Automotive Engine Market to Grow with a CAGR of 5.59% through 2029

Increasing consumer preference for high-performance vehicles, the growth of emerging markets, and the adoption of hybrid engine technologies are the factors driving the market in the forecast period 2025-2029.

According to TechSci Research report, “Automotive Engine Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F” " The Global Automotive Engine market was valued at USD 98.84 Billion in 2023 and is expected to reach USD 136.84 Billion by 2029 with a CAGR of 5.59% during the forecast period. The global automotive engine market continues to evolve, driven by the rising need for engines that deliver superior power and reduced fuel consumption. As consumers seek vehicles that offer not only performance but also lower running costs, the demand for advanced engine technologies has surged. Innovations in turbocharging, variable valve timing, and dual-fuel systems are addressing this need, as they improve engine efficiency while enhancing power output. These advancements allow manufacturers to cater to consumer demands for both performance and fuel economy.

Key trends in the automotive engine market include the growing demand from emerging economies for more affordable, fuel-efficient vehicles. As disposable incomes rise and urbanization increases, consumers in these regions are increasingly seeking vehicles that offer better fuel economy and lower running costs. Hybrid engines, combining internal combustion with electric motors, are gaining popularity as they provide a balance of performance and efficiency, which aligns with the demands of consumers in developing markets. Furthermore, advancements in materials technology are helping reduce the weight of engines, which enhances fuel efficiency and vehicle performance. The integration of digital technologies, such as smart engine management systems and AI-powered diagnostics, is also gaining traction, providing real-time optimization to further boost fuel efficiency.

However, the automotive engine market faces significant challenges, such as rising material and manufacturing costs. The high complexity of modern engine systems, which incorporate multiple technologies for fuel efficiency, performance, and emissions reduction, increases production expenses. In addition, the shift towards electric vehicles presents competition, as many automakers are pivoting towards fully electric drivetrains to meet environmental goals. The ongoing evolution of market dynamics, including regulatory pressures and the push for sustainable solutions, will require engine manufacturers to find cost-effective solutions while meeting changing consumer preferences.

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on "Global Automotive Engine Market.” 

The Automotive Engine Market is segmented into vehicle type, placement type,  fuel type, and region.

The global automotive engine market is segmented by vehicle type, including passenger cars, commercial vehicles, and two-wheelers, with each segment exhibiting distinct growth patterns. Among these, the two-wheeler segment is the fastest growing, driven by the rising demand for affordable, fuel-efficient transportation in emerging markets, particularly in Asia-Pacific. Two-wheelers, including motorcycles and scooters, are widely used due to their affordability, fuel efficiency, and convenience, especially in densely populated urban areas. This segment is benefiting from the increasing middle-class population in developing regions, where personal mobility solutions are essential for daily commuting.

Passenger cars hold a significant share of the market, with growth fueled by consumers’ desire for more fuel-efficient and environmentally friendly vehicles. The demand for compact and mid-sized vehicles continues to rise globally, with advanced engine technologies such as turbocharging and hybrid powertrains becoming more common in these vehicles to improve performance and fuel economy. Commercial vehicles, while slower growing in comparison, continue to be a stable market, driven by the need for heavy-duty engines for transportation, logistics, and infrastructure development. These vehicles require durable and high-performance engines capable of handling long distances and heavy loads, especially in emerging economies experiencing rapid infrastructure growth.

Asia-Pacific has emerged as the fastest-growing automotive engine market in 2023, due to the rapid expansion of vehicle production and consumption in countries like China, India, and Southeast Asia. The region is home to a large and growing middle class, leading to a surge in demand for all types of vehicles, including passenger cars, commercial vehicles, and two-wheelers. The affordability of two-wheelers, along with growing interest in fuel-efficient cars and trucks, drives engine demand. Emerging economies in the region are investing heavily in infrastructure, which further fuels the demand for commercial vehicles. With technological advancements and increasing vehicle affordability, Asia-Pacific's automotive engine market is set to continue its rapid growth in the coming years.

Major companies operating in the global Automotive Engine Market are:

• Mercedes-Benz
• Cummins Inc.
• Toyota Motor Corporation
• BMW
• General Motors
• Honda Motor Company Ltd
• Hyundai Motor Company
• Suzuki Motor Corporation
• Stellantis N.V.
• Scania AB

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“Right now, the automotive engine market is going through some exciting changes. With more people looking for cars that are not only powerful but also fuel-efficient and eco-friendly, engine makers are getting creative. Hybrid engines are becoming more common, and manufacturers are using lighter, stronger materials to make engines run smoother and save on fuel. Plus, as countries in emerging markets continue to grow, there's a big push for affordable yet efficient vehicles, from cars to two-wheelers. It's all about finding that perfect balance between performance, cost, and sustainability. The industry is evolving fast, and it's clear that the engines of tomorrow will be more efficient and greener than ever before“, said Mr. Karan Chechi, Research Director of 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, Commercial Vehicle, Two-Wheeler), By Placement Type (In-Line, V-Type, W-Type), By Fuel Type (Petrol, Diesel, Other Fuels), By Region, By Competition, 2019-2029F”, 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 make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Automotive Engine Market.

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