Automotive Engine Encapsulation Market Size (2024 - 2029)

The automotive engine encapsulation market is anticipated to experience growth driven by stringent government pollution management regulations and the increasing demand for lower CO2 emissions and reduced airborne noise. This market expansion is supported by the broader adoption of engine encapsulation in lower-end vehicles to meet rigorous noise emission standards, alongside its traditional use in luxury cars. However, the market's growth may face challenges due to the declining presence of traditional engines in electric vehicles.

Market Size of Automotive Engine Encapsulation Industry

Automotive Engine Encapsulation Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 6.00 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Automotive Engine Encapsulation Companies

*Disclaimer: Major Players sorted in no particular order

Automotive Engine Encapsulation Market Analysis

The automotive engine encapsulation market was valued at USD 6.2 billion in 2021 and is expected to reach USD 8.4 billion while registering a CAGR of over 6% during the forecast period 2022-2027.

The COVID-19 pandemic resulted in negative growth for the already struggling automotive sector owing to lockdowns and shutdowns, which halted the demand for vehicles for a few months in the first half of 2020. However, the market is expected to return to normalcy as economies slowly recover.

Throughout the forecast period, the key factor driving the automotive engine encapsulation market will be stringent government pollution management regulations. The importance of automobile engine encapsulation will expand as governments worldwide establish stricter pollution standards and plan to set even higher emissions restrictions over the coming years.

Due to many benefits, such as lower CO2 emissions and less airborne noise, demand for automobile engine encapsulation is predicted to rise throughout the forecast period. Engine encapsulation was formerly only available in luxury automobiles, but this feature is increasingly being offered in lower-end vehicles as well to fulfill the rigorous noise emission standards. Engine encapsulation improves vehicle fuel efficiency by allowing the engine and oils and lubricants to reach a higher beginning temperature, which is why most manufacturers include it in their cars. Due to the lack of traditional engines in electric cars, the automotive engine encapsulation market is projected to be restrained.

Automotive Engine Encapsulation Industry Segmentation

Automotive engine encapsulation keeps the engine's heat within the engine compartment and improves the efficiency and performance of the vehicle engine by allowing oils and lubricants to work optimally. Furthermore, it reduces vehicle-generated noise by using a material with an acoustic function of up to 5 dB. This market is predicted to grow throughout the forecast period due to rising luxury car sales, growing income levels, and increasing customer awareness.

The automotive engine encapsulation market is segmented by product type, fuel type, material type, and geography.

Based on product type, the market is segmented into engine mounted and body mounted.

By fuel type, the market is segmented into gasoline and diesel.

By material type, the market is segmented into carbon fiber, polyurethane, polypropylene, polyamide, and glasswool.

By geography, the market is segmented into 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
North America
US
Canada
Rest of North America
Europe
Germany
UK
France
Italy
Rest of Europe
Asia-Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
Latin America
Middle-East and Africa
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Automotive Engine Encapsulation Market Size Summary

The automotive engine encapsulation market is poised for significant growth, driven by stringent government regulations on pollution and emissions. As governments worldwide implement stricter standards, the demand for engine encapsulation is expected to rise, offering benefits such as reduced CO2 emissions and decreased noise levels. This technology, once limited to luxury vehicles, is now being integrated into more affordable models to meet rigorous noise emission standards. Engine encapsulation also enhances fuel efficiency by allowing engines to reach higher operating temperatures, a feature increasingly adopted by manufacturers. However, the shift towards electric vehicles, which lack traditional engines, poses a challenge to market expansion. The need for effective thermal management in high-speed vehicles continues to propel the market, with automakers focusing on engine efficiency and downsizing components to improve packaging and thermal management.

The market landscape is characterized by a fragmented industry with numerous global and domestic players, including Roechling Group, Autoneum Holding AG, Trocellen Automotive, BASF SE, and Continental AG. These companies are actively pursuing contracts with original equipment manufacturers (OEMs) to capitalize on the growing demand for thermal reduction solutions. The Asia-Pacific region is expected to be a prominent market, driven by the increasing use of lightweight materials like carbon fiber in mid and premium vehicles. As the middle-class population in this region expands, so does the demand for automobiles, further boosting the market. The automotive industry is also influenced by environmental regulations and the need for recyclable materials, offering potential growth opportunities for composite engine encapsulations.

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Automotive Engine Encapsulation Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Product Type

      1. 2.1.1 Engine Mounted

      2. 2.1.2 Body Mounted

    2. 2.2 By Fuel Type

      1. 2.2.1 Gasoline

      2. 2.2.2 Diesel

    3. 2.3 By Material Type

      1. 2.3.1 Carbon Fiber

      2. 2.3.2 Polyurethane

      3. 2.3.3 Polypropylene

      4. 2.3.4 Polyamide

      5. 2.3.5 Glasswool

    4. 2.4 Geography

      1. 2.4.1 North America

        1. 2.4.1.1 US

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Rest of North America

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 UK

        3. 2.4.2.3 France

        4. 2.4.2.4 Italy

        5. 2.4.2.5 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 India

        2. 2.4.3.2 China

        3. 2.4.3.3 Japan

        4. 2.4.3.4 South Korea

        5. 2.4.3.5 Rest of Asia-Pacific

      4. 2.4.4 Rest of the World

        1. 2.4.4.1 Latin America

        2. 2.4.4.2 Middle-East and Africa

Automotive Engine Encapsulation Market Size FAQs

The Automotive Engine Encapsulation Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

Trocellen Automotive, Autoneum Holding AG, BASF SE, Continental AG and Roechling group are the major companies operating in the Automotive Engine Encapsulation Market.

Automotive Engine Encapsulation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)