Automotive Engine Market Trends and Revolutionizing Mobility

 Automotive Engine Industry Overview

 

The global automotive engine market size was worth USD 94.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.5% from 2022 to 2030. The demand for the automotive engine is directly dependent on automotive production. Thus, increasing sales of passenger cars & commercial vehicles and emerging economies are driving the demand in the market. Factors such as the stringent regulatory standards for fuel efficiency and growing demand for technologically advanced powered engines for improved vehicle performance are driving the market growth. Consumer inclination for high-performance and fuel-efficient vehicles and extensive developments and prototypes from major automakers and OEMs are also propelling the growth.

 

The COVID-19 outbreak hampered various industries in 2020. The economy is anticipated to continue experiencing the aftermath of the pandemic over the forecast period. Production was temporarily postponed at several production facilities, and supply chain disruption due to global lockdowns and restrictions significantly impacted the automotive industry. Subsequently, delays in shipment and production volumes plummeted, affecting overall production. The dwindling sales of passenger and commercial vehicles had an impact on the engine industry.

Gather more insights about the market drivers, restrains and growth of the Automotive Engine Market

 

The production capacity of companies was reduced during the COVID pandemic, and the shortage of semiconductors was stalling the production of automotive engines and other equipment. However, the post-pandemic automotive industry saw a significant increase in demand for automobiles. Manufacturers are focusing on innovative technologies such as engine control unit replacement to extend the average life of automobiles and improve engine lifecycles that drive the demand for an automotive engine.

 

The expansion of the automobile engine industry is fueled by the development of new engine technologies, such as Variable Displacement Engines (VDEs), hydrogen, and hybrids. VDE and hybrid engines provide excellent performance and fuel economy. Factors, such as the use of high-power engines for racing and the increasing demand for luxury cars are expected to contribute to the growth of the automotive engine market in near future.

 

Many companies are currently assessing the emissions levels produced by their reduced compact automobiles. The development of pollution-free engines has evolved from the rising requirement for enhanced engine performance and increased fuel efficiency to comply with government rules to reduce vehicle emissions. The competitive pricing of automobile manufacturers has stimulated demand for passenger automobiles in developing countries.

 

Additionally, the emergence of hydrogen engines and hydrogen fuel cells is gaining the attention of many OEMs. As hydrogen engines use hydrogen as a power source, they are fuel-efficient and produce lower levels of emission. Thus, creating room for better performance. In 2021, Toyota Motor Corp. announced the development of the hydrogen engine. The engine was primarily installed in Toyota Corolla Sport.

 

Growing concerns over fossil fuel-related emissions on the environment have prompted the key manufacturer to explore other environment-friendly options, such as electric vehicles. Electric vehicles operate on batteries rather than engines; electric vehicles are cost-effective and create low emissions. Thus, the demand for EVs is a major restrain for the market growth.

 

Developing new technologies requires hefty investments in R&D. In each stage of R&D, many specifications of the technology are tested and re-tested before an outcome. Thus, the heavy investment in developing a new breed of engines takes a considerable amount of time which restrains the growth of the market.

 

Browse through Grand View Research's Category Automotive & Transportation Industry Research Reports.

 

• The global turret system market size was estimated at USD 19.87 billion in 2023 and is expected to grow at a CAGR of 2.8% from 2024 to 2030. Turret systems are essential components of armored vehicles, providing platforms for mounting and operating weapons. Numerous factors, such as increased defense spending, technological advancements, and growing emphasis on situational awareness, drive market growth.

 

• The global vehicle scanner market size was estimated at USD 2.34 billion in 2023 and is projected to grow at a CAGR of 5.3% from 2024 to 2030. Increasing concerns about security and the need for effective vehicle inspection systems are propelling the demand for market growth.

 

Automotive Engine Market Segmentation

 

Grand View Research has segmented the global automotive engine market report based on placement type, fuel type, vehicle type, and region:

 

Automotive Engine Placement Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

• In-line Engine
• V-type Engine
• W Engine

 

Automotive Engine Fuel Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

• Gasoline
• Diesel
• Other Fuel

 

Automotive Engine Vehicle Type (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

• Passengers Car
• Commercial Vehicle

 

Automotive Engine sRegional Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

• North America
o U.S.
o Canada
• Europe
o Germany
o U.K.
o France
o Italy
• Asia Pacific
o China
o India
o Japan
• Latin America
o Brazil
o Mexico
• Middle East and Africa

 

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Key Companies profiled:

 

• AB Volvo
• Cummins Inc.
• Fiat Automobiles S.p.A
• Volkswagen AG
• Ford Motor Company
• Mitsubishi Heavy Industries, Ltd.
• General Motors
• Honda Motor Co., Ltd.
• Mercedes-Benz
• Renault Group