|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The automotive engine market was valued at over USD 350 billion in 2020, and it is expected to reach over USD 460 billion by 2026, registering a CAGR of more than 4% during the forecast period (2021 - 2026).
The COVID-19 pandemic had a swift and negative impact on the globally integrated automotive industry. Automobile engine and component manufacturing plants are being shuttered, and consumer footfalls in showrooms have fallen sharply because of lockdowns and travel restrictions across the world.
However, the automotive engine market is expected to witness significant growth during the forecast period, as manufacturers are focusing on new technologies like the replacement of engine control units to increase the average life of vehicles, thereby, improving the lifecycle of engines. The growing demand for fuel-efficient and lightweight vehicles is likely to create lucrative opportunities for players in the market during the forecast period.
Factors, such as rigid fuel economy, regulatory norms, and growing demand for technologically advanced powered engines for the better performance of vehicles, are expected to augment the demand in the market. Recently the automobile giant Audi developed a TFSI 4-cylinder engine which the company claims to be the most efficient 2-liter gasoline engine on par. Such technological developments will certainly boost the market growth, which will pave the way for better fuel-efficient vehicles.
The Asia-Pacific region is anticipated to continue as a major market for automotive engines throughout the forecasted period. It is anticipated that about 40% of the hybrid and electric vehicles sales reported by the year 2025 in the Asia-pacific region. North America and Asia-Pacific both regions dominate the global automotive engine market as several environmental norms being employed in both North America, Europe, and Asia-Pacific.
Scope of the Report
The automotive engine is one of the most integral parts of any vehicle. It enables the vehicle to function efficiently and run smoothly without any trouble. Overall performance, vehicle emission, and efficiency of every vehicle depend on the condition of an automotive engine. The automotive engine market report covers the latest trends and COVID-19 impact, followed by technological developments in the market. The scope of the report covers segmentation based on placement type, vehicle type, fuel type, and geography.
By placement type, the market is segmented into in-line engine, W engine, and V-type. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By fuel type, the market is segmented into gasoline (petrol), diesel, ethanol, and other fuel types. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, the market sizing and forecast have been done on the basis of value (USD billion).
|Other Fuel Types|
Key Market Trends
Increasing Investment in Building Better Emission Control Equipment
A key factor driving the growth of the automotive engine market is the development of new engine technologies such as variable displacement engines (VDEs) and hybrids. Automotive manufacturers are developing new types of engines, such as hybrid engines and variable displacement engines (VDEs), which deliver high performance and fuel efficiency.
Although hybrid engines are the most widely used engine in the automotive industry, the demand for VDEs is expected to increase considerably during the forecast period. This is because hybrid engines are expensive, and the presence of various electrical components in their powertrain makes them less reliable. Moreover, hybrid engines are fuel-efficient in heavy traffic conditions only.
Car manufacturers try to stay ahead of the competition by building the most compact engines that are lightweight, have greater power output, and higher fuel economy. OEMs downsize vehicle engines to decrease the overall curb weight of the vehicle and reduce emissions.
Most of the OEMs have downsized vehicle engines for complying with the real-world emission testing standards as well as the emission standards. Companies such as Volkswagen, Renault, and General Motors plan to eliminate certain compact passenger models from their product portfolio in 2019 to maintain a fleet that complies with the latest emissions and testing procedures. Many companies are in the process of evaluating the levels of emissions produced by their downsized compact vehicles.
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The Asia-Pacific Region is Expected to Lead the Market
The Asia-Pacific region is expected to dominate the automotive engine market, followed by Europe and North America during the forecast period. The developments in the field of engine technology are increasing significantly, along with the rising emission norms across the globe. A large amount of OEMs profit is likely to come from developing economies like India and China.
The Asia-Pacific region is likely to attract major players in the market, as customers' preference toward electric vehicles is increasing significantly. However, as switching to electric mobility is associated with high cost, electrification of vehicles and adoption of electric vehicles at the local level will continue to maintain the relevance of IC engines. A large number of electric vehicles are hybrid electric vehicles; IC engines will be produced until the electric car market see full electrification of vehicles.
Europe and North America are expected to be active regions in the market after Asia-Pacific, due to the presence of long-established original equipment manufacturers, which provide a strong base for the robust development and growth of the automotive engine market in the region.
OEMs have been focusing on developing technologically advanced powered engines to gain high torque and performance. The emergence of multi-fuel engine technology is expected to provide lucrative opportunities to the active market players in the automotive engine market. For example, the Volvo multi-fuel car has a 2.0-liter engine that runs on five different fuels, namely, hythane, methane, bioethane, CNG, and petrol.
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The automotive engine market is fairly fragmented due to the presence of numerous players in the market. The companies are launching more technologically advanced products in the market to gain a competitive edge over other players. 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 a higher horsepower output, taking the 2500 and 3500 heavy-duty RAM pickup trucks to the next level of performance.
- In May 2019, MAN Energy Solutions 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 adjust the airflow amount with injected fuel at different loads. This makes the engine more responsive and fuel-efficient.
- Audi has developed the 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.
Some of the key players in the market include Cummins Inc., Toyota Motor Corporation, Fiat Automobiles SpA, Volkswagen AG, MAN Energy Solutions, and General Motors.
- In April 2021, MAN Energy Solutions started the ‘AmmoniaMot’ project in association with the Research Institutes University of Munich, Neptun Ship Design, WTZ, and Woodward L’Orange, supported by the German Federal Ministry of Economics and Technology (BMWi). The project aims to define the steps necessary to produce a dual-fuel, medium-speed engine capable of running on diesel fuel and ammonia.
- In September 2020, Clean flame Engine Technologies developed a novel way to get diesel-style engines to operate on renewable fuels like ethanol. The technology essentially combines the performance benefits of the diesel engine design with the low costs and the low emissions associated with these alternative fuels paving the way for new trends in the market.
Table of Contents
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 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Placement Type
5.1.1 In-line Engine
5.1.2 W Engine
5.2 Vehicle Type
5.2.1 Passenger Car
5.2.2 Commercial Vehicle
5.3 Fuel Type
5.3.3 Other Fuel Types
5.4.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.4.4 Rest of the World
184.108.40.206 South America
220.127.116.11 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.2 Cummins Inc.
6.2.3 Toyota Motor Corporation
6.2.5 General Motors
6.2.6 Honda Motor Company Ltd
6.2.7 Hyundai Motor Company
6.2.8 Scania AB
6.2.9 Suzuki Motor Corporation
6.2.10 Mazda Motor Corporation
6.2.11 Volkswagen AG
6.2.12 Eicher Motors Limited
6.2.13 Yamaha Corporation
6.2.14 Fiat Automobiles SpA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Engine Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Engine Market?
The Automotive Engine Market is growing at a CAGR of >4% over the next 5 years.
What is Automotive Engine Market size in 2018?
The Automotive Engine Market is valued at 350 Billion USD in 2018.
What is Automotive Engine Market size in 2026?
The Automotive Engine Market is valued at 460 Billion USD in 2026.
Which region has highest growth rate in Automotive Engine Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Engine Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Automotive Engine Market?
Cummins Inc., Toyota Motor Corporation, General Motors, Volkswagen AG, Fiat Automobiles SpA are the major companies operating in Automotive Engine Market.