Internal combustion engine market seen reaching $240.5B by 2030

The global internal combustion engine market is projected to grow from $165.56 billion in 2025 to $240.5 billion by 2030, according to a new Business Research Company report. Vehicle production, industrial equipment demand and interest in lower-emission and alternative-fuel engines are shaping the outlook, with Asia-Pacific holding the largest share in 2025.

Why it matters: - Internal combustion engines remain central to transportation, industrial machinery, agriculture, marine and power generation. - The market’s growth signals continued demand for engines even as manufacturers push efficiency, emissions cuts and alternative-fuel options. - A stronger vehicle production cycle is supporting near-term demand for engines and related components.

What happened: - The Business Research Company released its Internal Combustion Engine Global Market Report 2026. - The report pegs the market at $178.96 billion in 2026, up from $165.56 billion in 2025. - The report forecasts the market will reach $240.5 billion by 2030. - The report projects an 8.1% CAGR in 2026 and a 7.7% CAGR over the 2026-2030 forecast period. - The report says Asia-Pacific held the largest market share in 2025 and is expected to be the fastest-growing region through the forecast period. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. - More information is available in the full market report. - A free sample report is also available.

The details: - The report links recent growth to demand for transportation vehicles, industrial machinery, infrastructure development, agricultural equipment and dependable power generation. - Internal combustion engines convert the chemical energy in fuel into mechanical power through controlled combustion in a sealed chamber. - Combustion expands gases that move pistons or rotors and generate power. - The report says engines in this category are used across transportation, construction, agriculture, marine and power generation. - Vehicle production is one of the main drivers of engine demand. - The report cites International Organization of Motor Vehicle Manufacturers data showing global vehicle production rose from 92.7 million units in 2024 to 96.4 million units in 2025. - The same data show vehicle sales increased from 95.3 million units to 99.8 million units over that period. - The report points to rising interest in low-emission engine technologies, alternative-fuel engines, hydrogen-fueled internal combustion engines, engine-efficiency improvements and sustainable combustion technologies. - Anticipated trends include fuel-efficient engines, alternative-fuel-compatible technologies, combustion optimization systems, high-performance engine components and emissions-reduction efforts.

Between the lines: - The forecast suggests internal combustion engines are not disappearing; instead, the category is shifting toward cleaner and more efficient designs. - Asia-Pacific’s lead reflects the region’s heavy manufacturing base, vehicle production and industrial demand. - The report’s emphasis on alternative fuels and hydrogen points to a market adapting to regulatory and environmental pressure rather than relying on conventional gasoline and diesel demand alone.

What's next: - Market growth will likely track vehicle output, industrial investment and infrastructure spending. - Engine makers will likely continue investing in emissions reduction, efficiency gains and multi-fuel compatibility. - The report says updated 2026 materials include market attractiveness scoring, TAM analysis, company scoring matrix graphics, Excel forecasting dashboards, hotspot infographics and trend analysis.

The bottom line: - Internal combustion engines still have a sizeable global market, but the next phase of growth depends on cleaner combustion, fuel flexibility and efficiency improvements.