Automotive Engines Market Forecasts to 2030 – Global Analysis By Placement Type (In-line Engine, W Engine and V-Type), Fuel Type (Gasoline, Diesel and Other Fuel Types), Applications (Passenger cars, Commercial Vehicles, Motorcycles, Off-Highway Vehicles

Automotive Engines Market Forecasts to 2030 – Global Analysis By Placement Type (In-line Engine, W Engine and V-Type), Fuel Type (Gasoline, Diesel and Other Fuel Types), Applications (Passenger cars, Commercial Vehicles, Motorcycles, Off-Highway Vehicles and Other Applications) and By Geography

According to Stratistics MRC, the Global Automotive Engines Market is accounted for $102.89 billion in 2023 and is expected to reach $142.10 billion by 2030 growing at a CAGR of 4.72% during the forecast period. Automobile engines are designed with the needs of practical vehicle operation, improving engine cycle operations and torque curve shape. It also aims to reduce fuel usage and parasitic losses. Choosing transmission ratios that are appropriate for the engine and maximizing drivetrain efficiency are the main goals of drivetrain design. Vehicle engineering is growing as a result of new engine technologies like variable displacement engines (VDEs), hydrogen, and hybrids. Excellent performance and fuel efficiency are offered by VDE and hybrid engines.

According to the International Energy Agency (IEA), China accounted for the largest fleet with 3.33 million electric cars; while, Europe was the second-largest one, in 2021. There is an increase in electric car registrations since 2018, even during the pandemic it was higher.

Market Dynamics

Driver

Improved engine efficiency and performance

The development of pollution-free engines is a result of the rising need for better engine performance and greater fuel efficiency to satisfy legislative laws to minimize car emissions. These regulations make an effort to lower the amount of dangerous emissions that cars emit. Some of these cars come equipped with variable displacement engines (VDEs), also referred to as hybrid engines. The global automotive engine industry is expanding primarily due to continuous measures to replace engines in existing vehicle fleets. Due in part to the cheap rates automakers charge for their products, there is a rising demand for passenger automobiles in developing countries.

Restraint

Growing interest in electric vehicles

To develop new technologies, significant financial investments in research and development are required. Testing and retesting different technological components at various stages is a part of research and development (R&D). As a result, market expansion is slowed by the extensive time commitment needed to make the considerable investments in developing a whole new class of engines. Undoubtedly, the sector's progress will be hampered by the rising demand for electric vehicles and the high costs connected with developing new technology. If large sums of money are spent on research and development while creating new technologies, there will surely be barriers in the way of the development of the electric car industry.

Opportunity

Manufacturers prioritize advanced technologies

During the forecast period, it is expected that the automotive engine market's value would rise significantly. This is due to the fact that manufacturers are focusing on creating cutting-edge technology to extend the lifespan and engine lifecycle of typical vehicles, like engine control unit replacement. Due to the rising demand for lighter, fuel-efficient cars, it is projected that market participants will have possibilities to profit throughout the time in question.

Threat

Design and creation of a system that satisfies ever-tougher emission standards

The design and development of a system that conforms to ever-tougher emission requirements is the main problem facing OEMs over the forecast period. It is difficult to design a system that can produce a high output while using little fuel and emitting few emissions since when one parameter is changed, the other tends to vary. For instance, if fuel input is restricted to lower fuel consumption, power output is decreased. OEMs are therefore closely involved in the R&D of such systems in order to create an optimized EMS. Engineers now have new tools at their disposal to create improvements and designs specifically for EMS. These OEMs demand adaptable control units that make it simple to perform control system functions.

Covid-19 Impact

Over the projected period, it is anticipated that the effects of the pandemic would still be felt by the economy. The automotive industry was severely damaged by supply chain disruptions brought on by global lockdowns and restrictions, which briefly halted operations at many industrial plants. Shipment delays and a decline in manufacturing numbers later had an impact on total production. The engine sector was impacted by the decline in sales of both passenger and commercial vehicles.

The passenger cars segment is expected to be the largest during the forecast period

As the number of cars on the road increases globally, OEMs are creating a range of engines based on distinct passenger car categories. For example, common rail direct injection (CRDI), variable valve technology (VVT), multi-fuel engines, turbocharger technology, and variable valve technology are examples of technological advances in automotive engines that provide the high power and torque required for luxury category automobiles. OEMs are working to create engines that are lightweight and have a high power output.

The diesel segment is expected to have the highest CAGR during the forecast period

Medium-duty trucks, international cruise liners, and power generators are just a few of the equipment and vehicles that use diesel engines. Diesel engines are a popular choice due to characteristics including great fuel efficiency, cheap operating costs, and dependability. As diesel engines run at a much slower revolution per minute (RPM), less wear and tear results in a longer engine life cycle. Diesel engines are now the manufacturer of choice due to their technical benefits, which is fueling the segment's expansion.

Region with largest share

The North America region market is estimated to witness the largest share of the global Automotive Engines market. North America is home to nations with advanced economies like the United States and Canada. The market is expanding primarily due to the presence of long-standing original equipment manufacturers, which provide as a solid base for the region's robust development and market expansion. The demand for commercial vehicles in North America is expected to be driven by increasing infrastructure investment, advancements in driving technology, and the continued growth of local to international supply chain networks.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period. Market expansion will be fuelled by the developing automotive sector in developing nations like China and India. The Make in India initiative is anticipated to attract significant investment in the automobile industry due to India's advantages in terms of labor costs and lower-cost raw materials. Furthermore, as two of the world's fastest-growing economies, China and India have extensive supply chains and logistics networks. The demand for automobile engines will rise as a result of all these factors.

Key players in the market

Some of the key players in Automotive Engines market include BMW, Cummins Inc., Eicher Motors Limited, Fiat Automobiles SpA, Ford, General Motors, Honda Motor Company Ltd, Hyundai Motor Company, Mazda Motor Corporation, Mercedes-Benz, Mitsubishi Motors, Peugeot/Citroen, Scania AB, Suzuki Motor Corporation, Toyota Motor Corporation, Volkswagen AG and Yamaha Corporation.

Key Developments

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 powertrain

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

Placement Types Covered
• In-line Engine
• W Engine
• V-Type

Fuel Types Covered
• Gasoline
• Diesel
• Other Fuel Types

Applications Covered
• Passenger Cars
• Commercial Vehicles
• Motorcycles
• Off-Highway Vehicles
• Recreational Vehicles (RVs)
• Powering boats and watercraft
• Power Generation
• Racing and Performance
• Hybrid and Electric Vehicles
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026 and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances