The Watt steam engine was the first type of steam engine to make use of steam at a pressure just above atmospheric to drive the piston helped by a partial vacuum. Improving on the design of the 1712 Newcomen steam engine, the Watt steam engine, developed sporadically from 1763 to 1775, was a great step in the development of the steam engine. Offering a dramatic increase in fuel efficiency, James Watt's design became synonymous with steam engines, due in no small part to his business partner, Matthew Boulton. It enabled rapid development of efficient semi-automated factories on a previously unimaginable scale in places where waterpower was not available. Later development led to steam locomotives and great expansion of railway transportation.
As for internal combustion piston engines, these were tested in France in 1807 by de Rivaz and independently, by the Niépce brothers. They were theoretically advanced by Carnot in 1824. In 1853-57 Eugenio Barsanti and Felice Matteucci invented and patented an engine using the free-piston principle that was possibly the first 4-cycle engine.
The invention of an internal combustion engine which was later commercially successful was made during 1860 by Etienne Lenoir.
The Otto cycle in 1877 was capable of giving a far higher power to weight ratio than steam engines and worked much better for many transportation applications such as cars and aircraft.