Engines (ICE): Market Size & Forecast 2026

The global internal combustion engine (ICE) market stands at approximately USD 350 billion in 2025 (base year), held in a structurally declining trajectory shaped by the passenger vehicle electrification transition, tightening emissions regulation in Europe and North America, and a raw-material cost structure anchored to steel and aluminium commodity cycles. The 7-year forward CAGR through 2032 is negative, reflecting the structural contraction in light-duty automotive demand that more than offsets growth in commercial vehicle and stationary power applications. > **Analyst Take.** The call is to rotate procurement spend from light-duty passenger vehicle suppliers toward heavy-duty and stationary power suppliers before the full weight of EU 2035 CO2 regulations hits in 2027. We estimate roughly USD 80-100 billion in ICE passenger vehicle demand exits the market between 2026 and 2032. Buye

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