Internal Combustion Engine Market is expected to Grow with a CAGR of 5.74% through 2030

Rising global demand for personal and commercial vehicles, coupled with advancements in fuel efficiency and emission-reduction technologies, is driving sustained growth in the internal combustion engine market across automotive sectors.

According to TechSci Research report, “Internal Combustion Engine Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the Internal Combustion Engine Market was valued at USD 283.11 Billion in 2024 and is expected to reach USD 399.28 Billion by 2030 with a CAGR of 5.74%. The growth of the internal combustion engine (ICE) market is primarily driven by the sustained global demand for personal and commercial vehicles, particularly in emerging economies where rising income levels, urbanization, and expanding transportation infrastructure are fueling vehicle ownership and freight movement. Despite the growing adoption of electric vehicles (EVs), ICE-powered vehicles continue to dominate the global automotive landscape due to their established supply chains, cost-effectiveness, and wide availability of refueling infrastructure.

The reliability, durability, and versatility of internal combustion engines make them the preferred choice in various applications, including passenger cars, heavy-duty trucks, agriculture, construction, marine, and power generation. Technological advancements in ICE design—such as turbocharging, direct fuel injection, and variable valve timing—have significantly improved engine efficiency, power output, and emissions performance, allowing manufacturers to meet increasingly stringent global environmental regulations without fully transitioning to alternative propulsion systems.

These innovations are enabling ICEs to remain competitive by reducing fuel consumption and harmful emissions, thereby extending their relevance in an evolving regulatory environment. Additionally, the widespread availability of low-sulfur fuels and the development of alternative fuels such as compressed natural gas (CNG), liquefied petroleum gas (LPG), ethanol blends, and biodiesel are further enhancing the sustainability profile of ICEs. In parallel, hybrid powertrains that integrate internal combustion engines with electric motors are gaining traction, offering the benefits of fuel economy and lower emissions while retaining the range and convenience associated with conventional engines.

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Based on the End-User, Automotive segment held the largest Market share in 2024. The internal combustion engine (ICE) market in the automotive segment is primarily driven by the sustained global demand for personal mobility, rising vehicle ownership in emerging economies, and the entrenched infrastructure supporting ICE-powered vehicles. Despite the rapid growth of electric vehicles (EVs), ICEs continue to dominate the automotive landscape, especially in regions where affordability, fueling infrastructure, and vehicle range are key consumer priorities. Developing countries across Asia, Africa, and Latin America are witnessing significant growth in vehicle sales due to rising disposable incomes, expanding middle-class populations, and increased urbanization.

In these markets, ICE-powered vehicles remain the most accessible and cost-effective transportation option, thereby reinforcing the continued relevance of ICEs. Moreover, ongoing advancements in ICE technology—such as direct fuel injection, turbocharging, downsizing, and the integration of hybrid systems—are enhancing engine efficiency, reducing emissions, and improving fuel economy, allowing automakers to comply with increasingly stringent global emissions regulations while maintaining affordability and performance. Additionally, the automotive industry is seeing strong demand for hybrid vehicles that combine ICEs with electric powertrains, particularly in regions with limited EV charging infrastructure.

These hybrids serve as a transitional solution, offering improved fuel efficiency and lower emissions without the range anxiety associated with fully electric vehicles. Another contributing factor is the mature and extensive global supply chain and servicing infrastructure built around ICE vehicles, which supports their widespread availability, maintenance, and affordability. Consumers and commercial fleet operators continue to rely on this established ecosystem for reliability and convenience. Furthermore, heavy-duty and commercial vehicles, including trucks and buses, still predominantly rely on diesel and gasoline-powered ICEs due to their proven performance, power density, and fueling logistics.

Innovations in engine design and the adoption of alternative fuels such as compressed natural gas (CNG), liquefied petroleum gas (LPG), and biofuels are also expanding the operational scope of ICEs while reducing their environmental impact. Governments in several regions are supporting the adoption of cleaner-burning ICE technologies through tax incentives, subsidies for alternative fuels, and research and development initiatives aimed at improving fuel efficiency and lowering emissions. In addition, the rise in global trade and e-commerce is accelerating the demand for logistics and transportation vehicles, many of which continue to be powered by internal combustion engines. While EVs are gaining traction, ICEs remain the dominant propulsion system in many automotive sub-segments, especially in rural areas and long-haul transport where charging infrastructure is scarce.

The automotive industry’s investment in hybrid ICE-electric models further reinforces the internal combustion engine’s role in a multi-technology future. In summary, the ICE market in the automotive segment continues to be driven by a combination of technological advancements, economic considerations, infrastructure readiness, regulatory adaptations, and global demand for reliable, affordable transportation. These factors collectively underscore the internal combustion engine’s ongoing relevance and resilience in the evolving automotive landscape, particularly as the industry transitions gradually toward electrification and more sustainable mobility solutions.

Based on region, Asia Pacific is the fastest-growing region in the internal combustion engine (ICE) market, driven by rapid industrialization, urbanization, and increasing disposable incomes in countries like China, India, and Southeast Asian nations. The region's expanding automotive industry, coupled with a rising middle class and growing demand for personal vehicles, supports sustained ICE adoption. Furthermore, infrastructure development, including widespread fuel stations and maintenance facilities, facilitates the continued reliance on ICE-powered vehicles. While electric vehicle adoption is on the rise, the demand for ICE vehicles remains robust in Asia Pacific due to affordability, vehicle range, and limited EV infrastructure in many areas.

Major companies operating in the Global Internal Combustion Engine Market are:

• Volkswagen AG
• Toyota Industries Corporation
• Robert Bosch GmbH
• Shanghai Diesel Engine Co., Ltd.
• BMW AG
• General Motors
• AB Volvo
• AGCO Corporation

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“The Global Internal Combustion Engine Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The internal combustion engine (ICE) market is positioned for continued growth, supported by robust demand for hybrid vehicles, increasing vehicle adoption in emerging markets, and sustained innovation in cleaner, more efficient engine technologies. As global transportation needs evolve—particularly in regions where electric vehicle infrastructure remains underdeveloped—ICEs continue to serve as a practical and reliable mobility solution. Advancements in alternative fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), and biofuels are enhancing the environmental performance of ICEs while preserving their operational advantages. Therefore, the Market of Internal Combustion Engine is expected to boost in the upcoming years.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Internal Combustion Engine Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Fuel Type (Petroleum, Natural Gas), By End-User (Automotive, Marine, Aircraft), By Region, By Competition, 2020-2030F”, has evaluated the future growth potential of Global Internal Combustion Engine Market and provides statistics & information on the Market size, structure, and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Global Internal Combustion Engine Market.

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