Commercial Internal Combustion Engines Market Report 2026

The commercial internal combustion engines market size has grown strongly in recent years. It will grow from $240.84 billion in 2025 to $254.8 billion in 2026 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to expansion of commercial transportation networks, growth in marine and aviation activities, increasing demand for reliable power generation engines, availability of diesel and gas engine platforms, rising industrial energy requirements.

The commercial internal combustion engines market size is expected to see strong growth in the next few years. It will grow to $330.42 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to transition toward cleaner fuel-based engines, increasing adoption of hybrid powertrains, stricter global emission standards, investments in engine efficiency upgrades, demand for long-life commercial power systems. Major trends in the forecast period include improving fuel efficiency of commercial engines, integration of emission control technologies, rising use of alternative fuels in engines, expansion of high-power engine applications, focus on engine durability and lifecycle optimization.

The rise in automobile production is anticipated to drive the expansion of the commercial internal combustion engine market. Automobile production denotes the process of manufacturing vehicles such as cars, trucks, buses, and other motorized units. Commercial vehicles, including trucks, buses, and vans, heavily depend on internal combustion engines for their powertrains. This growing demand for commercial vehicles directly results in a heightened need for internal combustion engines. For example, in March 2024, the European Automobile Manufacturers' Association (ACEA), an Italy-based motor vehicle manufacturing organization, reported that EU car production experienced strong growth in 2023, surpassing 12 million units and increasing by 11.3% compared to the previous year. Therefore, the rising demand for automobile production fuels 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.

In August 2024, DEUTZ AG, a Germany-based supplier of industrial and off-highway diesel and gas engines, acquired the sales and service operations for selected off-highway engines from Rolls-Royce Power Systems for an undisclosed amount. Through this acquisition, DEUTZ intends to expand its commercial internal combustion engine business by integrating Rolls-Royce’s lower-power engine portfolio, thereby broadening its product range and strengthening its market position across global off-highway and industrial sectors. Rolls-Royce Power Systems is a Germany-based provider of MTU-brand industrial and off-highway engines, including the “mtu Classic” series and the “MTU 1000-1500” engines, along with associated service and maintenance activities.

Major companies operating in the commercial internal combustion engines market are 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 2025. The regions covered in the commercial internal combustion engines market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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