Internal Combustion Engines Market

The article discusses the forecasted contraction of the global market for internal combustion engines over the period from 2022 to 2030, with a decrease in both volume and value terms. Consumption trend shows a noticeable slump, with top consuming countries being China, the United States, and India. Production and imports also indicate a decline, while exports show a perceptible decrease. The analysis includes data on consumption, production, imports, and exports, as well as average prices and growth rates for key markets.

Market Forecast

Depressed by shrinking demand for internal combustion engines worldwide, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -0.1% for the period from 2022 to 2030, which is projected to depress the market volume to 28M units by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of +1.2% for the period from 2022 to 2030, which is projected to bring the market value to $181.5B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Motor Vehicles Compression-Ignition Internal Combustion Piston Engines

In 2022, consumption of motor vehicles compression-ignition internal combustion piston engines increased by 5.9% to 28M units, rising for the second year in a row after two years of decline. In general, consumption, however, continues to indicate a noticeable slump. Global consumption peaked at 39M units in 2013; however, from 2014 to 2022, consumption failed to regain momentum.

The global internal combustion engines market revenue rose markedly to $164.7B in 2022, growing by 13% 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, however, showed a mild decline. Over the period under review, the global market attained the maximum level at $198.6B in 2013; however, from 2014 to 2022, consumption stood at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (7.1M units), the United States (5.9M units) and India (3M units), together comprising 56% of global consumption. Turkey, the UK, Germany, Mexico, France, Austria, South Korea and Japan lagged somewhat behind, together accounting for a further 19%.

From 2012 to 2022, the biggest increases were recorded for Austria (with a CAGR of +5.1%), while consumption for the other global leaders experienced mixed trends in the consumption figures.

In value terms, the United States ($72.8B) led the market, alone. The second position in the ranking was held by China ($25.6B). It was followed by Mexico.

From 2012 to 2022, the average annual growth rate of value in the United States stood at +3.9%. The remaining consuming countries recorded the following average annual rates of market growth: China (-3.1% per year) and Mexico (-6.5% per year).

In 2022, the highest levels of internal combustion engines per capita consumption was registered in Austria (62 units per 1000 persons), followed by the United States (17 units per 1000 persons), the UK (12 units per 1000 persons) and South Korea (10 units per 1000 persons), while the world average per capita consumption of internal combustion engines was estimated at 3.6 units per 1000 persons.

In Austria, internal combustion engines per capita consumption expanded at an average annual rate of +4.5% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: the United States (+1.3% per year) and the UK (-5.4% per year).

Production

World Production of Motor Vehicles Compression-Ignition Internal Combustion Piston Engines

In 2022, approx. 25M units of motor vehicles compression-ignition internal combustion piston engines were produced worldwide; standing approx. at the previous year's figure. Over the period under review, production, however, recorded a pronounced descent. The most prominent rate of growth was recorded in 2013 when the production volume increased by 3.3% against the previous year. As a result, production reached the peak volume of 39M units. From 2014 to 2022, global production growth remained at a somewhat lower figure.

In value terms, internal combustion engines production reached $122.4B in 2022 estimated in export price. Overall, production, however, saw a noticeable downturn. The growth pace was the most rapid in 2020 with an increase of 16% against the previous year. Over the period under review, global production hit record highs at $179B in 2013; however, from 2014 to 2022, production failed to regain momentum.

Production By Country

The country with the largest volume of internal combustion engines production was China (7.2M units), comprising approx. 29% of total volume. Moreover, internal combustion engines production in China exceeded the figures recorded by the second-largest producer, the United States (3.3M units), twofold. The third position in this ranking was held by India (3.1M units), with a 12% share.

In China, internal combustion engines production plunged by an average annual rate of -1.8% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: the United States (-2.7% per year) and India (-0.9% per year).

Imports

World Imports of Motor Vehicles Compression-Ignition Internal Combustion Piston Engines

In 2022, supplies from abroad of motor vehicles compression-ignition internal combustion piston engines increased by 15% to 7.9M units, rising for the second year in a row after two years of decline. The total import volume increased at an average annual rate of +1.2% 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 when imports increased by 22% against the previous year. Over the period under review, global imports attained the maximum at 8.9M units in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, internal combustion engines imports reached $29.6B in 2022. Over the period under review, imports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when imports increased by 19% against the previous year. Over the period under review, global imports attained the peak figure at $33.5B in 2014; however, from 2015 to 2022, imports stood at a somewhat lower figure.

Imports By Country

In 2022, the United States (3M units) represented the largest importer of motor vehicles compression-ignition internal combustion piston engines, creating 38% of total imports. It was distantly followed by Mexico (725K units), Turkey (599K units) and Germany (374K units), together creating a 22% share of total imports. The following importers - Thailand (309K units), France (200K units), Belgium (193K units), Morocco (193K units), Spain (188K units), Argentina (173K units), the Czech Republic (170K units), the UK (160K units) and Brazil (134K units) - together made up 22% of total imports.

The United States was also the fastest-growing in terms of the motor vehicles compression-ignition internal combustion piston engines imports, with a CAGR of +20.6% from 2012 to 2022. At the same time, Morocco (+17.7%), Thailand (+8.7%), Mexico (+5.2%), Brazil (+3.0%), Argentina (+2.8%) and Turkey (+1.0%) displayed positive paces of growth. By contrast, France (-3.7%), the Czech Republic (-6.1%), Belgium (-6.5%), Germany (-6.5%), Spain (-7.7%) and the UK (-16.3%) illustrated a downward trend over the same period. From 2012 to 2022, the share of the United States, Mexico, Thailand and Morocco increased by +31, +2.9, +2 and +1.9 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest internal combustion engines importing markets worldwide were Mexico ($6.2B), Germany ($3.1B) and the United States ($2.9B), together comprising 41% of global imports. Turkey, Spain, the Czech Republic, France, Thailand, Belgium, Brazil, Argentina, the UK and Morocco lagged somewhat behind, together accounting for a further 32%.

Morocco, with a CAGR of +9.4%, saw the highest growth rate of the value of imports, in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average internal combustion engines import price stood at $3,752 per unit in 2022, shrinking by -12.5% against the previous year. Overall, the import price showed a slight reduction. The most prominent rate of growth was recorded in 2020 when the average import price increased by 15% against the previous year. Global import price peaked at $4,674 per unit in 2014; however, from 2015 to 2022, import prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Mexico ($8,544 per unit), while the United States ($989 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Czech Republic (+10.6%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Motor Vehicles Compression-Ignition Internal Combustion Piston Engines

In 2022, approx. 4.5M units of motor vehicles compression-ignition internal combustion piston engines were exported worldwide; dropping by -3.9% compared with the previous year's figure. Overall, exports continue to indicate a perceptible decrease. The pace of growth appeared the most rapid in 2013 with an increase of 8.1%. The global exports peaked at 7.9M units in 2014; however, from 2015 to 2022, the exports failed to regain momentum.

In value terms, internal combustion engines exports fell to $25.9B in 2022. In general, exports saw a perceptible decrease. The growth pace was the most rapid in 2021 when exports increased by 15%. The global exports peaked at $35.4B in 2014; however, from 2015 to 2022, the exports remained at a lower figure.

Exports By Country

The shipments of the twelve major exporters of motor vehicles compression-ignition internal combustion piston engines, namely the UK, Thailand, Germany, the United States, Sweden, Poland, Hungary, Mexico, Italy, France, China and India, represented more than two-thirds of total export.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the leading exporting countries, was attained by India (with a CAGR of +17.5%), while the other global leaders experienced more modest paces of growth.

In value terms, the United States ($5.9B), Germany ($3.4B) and Poland ($2B) constituted the countries with the highest levels of exports in 2022, with a combined 43% share of global exports. Sweden, the UK, Italy, Thailand, Hungary, Mexico, France, China and India lagged somewhat behind, together comprising a further 42%.

India, with a CAGR of +17.3%, recorded the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average internal combustion engines export price amounted to $5,803 per unit, with a decrease of -2% against the previous year. Over the last decade, it increased at an average annual rate of +2.6%. The most prominent rate of growth was recorded in 2020 an increase of 10% against the previous year. The global export price peaked at $5,923 per unit in 2021, and then fell slightly in the following year.

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 the United States ($13,262 per unit), while India ($2,277 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Poland (+11.5%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform