Automotive Engine Encapsulation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Automotive Engine Encapsulation Market Report is Segmented by Product Type (Engine-Mounted and Body-Mounted), Fuel Type (Gasoline, Diesel, and More), Material Type (Carbon Fiber, Polyurethane, and More), Vehicle Type (Passenger Cars, Light Commercial Vehicles, and More), Sales Channel (OEM-Fitted and Aftermarket), and Geography (North America, South America, and More). The Market Forecasts are Provided in Terms of Value (USD).

Automotive Engine Encapsulation Market Size and Share

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Compare market size and growth of Automotive Engine Encapsulation Market with other markets in Automotive Industry

Automotive Engine Encapsulation Market Analysis by Mordor Intelligence

The automotive engine encapsulation size market is valued at USD 5.44 billion in 2025 and is projected to reach USD 7.12 billion by 2030, reflecting a robust 5.53% CAGR. Demand accelerates as Euro 7 regulations tighten cold-start CO₂ limits, premium brands chase library-quiet cabins, and hybrid powertrains require sophisticated under-hood thermal control. Automakers adopt gigacasting and digital-twin design loops that merge structural, thermal, and acoustic functions, cutting component counts while boosting thermal efficiency. Material strategies pivot toward recyclable thermoplastics to meet circular-economy mandates, and carbon-fiber cost declines open lightweight options for mid-volume models. Suppliers form alliances with battery-thermal specialists to bridge ICE and EV requirements as the automotive engine encapsulation market navigates the combustion-to-electric transition.

Key Report Takeaways

  • By product type, engine-mounted solutions led with 51.71% of the automotive engine encapsulation market share in 2024, while body-mounted designs are expanding at a 7.56% CAGR to 2030. 
  • By fuel type, gasoline engines held a 65.91% share of the automotive engine encapsulation market size in 2024, while electric powertrains are moving at a 7.87% CAGR. 
  • By material type, carbon fiber captured 34.26% share of the automotive engine encapsulation market size in 2024, and polypropylene is advancing at an 8.14% CAGR through 2030. 
  • By vehicle type, passenger cars accounted for 67.33% of the automotive engine encapsulation market size in 2024 and are growing at a 6.85% CAGR. 
  • By sales channel, OEM-fitted systems commanded 86.15% share of the automotive engine encapsulation market size in 2024 and are rising at a 7.13% CAGR. 
  • By geography, Asia-Pacific dominated with 48.55% automotive engine encapsulation market share in 2024; it also posts the fastest 8.52% CAGR to 2030.

Segment Analysis

By Product Type: Body-Mounted Solutions Drive Integration Innovation

Engine-mounted encapsulations led the automotive engine encapsulation market with a 51.71% share in 2024. These modules excel at vibration isolation because they sit directly on the power unit, enabling rapid warm-up and line-side installation. Body-mounted designs are accelerating at 7.56% CAGR and increasingly cast into large underbody sections, supporting platform consolidation and lowering assembly time.

Body-mounted encapsulation integrates acoustic barriers with structural members, improving stiffness while sealing the engine bay. This format dovetails with gigacast underbodies that eliminate multiple brackets and fasteners. Suppliers must formulate materials that tolerate die-casting thermal cycles without delamination. Consequently, the automotive engine encapsulation market size for body-mounted solutions is projected to expand steadily through 2030.

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Note: Segment shares of all individual segments available upon report purchase

By Fuel Type: Electric Powertrains Drive Innovation Despite Gasoline Dominance

Gasoline engines accounted for 65.91% automotive engine encapsulation market size in 2024, supported by their prevalence in global passenger fleets. Encapsulation for gasoline units emphasizes rapid warm-up and idle noise suppression. 

Electric powertrains exhibit the briskest 7.87% CAGR because hybrids and range-extended models blend battery cooling with combustion insulation. Suppliers engineer dual-purpose barriers that protect cells from engine heat spikes while muting inverter whine. Diesel remains for torque-intensive use cases but faces cost headwinds due to after-treatment complexity.

By Material Type: Polypropylene Gains Ground Through Recyclability Advantages

Carbon fiber retained 34.26% automotive engine encapsulation market share in 2024, favored in premium and performance cars for its stiffness-to-mass ratio. Recycled carbon fiber feedstock and automated layup reduce cost barriers, positioning the material for mid-segment adoption. 

Polypropylene is scaling fastest at 8.14% CAGR thanks to its closed-loop recyclability and compliance with the EU End-of-Life Vehicles Directive. The automotive engine encapsulation market size for polypropylene composites is tied to OEM sustainability targets, while polyurethane remains entrenched in foam liners that balance weight and damping. Polyamide and glass wool maintain niche roles for high-heat and low-cost applications, respectively. 

By Vehicle Type: Passenger Cars Maintain Dominance Through Volume Scale

Passenger cars held 67.33% of the automotive engine encapsulation market share in 2024 and are growing 6.85% through 2030. High global production volume and uniform acoustic targets drive standardized encapsulation specifications that lower per-unit costs. 

Light commercial vehicles adopt similar NVH solutions to meet urban noise ordinances, while medium and heavy trucks focus on thermal durability rather than decibel performance. The automotive engine encapsulation market size for passenger cars benefits from emerging-market assembly growth that offsets BEV migration in developed regions.

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Note: Segment shares of all individual segments available upon report purchase

By Sales Channel: OEM Integration Dominates Through Manufacturing Efficiency

OEM-fitted systems owned 86.15% automotive engine encapsulation market share in 2024 and will climb to 7.13% through 2030. Factory installation assures tight tolerances, simplifies warranty accountability, and lets engineers tune NVH during platform development. 

Aftermarket demand focuses on fleet retrofits and replacement parts where extended service life warrants NVH upgrades. Still, high installation labor and acoustics validation limit aftermarket penetration. Consequently, the automotive engine encapsulation market size continues to tilt toward OEM channels as assembly plants integrate encapsulation steps into automated body lines.

Geography Analysis

Asia-Pacific led the automotive engine encapsulation market with 48.55% share in 2024 and is advancing at 8.52% CAGR. China’s dominance derives from vast vehicle output and policy-driven hybrid growth that prolongs ICE encapsulation demand even in an EV-centric roadmap. India’s production-linked incentives lure suppliers to localize encapsulation, combining cost competitiveness with duty advantages.

Europe ranks second as Euro 7 catalyzes advanced solutions for cold-start emissions, plus widespread hybrid adoption that prolongs ICE relevance. Carbon-fiber and digital-twin tools mature here first, then migrate globally, reinforcing the region’s thought leadership. North America grows steadily on the back of SUV and pickup sales that use larger powertrains, which need robust thermal-acoustic barriers. 

The Middle East and Africa, and South America remain emerging pockets. They rely on imported NVH kits or CKD assembly, yet rising local output attracts suppliers establishing greenfield plants. Altogether, the automotive engine encapsulation market continues regional consolidation around APAC capacity while Europe drives specification trends embraced worldwide.

Market Analysis of Automotive Engine Encapsulation Market: Forecasted Growth Rate by Region
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Competitive Landscape

The automotive engine encapsulation market shows moderate concentration. Tier-one NVH specialists, diversified chemical conglomerates, and composite technology start-ups vie for a share. Market leaders leverage global footprints and integrated material supply to satisfy OEM just-in-time schedules. Mid-sized players differentiate with proprietary acoustic foams or fiber formulations targeted at premium segments. 

Strategic focus shifts to systems that fuse thermal shielding, acoustic damping, and crash protection, reducing part count. Partnerships between composite material producers and die-casters speed up the entry into giga-cast architecture. ElringKlinger doubled its E-Mobility revenue in 2024 while maintaining ICE product cost leadership, illustrating a dual-lane strategy.

Capital expenditure trends favor automation and closed-loop recycling lines that cut scrap and carbon intensity. Suppliers that secure raw material backward integration in polypropylene and recycled carbon channels gain margin insulation when petrochemical prices spike. Competitive success will depend on scaling next-gen encapsulation before ICE decline outpaces revenue pivot capacity.

Automotive Engine Encapsulation Industry Leaders

  1. Autoneum Holding AG

  2. BASF SE

  3. Continental AG

  4. ElringKlinger AG

  5. Adler Pelzer Group

  6. *Disclaimer: Major Players sorted in no particular order
Automotive Engine Encapsulation Market Concentration
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Recent Industry Developments

  • May 2025: Autoneum launched a thermoplastic impact-protection plate that shields EV batteries while providing thermal insulation to extend range.
  • August 2024: Autoneum opened a fully owned Pune plant producing carpet systems, wheelhouse liners, and e-motor encapsulations for Indian and export OEMs.
  • July 2024: Hutchinson debuted an NVH encapsulation product that attenuates high-frequency e-compressor and motor noise for upcoming electric and hybrid models.

Table of Contents for Automotive Engine Encapsulation Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Stricter post-Euro 7 cold-start CO2 targets
    • 4.2.2 Premium-brand shift to "library-quiet" ICE cabins
    • 4.2.3 Battery pre-conditioning needs in PHEVs
    • 4.2.4 Lightweight carbon-fiber cost curve inflection
    • 4.2.5 Gigacasting enabling larger body-mounted encapsulations
    • 4.2.6 OEM digital twins optimising under-hood thermal maps
  • 4.3 Market Restraints
    • 4.3.1 Rapid BEV power-train mix diluting ICE volumes
    • 4.3.2 Petro-chemical price volatility for polymer foams
    • 4.3.3 Limited recyclability of multi-layer NVH composites
    • 4.3.4 Engine-bay packaging conflicts in downsized ICEs
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers / Consumers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Intensity of Competitive Rivalry

5. Market Size & Growth Forecasts (Value in USD)

  • 5.1 By Product Type
    • 5.1.1 Engine-Mounted
    • 5.1.2 Body-Mounted
  • 5.2 By Fuel Type
    • 5.2.1 Gasoline
    • 5.2.2 Diesel
    • 5.2.3 Electric
  • 5.3 By Material Type
    • 5.3.1 Carbon Fiber
    • 5.3.2 Polyurethane
    • 5.3.3 Polypropylene
    • 5.3.4 Polyamide
    • 5.3.5 Glasswool
  • 5.4 By Vehicle Type
    • 5.4.1 Passenger Cars
    • 5.4.2 Light Commercial Vehicles
    • 5.4.3 Medium and Heavy Commercial Vehicles
  • 5.5 By Sales Channel
    • 5.5.1 OEM-Fitted
    • 5.5.2 Aftermarket
  • 5.6 Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Rest of North America
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Rest of Europe
    • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 Japan
    • 5.6.4.3 India
    • 5.6.4.4 South Korea
    • 5.6.4.5 Australia
    • 5.6.4.6 New Zealand
    • 5.6.4.7 Rest of Asia-Pacific
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Saudi Arabia
    • 5.6.5.2 United Arab Emirates
    • 5.6.5.3 Egypt
    • 5.6.5.4 Turkey
    • 5.6.5.5 South Africa
    • 5.6.5.6 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (Includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, SWOT Analysis, and Recent Developments)
    • 6.4.1 Autoneum Holding AG
    • 6.4.2 Continental AG
    • 6.4.3 ElringKlinger AG
    • 6.4.4 BASF SE
    • 6.4.5 3M Company
    • 6.4.6 Rochling Group
    • 6.4.7 Adler Pelzer Group
    • 6.4.8 Trocellen Automotive
    • 6.4.9 Woco Group
    • 6.4.10 SA Automotive
    • 6.4.11 Charlotte Baur Formschaumtechnik GmbH
    • 6.4.12 Sumitomo Riko Co. Ltd
    • 6.4.13 Sika Automotive
    • 6.4.14 Pritex Ltd
    • 6.4.15 UGN Inc.
    • 6.4.16 Langfang Sound (China)

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
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Global Automotive Engine Encapsulation Market Report Scope

Automotive engine encapsulation keeps the engine's heat within the engine compartment and improves the efficiency and performance of the vehicle engine by allowing oils and lubricants to work optimally. Furthermore, it reduces vehicle-generated noise by using a material with an acoustic function of up to 5 dB. This market is predicted to grow throughout the forecast period due to rising luxury car sales, growing income levels, and increasing customer awareness.

The automotive engine encapsulation market is segmented by product type, fuel type, material type, and geography.

Based on product type, the market is segmented into engine mounted and body mounted.

By fuel type, the market is segmented into gasoline and diesel.

By material type, the market is segmented into carbon fiber, polyurethane, polypropylene, polyamide, and glasswool.

By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.

By Product Type Engine-Mounted
Body-Mounted
By Fuel Type Gasoline
Diesel
Electric
By Material Type Carbon Fiber
Polyurethane
Polypropylene
Polyamide
Glasswool
By Vehicle Type Passenger Cars
Light Commercial Vehicles
Medium and Heavy Commercial Vehicles
By Sales Channel OEM-Fitted
Aftermarket
Geography North America United States
Canada
Rest of North America
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia
New Zealand
Rest of Asia-Pacific
Middle East and Africa Saudi Arabia
United Arab Emirates
Egypt
Turkey
South Africa
Rest of Middle East and Africa
By Product Type
Engine-Mounted
Body-Mounted
By Fuel Type
Gasoline
Diesel
Electric
By Material Type
Carbon Fiber
Polyurethane
Polypropylene
Polyamide
Glasswool
By Vehicle Type
Passenger Cars
Light Commercial Vehicles
Medium and Heavy Commercial Vehicles
By Sales Channel
OEM-Fitted
Aftermarket
Geography
North America United States
Canada
Rest of North America
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia
New Zealand
Rest of Asia-Pacific
Middle East and Africa Saudi Arabia
United Arab Emirates
Egypt
Turkey
South Africa
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current size of the automotive engine encapsulation market?

The automotive engine encapsulation market size stands at USD 5.44 billion in 2025 and is projected to grow to USD 7.12 billion by 2030, representing a 5.53% CAGR.

Which region leads the automotive engine encapsulation market?

Asia Pacific commands 48.55% market share and shows the fastest 8.52% CAGR thanks to China’s scale and India’s rapid capacity additions.

Why are body-mounted encapsulations gaining traction?

Gigacasting underbodies allow larger single-piece aluminum sections that integrate acoustic and thermal barriers, prompting a 7.56% CAGR for body-mounted solutions through 2030.

Which material segment is growing fastest?

Polypropylene encapsulations expand to an 8.14% CAGR as automakers prioritize recyclable thermoplastics to comply with circular-economy directives.

Automotive Engine Encapsulation Market Report Snapshots