Automotive Engine Market - Growth, Trends, and Forecast (2020 - 2025)

The Automotive Engine Market has been segmented by Placement Type (In-line Engine, W Engine and V-Type), Vehicle Type (Passenger Car and Commercial Vehicle), Fuel Type (Gasoline (Petrol), Diesel, Ethanol and others) and Geography.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

5.23 %

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Market Overview

The automotive engine market is anticipated to register a CAGR of about 5.23% during the forecast period (2020 – 2025).  

  • Extensive innovations and prototypes from major automakers and OEMs, coupled with the consumer preference for high-performance and fuel-efficient automobiles, are some of the major factors that are primarily propelling the market growth. OEMs will have to constantly develop and improve advanced IC engines (variable valve timing and alternative powertrain).
  • Disposable income in Asia Pacific region and other developing economies is rising. In developed economies such as Norway, majority of customers have already switched to electric vehicles. This is because availability of proper charging infrastructure in these countries. In developing economies, customers want to purchase electric vehicle because of their cost efficiency and improved mobility range but due to high cost and lack of charging infrastructure that supports e-mobility, people are buying IC engine vehicles.
  • Engine downsizing and turbocharging trend is on rise with automakers developing smaller engines with better fuel injection systems. Downsizing shifts the engine operation to high loads where high engine efficiency exists. Due to lighter weights, these engines improve fuel consumption. L4 and V6 engines dominated the automotive engine market by placement type in 2018.
  • Automotive emission has been creating environmental concerns among consumers and governments and international environmental organizations. This, in turn, resulted in the enactment of stringent emission regulations. In India, BS4 norms were introduced in 2010 in Delhi and 13 other major cities. These norms were implemented throughout India in phases in 2015, 2016 for 2 wheelers and were mandated in the whole country from 1st April 2017. Now government requires vehicles to be equipped with engines complying BS 6 norms. These steps put cost pressure on the OEMs. In Beijing, if a customer wants to buy an IC engine vehicle, he/she has to enter a lottery where they can wait up to 2 years to get a license plate. Together, these factors have been forcing automakers to develop better automobiles with lesser emission and better fuel efficiency and to invest in electric vehicles.

Scope of the Report

The automotive engine market covers the latest trends and technological development in the automotive engine market, demand of the placement type, fuel type, vehicle type, geography and market share of major automotive engine manufacturers across the world.

By Placement Type
V-Type
In-line Engine
W-Type
By Vehicle Type
Passenger Cars
Commercial Vehicles
By Fuel Type
Gasoline (Petrol)
Diesel
Ethanol
Others
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
United Arab Emirates
Saudi Arabia
South Africa
Iran
Rest of Middle East & Africa

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Key Market Trends

Rise in sales of Electric Vehicles (EVs) and Commercial Vehicles

Sales of passenger cars declined in major economies such as India in 2019. In 2018, the global passenger cars production accounted for 95,634,593 units. Improving road infrastructure and rising disposable income of the middle-class consumers are driving the passenger car market in the developing countries. Competitive pricing of vehicles by automotive manufacturers has also created a huge demand for passenger cars in developing countries.

Electric vehicle market is also expected to exhibit a CAGR of 20% during the study period. Eventually customers will switch to electric mobility but high cost associated with electrification of vehicle & adoption of electric vehicles at local level will continue to maintain the relevance of IC engines. A large number of electric vehicles are hybrid electric vehicles therefore IC engines will be produced until electric car market see full electrification of vehicles. Governments of countries such as Norway are providing incentives and tax rebates on purchase of electric vehicles.

Additionally, the demand for commercial vehicles has been continually increasing (expected CAGR of 5% during the study period), owing to the growing e-commerce (resulting in growth in the logistics industry), construction, and mining industries. In 2017, freight transportation (between 50 km and 1,999 km) accounted for 89.1% of the total freight transportation, and as the market continues to expand, the demand for pick-up vans, small trucks, and other LCVs is also likely to increase.

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Asia-Pacific Leading the Engine Market

The Asia-Pacific region dominated the automotive engine market and held a significant share in 2019. Large amount of OEMs profit during the forecast period will come from developing economies like India and China. Some of the major factors driving the growth of the market are increasing automotive production and sales in countries, like India, China and ASEAN Countries and growing automotive components sector. Engine after sale market is also expected to exhibit a healthy growth rate during the forecast period. However, the region, especially China, has been witnessing a rise in the sales and production of electric vehicles, which is hindering the growth of the automotive engine market. Additionally, in 2018, both India and China witnessed a decline in vehicle sales, owing to trade tensions and shaky consumer confidence, uneven monsoon, poor festive demand, and high fuel and insurance costs, which also hindered the market growth, as the production of vehicles slowed down. Another factor responsible for the decline is increased awareness about shared mobility.

The automotive engine market is likely to see a drop in the production and sales statistics over the forecast period, as the consumers incline more toward green vehicles. The Environmental Protection Agency of the United States is expected to provide a total funding of USD 40 million to the projects, with the aim to reduce emissions from the country’s existing fleet of older diesel engines.

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Competitive Landscape

The automotive engine market is fairly fragmented and some of the major players are Cummins, Fiat, General Motors, Toyota, Volkswagen, and Ford Motor Company, among others. The companies are launching more technologically advanced products in the market. For instance;

  • In January 2019, Cummins Inc. launched its next-generation 6.7L turbo diesel engine, with a first-in-class 1,000 pound-feet of torque. It also has the higher horsepower output, taking the 2500 and 3500 heavy-duty RAM pickup truck customers to the next level of performance.
  • In May 2019, MAN Energy Solutions has added variable turbine area (VTA) technology to its TCA turbochargers for the MAN 51/60 engine type. VTA has nozzle rings with adjustable vanes that adjusts the air flow amount with injected fuel at different loads. This makes the engine more responsive and fuel efficient.
  • Audi has developed a first turbocharged direct injection engine TFSI 4-cylinder engine which is claimed to be the most efficient 2-liter engine. This engine has improved responsiveness and Active Noise Control and Engine Mounts suppress vibrations and noise.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Placement Type

      1. 5.1.1 V-Type

      2. 5.1.2 In-line Engine

      3. 5.1.3 W-Type

    2. 5.2 By Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

    3. 5.3 By Fuel Type

      1. 5.3.1 Gasoline (Petrol)

      2. 5.3.2 Diesel

      3. 5.3.3 Ethanol

      4. 5.3.4 Others

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle East & Africa

        1. 5.4.5.1 United Arab Emirates

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Iran

        5. 5.4.5.5 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Mercedes-Benz

      2. 6.2.2 Cummins Inc.

      3. 6.2.3 Toyota Motor Corporation

      4. 6.2.4 BMW

      5. 6.2.5 General Motors

      6. 6.2.6 Honda Motor Company Ltd

      7. 6.2.7 Hyundai Motor Company

      8. 6.2.8 Scania AB

      9. 6.2.9 Suzuki Motor Corporation

      10. 6.2.10 Mazda Motor Corporation

      11. 6.2.11 Volkswagen AG

      12. 6.2.12 Eicher Motors Limited

      13. 6.2.13 Yamaha Corporation

      14. 6.2.14 Fiat Automobiles SpA

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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