Gottlieb Daimler patents the world's first internal combustion motorcycle, the Reitwagen.

An internal combustion engine (ICE or IC engine) is a heat engine in which the combustion of a fuel occurs with an oxidizer (usually air) in a combustion chamber that is an integral part of the working fluid flow circuit. In an internal combustion engine, the expansion of the high-temperature and high-pressure gases produced by combustion applies direct force to some component of the engine. The force is typically applied to pistons (piston engine), turbine blades (gas turbine), a rotor (Wankel engine), or a nozzle (jet engine). This force moves the component over a distance, transforming chemical energy into kinetic energy which is used to propel, move or power whatever the engine is attached to. This replaced the external combustion engine for applications where the weight or size of an engine was more important.The first commercially successful internal combustion engine was created by tienne Lenoir around 1860, and the first modern internal combustion engine, known as the Otto engine, was created in 1876 by Nicolaus Otto. The term internal combustion engine usually refers to an engine in which combustion is intermittent, such as the more familiar four-stroke and two-stroke piston engines, along with variants, such as the six-stroke piston engine and the Wankel rotary engine. A second class of internal combustion engines use continuous combustion: gas turbines, jet engines and most rocket engines, each of which are internal combustion engines on the same principle as previously described. Firearms are also a form of internal combustion engine, though of a type so specialized that they are commonly treated as a separate category, along with weaponry such as mortars and anti-aircraft cannons. In contrast, in external combustion engines, such as steam or Stirling engines, energy is delivered to a working fluid not consisting of, mixed with, or contaminated by combustion products. Working fluids for external combustion engines include air, hot water, pressurized water or even liquid sodium, heated in a boiler.

While there are many stationary applications, most ICEs are used in mobile applications and are the primary power supply for vehicles such as cars, aircraft and boats. ICEs are typically powered by fossil fuels like natural gas or petroleum products such as gasoline, diesel fuel or fuel oil. Renewable fuels like biodiesel are used in compression ignition (CI) engines and bioethanol or ETBE (ethyl tert-butyl ether) produced from bioethanol in spark ignition (SI) engines. As early as 1900 the inventor of the diesel engine, Rudolf Diesel, was using peanut oil to run his engines. Renewable fuels are commonly blended with fossil fuels. Hydrogen, which is rarely used, can be obtained from either fossil fuels or renewable energy.

Gottlieb Wilhelm Daimler (German: [ˈɡɔtliːp ˈdaɪmlɐ]; 17 March 1834 – 6 March 1900) was a German engineer, industrial designer and industrialist born in Schorndorf (Kingdom of Württemberg, a federal state of the German Confederation), in what is now Germany. He was a pioneer of internal-combustion engines and automobile development. He invented the high-speed liquid petroleum-fueled engine.

Daimler and his lifelong business partner Wilhelm Maybach were two inventors whose goal was to create small, high-speed engines to be mounted in any kind of locomotion device. In 1883 they designed a horizontal cylinder layout compressed charge liquid petroleum engine that fulfilled Daimler's desire for a high speed engine which could be throttled, making it useful in transportation applications. This engine was called Daimler's Dream.In 1885 they designed a vertical cylinder version of this engine which they subsequently fitted to a two-wheeler, the first internal combustion motorcycle which was named the Petroleum Reitwagen (Riding Car) and, in the next year, to a coach, and a boat. Daimler called this engine the grandfather clock engine (Standuhr) because of its resemblance to a large pendulum clock.

In 1890, they converted their partnership into a stock company Daimler Motoren Gesellschaft (DMG, in English—Daimler Motors Corporation). They sold their first automobile in 1892. Daimler fell ill and took a break from the business. Upon his return he experienced difficulty with the other stockholders that led to his resignation in 1893. This was reversed in 1894. Maybach resigned at the same time, and also returned. Daimler died in 1900 and Wilhelm Maybach quit DMG in 1907.