Internal Combustion Engines: Innovation Opportunities

ICE is expected to remain part of powertrain strategies for longer. In this context, EU regulations such as Euro 7 remain important and will influence design, calibration and validation requirements for export-facing products.

The findings of this study reflect workshop discussions, market analysis and stakeholder perspectives, and do not necessarily indicate current or future APC funding priorities.

For continuing ICE applications, decarbonisation depends on a combination of combustion efficiency, air handling, thermal management, fuel-system control and, where relevant, the fuel pathway.

Commercial realities mean that efficiency, simplicity, and serviceability remain decisive factors for adoption, especially in NRMM and fleets. The UK’s strong ICE supply chain and testing capability provides an opportunity for continued investment through expertise and export potential as global markets decarbonise at varying rates of speed. If there is an unclear direction for innovation however, capability can erode or move offshore.

The UK is well positioned to lead in several areas and can leverage these strengths to secure these global opportunities.

These are:

  • High-efficiency turbocharging and after-treatment integration
  • Precision fuel systems and smart sensors
  • Advanced combustion strategies
  • Digital tools for system-level optimisation

Published: 22/04/2026

Internal Combustion Engines: Innovation Opportunities

Whilst UK policy remains committed to the current phase‑out dates for petrol and diesel vehicles, many UK manufacturers continue to develop technologies and components for export platforms and international markets