Market Trends of Automotive Piston Engine System Industry
Passenger Car Segment is Anticipated to Dominate the Market
Increasing preference of consumers to avail alternative fuel vehicles, such as LPG CNG operated cars, is anticipated the growth of the piston engine system market. Various auto manufacturers are constantly spending hefty sums in developing new-age vehicles, which require lightweight piston components to be utilized in the vehicles. Coupled with that, the growing demand for used cars in several regions and increasing vehicle parc, owing to consumers' preference towards availing private transportation medium, is positively impacting the demand for automotive piston engine system market. The increasing age of vehicles requires constant upgradation, and therefore, changing piston systems in the aftermarket for fuel-operated vehicles is expected to drive this segment of the market.
On the other hand, the rise in sales of electric vehicles is hindering the growth of the automotive piston system market. The spike in sales is 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 are continually working and focusing on increasing their expenditure on the R&D of electric vehicles, which may aid OEMs in marketing electric vehicles in the future.
The global electric vehicles (including battery electric vehicles, fuel cell electric vehicles, and plug-in hybrid vehicles) market observed a tremendous increase in the number of sales registered every year since 2018. This increase was registered in almost all segments of vehicles, which include passenger vehicles and commercial vehicles. For instance-
- In 2022, global sales of battery electric vehicles (BEVs) touched 7.3 million units, compared to 4.6 million units in 2021, representing a 58.7% Y-o-Y growth between 2021 and 2022.
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 will serve as a major restraint for the market during the forecast period.
Asia-Pacific to Dominate the Market during the forecast period
Asia-Pacific region is projected to be the leading region for the automotive piston engine system market during the forecast period. It is mainly due to the heavy reliance on internal combustion engines, especially in the commercial vehicles sector. For instance,
- In 2022, India witnessed sales of 933 thousand units of commercial vehicles, compared to 677 thousand units in 2021, recording a Y-o-Y growth of 37.8% between 2021 and 2022.
- Similarly, new sales of commercial vehicles in Indonesia touched 264 thousand units in 2022, compared to 227 thousand units in 2021, representing a 16.3% Y-o-Y between 2021 and 2022.
Although electric commercial vehicles in the Asia-Pacific region gained traction in recent years, the market of ICE commercial vehicles remained strong as of 2022. However, with the increasing penetration of ICE commercial vehicles in the Asia-Pacific market, the automotive piston engine system market might witness falling growth in the coming years.
The increasing urbanization rate, growing vehicle parc, and the rising per capita disposable income of consumers are driving the automotive market in the Asia-Pacific region. As more consumers migrate to urban for better employment and financial opportunities, the preference towards availing private transportation medium shoots up, which positively impacts the passenger car market in the region. It, in turn, positively impacts the position engine system market in this region.
Despite the ramping penetration of electric vehicles at a faster rate, there remains a massive potential in the aftermarket for piston manufacturers to cater to consumers who avail of fuel-operated used cars. With the immense market for conventional IC engines in the regions, despite the growing inclination toward electric vehicles, the growth potential for automotive piston engine systems is expected to be high in Asia-Pacific during the forecast period.
