by A comprehensive study has been conducted to explore the various dimensions of the global internal combustion engine market and forecast its short-term growth prospects within the defined timeframe. The findings of this study shed light on the dynamics shaping the industry and its coexistence with the rising prominence of electric powertrains.
Increase in Use of Electric Powertrains to Fuel Growth of Internal Combustion Engine Market
For over a century, the internal combustion engine (ICE) has been the driving force of the transportation sector, offering cost-effective and convenient solutions. While electric vehicles (EVs) are gaining traction globally, recent announcements of bans on new gasoline- and diesel-powered vehicles in countries like Britain, the USA, and several key European nations underscore the imminent shift towards all-electric or fuel cell vehicles. However, this doesnt signal the demise of combustion engines. The global internal combustion engine market remains resilient, mainly due to the cost factor. EVs are still relatively expensive for low- and middle-income consumers, while internal combustion engines continue to evolve, becoming smaller, faster, more efficient, and more powerful.
Mining and Energy Density Challenges
Replacing all ICE vehicles with EVs in the United States alone would necessitate staggering quantities of critical commodities such as cobalt, lithium, and copper. To put it in perspective, this would be roughly 20 times the current global cobalt production, about nine times the global neodymium output, nearly seven times the global lithium production, and approximately four times the worlds copper production. Furthermore, when it comes to energy density per kilogram, todays batteries still lag behind traditional oil-based fuels. The ease of refueling is also a significant advantage for ICE vehicles, as EVs require special recharging units at home or rely on relatively scarce public charging stations, with significantly longer refueling times.
Dynamics of EVs Hold the Most Significant Influence on Internal Combustion Engine Market
ICE and electric powertrains are increasingly integrated to enhance vehicle fuel efficiency, a primary driver for the expansion of the internal combustion engine market. The growing demand for electric and hybrid vehicles has been a significant factor in propelling the automotive powertrain industry. China leads the global market share for pure electric cars, with more than 47%, followed by the United States. Sales of electric vehicles have shown remarkable growth, reaching 3 million units in 2020, accounting for 4.1% of all vehicle sales. In 2021, electric car sales surged to 6.6 million, constituting nearly 9% of the global auto market. This trend remains a vital growth influencer for the internal combustion engine market.
The projected growth in EV sales is attributed to declining battery costs and technological advancements, such as improved storage capacity, encouraging consumer adoption. Governments and businesses worldwide are committed to reducing greenhouse gas emissions, with transportation being a major contributor. Favorable legislative conditions, including tax incentives and subsidies in regions like Europe and the Asia-Pacific, have spurred the production and sales of electric vehicles on a global scale. Major auto markets, including China and India, have set targets to allow only electric vehicles on their roads by 2030, prompting significant investments in EV development by major manufacturers.
Rising Income Levels Favor Internal Combustion Engine Market Growth
The internal combustion engine market is divided into end-use categories, with automobiles accounting for the largest market share. This growth is closely linked to the increase in consumer disposable income, leading to higher global automobile usage. Vehicle manufacturers continue to focus on internal combustion engines due to their substantial returns on manufacturing investments. Additionally, technical advancements improving IC engine fuel efficiency, emissions, and performance are expected to further boost the internal combustion engine market during the forecast period.
Rocketing Passenger Car Sales Drive Asia Pacific’s Internal Combustion Engine Market, China’s Primacy Prevails
Asia Pacific is the largest consumer of internal combustion engines and is poised for rapid growth in the forecast period. This growth is driven by numerous automakers operating in the region and increasing demand for passenger cars, particularly in countries such as China and India. The lack of electric vehicle charging infrastructure and the relatively high cost of electric motors also contribute to the expansion of the internal combustion engine market in the region. Natural gas is gaining traction as an alternative fuel for ICE vehicles due to its low emissions.
Global Internal Combustion Engine Market: Competitive Landscape
Key players in the internal combustion engine market include CST Industries, Inc., McDermott International Inc., Containment Solutions Inc., DN Tanks, Caldwell Tanks, Balmoral Tanks Limited, and Synalloy Corporation. Notably, some automakers are making strategic moves towards the future, such as Audis plan to unveil its final vehicle with an IC engine in 2026 and Toyotas development of a hydrogen-powered combustion engine for sports cars. Electric powertrain producers are also expanding into the Chinese market through joint ventures and partnerships with local EV manufacturers, capitalizing on the growing demand for electric vehicles.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/internal-combustion-engine-market
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This press release first seen on Brilad
COMTEX_442320030/2840/2023-10-23T08:21:13
Julian Lopez is professor emeritus of finance, served as the founding academic affairs dean and founding chair of the finance department.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No journalist was involved in the writing and production of this article.