Small Internal Combustion Engine (ICE) Market Size, Trends and Growth Analysis by 2027

The small internal combustion engine (ICE) market was valued at approximately US$ 4,450.14 million in 2019 and is anticipated to grow to US$ 5,280.83 million by 2027, reflecting a compound annual growth rate (CAGR) of 4.5% from 2019 to 2027.

In North America, the primary economies include the United States, Canada, and Mexico. The region has witnessed significant technological advancements, resulting in a highly competitive market landscape. The population's increasing interest in technological innovations, driven by substantial spending power, has contributed to this competitiveness. The automotive sector is thriving, particularly with the rising demand for passenger vehicles. Additionally, lawn and garden equipment, along with various power tools, have established a broad user base across North America. Small internal combustion engines facilitate the production of compact machinery and tools, including compact cars, lawn mowers, and sophisticated small generators. Furthermore, the growing acceptance of natural gas is opening new avenues for market participants to innovate and develop advanced small engines that deliver enhanced power and efficiency.

In Europe, the small internal combustion engine market is propelled by the robust adoption of IC engines in commercial vehicles, passenger cars, and utility equipment. Germany stands out as a leader in engine manufacturing, hosting major companies such as Hatz, DEUTZ, and Yanmar Co., Ltd., which significantly contribute to the European market. Stricter pollution regulations and heightened awareness regarding emissions from small IC engines have led to an increased preference for natural gas-powered engines. Companies are focusing on developing advanced small IC engines primarily for utility applications. For example, in March 2020, Motorenfabrik Hatz, a German firm, unveiled its new E1 technology for single-cylinder industrial diesel engines, which produces 14.7 horsepower (11 kilowatts). Additionally, the 1B50E and 1B30E engines provide 10.7 horsepower (8 kilowatts) and 6.7 horsepower (5 kilowatts) respectively. Such innovations are driving market growth across various industrial sectors.

In Asia, particularly in India and China, the surge in manufacturing companies is fueled by the availability of skilled labor. The increase in two-wheeler sales and advancements in fuel technologies are further supporting market expansion. The growing population and the relatively lower economic capabilities in several nations have led to a preference for internal combustion engines over electric alternatives. The high costs associated with electric motors and the absence of adequate infrastructure have also contributed to this trend. Governments in the region are actively promoting the use of natural gas in IC engines to reduce emissions, with policies designed to encourage compliance with environmental standards. For instance, in July 2019, India's transport minister confirmed that there would be no prohibition on IC engines to facilitate the promotion of electric vehicles. The lack of infrastructure and consumer purchasing power continues to hinder the electric vehicle revolution, making small IC engines a more viable option for many consumers seeking performance that meets regulatory requirements.

Key players in the global small internal combustion engine market include Caterpillar, Cummins Inc., Fairbanks Morse, INNIO, Kawasaki Heavy Industries, Ltd., Liebherr Group, MITSUBISHI HEAVY INDUSTRIES, LTD., Rolls-Royce plc, W?rtsil?, and Yanmar Holdings Co., Ltd..

Impact of the COVID-19 Pandemic on the Small Internal Combustion Engine (ICE) Market

The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has had a profound impact globally, severely affecting countries such as China, Italy, Iran, Spain, South Korea, France, Germany, and the United States in terms of confirmed cases and fatalities by 2020. The pandemic has disrupted economies and industries worldwide, leading to lockdowns, travel restrictions, and business closures. Consequently, the small internal combustion engine market has also faced challenges due to factory shutdowns, supply chain disruptions, and a downturn in the global economy.

The overall size of the global small internal combustion engine market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper insights. Participants in this research typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the small internal combustion engine sector.