Europe Internal Combustion Engines Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 47.69 Billion |
| Market Size (2030) | USD 58.30 Billion |
| CAGR (2025 - 2030) | 4.10% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Europe Internal Combustion Engines Market Analysis
The Europe Internal Combustion Engines Market size is estimated at USD 47.69 billion in 2025, and is expected to reach USD 58.30 billion by 2030, at a CAGR of 4.1% during the forecast period (2025-2030).
- Over the medium term, increasing demand for ICE two-wheelers and the rise of plug-in hybrid ICE vehicles (PHEV) are expected to drive the growth of the Europe Internal Combustion Engines Market during the forecast period.
- On the other hand, the rising battery electric vehicle market and demand for the adoption of cleaner fuels in regard to the green climate goals are expected to hinder the growth of Europe's internal combustion engine market during the forecast period.
- Nevertheless, technological innovation and adaptation of the latest technologies in plug-in hybrid vehicles are likely to create opportunities for the European internal combustion engine market during the forecast period.
- Germany dominates the market and is also likely to witness the highest grwoth during the forecast period.
Europe Internal Combustion Engines Market Trends
Diesel to have Significant Share in the Market
• Diesel engines are one of the most significant internal combustion engines that have been in use since the 1870s. These engines are designed to generate mechanical energy after the combustion of an air-diesel mixture. No auxiliary component like a spark plug is used to ignite the air-diesel mixture; instead, it uses the elevating temperature of the air, which is compressed by a piston moving inside an engine block.
• Diesel ICE engines are fuel-efficient and have better acceleration, towing, and hauling potential than gasoline engines. Thus, they have been quite a familiar and popular fuel source in Europe.
• Diesel has been an important transportation fuel in Europe despite the European Union's initiatives to adopt cleaner energy sources. In 2023, 13.6 % of the newly registered vehicles in Europe had internal combustion engines that used diesel, thus accounting for a strong customer base in Europe.
• A fair share of the diesel ICE engine market can be seen in the buses (commercial and private), government vehicles, trucks, and vans. According to the European Automobile Manufacturers' Association (ACEA), in 2023, diesel-powered buses remained the most popular in the EU, accounting for 62.3% of all new bus sales.
• In 2023, diesel-powered ICE engines also saw a significant and strong base in the European trucking sector. According to ACEA, 95.7% of all newly registered trucks in the European Union run on diesel, while 1.5% were electric. Further, truck production increased in the European region. In 2023, nearly 603437 trucks were manufactured in Europe, which increased the total commercial vehicle production by around 20.3%, as compared to the previous year.
• In October 2023, FedEx Corp. subsidiary company FedEx Express Europe, the world’s largest express transportation company, announced the beginning of trialing hydrotreated vegetable oil (HVO) renewable diesel to fuel five of its company-owned trucks in the United Kingdom. This will provide a safe future outlook for the diesel engine market players, making changes in their products to adapt to renewable diesel.
• Hence, such a scenario is likely to have a significant share of diesel engines in the coming years.
Germany to Likely to Dominate the Market
• In recent years, Germany has seen a huge transition from Fossil fuels to Electric vehicles in all commercial and private vehicles, including Buses, Cars, Two-wheelers, and Trucks. Still, these developments have not negatively affected the market due to technological advancements in the PHEV sector.
• A PHEV or a plug-in hybrid electric vehicle is a type of hybrid EV that combines a diesel or gasoline engine with a large battery pack and an electric motor that an EV charging station can recharge. Conventional PHEV automobiles have an electric motor and battery pack but derive all their power from gasoline or diesel.
• The growing popularity among the nations' family households and the use of Plug-In Hybrid Electric vehicles in public transport and commercial heavy vehicles is key to the growth of Gasoline and Diesel powered ICE engines in Germany, showing a resonant use of both Fossil and Non-Fossil use.
• Even apart from the PHEVs, Germany shares a significant number of diesel- and petrol-ICE-powered cars. According to the German KBA Federal Transport Authority, new sales of cars in Germany marked a rise of 7.3% in 2023, when compared to 2022 sales data, in which Petrol vehicle sales saw the most significant boost, rising by 13.3% to 979,000, leading to an overall market share increase for petrol and diesel-powered cars.
• In March 2023, the European Union and Germany announced having reached an agreement allowing some internal combustion engines, including petrol and diesel engines, for Passenger cars and Trucks to be sold beyond 2035. The decision thus provides a strong future outlook for the market players in Germany.
• According to the German KBA Federal Transport Authority, among the registration of new four-wheeler passenger vehicles in December 2023, the combined share of diesel and gasoline-powered vehicles was 45.5% of the total cars sold of all powertrains.
• Thus, on the basis of the above points, Germany will dominate the European internal combustion engine market during the forecast period.
Europe Internal Combustion Engines Industry Overview
The Europe Internal Combustion Engines Market is semi-fragmented. The key players in this market include(in no particular order) Audi, Volkswagen Group, Volvo AB, MAN SE, Bayerische Motoren Werke AG, Hyundai Motors, and Toyota Motor Corporation, among others.
Europe Internal Combustion Engines Market Leaders
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Audi
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Toyota Motor Corporation
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Volkswagen Group
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Volvo ab
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MAN SE
- *Disclaimer: Major Players sorted in no particular order
Europe Internal Combustion Engines Market News
• November 2023: Jeep, an American car manufacturer, announced that Jeep Avenger, its SUV that debuted in 2022 in Europe as an EV, will now also support a new mildly-electrified 1.2-liter Internal Combustion engine powertrain, thus transforming the car brand into an MHEV, containing e-Hybrid features from Stellantis’s latest mild-hybrid tech.
• October 2023: Chery, the Chinese automotive giant, announced that it would be launching its Internal Combustion Engnies, PHEV, and EV Car Models in Europe. The company's brand, Exeed, which will launch both combustion models and BEVs from its Exlantix family, will be introduced in nine markets across Europe, including the UK.
Europe Internal Combustion Engines Industry Segmentation
An internal combustion engine, typically used in motive cars, trucks, buses, and locomotives, is a heat engine in which the combustion of a liquid/gaseous fuel occurs with air/oxygen in a combustion chamber that is an essential part of the working fuel. The chemical expansion of the high-pressure and high-temperature gases produced by combustion applies direct force to the engine's components. This force is typically applied to pistons, gas turbine blades, a rotor engine, or a jet engine.
The Europe Internal Combustion Engines Market is Segmented by Capacity, Fuel Type, and Geography. By capacity, the market is segmented into 50 cm3 to 200 cm3, 201 cm3 to 800 cm3, 801 cm3 to 1500 cm3 and 1501 cm3 to 3000 cm3. By Fuel Type, the market is segmented into Gasoline, Diesel, and Others. By Geography, the market is segmented into the United Kingdom, Italy, France, Germany, Russia, NORDIC, Turkey, Spain, and Rest of Europe.
| By capacity | 50 cm3 to 200 cm3 |
| 201 cm3 to 800 cm3 | |
| 801 cm3 to 1500 cm3 | |
| 1501 cm3 to 3000 cm3 | |
| By Fuel Type | Gasoline |
| Diesel | |
| Others | |
| Geography | United Kingdom |
| Italy | |
| France | |
| Germany | |
| Russia | |
| NORDIC | |
| Turkey | |
| Rest of Europe |
| 50 cm3 to 200 cm3 |
| 201 cm3 to 800 cm3 |
| 801 cm3 to 1500 cm3 |
| 1501 cm3 to 3000 cm3 |
| Gasoline |
| Diesel |
| Others |
| United Kingdom |
| Italy |
| France |
| Germany |
| Russia |
| NORDIC |
| Turkey |
| Rest of Europe |
Europe Internal Combustion Engines Market Research FAQs
How big is the Europe Internal Combustion Engines Market?
The Europe Internal Combustion Engines Market size is expected to reach USD 47.69 billion in 2025 and grow at a CAGR of 4.10% to reach USD 58.30 billion by 2030.
What is the current Europe Internal Combustion Engines Market size?
In 2025, the Europe Internal Combustion Engines Market size is expected to reach USD 47.69 billion.
Who are the key players in Europe Internal Combustion Engines Market?
Audi, Toyota Motor Corporation, Volkswagen Group, Volvo ab and MAN SE are the major companies operating in the Europe Internal Combustion Engines Market.
What years does this Europe Internal Combustion Engines Market cover, and what was the market size in 2024?
In 2024, the Europe Internal Combustion Engines Market size was estimated at USD 45.73 billion. The report covers the Europe Internal Combustion Engines Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Internal Combustion Engines Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Europe Internal Combustion Engines Industry Report
Statistics for the 2025 Europe Internal Combustion Engines market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Internal Combustion Engines analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
