The global internal combustion engine market size is estimated to be valued at USD 273.13 Billion in 2025. It can reach a valuation of USD 421.66 Billion by 2032 by exhibiting a CAGR of 6.4% throughout the forecast period (2025-2032).  

The demand for internal combustion engines (ICEs) in commercial vehicles, heavy machinery, aerospace, and marine applications can drive the market growth significantly. Technological innovations in ICE, namely turbocharging and direct fuel injection technologies, can facilitate growth.

However, the shift towards the electrification of vehicles can be a hurdle for the market.

Key Market Insights

The development of ICE power plants, adoption of hydrogen-powered engines, and shift towards hybrid powertrains can drive the development of the internal combustion engine market.

• By fuel type, the natural gas segment is expected to capture a 17.9% share of the market in 2025. It is expected to be cost-effective in comparison to traditional fuels. This can be attributed to stable natural gas prices and their potential in large fleets.
• By industry, the aircraft segment is anticipated to attain 21.7% market share in 2025. This is on account of the rise of global and domestic tourism and the presence of manufacturers developing fuel-efficient piston engines.
• By region, the Asia Pacific region is projected to lead the internal combustion engine market in 2025, owing to the thriving automotive sector in the region. The demand in agriculture and construction sectors and the exorbitant costs of electric alternatives can drive the market growth in the region.

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Internal Combustion Engine Market Report Coverage

Market Dynamics

The integration of existing ICE with hybrid systems can drive the global internal combustion engine market growth. While well-known brands such as Lamborghini and BMW are producing traditional engines, their future lineups can contain hybrid models. For instance, Lamborghini’s Temerario, which can be launched in the latter half of 2025, will be made up entirely of hybrids.

The integration of new fuels into existing technology is another strategy being pursued by ICE manufacturers. For instance, BMW has patented its pre-chamber technology that will be compatible with synthetic or biofuels. The technology can make its debut in 2026 in the BMW G65 X5.

Market Opportunity: Upgrade to Hydrogen-Powered Combustion Engines

The internal combustion engine market is expected to scale at a rapid clip owing to the shift to hydrogen-powered engines. The similarities between hydrogen and diesel engines, coupled with the acceptance of hydrogen engines as zero-emission by European standards, can drive the market growth.

However, the hurdles with the production of hydrogen and the lack of hydrogen filling stations can pose a problem with the trend.

Market Challenge: Stringent Regulations on Global Emission Standards

Stringent regulations such as Euro 7, China’s Stage VI-b, and others are placing immense pressure of adherence on car manufacturers. Compliance with these standards can raise manufacturing costs and put the financial burden on customers. But the refusal to adhere to clean combustion technologies presents a risk of losing market share and customers as customers demand clean engines.

Analyst’s View

• The research in hybrid powertrains can drive the demand for the internal combustion engine market.
• The natural gas segment is expected to grow rapidly owing to government incentives for its adoption and the need for clean energy alternatives.
• Key players are focusing on synthetic fuels and hydrogen-based internal combustion engines to keep their market share intact.

 Recent Developments

BMW will launch the next generation of M3 with an over 3.0-liter six-cylinder petrol engine by 2028.

Competitor Insights

• Caterpillar Incorporated
• Cummins Inc.
• Ford Motor Company
• Renault Group
• AGCO Corporation
• General Motors
• Robert Bosch GmbH
• Rolls-Royce
• MAN SE
• Kirloskar Oil Engines Ltd.
• BMW
• Volkswagen AG
• Mitsubishi Heavy Industries, Ltd.
• Toyota Industries Corporation
• Navistar International Corporation

Market Segmentation

• By Fuel Type
• Petroleum
• Natural Gas
• By Industry
• Automotive
• Aircraft

Regional Insights

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America
• Europe
  • Italy
  • Germany
  • U.K.
  • Spain
  • Russia
  • France
  • Rest of Europe
• Asia Pacific
  • South Korea
  • India
  • China
  • Japan
  • Australia
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • GCC Countries
  • Israel
  • Rest of Middle East
• Africa
  • South Africa
  • North Africa
  • Central Africa