Market Trends of Automotive Engine Cylinder Block Industry
This section covers the major market trends shaping the Automotive Engine Cylinder Block Market according to our research experts:
Passenger Car Segment Likely to Hold Majority Share in the Market
The Passenger car segment of the market expected to grow significantly over the forecast period owing to rising vehicle production and growing customer base across the world. For example, In 2021, some 56.4 million passenger cars were sold globally, up by about five percent year-on-year. At just under 21.5 million units, China was the world's largest regional market for automobiles in 2021. Further, In passenger cars, the automotive engine cylinder block supports an internal combustion engine.Motion is transmitted from the vehicle's crankshaft through the transmission and onto each wheel by the powertrain.When you accelerate or apply pressure to your brakes, the crankshaft, on one end, rotates, and the wheels, on the other, slow down.
Several key OEMS are actively launching new models and are focusing on enhancing their existing IC engine portfolio which in coming years expected to enhance overall demand in the market. For instance,
- In November 2020, Volkswagen de México announced an investment of USD 233.5 million for the production of the new EA211 engine at the Silao engine plant in Guanajuato and said engine will be integrated into the production of Volkswagen models in the North America region. For its production, the Silao plant installed a new complete engine assembly line, as well as new production lines for the block, crankshaft, cylinder heads and connecting rods.
Furthermore, with the growing focus on improved fuel economy and reduced exhaust emissions, are expected to witness fast growth during the forecast period. However, growing electric vehicles result in decline in demand for engine cyclinder blocks, despite the fact that EVS are on rise the majority of the market is still dominated by IC engines. It is anticipated that the rising demand for high-end automobiles and the use of high-power engines in racing will soon contribute to the expansion of the automotive engine market. Therefore, the above mentioned trends and developments in market expected to contribute for growth of passenger car segment of the market studied over the forecast period.
Asia-Pacific Region Anticipated to Grow at Significant Level During the Forecast Period
Asia-Pacific region is likely to hold a significant share in the automotive engine cylinder markret owing to the growing demand for passenger cars across major countries like China, India, Japan, etc. Further, the presence of key automakers coupled with the presence of numerous aftermarket manufacturers in the region is anticipated to enhance the demand in the market during the forecast period.
The Asia-Pacific region are anticipated to grow significantly over the forecast period owing to the presence of key economies such as India, China, etc. which contribute majority of vehicle production across the world. For example, The total volume of automobile industry sales in China reached 26.2 million units in 2021, around 21.5 million units out of which were passenger cars. Further with key companies playing active role region expected to grow significantly over forecast period. For instance,
- In March 2022, Harbin Dongan Auto Engine Co., Ltd. ( unveiled its investment plan for 2022. There are two special investment projects. The first one is building a production line for high-efficiency extended-range engines, involving the transformation of the machining center, marking machines, tightening machines, gluing machines and other equipment. This project will be built by Harbin Dongan Automotive Engine Manufacturing Co., Ltd. (DAE), a subsidiary of Harbin Dongan Auto Engine, with a total investment of CNY 72.33 million. The second project is a process capability improvement project, involving cylinder head automatic grinding equipment and cylinder block final cleaning machines. This project will be built by Harbin Dongan Auto Engine with a total investment of CNY 24 million.
- In March 2022, the Competition Commission of India (CCI) approved the proposed combination involving the acquisition of the stake in ISMT Limited by Kirloskar Ferrous Industries Limited. Kirloskar Ferrous is presently engaged in the business of manufacturing and sale of pig iron and grey iron castings such as cylinder blocks, cylinder heads, transmission parts, and different types of housings required by automobile, tractor, and diesel engine industries.
Additionally, vehicle replacement rates in this region are rising at a faster rate than they were a few years ago owing to active developments in the aftermarket sector of the automotive industry coupled with presence of several local and regional players.This region is also popular for engine rework and reassembling, which will propel the automotive engine cylinder blocks market's expansion.In order to meet OEM and aftermarket demand, players in the region are rapidly expanding to expand their supply capacity.Thus, Asia-Pacific market is expected to benefit from all of these factors.
