Automotive Engine Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | > 4.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Automotive Engine Market Analysis
The Automotive Engine Market is expected to register a CAGR of greater than 4% during the forecast period.
The market is valued at USD 395 billion and is expected to reach over USD 500 billion.
The COVID-19 pandemic had a swift and negative impact on the globally integrated automotive industry. Automobile engine and component manufacturing plants have been shut down, and consumer footfalls in showrooms have fallen sharply because of lockdowns and travel restrictions worldwide.
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 will likely create lucrative opportunities for players in the market during the forecast period.
Moreover, with the rising electrification of the fleet, OEMs are seen closing down their respective production bases. For instance, In November 2022, Stellantis announced the closure of its Fiat Powertrain Technologies (FPT) engine plant in Campo Largo, Brazil. It came after the company aimed to achieve zero emissions by 2038.
The Asia-Pacific region is anticipated to continue as a significant market for automotive engines throughout the forecasted period. Both North America and Asia-Pacific regions dominate the global automotive engine market as several environmental norms are employed in North America, Europe, and Asia-Pacific.
Automotive Engine Market Trends
Increasing Investment and Vehicle Sales to Provide Momentum
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 motors, such as hybrid and variable displacement engines (VDEs), to deliver high performance and fuel efficiency.
Car manufacturers try to stay ahead of the competition by building the most compact engines that are lightweight, have greater power output, and have a higher fuel economy. OEMs downsize vehicle engines to decrease the overall curb weight of the vehicle and reduce emissions. Rising vehicle sales have predominately improved engine demand. For instance:
- In the UK, during October 2022 compared to last year in the same month, diesel-engine car sales fell by 9.7% to 6,347 units. In contrast, gasoline-engine car sales rose by 17.8% to 56,994 units, diesel mild hybrid electric vehicles by 21.4% to 5,466 units, gasoline mild hybrid electric vehicles by 59.5% to 20,993 units, electric vehicles by 23.4% to 19,933 units and plug-in hybrid electric vehicle sales rose by 6.2% to 8,899 units.
- In 2021, gasoline-powered vehicles in Germany accounted for 37.1% market share with 972,588 units, whereas hybrid cars accounted for 28.8% market share with 754,588 units. On similar lines, electric vehicles had a 13.6% market share with 355,961 units, and diesel vehicles had a 20.0% market share with 524,446 units. It is poised for strong growth in demand for gasoline and diesel engine shortly.
Engine manufacturers are expanding their business potential to meet the rising demand for gasoline and diesel vehicle sales across the geography. For instance:
- In November 2022, French automotive giant Renault Groupe discussed its plans to focus on producing IC engines during its longer-term vision. The company have signed a non-binding framework agreement with GeelyHoldings for establishing production units, supply power trains, and IC engines for upcoming mild hybrid and IC engine vehicles.
- In April 2022, Toyota announced an investment of USD 383 million in four of its US manufacturing plants to support the production of its four-cylinder engines, including hybrid electric vehicles. In addition, Toyota Alabama in Huntsville plant received USD 222 million to expand 114,000 sq ft and install a new four-cylinder production line to produce engines for both combustion and hybrid electric powertrains.
After considering these factors and development, demand for automotive engines is anticipated to continue during the forecast period, owing to a rise in vehicle sales.
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 rising emission norms across the globe. A large amount of OEMs' profit will likely 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 and adopting electric vehicles at the local level will maintain the relevance of IC engines. Many electric vehicles are hybrid electric vehicles. IC engines will be produced until the electric car market sees 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. It provides a strong base for the robust development and growth of the automotive engine market in the region.
The region is witnessing impressive vehicle sales, which have taken overall engine demand on the positive side. For instance:
- China dominates in the Asia-Pacific region regarding auto industry throughput and engine production. Region houses leading OEM, auto suppliers, and engine manufacturers maintain steady global supply. The total number of vehicles produced and sold in October was 2.599 million, up 11.1% from the same period of the previous year.
- In November 2022, India passenger vehicle sales registered 276,231 units, representing a net increase of 28.1% compared to November 2021 sales. Maruti-Suzuki, Tata Motors, and Mahindra lead the registered units.
- According to the Japan Automotive Dealers Association and Japan Light Motor Vehicle and Motorcycle Association, sales in Japan in October 2022 increased by 28.6% to 359,159 units compared with October 2021. Sales with engine displacements above 660cc rose from 19.7% to 211,542 units, and those with engine displacements below 660cc increased from 43.9% to 147,617 units. Total sales from January to October decreased by 7.4% to 3,479,877 units compared to October 2021.
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 have a 2 l engine that runs on five fuels: hythane, methane, bioethane, CNG, and petrol.
Automotive Engine Industry Overview
The automotive engine market is fragmented due to the numerous players in the market. The companies are launching more technologically advanced products to gain a competitive edge over other players. For instance:
- In November 2021, Dongfeng Motor Company Limited announced that it had signed a cooperation agreement with Dongfeng Cummins Engine Co. Ltd. on a heavy-duty engine R&D and manufacturing project in Xiangyang National Hi-tech Industry Development Zone in Hubei Province.
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.
Automotive Engine Market Leaders
Cummins Inc.
Toyota Motor Corporation
General Motors
Volkswagen AG
Fiat Automobiles SpA
*Disclaimer: Major Players sorted in no particular order
Automotive Engine Market News
- October 2022- General Motors do Brasil announced the expansion of its plant in Joinville. With the new increased production capacity in Joinville, the company will export engines and attend the launch of the new Montana in 2023, which will get assembled at its factory in São Caetano do Sul.
- March 2022- Harbin DonganAuto Engine Co., Ltd. unveiled its investment plan for 2022 for building a production line for high-efficiency extended-range engines. It will involve the machining center, marking machines, tightening machines, gluing machines, and other equipment. Further, Harbin DonganAutomotive Engine Manufacturing Co., Ltd will jointly maintain the project. It is the subsidiary of Harbin DonganAuto Engine, with a total investment worth CNY 72.33 million (USD 10.38 milllion).
- 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. It is 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.
Automotive Engine Market Report - Table of Contents
1. INTRODUCTION
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 (Market Size in Value USD Billion)
5.1 Placement Type
5.1.1 In-line Engine
5.1.2 W Engine
5.1.3 V-Type
5.2 Vehicle Type
5.2.1 Passenger Car
5.2.2 Commercial Vehicle
5.3 Fuel Type
5.3.1 Gasoline
5.3.2 Diesel
5.3.3 Other Fuel Types
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 South America
5.4.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Mercedes-Benz
6.2.2 Cummins Inc.
6.2.3 Toyota Motor Corporation
6.2.4 BMW
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
Automotive Engine Industry Segmentation
Automotive engines are the vehicle's central heart, also called the powerhouse. These engines are generally offered as petrol and diesel engine, which uses heat energy produced during the combustion to provide mechanical output to the drive shaft.
The Automotive Engine Market is segmented by placement type (In-line Engine, W Engine, and V-Type), vehicle type (passenger car and commercial vehicle), fuel type (gasoline and diesel), and geography (North America, Europe, Asia-Pacific, and rest of the world). The report offers market size and forecast for the automotive engine in terms of value (USD Billion) for all the above segments.
| Placement Type | |
| In-line Engine | |
| W Engine | |
| V-Type |
| Vehicle Type | |
| Passenger Car | |
| Commercial Vehicle |
| Fuel Type | |
| Gasoline | |
| Diesel | |
| Other Fuel Types |
| Geography | |||||||
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Automotive Engine Market Research FAQs
What is the current Automotive Engine Market size?
The Automotive Engine Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Automotive Engine Market?
Cummins Inc., Toyota Motor Corporation, General Motors, Volkswagen AG and Fiat Automobiles SpA are the major companies operating in the Automotive Engine Market.
Which is the fastest growing region in Automotive Engine Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Engine Market?
In 2024, the Asia-Pacific accounts for the largest market share in Automotive Engine Market.
What years does this Automotive Engine Market cover?
The report covers the Automotive Engine Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Engine Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the Automotive Engine Market?
Emerging trends in the Automotive Engine Market include: a) Shift towards electric and hybrid vehicles b) Development of downsized turbocharged engines c) Integration of advanced technologies like Artificial Intelligence (AI) & Machine Learning (ML) for better performance and efficiency
Automotive Engine Industry Report
The automotive engine and engine management system markets are undergoing significant growth, driven by global vehicle production, sales, and a shift towards high-performance, fuel-efficient vehicles. Stringent emissions and fuel efficiency regulations are propelling automakers to innovate with advanced engine technologies, including hybrid and electric vehicles (EVs). The Asia-Pacific region, alongside North America and Europe, is at the forefront, spurred by strict emission norms and a surge in demand, especially in China and India. Market trends show a move towards downsizing engines for reduced emissions without sacrificing power. The gasoline engine segment and the light commercial vehicle (LCV) segment are poised for growth, driven by regulatory pressures and the expansion of e-commerce. As the market evolves, manufacturers are focusing on balancing performance, efficiency, and environmental compliance, emphasizing hybrid and electric technologies to meet future mobility needs. For detailed market share, size, and revenue growth insights, Mordor Intelligence™ offers comprehensive industry reports, including forecasts and historical overviews, available as free PDF downloads.
