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

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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 | No. of Pages: 214 | Category: Energy and Power | Status: Published

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.

Strategic Insights

Report Coverage - Small Internal Combustion Engine (ICE) Market
Report CoverageDetails
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
No. of Pages214
No. of Tables141
No. of Charts & Figures76
Historical data availableYes
Segments coveredFuel Type , Cylinders , Power Output , and End-Use Industry
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
Free Sample Copy Available

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 

Frequently Asked Questions

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.
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.
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.
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global small internal combustion engine market.

  • Highlights key business priorities in order to assist companies to realign their business strategies.

  • The key findings and recommendations highlight crucial progressive industry trends in the global small internal combustion engine market, thereby allowing players across the value chain to develop effective long-term strategies.

  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.

  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.

  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.
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