Report : Internal Combustion Engine Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Fuel Type (Diesel, Gasoline, and Natural Gas), Power Output (100–300 kW, 300–500 kW, 0.5–1 MW, 1–5 MW, 5–15 MW, 15–25 MW, and 25 MW and above), End-User (Industrial, Marine, Power Generation, Aerospace and Defense, Automotive, Off-Road, and Others), and Cylinders (1, 2, 3, and 4)
According to the new research report titled “Internal Combustion Engine Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 73,842.5 million by 2028, registering a CAGR of 3.7% from 2021 to 2028.
The internal combustion engine manufacturing industry is continuously evolving with innovations in various types of internal combustion engines offerings to support energy requirements and meet emission targets. Rising demand for low-emission, fuel-efficient engines to reduce air pollution, and the advent of special internal combustion engines in the manufacturing, utilities, and remote generation application sectors are the key factors propelling the internal combustion engine market growth. Also, natural gas powered internal combustion engines with improved electric efficiency and low emissions are creating substantial growth opportunities for the market players. The internal combustion engine manufacturers are focusing offering advanced products to address the rising demand for high power outputs, meeting diesel engine standards. Major heavy industries, remote power plants, and automobile manufacturing companies are selecting high-power internal combustion engines due to enhanced electric efficiency and reduced fuel costs. The use of natural gas in internal combustion engines combustion technology can resolve the emission problems, along with assisting customers in meeting new regulatory norms. There is an increase in the adoption of internal combustion engines in South America, Africa, and Asia, while North America and Europe are focusing on adopting alternate fuel for power generation during the forecast period.
The increasing adoption of natural gas for power generation in commercial, industrial, and construction sectors is supporting the growth of the internal combustion engine market. The global internal combustion engine market is segmented on the basis of fuel type, power output, number of cylinders, end user, and geography.
Due to rising global warming, governments of various countries are imposing certain restrictions to control the emissions of diesel and petrol engines, thus compelling engine manufacturers to develop technologies to make internal combustion engines more efficient and produce less emissions. Manufacturers and customers are now shifting their focus towards the use of alternate fuel in internal combustion engines. For instance, natural gas power IC engines release less emissions to generate a sufficient amount of power with high efficiency. The emission monitoring and regulatory bodies from various countries are imposing stringent regulations on the use of diesel engines and generators. To meet these regulatory standards, various industries are deploying gas engine and generators for power generation.
In December 2020, Rolls-Royce launched MTU Series 500, a new series of gas engines, with a power range of 250–550 kilowatt. The engine uses hydrogen as a power source, offering low fuel costs and low fuel consumption for industrial and utility sectors, and resulting in lower carbon emissions. Similarly, in June 2020, Kawasaki Heavy Industries, Ltd., a heavy equipment manufacturer, launched a new model KG-18-T gas engine. The company introduced a two-stage turbocharging system with 51% electrical efficiency for power generation. Thus, the rise in such development’s activities owing to stringent regulations related to internal combustion engines is propelling the market growth.
The internal combustion engine market is segmented on the bases of fuel type, power output, end-user, and geography. Based on fuel type, the market is segmented into diesel, gasoline, and natural gas. In 2020, the gasoline segment accounted for the largest market share. In terms of power output, the market is segmented into 100–300 kW, 300–500 kW, 0.5–1 MW, 1–2 MW, 2–5 MW, 5–10 MW, and 10–20 MW. In 2020, the 100–300 kW segment accounted for the largest market share. By end-user, the internal combustion engine market is segmented into industrial, marine, power generation, aerospace and defense, automotive, biogas, and others. In 2020, the automotive segment accounted for the largest share in the market. Geographically, the global internal combustion engine market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, APAC accounted for the significant share in the global market.
The COVID-19 outbreak is adversely affecting the industries worldwide and the global economy witnessed a worst hit in 2020, and it is continuing in 2021. The outbreak has created significant disruptions in primary industries such as automotive, transportation, and manufacturing. A sharp decline in the growth of mentioned industries is impacting the growth of the global internal combustion engine market as they are the major supply and demand sources for internal combustion engine products and solutions. During the COVID-19 pandemic, approx. 2/3rd of Americans are forced to work remotely. With businesses started to reopen, several companies are still choosing to opt for the WFH strategy and even to reduce their previous capacity for an extended period, which is expected to have a negative impact on the gas engines market growth. Also, the pandemic has severely affected the transportation industry as more people are forced to work from home. The slowdown of gas and other fuels demand is restraining the growth of the internal combustion engine market. Moreover, due to major revenue losses and economic slowdown, several power plants are declining for investing in procuring new equipment involving the internal combustion engine technology, which is hindering the growth of the market.
Key Findings of Study:
• The global internal combustion engine market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). Significant strategic initiatives are adopted by several market players. For instance, in April 2021, The GRSE (Garden Reach Shipbuilders Engineers) signed a US$ 12.7 million deal with the Guyana government to build an ocean-going vessel. The vessel will be equipped with two Caterpillar marine engines.