Fuel Efficient Internal Combustion Engine (ICE) Technologies Worldwide

Internal combustion engines (ICEs) power our cars, trucks, big rigs, trains, generator sets, ships, and a host of other applications worldwide. Unfortunately, conventional ICEs boast low efficiency – most convert only 30% of fuel into usable work, and that is under optimal conditions. When accounting for idling and sub-optimal speeds, efficiency drops to 15 to 20%. That means, for every gallon of fuel placed into the engine, only 15 to 20% of the energy in that fuel is ever transferred into usable mechanical energy under typical conditions. The remaining 80 to 85% of energy contained in the fuel is wasted – wasted on friction, losses to heat, incomplete burning, and other inefficiencies characteristic of conventional ICEs. 

Spurred by the current global focus on reducing carbon emissions, promoting sustainability, and enhancing energy use efficiency, global governments and industry leaders are driving strong interest, research, and investment in improving ICE efficiency. Companies as diverse as automaking giants Ford Motor Company and Toyota, to engine manufacturers in the U.S. and Europe, to a handful of tiny Silicon Valley and MIT associated startups, are pushing the efficiency envelope of ICEs. 

Generally speaking, ICE efficiency measures come in two forms: (1) specialized components, add-ons, and auxiliary systems that are worked into the basic framework design of a conventional reciprocating internal combustion engine; and (2) highly modified or novel engine designs, which seek to re-engineer the internal combustion engine from the ground up, using alternative and novel designs and processes. Measures in the former group are being more widely pursued by the existing automotive and ICE production industries, where manufacturers are focusing on incremental design updates to conventional engines. These technologies include engine deactivation, cylinder deactivation, variable valve timing and lift, turbochargers and superchargers, direct fuel injection, smaller displacement motors, hybrid and partial hybrid systems, and homogeneous charge compression ignition. These measures apply to conventional designs with relatively little modification. 

The second category of ICE energy efficiency measures provides a more radical break from convention, and is being forwarded primarily by various small and mid-sized start-ups and venture capital firms, alongside breakthrough-oriented government grants and other funding mechanisms. These endeavors significantly redesign internal combustion engines, and include redesigned combustion chambers, opposing piston designs, split cycle engine designs, opposed piston/opposed cyclinder engines, and updated rotary engine designs. Proponents and investors in these technologies are focusing on the larger industry’s current lack of interest in breakthrough-oriented ICE technologies, and generating a race toward commercialization for potential new technologies. 

Now is therefore an exciting time in the ICE engineering and technology industry. Mainstream industry investment in design upgrades will drive typical operating engine efficiency up from 15-20% to upwards of 30%. Some of the potential breakthrough/redesigned systems claim efficiencies upwards of 40 and 50%, although commercialization of these technologies has not yet been achieved. Accordingly, many industry insiders and durable goods manufacturers are banking on sharp increases in demand for energy efficient ICEs in the transportation and distributed generation industries worldwide. Expectations are driven by a lack of foreseeable near term technological maturity and competition from fuel cells, electric motors and batteries for transportation, and other envisioned high efficiency transport and distributed generation solutions. Thus, while the gap between demand for higher efficiency engines and available high efficiency technologies continues to widen, the ICE industry is betting on itself to fill that gap more quickly than fuel cells or other technologically immature solutions. 

Demand for energy efficient ICEs has strengthened notably with the ongoing economic recovery. Following stagnation during the 2008 and 2009, efficient ICE demand rebounded strongly in 2010 and 2011, increasing from a total global value of $80 billion in 2009 to $121 billion in 2011. From 2006 through 2011, the market showed an overall increase of $70 billion, equivalent to a compound annual growth rate (CAGR) of nearly 19%. Through 2021, the efficient ICE market is expected to expand significantly, in spite of near term softening in emerging markets. Specifically, the global market is expected to reach $401 billion by 2021, equivalent to a 10-year CAGR of nearly 13%. 

The market expansion projected for efficient ICEs maintains strong roots in the automotive and light truck industries. Other key markets include ground transport, distributed power generation, marine transport, and industrial/mechanical uses, including mineral extraction, petroleum extraction, wastewater treatment, and many other industries where mechanical energy is not typically provided by electric motors. A significant advantage of these multiple drivers is that demand for efficient ICE technologies is resilient in comparison to goods that serve more limited markets. While the automotive and transport markets are highly competitive, other non-transport markets provide diverse niche opportunities that may be available to well-positioned start-ups. 

Fuel Efficient Internal Combustion Engine Global Markets contains comprehensive data on the worldwide market for efficient ICE technologies (engine deactivation, cylinder deactivation, variable valve timing and lift, turbochargers and superchargers, direct fuel injection, homogeneous charge compression ignition, reduced displacement engines, hybrids and partial hybrids, split cycle engines, and opposed piston/opposed cylinder engine designs. Market data are provided for historic (2006 to 2011 Q3) and forecast (2011 Q4 to 2021) market size data in terms of the dollar value of product shipments. The report identifies key trends affecting the marketplace, along with trends driving growth, and central challenges to further market development. The report also profiles leading startups and established manufacturers of fuel efficient ICEs that are most relevant to the fuel efficient ICE industry. 

Scope 

Global Fuel Usage and Efficiency 

Figure 1-1: Realized Transportation Energy Efficiency Savings, Canada, 1990-2008 (Barrels of Oil Equivalent) 

Internal Combustion Engines and Fuel Efficient Internal Combustion Engines 

Figure 1-2: United States Car and Light Truck Fuel Efficiency Standards (CAFE), 1978-2010 

Existing and Anticipated Applications 

Fuel Efficient ICE Systems: System Descriptions and Requirements 

Table 1-1: Overview of EICE Technologies 

Environmental and Social Benefits of Fuel Efficient ICEs 

Figure 1-3: Percent of Fuel Consumed for EICEs versus Conventional ICEs, Per Unit Output 

EICE Market Assessment 

Engine Deactivation 

Cylinder Deactivation 

Variable Valve Timing and Lift 

Turbochargers and Superchargers 

Direct Fuel Injection 

Homogeneous Charge Compression Ignition 

Reduced Displacement Engine 

Hybrid and Partial Hybrid 

Split Cycle Engines 

Opposed Piston/Opposed Cylinder Engines 

Total EICE Market 

Figure 1-4: Global Market for EICE Technologies (Billion US Dollars) 

Industry Trends 

Conventional ICE Cost Ranges 

Figure 1-5: Engine Cost Ranges ($/Horsepower) 

EICE Components Cost Ranges 

Table 1-2: Additive Incremental Cost Data for EICE Systems, Based on Consumer Class Vehicles in the U.S. (Percent of Total Conventional ICE Cost) 

Air Emissions Reduction 

Table 1-3: Incremental CO2 Emission Reduction of Specialized Components and Auxiliary Systems Implementation 

Figure 1-6: Vehicle Fuel Efficiency Standards for the U.S., European Union, Japan, and China, Including Enacted and Proposed Standards. 

Balance of Power (Performance) and Efficiency 

Research and Development 

EICE Supply Chain 

Figure 1-7: EICE Technologies Supply Chain 

EICE Product Promotion 

Job Creation 

Table 1-4: Annual Worker Productivity Rates for EICE Technologies (Units Per Full Time Equivalent Per Year) 

Figure 1-8: Annualized Jobs Creation for All EICE Technologies, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Competitive Profiles 

EICE End Users 

Table 1-5: EICE End User Categories 

Figure 1-9: Per Capita Disposable Income, 2000 to 2010 (US Dollars) 

Summary 

Figure 1-10: Global Market for EICE Technologies (Billion US Dollars) 

Scope 

Global Liquid Fuels Usage and Future Trends 

Fuel Efficiency 

Figure 2-1: Realized Transportation Energy Efficiency Savings, Canada, 1990-2008 (BOE) 

Internal Combustion Engines: History and Applicability 

Fuel Efficient Internal Combustion Engines 

Figure 2-2: United States Car and Light Truck Fuel Efficiency Standards (CAFE), 1978-2010 

Existing and Anticipated Applications 

Figure 2-3: Annual Passenger and Commercial Vehicle Production Rates, 2000 to 2010 

Transportation and Automotive Industry 

Power Generation 

Construction Equipment Industry 

Industrial Applications 

Energy Resource Extraction 

Materials Extraction and Processing 

Industrial Process 

Other 

Fuel Efficient ICE Systems: System Descriptions and Requirements 

Table 2-1: Overview of EICE Technologies 

Cylinder Deactivation 

Variable Valve Timing and Lift 

Turbochargers and Superchargers 

Direct Fuel Injection 

Smaller Displacement Engines 

Hybrid and Partial Hybrid Systems 

Novel System Designs 

Split Cycle Engines 

Opposed Piston/Opposed Cylinder Engines 

High Efficiency Hybrid Cycle 

Non-Engine Efficiency Technologies 

Conventional Versus Efficient Internal Combustion Engines: Where to Draw the Line? 

Environmental and Social Benefits of Fuel Efficient ICEs 

Fuel Use Reduction and Cost Savings 

Figure 2-4: Percent of Fuel Consumed for EICEs versus Conventional ICEs, Per Unit Output 

Energy Security 

Greenhouse Gas Benefits 

Comparison to Other Competing Technologies 

Summary 

Scope 

Market Assessment Methodology 

Market Projections for ICE and EICE Technologies 

Disclosure Regarding Data Uncertainty 

Additional Market Valuation Factors 

Market Origins, History, and Present Trends 

The ICE Market Since 1900 

Emergence and Development of the EICE Market 

Public Perceptions 

Recent Market Strength 

Growth in EICE Demand in Other Sectors 

Factors Affecting Market Size and Growth 

GHG emissions reduction requirements, targets, and strategies 

Fuel Efficiency 

Table 3-1: Fuel Efficiency Measures 

Table 3-2: Regional and National Fuel Economy and GHG Emissions Standards Summary for On-Road Vehicles 

Role of alternative Fuels 

Role of competing technologies 

Research and development 

Trends in global industrialization and development 

EICE Technologies Markets 

Figure 3-1: Global ICE Sales, All Industries, 2006-2011e (Millions of Units) 

Review of the Global ICE Market 

Figure 3-2: Global ICE Sales, Non-Vehicle End Uses, 2006-2011e (Thousands of Units) 

Global Market for Specialized Components and Auxiliary Systems 

Engine Deactivation 

Table 3-3: Global Engine Deactivation Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-3: Engine Deactivation Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-4: Engine Deactivation Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Millions of US Dollars) 

Figure 3-5: Engine Deactivation Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-6: Engine Deactivation Key National Markets, 2006, 2011e, and 2021e (Millions of US Dollars) 

Cylinder Deactivation 

Table 3-4: Global Cylinder Deactivation Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-7: Cylinder Deactivation Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-8: Cylinder Deactivation Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Millions of US Dollars) 

Figure 3-9: Cylinder Deactivation Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-10: Cylinder Deactivation Key National Markets, 2006, 2011e, and 2021e (Millions of US Dollars) 

Variable Valve Timing and Lift 

Table 3-5: Global Variable Valve Timing and Lift Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-11: Variable Valve Timing and Lift Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-12: Variable Valve Timing and Lift Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-13: Variable Valve Timing and Lift Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-14: Variable Valve Timing and Lift Key National Markets, 2006, 2011e, and 2021e (Billions of US Dollars) 

Turbochargers and Superchargers 

Table 3-6: Global Turbochargers Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-15: Turbocharger Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-16: Turbocharger Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-17: Turbocharger Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-18: Turbocharger Key National Markets, 2006, 2011e, and 2021e (Billions of US Dollars) 

Direct Fuel Injection 

Table 3-7: Global Direct injection Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-19: Direct Injection Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-20: Direct Injection Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-21: Direct Injection Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-22: Direct Injection Key National Markets, 2006, 2011e, and 2021e (Billions of US Dollars) 

Homogeneous Charge Compression Ignition 

Table 3-8: Global HCCI Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-23: HCCI Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-24: HCCI Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Millions of US Dollars) 

Figure 3-25: HCCI Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-26: HCCI Key National Markets, 2006, 2011e, and 2021e (Millions of US Dollars) 

Reduced Displacement Engine 

Table 3-9: Global Reduced Displacement Engine Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-27: Reduced Displacement Engine Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-28: Reduced Displacement Engine Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-29: Reduced Displacement Engine Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-30: Reduced Displacement Engine Key National Markets, 2006, 2011e, and 2021e (Billions of US Dollars) 

Hybrid and Partial Hybrid 

Table 3-10: Global Hybrid Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-31: Hybrid Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-32: Hybrid Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-33: Hybrid Regional Markets, 2006 to 2021e (Billions of US Dollars) 

Figure 3-34: Hybrid Key National Markets, 2006, 2011e, and 2021e (Billions of US Dollars) 

Global Market for Novel System Designs 

Split Cycle Engines 

Table 3-11: Global Split Cycle Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-35: Split Cycle Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-36: Split Cycle Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-37: Split Cycle Regional Market, 2006-2021e (Billions of US Dollars) 

Opposed Piston/Opposed Cylinder Engines 

Table 3-12: Global Opposed Piston/Opposed Cylinder Market, Historic and Projected, 2006 to 2021e (Millions of US Dollars) 

Figure 3-38: Opposed Piston/Opposed Cylinder Global Market, 2006 to 2021e (Billions of US Dollars) 

Figure 3-39: Split Cycle Global Market, Non-Vehicle Breakdown, 2006 to 2021e (Billions of US Dollars) 

Figure 3-40: Regional Markets for Opposed Piston/Opposed Cylinder Technologies, 2006 to 2021e (Billions of US Dollars) 

Summary 

Figure 3-41: Global Market for EICE Technologies (Billion US Dollars) 

Scope 

EICE Product Pricing: Specialized Components and Auxiliary Systems 

Conventional ICE Cost Range 

Figure 4-1: Engine Cost Ranges ($/Horsepower) 

Figure 4-2: Engine Cost Ranges (Detail for Light Duty and Transport Industries; $/Horsepower) 

EICE Cost: Specialized Components and Auxiliary Systems 

Table 4-1: Additive Incremental Cost Data for EICE Systems, Based on Consumer Class Vehicles in the U.S. (Percent of Total Conventional ICE Cost) 

Engine Deactivation 

Figure 4-3: Engine Deactivation Cost for a 215 HP Light Duty/Consumer Truck Engine (2011 Dollars) 

Cylinder Deactivation 

Figure 4-4: Cylinder Deactivation Cost for a 215 HP Light Duty/Consumer Truck Engine 

Variable Valve Timing and Lift 

Figure 4-5: Variable Valve Timing and Lift Cost for a 215 HP Light Duty/Consumer Truck Engine 

Turbocharger or Supercharger 

Figure 4-6: Turbocharger or Supercharger Cost for a 215 HP Light Duty/Consumer Truck Engine 

Direct Fuel Injection 

Figure 4-7: Direct Fuel Injection Cost for a 215 HP Light Duty/Consumer Truck Engine 

Homogeneous Charge Compression Ignition 

Figure 4-8: Homogeneous Charge Compression Ignition Cost for a 215 HP Light Duty/Consumer Truck Engine 

Reduced Displacement Engine 

Figure 4 - 9: Smaller Displacement Motor Cost for a Base 215 HP Light Duty/Consumer Truck Engine, with Application of 10% Capacity Reduction 

Hybrid or Partial Hybrid 

Figure 4-10: Hybrid or Partial Hybrid Cost Range for a 215 HP Light Duty/Consumer Truck Engine 

EICE Product Trends and Pricing: Novel System Designs 

Split Cycle Engines 

Opposed Piston/Opposed Cylinder Engines 

High Efficiency Hybrid Cycle 

General Cost Factors 

Industry Trends 

Air Emissions Reduction: Greenhouse Gases 

Figure 4-11: U.S. Domestic Greenhouse Gas Emissions: Fossil Fuel Combustion for Transportation and Total Annual Domestic Emissions 

Table 4-2: Incremental CO2 Emission Reduction of Specialized Components and Auxiliary Systems Implementation 

Figure 4-12: Vehicle Fuel Efficiency Standards for the U.S., European Union, Japan, and China, Including Enacted and Proposed Standards. 

Air Emissions Reduction: Other Harmful Air Pollutants 

Figure 4-13: Historic U.S. and European Light Duty Vehicle Emissions, Hydrocarbons and Nitrogen Oxides (grams/mile) 

Figure 4-14: Historic U.S. and European Light Duty Vehicle Emissions, Carbon Monoxide (grams/mile) 

Figure 4-15: Historic Trends in Emissions from New Diesel Engines Based on Applicable Standards in the U.S. (1970-2010). 

Balance of Power (Performance) and Efficiency 

Trends in Research and Development 

Summary 

Scope 

EICE Technologies Supply Chain 

Overview of the EICE Technologies Supply Chain 

Figure 5-1: EICE Technologies Supply Chain 

Supply Chain Variants and Optimization

Figure 5-2: EICE Technologies: Supply Chain Variants 

Supply Chain Greening 

Table 5-1: Green Supply Chain Components 

EICE Product Promotion 

Promotion to Durable Goods Producers 

Promotion to the End User 

Promotion to Government and Regulators 

Summary 

Scope 

Modes of Job Creation and Methodology 

Figure 6-1: U.S. Automotive Sector Productivity, Autos Produced per Worker Full Time Equivalent, 2000 to 2010e 

Table 6-1: Annual Worker Productivity Rates for EICE Technologies (Units Per Full Time Equivalent Per Year) 

Job Creation Projections 

Variable Valve Timing and Lift 

Figure 6-2: Annualized Jobs Creation and Loss Due To Variable Valve Timing and Lift Technology Production, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Turbochargers 

Figure 6-3: Annualized Jobs Creation and Loss Due To Turbocharger Technology Production, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Direct Fuel Injection 

Figure 6-4: Annualized Jobs Creation and Loss Due To Direct Injection Technology Production, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Homogeneous Charge Compression Ignition 

Figure 6-5: Annualized Jobs Creation and Loss Due To HCCI Technology Production, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Reduced Displacement Engines 

Figure 6-6: Annualized Jobs Creation and Loss Due To HCCI Technology Production, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Hybrid Systems 

Figure 6-7: Annualized Jobs Creation and Loss Due To Hybrid Systems Technology Production, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

Summary 

Figure 6-8: Annualized Jobs Creation for All EICE Technologies, 2007 to 2021e (Full Time Equivalent Jobs Created or Lost Per Year) 

References 

Scope 

Methodology and Selection of Profiles 

Cargine 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Chrysler 

Overview 

Performance 

Figure 7-1: Chrysler Annual Revenues, 2007-2011e 

Product Portfolio 

Company News and Developments 

Cummins 

Overview 

Performance 

Figure 7-2: Cummins Annual Revenues, 2007-2011e 

Product Portfolio 

Company News and Developments 

Daimler 

Overview 

Performance 

Product Portfolio 

Figure 7-3: Daimler Annual Revenues, 2007-2011e 

Company News and Developments 

Delphi Automotive Systems, LLC 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Detroit Diesel Corporation 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Ecomotors 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Ford Motor Company 

Overview 

Performance 

Product Portfolio 

Figure 7-4: Ford Annual Revenues, 2007-2011e 

Company News and Developments 

General Electric 

Overview 

Performance 

Figure 7-5: General Electric Annual Revenues, 2007-2011e 

Product Portfolio 

General Motors 

Overview 

Performance 

Figure 7-6: General Motors Annual Revenues, 2007-2011e 

Product Portfolio 

Company News and Developments 

Honeywell 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Figure 7-7: Honeywell Annual Revenues, 2007-2011e 

LiquidPiston 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Navistar 

Overview 

Performance 

Figure 7-8: Navistar Annual Revenues, 2007-2011e 

Product Portfolio 

Company News and Developments 

Pinnacle 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Revtec 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Transonic Combustion 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Volvo 

Overview 

Performance 

Figure 7-9: Volvo Annual Revenues, 2007-2011e 

Product Portfolio 

Company News and Developments 

Zajac Motors 

Overview 

Performance 

Product Portfolio 

Company News and Developments 

Scope 

Fuel Efficient ICE End Users 

Table 8-1: EICE End User Categories 

End Users for Consumer Durables 

Figure 8-1: Per Capita Disposable Income, 2000 to 2010 (US Dollars) 

Figure 8-2: U.S. Personal Consumption: Per Capita Spending on Motor Vehicles and Parts, 2000 to 2011e (2005 US Dollars) 

Figure 8-3: Per Capita Disposable Income, 2000 to 2009 (US Dollars; China Urban Population Only) 

End Users for the Transport Industry 

End Users for Industrial Technologies 

Figure 8-4: Industrial Productivity Index, Normalized to 2005 Industrial Productivity (2005 to 2011e) 

End Users for Agriculture 

Figure 8-5: Commodity Food Price Index, 2001 to 2011

Summary