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The automotive engine market size is forecast to increase by 14.23 million units, at a CAGR of 3.43% between 2022 and 2027. The global automotive engine market flourishes due to several pivotal factors. Firstly, the robust expansion of the premium vehicle segment stimulates demand for cutting-edge engines. Secondly, there's an increasing imperative to elevate vehicle performance, compelling manufacturers to pioneer advancements in engine technology. Lastly, the rising vehicle population across the globe accentuates the requirement for more efficient engines, consequently fostering sustained market growth. These intertwined drivers underscore the significance of continuous innovation and adaptation within the automotive engine sector to meet the evolving demands of consumers and regulatory standards while capitalizing on emerging opportunities in the automotive industry.
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The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "million units" for the period 2023-2027, as well as historical data from 2017 - 2021 for the following segments.
The market share growth by the in-line engine segment will be significant during the forecast period. In-line engines are the most commonly-used engine configuration in the automotive industry. The major factors driving the growth of this engine type are engine downsizing and the growing use of turbochargers. Engine downsizing improves fuel efficiency, while turbochargers enhance engine performance. For instance, OEMs are implementing downsized in-line engines to achieve better performance.
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The gasoline segment was valued at 58.04 million units in 2017. In-line engines are lightweight and compact, which gives them better fuel efficiency. Due to this, these engine types are ideal for front-wheel drive vehicles (the most popular vehicles produced in the automotive industry). These engines are also economical to manufacture and maintain. In in-line engines, the 4-cylinder configuration or in-line four engines is the most common.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In terms of production volume, China and India account for the largest share of the market in APAC due to the presence of a large automotive production base. The reduction in the prices of components and the availability of more stable and advanced systems are expected to attract low-cost manufacturers to enter the market in APAC, especially in China, during the forecast period.
The market is undergoing significant changes due to factors like lockdowns and travel restrictions, impacting engine production and vehicle lifecycles. With a focus on zero emissions and emission standards, the industry is shifting towards electrification and hybrid engines. Manufacturers are developing engine control units and control strategies to optimize engine cycle efficiency and reduce car pollutants. Additionally, advancements in aluminum alloys are enabling the production of lightweight vehicles with improved torque curves. Companies are investing in hybrid electric technologies, while Simulink simulations are enhancing control unit flexibility and engine performance. As the market embraces compact engines and hybrid electric solutions, the automotive engine industry continues to evolve towards a more sustainable and efficient future. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2017 - 2021.
The increased volume of premium vehicle sales serves as a primary catalyst for market expansion. Anticipated growth in the sales of performance, premium, and sport utility vehicles reflects evolving consumer preferences. Over the next decade, market design trends will pivot towards prioritizing high-quality and comfortable vehicles, aligning with consumer desires. The sustained surge in demand for SUVs, witnessed over the past four years, is set to persist.
Moreover, burgeoning markets like China and India witness a rise in the demand for luxury vehicles, driven by stable economic conditions and growing disposable incomes. This escalating adoption of luxury cars is poised to drive market growth in the forecast period.
The increasing demand for fuel efficiency is one of the primary market trends. The automotive industry is witnessing a growing demand for fuel efficiency, safety, and emission reduction to promote a better driving and travel experience for consumers. This increases the efficiency of car engines, which helps reduce fuel costs.
Moreover, automotive OEMs prefer efficient automotive engine suppliers due to their demands for high performance and low fuel consumption. Therefore, the demand for efficient vehicles drives the demand for automotive engines, which can increase the efficiency of vehicles and in turn drive the market during the forecast period
The increasing popularity of electric vehicles is a major challenge to global market growth. The increasing emphasis on using sustainable energy and using environmentally friendly means to limit carbon dioxide emissions has increased the demand for electric cars. Government subsidies, lower prices for battery electric vehicles (BEVs), and the adoption of cost-effective electric vehicles are the main factors that have increased the demand for electric vehicles in several countries. The rapid expansion of electric car charging infrastructure, increasing consumer awareness, and total or partial bans on the use of fuel-engine vehicles are also increasing the demand for electric cars worldwide.
Further, although the sales of EVs in 2020 were less than that of conventional fuel-based vehicles, the demand for EVs is expected to increase due to the presence of government policies supporting the use of energy-efficient vehicles. As EVs do not require any engine valves, an increase in the demand for such vehicles will negatively impact the demand for automotive engines during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers automotive engines such as the Volvo D11 engine, Volvo D13TC engine, and X15 engine.
The research report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is at a crossroads, with a focus on enhancing the lifecycle of engines and addressing environmental concerns. As legislative bodies impose stringent emission regulations, manufacturers are turning to hybrids and alternative fuels like ammonia to reduce greenhouse gases. Vehicle production is adapting to include lightweight components and electric options, leading to a surge in electric buses and electricity-powered vehicles. Despite advancements, diesel vehicles face scrutiny due to harmful emissions, prompting a shift towards environment-friendly alternatives. The industry is leveraging technologies like fuel injection and control strategies, with simulations like Simulink models aiding in development. As vehicle emissions come under scrutiny, a focus on emissions testing and vehicle life is paramount, especially in the passenger vehicles segment. With a push for longevity and reduced environmental impact, the automotive engine market is undergoing a transformation toward sustainability and efficiency.
Additionally, the market is experiencing significant shifts as the demand for sustainability and efficiency grows. While conventional fuel like diesel has been predominant, concerns over greenhouse gas emissions have prompted a move towards alternative power sources like electricity. This transition is reshaping vehicle segments and driving innovation in engine design. Manufacturers are focusing on developing engines with longevity characteristics and complex components to meet the demand for light vehicles while ensuring record-high performance levels. Furthermore, advancements in control strategy and Simulink models are optimizing engine efficiency and enhancing the torque curve. As the industry navigates a replacement cycle towards more sustainable options, the automotive engine market represents a lucrative revenue pocket for those able to adapt and innovate in line with evolving consumer preferences and regulatory requirements.
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Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2022 |
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Historic period |
2017 - 2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.43% |
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Market growth 2023-2027 |
14.23 million units |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.69 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, BMW AG, Cummins Inc., Dr. Ing. h.c. F. Porsche AG, Eicher Motors Ltd., Ford Motor Co., General Motors Co, Honda Motor Co. Ltd, Hyundai Motor Co., MAHLE GmbH, Maruti Suzuki India Ltd., Mazda Motor Corp., Mercedes Benz Group AG, Mitsubishi Motors Corp., Renault SAS, Stellantis NV, Toyota Motor Corp., Trelleborg AB, and Yamaha Motor Co. Ltd. |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Fuel Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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