Internal Combustion Engine Market Size, Share, Growth Strategies & Trends, 2034

Market Overview
According to Fortune Business Insight The global internal combustion engine market size was valued at USD 293.32 billion in 2025. The market is projected to grow from USD 309.40 billion in 2026 to USD 625.68 billion by 2034, exhibiting a CAGR of 9.20% during the forecast period.
Fortune Business Insights™ has deep-dived into these insights in its latest research report on the global internal combustion engine market.
The analysis shows that the market is driven by the expansion of the transportation industry and the growing demand for high-performance vehicles. While the automotive sector is recovering from the pandemic, technological advancements such as variable valve timing and turbocharging are improving engine efficiency. However, the market faces pressure from the rising adoption of electric vehicles (EVs) and strict environmental regulations.
Major Players Profiled in the Market Report:
• Toyota Motor Corporation (Aichi, Japan)
• AB Volvo (Gothenburg, Sweden)
• Mahindra & Mahindra Ltd. (Mumbai, India)
• Volkswagen Group (Wolfsburg, Germany)
• Rolls-Royce plc (London, U.K.)
• MAN (Munich, Germany)
• Renault Group (Boulogne-Billancourt, France)
• Mitsubishi Heavy Industries (Tokyo, Japan)
• General Motors (Michigan, U.S.)
• Ford Motor Company (Michigan, U.S.)
• Caterpillar (Texas, U.S.)
• AGCO Corporation (Georgia, U.S.)
Source: https://www.fortunebusinessinsights.com/internal-combustion-engine-market-112866

Segments
Gasoline Segment Dominates the Market Due to Global Availability of Resources
Based on fuel, the market is segmented into natural gas, gasoline, and others. The gasoline segment held a market share of 63.76% in 2026, driven by the global availability of resources, fuel efficiency, and mileage performance. Natural gas is the fastest-growing segment due to its cost-effectiveness and lower ecological impact compared to other fossil fuels.
Automotive Segment is Dominating the Market, Backed by the Application of IC Engine
Based on application, the market is segmented into automotive, marine, aircraft, and others. Automotive is the dominant segment (expected to hold 52% market share in 2025) driven by applications in bikes, commercial vehicles, and heavy-duty vehicles. The marine segment is anticipated to exhibit a CAGR of 6.32% during the forecast period, supported by advancements like ammonia-based marine fuel.
Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Report Coverage
The report offers:
• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
• Comprehensive insights into regional developments.
• List of major industry players.
• Key strategies adopted by the market players.
• The latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints
Technological Advancements in ICE Engines to Influence Market Growth
Technological developments such as variable valve timing, turbocharging, and advanced combustion technologies are improving ICE efficiency and performance. These innovations are critical in maintaining the quality and durability of engines, thereby driving global demand. Additionally, rising disposable income and the expansion of road infrastructure are facilitating the adoption of ICE vehicles.
However, strict environmental regulations limiting vehicular emissions and the growing consumer shift toward electric vehicles (EVs), which offer better performance with lower maintenance, are hindering market growth.
Regional Insights
Asia is Dominating the Market Due to Growth in the Automotive Sector
Asia Pacific dominated the internal combustion engine market with a share of 49.95% in 2025. The region’s growth is attributed to the rapid expansion of the automotive sector in China and India, where there is heavy consumption of IC engines in modern commercial and heavy-duty vehicles. China contributes to more than half of the region’s revenue.
Europe is the fastest-growing region, exhibiting a CAGR of 7.22% during the forecast period. This growth is driven by the rising demand for fuel-based machinery in the industrial sector, particularly in power generation, compressors, and pumps.
Internal Combustion Engine Market Future Growth:
The internal combustion engine market is evolving through a rising focus on fuel efficiency and eco-friendly sustainability. Governments are enforcing stricter guidelines, pushing manufacturers to develop engines that perform well with low fuel consumption. There is a growing trend toward using high-performance fuel types and substitute fuels, such as hydrogen and synthetic fuels, to preserve the relevance of ICE technology. For instance, China is exploring hydrogen and synthetic fuel engines, while the marine sector is looking toward ammonia. Despite the rise of EVs, the need for reliable power in heavy machinery and long-haul transportation continues to support the market's future.
Competitive Landscape
Recent Technology Advancements by Key Market Players to Influence the Market Demand
The global market is highly fragmented, with key players focusing on a wide range of engine technologies to meet regulatory requirements and boost efficiency. Manufacturers are increasingly demonstrating technological advancements, such as hydrogen engines that produce zero carbon emissions. Companies like Cummins Inc. and Volvo are expanding their portfolios to cover natural gas, hydrogen, and hybrid solutions to remain competitive.
Key Industry Development
• July 2024: Triton EV's hydrogen engine marked a significant advancement, producing zero carbon emissions.
• May 2024: Volvo announced plans to launch hydrogen-powered IC engine trucks in the upcoming year.
• May 2024: Germany and Italy gathered support to relax EU targets for lowering car CO2 emissions and review the 2035 ban on petrol/diesel models