Automotive Engine Market to Grow with a CAGR of 5.48% Globally through to 2028
Stringent Emission Regulations and Environmental Concerns,
Advancements in Engine Technology, and Increasing Demand for Fuel Efficiency
are factors driving the Global Automotive Engine market in the forecast period
2024-2028.
According to TechSci Research report, “Global Automotive
Engine Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Automotive Engine Market stood at USD 94 billion
in 2022 and is anticipated to grow with a CAGR of 5.48% in the forecast period,
2024-2028. Vehicle
engines are among the most crucial parts of a car. To enable the car to operate
efficiently and smoothly, it produces electricity. The goal of current
automotive engine research is to reduce vehicle emissions while simultaneously
increasing fuel efficiency. Additionally, it tries to improve engine cycle
operations and the torque curve's shape. Automotive engine pistons are
frequently made of cast or forged aluminium alloys with a high silicon content
to increase stiffness while lowering overall density. One of the most crucial
parts of any car is the engine. It facilitates easy and effective operation of
the vehicle. The condition of the car engine has an impact on each vehicle's
overall performance, emissions, and efficiency.
Browse over market data Figures spread through XX Pages and an in-depth TOC on "Global Automotive Engine Market.”
The global automotive engine market is a dynamic and
critical component of the automotive industry, serving as the heart of vehicles
and driving technological advancements, innovation, and consumer preferences.
This market encompasses a wide range of engine types, from traditional internal
combustion engines (ICE) to advanced hybrid and electric powertrains, each with
its own set of challenges and opportunities. The global automotive engine
market is characterized by a diverse array of engine technologies that have
evolved over time to meet the changing demands of consumers, regulators, and
the environment. At its core, internal combustion engines (ICE) have been the
dominant force in the market for well over a century, powering the majority of
the world's vehicles. These engines come in various configurations, including
gasoline, diesel, and even alternative fuels like natural gas. They have
undergone significant improvements in terms of efficiency, performance, and
emissions reduction through technologies such as turbocharging, direct fuel
injection, variable valve timing, and lightweight materials. However, the
traditional ICE faces a critical challenge in the form of stringent emission
regulations aimed at reducing the environmental impact of vehicles. Emission
regulations have been a pivotal driver shaping the global automotive engine
market. Governments around the world have implemented increasingly strict
standards to reduce carbon emissions, improve air quality, and combat climate
change. These regulations have propelled the development of cleaner and more
efficient engine technologies. Hybrid powertrains, which combine an ICE with an
electric motor, and pure electric vehicles (EVs) have gained prominence as
environmentally friendly alternatives. These vehicles offer zero-emission
operation and have seen growing adoption, particularly in regions with strong
incentives for electric mobility. Consequently, automakers are investing
heavily in electric vehicle technology and infrastructure, marking a significant
shift in the market landscape. This transition challenges the traditional
engine market to adapt and explore new avenues for sustainable growth.
Fuel efficiency is another crucial factor driving the
global automotive engine market. Consumers have become increasingly conscious
of fuel consumption due to rising gasoline prices, environmental concerns, and
economic considerations. As a result, there is a growing demand for vehicles
equipped with fuel-efficient engines. This demand, in turn, pushes engine
manufacturers to innovate and optimize engine designs to deliver improved
mileage without compromising performance. Technologies like cylinder deactivation,
start-stop systems, and downsized engines with turbocharging have become
popular solutions. Additionally, lightweight materials are employed to reduce
the overall weight of vehicles, further enhancing fuel efficiency. Hybrid and
electric powertrains are gaining traction as they offer not only better fuel
economy but also the promise of reduced or zero emissions.
In an era of rapid technological advancement, the
automotive engine market is characterized by continuous innovation and the
integration of various technologies. Engines are no longer isolated components
but are part of a holistic vehicle system that includes advanced driver
assistance systems (ADAS), connectivity features, and autonomous capabilities.
These advancements have redefined the role of engines in modern vehicles,
necessitating compatibility with power and data demands of new systems. Engines
are also equipped with sensors and electronic control units to optimize
performance, enhance safety, and support real-time data analysis. This
convergence of technologies challenges engine manufacturers to stay at the
forefront of innovation, adapt to changing requirements, and collaborate with
tech companies and automotive suppliers to access cutting-edge advancements.
The global automotive engine market is not only
influenced by technological advancements but also by the ever-shifting economic
conditions and consumer preferences. Economic factors such as GDP growth,
employment rates, and consumer spending can significantly affect the demand for
vehicles and, consequently, the engines that power them. During economic
downturns, consumers may prioritize cost savings and opt for more
fuel-efficient vehicles, while in periods of economic prosperity, there may be
a preference for larger, more powerful vehicles. Regional variations in
consumer preferences also play a pivotal role, with distinct trends in
different parts of the world. These differences influence the product offerings
of automakers and engine manufacturers, driving the need for adaptability and a
proactive approach to market dynamics.
Additionally, global economic uncertainty and market
volatility can significantly impact the automotive engine market. Events such
as recessions, trade disputes, and currency fluctuations can affect consumer
purchasing power and, subsequently, the demand for vehicles. Market volatility,
driven by factors like geopolitical events or industry disruptions, can lead to
supply chain disruptions, affecting the production of engines and related
components. In response, engine manufacturers must adopt a flexible approach to
production and market expansion, diversify into emerging markets, and implement
robust risk management strategies to mitigate the impact of economic downturns
and market fluctuations.
The supply chain of the global automotive engine
market is a complex and interconnected web of suppliers, manufacturers, and
assemblers, all contributing to the production of engines and vehicles. One of
the challenges faced by engine manufacturers is the rising cost of raw
materials, such as steel, aluminum, and rare earth elements, which are
essential for engine components. Fluctuations in material prices can
significantly impact manufacturing costs, and supply chain disruptions, as
observed during the COVID-19 pandemic, can lead to shortages of critical
components. To address these challenges, engine manufacturers should consider
strategies such as diversifying their supplier base, stockpiling critical
components, and investing in advanced inventory management systems to ensure a
resilient and flexible supply chain. Furthermore, the rapid advancements in
electric vehicle (EV) technology pose a significant challenge to the
traditional internal combustion engine market. As EVs become more affordable
and offer longer ranges, they are gaining market share, especially in regions
with strong incentives for electric mobility. This shift to EVs impacts the
demand for traditional engines, leading to overcapacity in engine manufacturing
facilities and necessitating a strategic shift in the industry. In response,
traditional engine manufacturers can diversify their product offerings by
developing their own electric powertrains or entering partnerships with EV
component manufacturers. By embracing electric mobility, companies can adapt to
the changing market landscape and continue to play a significant role in the
automotive industry.
Major companies operating in Global Automotive
Engine Market are:
- Cummins Inc.
- Fiat S.PA
- Volkswagen Group
- Ford Motor Company
- Mitsubishi Heavy Industries
- AB Volvo
- General Motors
- Honda
- Hyundai Motor Company
- Scania AB.
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“The global
automotive engine market is undergoing a profound transformation, driven by a convergence
of factors. Stringent emission regulations are compelling manufacturers to
invest in cleaner, more efficient engine technologies. Fuel efficiency and
environmental concerns are fostering a shift towards hybrid and electric
powertrains. Innovations in engine technology, such as downsizing, direct
injection, and lightweight materials, are optimizing performance and emissions.
The integration of advanced technologies, including connectivity, autonomous
features, and data analytics, is reshaping the role of engines within vehicles.
Economic conditions and consumer preferences continue to influence the demand
for fuel-efficient, technologically advanced engines. As the market navigates
these challenges, traditional engine manufacturers are diversifying their
product offerings and embracing electric vehicle technology, marking a pivotal
transition in the automotive landscape.” said Mr. Karan Chechi, Research
Director with TechSci Research, a research-based management consulting firm.
“Automotive
Engine Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium
& Heavy Commercial Vehicles), By Placement Type (In-Line, V-Type, W-Type),
By Fuel Type (Petrol, Diesel, Other Fuels), By Region, Competition, 2018-2028”,
has evaluated the future growth potential of Global Automotive Engine Market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Automotive Engine Market.
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