Growing adoption of Internal Combustion Engine fed vehicles coupled with rising consumer disposable income especially in countries such as India, Brazil and China is expected to drive the global market growth over the forecast period. Several benefits offered by these engines such as outstanding durability and drivability may fuel industry growth.

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Internal combustion engine is defined as a heat engine in which the combustion of fuel occurs with an oxidizer in a combustion chamber which is a central part of the working fluid flow circuit that applies direct force to pistons, nozzle or turbine blades that moves these components over a distance, transforming chemical energy into valuable mechanical energy. Diesel, natural gas, petrol and gasoline are the most commonly used fuel in this type of engine. Growing trend of combining these engines with hybrid electric powertrains to improve fuel economy or plug-in hybrid electric systems to expand the range of plug-in hybrid electric vehicles, may offer new avenues for market growth over the coming years.

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Global regulations for fuel economy coupled with EPA emission standards (carbon-dioxide emission standard) is expected to restrain product demand. Growing adoption of electric vehicles may pose challenge to market growth. In addition, increasing government initiatives providing subsidies on electric vehicles is expected to restrain demand. Several benefits offered by electric engines over internal combustion engines such as low maintenance cost, high efficiency, low or no pollution and least CO2 emission, may negatively impact industry growth. However, more power and better reliability offered by these engines over electric engines is expected to favorably impact global demand.

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Asia Pacific is estimated to exhibit substantial growth over the next few years owing to growing adoption of these engines in developing countries such as China and India. North America is expected to account for significant market share due to the presence of an established car market in the region; though, regional market growth is estimated to be slow attributing to strict government regulations restraining the use of internal combustion engines.
Key industry participants include Volkswagen AG, Doosan Infracore Company Limited, Kohler Company, Rolls-Royce Holdings plc, Toyota Motor Corporation, Volvo AB, Renault SA, Shanghai Diesel Engine Company Limited, Mitsubishi heavy industries, Ford Motor, General Motors, Fiat SpA, Delphi Automotive, Electro-Motive Diesel, Mahindra & Mahindra Limited, Deere & company, Caterpillar Incorporated, and Bosch. Vendors focus on developing new and innovative electric engines as they perceive it to be the future of automobile industry. Companies also seize social responsibility with rising concerns pertaining to environmental impact caused by these engines, which has instigated them to shift towards developing electric engines.

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