Commercial Internal Combustion Engines Market Report 2025

The commercial internal combustion engines market size has grown strongly in recent years. It will grow from $225.27 billion in 2024 to $242.1 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to infrastructure development, global trade and transportation needs, regulatory standards and emissions control, diversity in industrial applications, affordability, and accessibility.

The commercial internal combustion engines market size is expected to see strong growth in the next few years. It will grow to $312.53 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to global infrastructure projects, evolving emission standards, energy transition challenges, adoption of alternative fuels, resilience in specific applications. Major trends in the forecast period include adoption of advanced engine management systems, focus on sustainable and eco-friendly technologies, development of high-performance engines, enhancements in engine durability and longevity, globalization of commercial vehicle production.

The rising demand for fuel-efficient vehicles is expected to drive the growth of the commercial internal combustion engine market in the future. Fuel-efficient vehicles are defined as those achieving 27 miles per gallon (mpg) or higher in highway fuel economy. A vehicle's fuel efficiency is influenced by the speed and timing of its internal combustion engines, which are known for their excellent drivability and durability. Consequently, as the demand for fuel-efficient vehicles increases, so will the demand for commercial internal combustion engines. For example, according to the Environmental Protection Agency (EPA), real-world fuel economy in the United States rose by 0.6 mpg in 2023, reaching a record high of 26 mpg. This increase represents the largest single-year gain in both fuel economy and CO2 emission rates in nearly a decade. Therefore, the growing demand for fuel-efficient vehicles is propelling the demand for the commercial internal combustion engine market.

The growth in automobile production is anticipated to drive the expansion of the commercial internal combustion engine market. Automobile production encompasses the manufacturing process of various vehicles, including cars, trucks, buses, and other motor vehicles. Internal combustion engines are crucial for the powertrains of commercial vehicles such as trucks, buses, and vans. Consequently, the rising demand for commercial vehicles directly correlates with an increased need for internal combustion engines. For instance, in February 2024, the Department of Infrastructure, Transport, Regional Development, Communications, and the Arts - a government department in Australia - reported that as of January 31, 2022, there were 20.7 million registered motor vehicles, reflecting a 2% increase from January 2021. Battery electric vehicles (BEVs) accounted for approximately 40,000 units, representing a 100% rise from 2021, with 34,200 of these being passenger cars in 2022, an increase of 118% from the previous year. Additionally, hybrid-electric vehicles (HEVs) reached around 277,000 in 2022, showing a 35% growth from 2021. Thus, the increase in automobile production is driving demand for the commercial internal combustion engine market.

Product innovation stands out as a significant trend gaining traction in the commercial internal combustion engine market. Major companies in this market are actively engaged in developing new solutions to enhance their market share. For instance, in February 2023, JCB Power Systems Ltd., a UK-based developer and manufacturer of industrial diesel engine solutions, introduced a hydrogen combustion engine. This engine is based on combustion technology, providing a cost-effective and emissions-free alternative with zero CO2 emissions at the point of use. JCB's hydrogen engine offers advantages over traditional diesel or gasoline alternatives, emitting only steam and no CO2 during usage. The introduction of innovative products such as the hydrogen combustion engine demonstrates the commitment of major players to advancing technology in the commercial internal combustion engine market.

Major players in the commercial internal combustion engine market are prioritizing product development and launches, specifically focusing on commercial diesel engines and natural gas engines, as part of their strategy to maintain a competitive edge. Commercial diesel engines and natural gas engines are designed for diverse commercial applications, spanning vehicles, industrial equipment, power generation, and more. In a notable development, Weichai Power Co., Ltd., a multinational company based in China, unveiled groundbreaking products in November 2022. Weichai Power introduced the world's first commercial diesel engine and a natural gas engine, both showcasing remarkable thermal efficiency. The commercial diesel engine achieved an impressive thermal efficiency of 52.28%, while the natural gas engine surpassed this with an even higher efficiency of 54.16%. Thermal efficiency is a critical measure of how effectively an engine converts fuel into usable energy, and these figures represent a significant advancement in fuel efficiency. Weichai Power's commitment to innovation is evident in these product launches, reinforcing its position as a key player in the commercial internal combustion engine market.

In September 2022, Anglo Belgian Corporation NV, a Belgium-based developer and manufacturer of medium-based engines, made an impactful move by acquiring E Van Wingen for an undisclosed amount. This strategic acquisition aims to leverage the synergies between the two companies, contributing to the energy transition. E Van Wingen, a Belgium-based designer and manufacturer of power and power plant supplies, particularly high-speed internal combustion engines, adds complementary capabilities to Anglo Belgian Corporation NV. This acquisition aligns with the broader industry trend of companies consolidating resources to navigate and contribute to the ongoing energy transition.

Major companies operating in the commercial internal combustion engines market include Toyota Motor Corporation, Ford Motor Company, MAN SE, Renault S.A., Mitsubishi Heavy Industries Ltd., General Motors Company, Fiat Chrysler Automobiles N.V., Caterpillar Inc., Rolls-Royce Holdings plc, Mahindra & Mahindra Limited, Robert Bosch GmbH, AGCO Corporation, Volkswagen AG, Yanmar Co. Ltd., Kawasaki Heavy Industries Ltd., Ashok Leyland Limited, Raytheon Technologies Corporation, General Electric Company, Cummins Inc., China Shipbuilding Industry Corporation, China State Shipbuilding Corporation, Mitsui E&S Holdings Co. Ltd., Daihatsu Motor Co. Ltd., Hyundai Motor Company, STX Engine Co. Ltd., Weichai Power Co. Ltd., Hitachi Zosen Corporation, IHI Corporation, Doosan Corporation, Wärtsilä Corporation, DEUTZ AG, Scania AB, Volvo Penta AB, Deere & Company, Kohler Co., Briggs & Stratton Corporation, Honda Motor Co. Ltd., Yamaha Motor Co. Ltd., Suzuki Motor Corporation, Isuzu Motors Limited, Hino Motors Ltd., Navistar International Corporation.

Asia-Pacific was the largest region in the commercial internal combustion engines market in 2024. The regions covered in the commercial internal combustion engines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the commercial internal combustion engines market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An internal combustion engine derives its power from the heat produced by the combustion of non-reacted working fluids within the engine. Commercial internal combustion engines are specifically utilized for commercial purposes across various transportation and industrial applications such as automobiles, ships, helicopters, and coal-powered trains.

The primary fuel types for commercial internal combustion engines include petroleum and natural gas. Engines that run on petroleum products such as petrol, diesel oil, and other oils fall under the category of petroleum-based engines. These engines are available in various power output ranges such as 100-300 kW, 300-500 kW, 0.5-1 MW, 1-5 MW, 5-15 MW, 15-25 MW, and 25 MW and above, catering to applications in marine transport, automotive, aircraft, and other industrial uses.

The commercial internal combustion engines market research report is one of a series of new reports that provides commercial internal combustion engines market statistics, including commercial internal combustion engines industry global market size, regional shares, competitors with commercial internal combustion engines market share, detailed commercial internal combustion engines market segments, market trends, and opportunities, and any further data you may need to thrive in the commercial internal combustion engines industry. This commercial internal combustion engine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The commercial internal combustion engine market consists of sales of the spark ignition engine and the diesel engine. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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