Internal Combustion Engine (excl. Diesel, Moto Vehicle and Aircraft) Market

The article provides a detailed analysis of the global market for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft). It projects an upward consumption trend over the next eight years, with a forecasted CAGR of +2.2% in volume and +4.8% in value from 2022 to 2030. The largest consumer and producer of these engines is Angola, followed by the United States and China. The United States is also the main importer, while China leads in exports. The article also covers trends in average import and export prices, as well as the predominant types of engines being traded internationally.

Market Forecast

Driven by increasing demand for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +2.2% for the period from 2022 to 2030, which is projected to bring the market volume to 55M units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.8% for the period from 2022 to 2030, which is projected to bring the market value to $104.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Internal Combustion Engines, Excluding Diesel (Other Than For Motor Vehicles And Aircraft)

After two years of growth, consumption of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) decreased by -8.5% to 46M units in 2022. Overall, consumption, however, saw a relatively flat trend pattern. As a result, consumption attained the peak volume of 51M units, and then declined in the following year.

The size of the market for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) worldwide fell markedly to $71.6B in 2022, shrinking by -25.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption showed a relatively flat trend pattern. As a result, consumption reached the peak level of $95.8B, and then reduced dramatically in the following year.

Consumption By Country

The country with the largest volume of consumption of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) was Angola (29M units), accounting for 62% of total volume. Moreover, consumption of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) in Angola exceeded the figures recorded by the second-largest consumer, the United States (4.3M units), sevenfold. China (1.7M units) ranked third in terms of total consumption with a 3.6% share.

In Angola, consumption of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) remained relatively stable over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: the United States (+3.7% per year) and China (+3.8% per year).

In value terms, Angola ($63B) led the market, alone. The second position in the ranking was taken by the United States ($1.6B). It was followed by India.

From 2012 to 2022, the average annual growth rate of value in Angola was relatively modest. The remaining consuming countries recorded the following average annual rates of market growth: the United States (+6.3% per year) and India (-3.6% per year).

In 2022, the highest levels of per capita consumption of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) was registered in Angola (818 units per 1000 persons), followed by Malaysia (28 units per 1000 persons), the United States (13 units per 1000 persons) and Mexico (10 units per 1000 persons), while the world average per capita consumption of internal combustion engine (excl. diesel, moto vehicle and aircraft) was estimated at 5.9 units per 1000 persons.

From 2012 to 2022, the average annual growth rate of the per capita consumption of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) in Angola totaled -3.5%. In the other countries, the average annual rates were as follows: Malaysia (+21.2% per year) and the United States (+3.2% per year).

Production

World Production of Internal Combustion Engines, Excluding Diesel (Other Than For Motor Vehicles And Aircraft)

In 2022, after two years of growth, there was decline in production of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft), when its volume decreased by -4.7% to 49M units. The total output volume increased at an average annual rate of +1.7% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2020 with an increase of 13% against the previous year. Over the period under review, global production of hit record highs at 52M units in 2021, and then fell modestly in the following year.

In value terms, production of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) surged to $44.9B in 2022 estimated in export price. Over the period under review, production recorded a deep contraction. The growth pace was the most rapid in 2014 with an increase of 184% against the previous year. As a result, production reached the peak level of $136.2B. From 2015 to 2022, global production of growth remained at a lower figure.

Production By Country

Angola (29M units) constituted the country with the largest volume of production of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft), accounting for 58% of total volume. Moreover, production of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) in Angola exceeded the figures recorded by the second-largest producer, China (13M units), twofold. Thailand (2.3M units) ranked third in terms of total production with a 4.7% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in Angola was relatively modest. The remaining producing countries recorded the following average annual rates of production growth: China (+5.2% per year) and Thailand (+16.8% per year).

Imports

World Imports of Internal Combustion Engines, Excluding Diesel (Other Than For Motor Vehicles And Aircraft)

In 2022, global imports of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) reduced notably to 17M units, with a decrease of -19.6% against the previous year. The total import volume increased at an average annual rate of +1.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 with an increase of 47%. As a result, imports reached the peak of 21M units, and then shrank notably in the following year.

In value terms, imports of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) expanded sharply to $7.7B in 2022. The total import value increased at an average annual rate of +3.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 with an increase of 24% against the previous year. Global imports peaked in 2022 and are expected to retain growth in years to come.

Imports By Country

The United States represented the main importing country with an import of around 6.3M units, which amounted to 37% of total imports. Mexico (1.4M units) ranks second in terms of the total imports with an 8.1% share, followed by Malaysia (5.5%). China (711K units), Russia (575K units), Belgium (413K units), Brazil (391K units), Slovakia (330K units), Canada (316K units), Australia (268K units) and the UK (259K units) followed a long way behind the leaders.

The United States experienced a relatively flat trend pattern with regard to volume of imports of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft). At the same time, Malaysia (+21.8%), Russia (+6.2%), Mexico (+3.7%), Canada (+2.6%), Brazil (+1.4%) and the UK (+1.1%) displayed positive paces of growth. Moreover, Malaysia emerged as the fastest-growing importer imported in the world, with a CAGR of +21.8% from 2012-2022. By contrast, Slovakia (-3.2%), Australia (-3.7%), Belgium (-4.3%) and China (-5.4%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Malaysia and Mexico increased by +4.6 and +1.7 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($2.5B) constitutes the largest market for imported internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) worldwide, comprising 33% of global imports. The second position in the ranking was held by Canada ($422M), with a 5.5% share of global imports. It was followed by Belgium, with a 5.2% share.

From 2012 to 2022, the average annual growth rate of value in the United States totaled +4.5%. The remaining importing countries recorded the following average annual rates of imports growth: Canada (+4.4% per year) and Belgium (+2.0% per year).

Imports By Type

Engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion dominates aircraft) structure, resulting at 16M units, which was near 93% of total imports in 2022. It was distantly followed by outboard motors for marine propulsion (1.2M units), achieving a 7% share of total imports.

From 2012 to 2022, average annual rates of growth with regard to engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion imports of stood at +1.2%. At the same time, outboard motors for marine propulsion (+3.7%) displayed positive paces of growth. Moreover, outboard motors for marine propulsion emerged as the fastest-growing type imported in the world, with a CAGR of +3.7% from 2012-2022. The shares of the largest types remained relatively stable throughout the analyzed period.

In value terms, outboard motors for marine propulsion ($4.1B), engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion ($3.3B) and engines; for marine propulsion, (other than outboard motors), spark-ignition reciprocating or rotary internal combustion piston engines ($246M) constituted the products with the highest levels of imports in 2022.

In terms of the main imported products, outboard motors for marine propulsion, with a CAGR of +5.5%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other products experienced mixed trends in the imports figures.

Import Prices By Type

The average import price for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) stood at $455 per unit in 2022, increasing by 37% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.0%. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by the product type; the product with the highest price was outboard motors for marine propulsion ($3,470 per unit), while the price for engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion ($213 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by engines; for marine propulsion, (other than outboard motors), spark-ignition reciprocating or rotary internal combustion piston engines (+3.9%), while the other products experienced more modest paces of growth.

Import Prices By Country

The average import price for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) stood at $455 per unit in 2022, picking up by 37% against the previous year. Over the last decade, it increased at an average annual rate of +2.0%. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Canada ($1,334 per unit), while Malaysia ($134 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+8.9%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Internal Combustion Engines, Excluding Diesel (Other Than For Motor Vehicles And Aircraft)

In 2022, after two years of growth, there was significant decline in overseas shipments of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft), when their volume decreased by -10.1% to 20M units. The total export volume increased at an average annual rate of +3.6% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2020 when exports increased by 28% against the previous year. The global exports peaked at 22M units in 2021, and then fell in the following year.

In value terms, exports of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) rose sharply to $8.5B in 2022. The total export value increased at an average annual rate of +3.8% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2021 with an increase of 25% against the previous year. The global exports peaked in 2022 and are likely to see gradual growth in the near future.

Exports By Country

China represented the main exporter of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) in the world, with the volume of exports finishing at 12M units, which was approx. 62% of total exports in 2022. It was distantly followed by Thailand (2.2M units), the United States (2.1M units) and Japan (1.1M units), together committing a 27% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to internal combustion engine (excl. diesel, moto vehicle and aircraft) exports from China stood at +4.3%. At the same time, Thailand (+17.9%) and Japan (+1.2%) displayed positive paces of growth. Moreover, Thailand emerged as the fastest-growing exporter exported in the world, with a CAGR of +17.9% from 2012-2022. By contrast, the United States (-2.9%) illustrated a downward trend over the same period. While the share of Thailand (+8.1 p.p.) and China (+4 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of Japan (-1.5 p.p.) and the United States (-9.6 p.p.) displayed negative dynamics.

In value terms, Japan ($3.3B) remains the largest internal combustion engine (excl. diesel, moto vehicle and aircraft) supplier worldwide, comprising 39% of global exports. The second position in the ranking was held by China ($1.5B), with a 17% share of global exports. It was followed by the United States, with a 14% share.

In Japan, exports of internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) increased at an average annual rate of +4.6% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: China (+5.0% per year) and the United States (+0.9% per year).

Exports By Type

Engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion prevails in aircraft) structure, recording 18M units, which was near 93% of total exports in 2022. It was distantly followed by outboard motors for marine propulsion (1.3M units), achieving a 6.8% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion exports of stood at +3.6%. At the same time, outboard motors for marine propulsion (+5.4%) displayed positive paces of growth. Moreover, outboard motors for marine propulsion emerged as the fastest-growing type exported in the world, with a CAGR of +5.4% from 2012-2022. The shares of the largest types remained relatively stable throughout the analyzed period.

In value terms, the largest types of exported internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) were outboard motors for marine propulsion ($4.5B), engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion ($3.4B) and engines; for marine propulsion, (other than outboard motors), spark-ignition reciprocating or rotary internal combustion piston engines ($579M).

Among the main exported products, outboard motors for marine propulsion, with a CAGR of +5.6%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other products experienced more modest paces of growth.

Export Prices By Type

In 2022, the average export price for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) amounted to $427 per unit, jumping by 26% against the previous year. In general, the export price showed a relatively flat trend pattern. Over the period under review, the average export prices hit record highs at $438 per unit in 2013; however, from 2014 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exported products. In 2022, the product with the highest price was engines; for marine propulsion, (other than outboard motors), spark-ignition reciprocating or rotary internal combustion piston engines ($6,214 per unit), while the average price for exports of engines; rotary internal combustion piston engines, for other than aircraft or marine propulsion ($186 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by engines; for marine propulsion, (other than outboard motors), spark-ignition reciprocating or rotary internal combustion piston engines (+5.6%), while the other products experienced mixed trends in the export price figures.

Export Prices By Country

In 2022, the average export price for internal combustion engines, excluding diesel (other than for motor vehicles and aircraft) amounted to $427 per unit, surging by 26% against the previous year. Over the period under review, the export price showed a relatively flat trend pattern. The global export price peaked at $438 per unit in 2013; however, from 2014 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Japan ($2,898 per unit), while China ($121 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+3.9%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform