Automotive Piston Engine System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The automotive piston engine system market was valued at USD 30 billion in 2020, and it is expected to reach USD 43 billion by 2026, registering a CAGR of over 6% during the forecast period, 2021-2026.

The COVID-19 pandemic had a negative impact on the market, owing to the decreased sales registered by the automotive industry worldwide. With stringent lockdowns, the production plants for different OEMs were shut down, and the vehicle dealers did not register enough sales in 2020. Also, with no travel activity and reduced vehicle repair activity, the need for aftermarket piston systems was also reduced, forcing the piston engine system market's economy to run low.

Innovations and prototypes of engines from major automakers and OEMs, coupled with consumer preferences for high-performance and fuel-efficient automobiles, are some of the major factors propelling the market growth.

Engine downsizing trends are on the rise, with automakers developing smaller engines with better fuel injection systems. L4 and V6 engines dominated the vehicle category, thereby creating a demand for more than four pistons in the engine, by placement type, in 2019. Passenger cars have continued their dominance as the major vehicle type in the market.

Over the past five years, the sales trends of gasoline and diesel engine have been experiencing significant growth and decline, respectively. The production of piston systems has been gaining traction from both the engine types and aftermarket channels. For instance, companies like Shriram Pistons and Rings, Bosch, Mahle, etc., have stated that more than 22% of their revenues is generated from aftermarket channels that strengthen their brand recognition.

With China, India, and Japan growing as global automotive manufacturer hubs, the Asia-Pacific region is expected to continue as a major market for automotive piston systems due to the increase in manufacturing.

Scope of the Report

The automotive piston engine system market is segmented by raw material type (cast iron, aluminum alloy, and other raw materials), vehicle type (passenger cars and commercial vehicles), fuel type (gasoline and diesel), component type (piston, piston ring, and piston pin), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the market sizes and forecasts in volume and value (USD billion) for all the above segments.

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Key Market Trends

Rising Sales of Electric Vehicle are Hindering the Market Growth

The rise in sales of electric vehicles is hindering the growth of the automotive piston system market. The spike in sales has been the result of an increase in regulatory norms by various organizations and governments to control emission levels and to propagate zero-emission vehicles.

As a result, automakers have been continually working and focusing on increase their expenditure on the R&D of electric vehicles, which may aid the OEMs to market electric vehicles in the future.

The global electric vehicles (including battery electric vehicles, fuel cell electric vehicles, and plug-in hybrid vehicles) market has observed a tremendous increase in the number of sales registered every year from 2018. This increase was registered in almost all segments of vehicles, which include passenger vehicles and commercial vehicles. For instance-

In 2020, the total passenger electric cars registered were 2.98 million units as compared to 2.12 million units registered in 2019, representing a Y-o-Y growth of 41%.

A total of 83,499 units of electric buses were registered in 2020, as compared to 77,093 units registered in 2019, accounting for a Y-o-Y growth of 8%.

In the vans segment, a total of 95,315 units of electric LCVs were registered in 2020 compared to 70,382 units registered in 2019, registering a Y-o-Y growth of 35%.

With the increased inclination toward electric vehicles, governments of different countries offering subsidies, and the growing need for automation and reduced emissions, the electrification of the automotive industry is a major restraint for the market.

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