engines and a consequent drop in the demand for internal combustion engines fueled by conventional sources, internal combustion engines will continue to be vital in the development of the automotive industry. Further, they have a potential for improvement in various areas, such as thermal efficiency, emission, and electrification.

Fuel Type Based Market Insights

Based on fuel type, the internal combustion engine market is segmented into diesel, gasoline, and natural gas. The gasoline segment led the market in 2020 and is expected to hold the largest market share in the forecast period.

End User Based Market Insights

By end user, the internal combustion engine market is segmented into industrial, marine, power generation, aerospace and defense, automotive, off-road, and others. Since automobiles are the biggest user of internal combustion engines, the automotive segment dominates the market.

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Internal Combustion Engine Market: Strategic Insights

Market Size Value inUS$ 55,176.7 Million in 2020
Market Size Value byUS$ 73,842.5 Million by 2028
Growth rateCAGR of 3.7% from 2021-2028
Forecast Period2021-2028
Base Year2021
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The players operating in the internal combustion engine market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market.

A few developments by key players are listed below:

  • In 2021, Cummins Inc. launched a new heavy-duty powertrain for natural gas customers. The combination of the ISX12N near-zero natural gas engine and the endurant HD N 12-speed automated transmission from Eaton Cummins Automated Transmission Technologies is well suited for heavy-duty regional haul fleets looking to lower emissions and improve their sustainability profile.
  • In 2020, The Liebherr components division and Cummins Inc. started a cooperation in power generation. For the Cummins new C25G gas generator series, Liebherr would provide fully equipped gas engines, which comprise ignition and control systems for natural gas and off-road applications in 50Hz and 60Hz markets.

By Fuel Type

By Power Output

  • 100–300 kW
  • 300–500kW
  • 0.5–1 MW
  • 1–5 MW
  • 5–15 MW
  • 15–25 MW
  • 25 MW and above

By End User

  • Industrial
  • Marine
  • Power Generation
  • Aerospace and Defense
  • Automotive
  • Off-road
  • Others

By Cylinders

  • 1

  • 2

  • 3

  • 4

By Geography

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • France
    • Germany
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • India
    • South Korea
    • Japan
    • Australia
    • Rest of APAC
  • Middle East & Africa (MEA)
    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of MEA
  • South America (SAM)
    • Brazil
    • Argentina
    • Rest of SAM

Company Profiles

  • INNIO Jenbacher GmBH & Co OG
  • Caterpillar Inc.
  • Cummins Inc.
  • Fairbanks Morse, LLC
  • Kawasaki Heavy Industries, Ltd.
  • Liebherr
  • MAN SE
  • Mitsubishi Heavy Industries, Ltd.
  • R Schmitt Enertec GmBH
  • Wartsila Corporation
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Fuel Type , Power Output , End-User , and Cylinders

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
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

Frequently Asked Questions

What factors are providing opportunities for Internal combustion engine market?

The electric power, automotive, manufacturing, and transportation industries, among others, in developing countries such as India, China, and Brazil are highly dependent on fossil fuels. Rise in population and the lack of supporting infrastructure for electric technologies are the major factors supporting the internal combustion engine market. Electric motors, electric devices, solar plants, and wind projects are more expensive than conventional internal combustion engines, which is driving the preference of various countries toward diesel, gasoline or gas powered engines. Further, improvements in the emission norms for diesel engines for which various industries are shifting on gas engines for low emissions. According to The World Bank Group data for access to electricity, only ~91.6% of the population has access to electricity in South Asia, while others are still lack access to electricity. Hence, south Asian countries are strongly adopting natural gas for power generation application. Further, electricity consumption for basic applications in countries such as China and India are increasing with the surge in population, owing to which they are opting for various types of internal combustion engines such as gas engines for electricity generation.

Which factor is driving the Internal combustion engine market?

Due to rising global warming, governments of various countries are imposing certain restrictions to control the emissions of diesel and petrol engines, thus compelling engine manufacturers to develop technologies to make internal combustion engines more efficient and produce less emissions. Manufacturers and customers are now shifting their focus towards the use of alternate fuel in internal combustion engines. For instance, natural gas power IC engines release less emissions to generate a sufficient amount of power with high efficiency. The emission monitoring and regulatory bodies from various countries are imposing stringent regulations on the use of diesel engines and generators. To meet these regulatory standards, various industries are deploying gas engine and generators for power generation.

Which fuel type led the Internal combustion engine market?

The internal combustion engines that generate power by burning gasoline can meet the power-generation requirements for various application. The most important industries which use gasoline powered engines are automobiles, small marine units, moderate-sized stationary pumping, lighting plants, machine and power tools. Owing to the carbon-emissions from gasoline powered internal combustion engine being the highest, several countries are taking measures to shift to cleaner alternative fuels for power generation requirements. There has been tremendous rise in demand for electric vehicles leading to a consequent fall in the demand for gasoline fueled vehicles. Since the transportation industry is one of the largest consumers of gasoline powered internal combustion engines, this fall in demand for gasoline fueled vehicles will reduce the growth prospects of the market across the globe.

The List of Companies - Internal combustion engine Market

  1. Caterpillar Inc.
  2. Cummins Inc.
  3. Fairbanks Morse, LLC
  4. INNIO
  5. Kawasaki Heavy Industries, Ltd.
  6. MAN SE
  7. Rolls-Royce plc.
  8. Wärtsilä Corporation
  10. Scania
  11. Hyundai Heavy Industries Co., Ltd.
  12. Koenigsegg Automotive AB
  13. Cosworth
  14. Nissan Motorsports International Co., Ltd.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. 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.

  1. 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:

Research Methodology

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.

  1. 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.

  1. 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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