Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | >6 % |
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Market Overview
The Automotive Engine Encapsulation Market was valued at USD 6 Billion in 2020 and is expected to reach USD 8.2 Billion registering a CAGR of over 6% during the forecasted period (2021-2026).
The outbreak of the COVID-19 pandemic resulted in the negative growth of the already struggling automotive industry. The pandemic resulted in lockdowns and shutdowns, thereby, halting the demand for vehicles for few months in the first half of the year 2020. However, the market is expected to return to its normalcy as economies are recovering slowly.
Rapid growth in the sales of fuel-efficient and aerodynamically efficient vehicles is fostering the market growth, creating revenue generation opportunities for manufacturers. Government rules and regulations around the world are promoting fuel-efficient components which is a key driver behind the surge in demand for automotive engine encapsulation. Its numerous advantages such as reducing carbon emission from vehicles and unwanted airborne noise, increasing fuel efficiency, and enhanced engine performance are expected to drive the automotive engine encapsulation market during the forecasted period.
Automotive engine encapsulation retains the heat of the engine within the automotive engine compartment and enhances the efficiency and performance of the vehicle engine by allowing oils and lubricants to perform at their best. Moreover, it limits vehicle-generated noise by applying material which includes an acoustic function that ranged up to 5db. Increasing luxury vehicle sales, raising income levels, and increasing consumer awareness is expected to help this market grow during the forecasted period.
Scope of the report
The automotive engine encapsulation market report contains the latest trends and technological developments in the market and demand by Product Type, Fuel Type, Material Type, and Geography.
Based on product type, the market is segmented as Engine Mounted and Body Mounted
By Fuel Type, the market is segmented as Gasoline and Diesel
By Material Type, the market is segmented as Carbon Fiber, Polyurethane, Polypropylene, Polyamide, and Glasswool.
and By geography, the market is segmented as North America, Europe, Asia-Pacific, and Rest of the World
| Product Type | |
| Engine Mounted | |
| Body Mounted |
| By Fuel Type | |
| Gasoline | |
| Diesel |
| By Material Type | |
| Carbon Fiber | |
| Polyurethane | |
| Polypropylene | |
| Polyamide | |
| Glasswool |
| Geography | |||||||
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Key Market Trends
Stringent Government Regulations To Drive The Market Growth
Stringent government regulations for emission control is the primary factor to drive the automotive engine encapsulation market during the forecasted period. Its has various advantages ranged from reducing carbon emissions from vehicle and unwanted airborne noise, increasing fuel efficiency, and enhance engine performance. As governments from around the world are implementing stringent emission regulations and even are planning to set even higher emissions standards in the coming years, the importance of automotive engine encapsulation will increase.
In March 2020, the Federal Government of United States mandated to reduce vehicular fuel consumption and emission by 1.5% each year between 2021 to 2026. As per the US Department of Energy (DOE), reducing the weight of vehicles by 10% yields an increase of 6-8% in fuel economy. As a result, companies have started using materials like carbon fiber and glass fiber composites for engine encapsulation.
According to European directives and standards (2000/53/EC-End Life of Vehicles) and US Department of Transportation, the automotive manufacturing industry has to follow certain norms in regarding environmentally friendly recycling and dismantling of vehicles, higher fuel efficiency standards, and increase in the use of recyclable materials in vehicles, which is anticipated to offers high potential for the composites engine encapulations during the forecasted period. A
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Asia-Pacific Is Leading the Automotive Encapsulating Market
Chinese automotive exports are heavily influenced by the global economy and environmental regulations. The COVID-19 pandemic has had a marginal impact on the export of vehicles from China. In 2020, around 235,000 commercial vehicles and 760,000 passenger cars were exported from China. This indicated a decrease in the volume of passenger car export and an increase in commercial vehicle export compared to the previous year. Since last few years, China has been the world’s largest car producing country. In 2020, approximately 20 million passenger cars and five million commercial vehicles were produced in China. In other car markets, Chinese car brands enjoy a significant cost advantage over imported cars from international automobile manufacturers. Thus, other developing countries and emerging markets were the main export destinations for Chinese car manufacturers.
In Asia-Pacific, the carbon fiber segment of the market is expected to expand at a rapid rate during the forecasted period as it is lightweight and has high-temperature resistance. Most sports cars and high-end vehicles have engine encapsulation made from carbon fiber. China produces 12% of the world carbon fiber and ranks 3rd in the global carbon fiber production.
In Asia-Pacific, majority of the mid and luxury segment passenger vehicles are equipped with body mounted encapsulation, hence the segment is likely to account for a major share of the automotive engine encapsulation market. The growth of middle-class population in the region is driving the sales of automobiles, owing to which, Asia-Pacific is anticipated to remain major market during the forecast period.
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Competitive Landscape
The Automotive Engine Encapsulation Market is a fragmented with presence of several global and domestic players. Major players in the market includes Roechling Group, Autoneum Holding AG, Trocellen Automotive, BASF SE, Continental AG, and others. The main revenue generation strategy of key players is winning contracts from OEMs.
Recent Developments
- In February 2021, BASF announced that it is expanding its product portfolio of polyamides for the high-temperature range by developing new heat-stabilized Ultramid® B3PG6 BK23238 for the high-temperature range. The polyamide, reinforced with 30 percent glass fibers, is known to exhibit an excellent thermal aging performance, in addition to vibration in internal combustion engines, hybrids, or electric vehicles (EV).
- In June 2020, Autoneum announced "Autoneum Pure " to label components that meet the highest standards in terms of sustainability and eco-friendliness across various multifunctional technologies ranging from floor insulators as well as Hybrid-Acoustics PET for e-motor encapsulations and engine-mounted parts.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 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
5.3 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 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest Of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest Of The World
5.4.4.1 Latin America
5.4.4.2 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Continental AG
6.2.2 Furukawa Electric Co. Ltd
6.2.3 SA Automotive
6.2.4 BASF SE
6.2.5 3M
6.2.6 Evonik Industries AG
6.2.7 Compagnie de Saint-Gobain SA
6.2.8 Erlingklinger AG
6.2.9 Autoneum Holding AG
6.2.10 Adler Pelzer
6.2.11 Trocellen Automotive
6.2.12 Roechling Group
6.2.13 Woco Group
6.2.14 Charlotte Baur Formschaumtechnik GmbH
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Engine Encapsulation Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Engine Encapsulation Market?
The Automotive Engine Encapsulation Market is growing at a CAGR of >6% over the next 5 years.
What is Automotive Engine Encapsulation Market size in 2018?
The Automotive Engine Encapsulation Market is valued at 6 Billion USD in 2018.
What is Automotive Engine Encapsulation Market size in 2026?
The Automotive Engine Encapsulation Market is valued at 8 Billion USD in 2026.
Which region has highest growth rate in Automotive Engine Encapsulation Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Engine Encapsulation Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Automotive Engine Encapsulation Market?
Trocellen Automotive, Autoneum Holding AG, BASF SE, Continental AG, Roechling group are the major companies operating in Automotive Engine Encapsulation Market.
