Small Internal Combustion Engine (ICE) Market to Grow at a CAGR of 4.5% to reach US$ 5,280.83 Million from 2020 to 2027

Small Internal Combustion Engine (ICE) Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Fuel Type (Gasoline, Diesel, and Gas), Cylinders (1, 2, 3, and 4), Power Output (1–5 kW, 6–10 kW, and 11–20 kW), and End-Use Industry (Power Generation, Manufacturing, Oil and Gas, Transportation, and Others)

Publication Month : Jan 2021

  • Report Code : TIPRE00017958
  • Category : Energy and Power
  • Status : Published
  • No. of Pages : 214
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The small internal combustion engine (ICE) market was valued at US$ 4,450.14 million in 2019 and it is projected to reach US$ 5,280.83 million by 2027; it is expected to grow at a CAGR of 4.5% from 2020 to 2027.

The global small internal combustion engine market has been segmented into five major regions North America, Europe, APAC, MEA, and SAM. In 2019, The North America region had strong penetration of small internal combustion engines in power generation, agricultural, manufacturing, and lawn and gardening machinery applications. Also, the small internal combustion engine market in Asia is witnessing a massive growth due to increased adoption of power generators and transportation vehicles. In developing countries, such as India and China, market is driven by growing population and increasing need for sufficient energy sources. Therefore, there is a rise in adoption of small internal combustion engines to generate electricity and power for machineries. China is one of the major countries, which has a significant share in the small internal combustion engine market. Rising consumption of two-wheelers and three-wheelers, having gasoline and diesel engines is mounting the market growth. European countries, such as the UK, Italy, and France, are shifting toward clean energy sources, fuel-efficient small engines, and natural gases, which is driving the market.

In North America, the US is the most developed country. As the US is an early adopter of technologies, the adoption rate of lawn and gardening machinery, gensets, industrial machinery, diesel pumps, and other power equipment is higher in the US compared to other North American countries. This factor encourages small internal combustion engine providers to increase their focus on developing small IC engines for a wide range of applications. Market players are also expanding their footprint in the region to cater to maximum number of customers and enhance their global presence. For instance, in December 2019, DEUTZ Corporation partnered with Kukje Machinery to expand their reach in North America for engines having power output range below 19 kW.

The market in Europe is projected to grow at a considerable rate over the forecast period owing to increase in demand for fuel-efficient solutions and reducing air pollution. The market in Europe has a strong dominance of engine manufacturing industries; however, due to the COVID-19 outbreak, the market has been declining growth. Countries in Europe are looking at natural gases and hybrid systems as a new opportunity for the internal combustion engine market growth. New technology development projects and collaborations of market players are expected to create strong growth opportunity for the market.

Impact of COVID-19 Pandemic on Small Internal Combustion Engine (ICE) Market

The COVID-19 crisis is affecting the industries worldwide and the global economy is anticipated to take a worst hit in the year 2020 and likely in 2021 as well. The outbreak has created significant disruptions in primary industries, such as consumer electronics, semiconductor, automotive, and IT infrastructure. All these industries are crucial for the growth of global small internal combustion engine market as they are the major demand generation industries for small internal combustion engine market. The factory shutdowns, travel bans, trade bans, and border lockdowns have affected both manufacturing and sales of various consumer electronic products and components. The global electronics and semiconductor industry is one of the major industries that is facing serious disruptions due to supply chain issues and manufacturing shutdowns.

Lucrative Regions for Small Internal Combustion Engine (ICE) Market

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Market Insights

Integration of Turbocharging and Remote Monitoring

Turbocharging technology is already being used in internal combustion engines of automotive vehicles to enhance power capacity for mid-power engines. Small internal combustion engine manufacturing companies are conducting research on the adoption of turbocharging technology in particular small engine requirement. The turbocharging technology is supposed to be introduced for water pumps, rickshaws, lawn mowers, landscaping equipment, generators, and tractors during the forecast period. The turbocharging technology is expected to provide 40–60% higher specific power output in smaller capacity engines. Integration of turbochargers in small engines might create a new trend for the market in coming years. For instance, in October 2019, YANMAR HOLDINGS CO., LTD announced the development of 3TNV80FT Industrial Engine, which is supported by 2G Eco Governor turbocharging solution.

Fuel Type-Based Market Insights

The small internal combustion (IC) engines generate power through various type of fuels, such as diesel, gasoline, and gas. Each fuel has specific set of properties such as density, and volatility that derives its use in the required application. Diesel-based engines are preferred in case of heavy application or where the power requirement is high. Gasoline-based small IC engines are less damaging for environment as they produce low emission compared to others. Thus, based on fuel type, small internal combustion engine market is segmented into gasoline, diesel, and gas. The gasoline fuel-based IC engines generate power by burning a volatile liquid fuel with the help of spark ignition method. It is further divided into various categories based on fuel management, ignition, and application. Gasoline IC engines are used in the automobiles industry in cars, trucks, and other vehicles. Moreover, it has been highly adopted in aviation industry, power equipment industry, and manufacturing machineries.

Small Internal Combustion Engine (ICE) Market, by Fuel Type – 2019 and 2027

Small Internal Combustion Engine (ICE) Market, by Fuel Type – 2019 and 2027

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Cylinders-Based Market Insights

Number of cylinders determines the capacity, power, and performance of small internal combustion (IC) engines; more number of cylinders enables more power generation through the consumption of extra fuel. Cylinders play an important role in IC engine functioning as they help control temperature and offer stability and lubrication to enhance the engine performance. Based on cylinders, small IC engine market is segmented into 1, 2, 3, and 4.

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Small Internal Combustion Engine (ICE) Market: Strategic Insights

Market Size Value inUS$ 4,450.14 Million in 2019
Market Size Value byUS$ 5,280.83 Million by 2027
Growth rateCAGR of 4.5% from 2020-2027
Forecast Period2020-2027
Base Year2020
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Product development is one of the commonly adopted strategies by companies to expand their product portfolio. Caterpillar Inc.; Kawasaki Heavy Industries, Ltd; and Mitsubishi Heavy Industries, Ltd are among the key players implementing strategies to enlarge the customer base and gain significant share in the small internal combustion engine (ICE) market, which in turn permits them to maintain their brand name in the global market.

Report Spotlights

  • Progressive industry trends in the global small internal combustion engine (ICE) market that help players develop effective long-term strategies
  • Business growth strategies adopted by developed and developing markets
  • Quantitative analysis of the global small internal combustion engine market from 2018 to 2027
  • Estimation of global small internal combustion engine demand across various industries
  • PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
  • Recent developments to understand the market competition and global demand
  • Market trends and outlook, coupled with factors driving and restraining the growth of the global market
  • Decision-making process by understanding strategies that underpin commercial interest with regard to global small internal combustion engine market growth
  • Global small internal combustion engine market size at various nodes of market
  • Detailed overview and segmentation of the global small internal combustion engine market, as well as its dynamics in the industry
  • Global small internal combustion engine market size in various regions with promising growth opportunities

Small Internal Combustion Engine Market Segmentation:

By Fuel Type

  • Gasoline
  • Diesel
  • Gas

By Cylinder

  • 1
  • 2
  • 3
  • 4

Power Output

  • 1–5 kW
  • 6–10 kW
  • 11–20 kW

End Use Industry

  • Power Generation
  • Manufacturing
  • Oil and Gas
  • Transportation
  • Others

Company Profiles

  • Caterpillar Inc. 
  • Kawasaki Heavy Industries, Ltd
  • Liebherr
  • Cummins, Inc.
  • Fairbanks Morse
  • Wärtsilä Corporation
  • Rolls-Royce Holdings plc 
Report Coverage
Report Coverage

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

Segment Covered
Segment Covered

Fuel Type , Cylinders , Power Output , and End-Use Industry

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

Which region led the small internal combustion engine market in 2019?

The APAC region led the global small internal combustion engine market in 2019. The small internal combustion engine market in APAC has been analyzed based on historical, current, and future trends in the countries across the region. The Asian landscape for small internal combustion engine appears to be encouraging. In the region, efforts taken by private companies and government agencies for the growth of the natural gas sourced internal combustion engines is surging the demand for small IC engines due to its fuel-efficiency.

Which small internal combustion engine fuel type led the small internal combustion engine market?

The gasoline fuel led the market by fuel type in global small internal combustion engine market. The availability of the gasoline in rural as well as in urban region is comparatively very high comparing to other fuel type. Further, the performance and power of gasoline-based small IC engine is major factor driving the segment growth in the global market. However, the growing concern over engine emission can be a major challenging factor for the gasoline segment.

What opportunities are prevailing in the small internal combustion engine market?

Technology plays a vital role in the economic growth of nations owing to which emerging countries such China and India are shifting toward small IC engines for low emission. North America and Europe strongly adopting electric motors over IC engines, which declines market growth in particular regions. Asia Pacific and South America are growing at a faster rate owing to the strong dependency on internal combustion engines. Lack of sufficient electricity production to replace fossil fuel-based engines and unavailability of supporting infrastructure for electric evolution are supporting factor for the market growth. Hence, the rising demand in emerging economies is one of the market growth opportunity.

The List of Companies - Small Internal Combustion Engine (ICE) Market

  1. Caterpillar
  2. Cummins Inc.
  3. Fairbanks Morse
  4. INNIO
  5. Kawasaki Heavy Industries, Ltd
  6. Liebherr Group
  8. Rolls-Royce plc
  9. Wärtsilä
  10. Yanmar Holdings 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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