Automotive Engine Market Size, Share & Trends Analysis Report By Placement Type (In-line, V-type, W Engine), By Fuel Type (Diesel, Gasoline), By Vehicle Type)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The global Automotive Engine market size was valued at US$ 94.12 billion in 2021 and it is projected to be worth around US$ 118.9 billion by 2030, poised to grow at a CAGR 2.9% during the forecast period 2022 to 2030.

Key Takeaways:

• By Placement Type, the U.S. Automotive Engine market was valued at USD 21.13 Billion in 2021 and growing at a CAGR of 2.9% from 2022 to 2030
• The in-line segment held the highest market share of 45.09% in 2021.
• The W-engine segment is expected to register a CAGR of 3.8% from 2022 to 2030.
• Gasoline held the highest market share of over 35.7% in 2021.
• Diesel is expected to expand at a CAGR of 3.2% over the forecast period.
• Passenger car held the highest market share of more than 65.4% in 2021. 
• Commercial vehicle segment is expected to grow at a CAGR of around 3.6% over the forecast period.
• North America accounted for a revenue share of more than 30.7% in 2021.

•        Asia Pacific is expected to grow at a CAGR of 3.4% over the forecast period. 

Growth Factors:

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.

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.

Report Scope of the Automotive Engine Market

Report Coverage	Details
Market Size	US$ 118.9 Billion by 2030
Growth Rate	CAGR of 2.9% from 2022 to 2030
Largest Market	Asia Pacific
Fastest Growing Market	North America
Base Year	2021
Forecast Period	2022 to 2030
Segments Covered	Placement type, fuel type, vehicle type and Region,
Companies Mentioned	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

 

Placement Type Insights

The in-line segment held the highest market share of 45.09% in 2021. In-line engines are the most common type of engine for passenger cars. These engines can be seen in family-level hatchbacks cars to luxury sedans like BMW and Mercedes due to their easy and inexpensive manufacturing along with their easy installation process. Thus, making it a preferred choice for OEM.

The W-engine segment is expected to register a CAGR of 3.8% from 2022 to 2030. In W-engine, three or four sets of cylinders can be coupled to one or two crankshafts. Because W-engines take up less space and produce greater power, they are employed in heavy-duty trucks and luxury cars. The V-type engine is the most used in all high-performance vehicles. Almost all high-performance car manufacturers such as Ferrari, Alfa Romeo, and Mercedes Benz opt for the V-engine layout.

The in-line engines are the most common engines used in passenger cars, mostly seen in family-level hatchbacks cars to luxury sedans like BMW and Mercedes due to their easy and inexpensive manufacturing along with their easy installation process. Thus, making them a preferred choice for OEM.

Fuel Type Insights

Gasoline held the highest market share of over 35.7% in 2021, attributed to the benefits offered by gasoline engines, such as less noise and vibration, as well as low fuel prices. Gasoline engines are most commonly used in passenger vehicles due to their advantages, such as efficiency, cost-effectiveness, and lightweight. High in acceleration, gasoline engines are less noisy. Thus, these are the major growth drivers for the adoption of gasoline engines.

Diesel is expected to expand at a CAGR of 3.2% over the forecast period. Diesel engines are used in various equipment and vehicles, from medium-duty trucks to overseas cruise ships and power generators. Factors such as high fuel efficiency resulting in low operating costs and reliability have made diesel engines a preferred option. As diesel engines run at a much slower Revolution per Minute (RPM), less wear and tear results in a longer engine life cycle. These technical advantages have made diesel engines a preferred choice among manufacturers; driving the growth of the segment.

Vehicle Type Insights

Passenger car held the highest market share of more than 65.4% in 2021. As the ownership of vehicles increases around the world, OEMs are developing various engines based on different kinds of passenger car segments. Multi-fuel engines, Variable Valve Technology (VVT), turbocharger technology, and Common Rail Direct Injection (CRDI) are examples of technological breakthroughs in automobile engines that deliver the high power and torque necessary for luxury category vehicles.

OEMs are developing engines that are lightweight and capable of producing high power. Deployment of advanced engines in passenger cars and growing demand for passenger car sales are among the factors propelling the market growth of the vehicle type segment.

Commercial vehicle segment is expected to grow at a CAGR of around 3.6% over the forecast period. The growth can be attributed to the rising demand for trucks across the logistics sectors. Logistics is one of the key industries which is used to transport goods. The use of trucks and trailers to transport goods has increased significantly. With changing lifestyles and growing urbanization, people are more inclined to get the goods and products delivered to them. All these factors bode well for the market growth.

Additionally, the potential implementation of a vehicle scrappage program, increased budgetary allocation towards the development of infrastructure in rural sectors, stringent implementation of regulatory norms, particularly related to vehicle length & overloading, and recommencement of mining activities in certain areas leading to increasing demand for a commercial vehicle. The developing infrastructure sector, coupled with the rising disposable incomes of consumers, is propelling the demand for commercial vehicles.

Regional Insights

North America accounted for a revenue share of more than 30.7% in 2021. North America is home to developed economies, such as the U.S. and Canada. The growth in the market is majorly driven by of existence of long-established original equipment manufacturers, providing a firm foundation for the region's robust development and expansion of the market.Rising infrastructure investment, innovation in terms of drive technologies, and the ongoing expansion from local to global supply chain networks are anticipated to drive the demand for commercial vehicles in North America.

Asia Pacific is expected to grow at a CAGR of 3.4% over the forecast period. The evolving automotive industry in emerging economies such as China and India will drive market growth. The Make In India campaign is expected to draw substantial investment in the automotive sector, as there are several benefits in India, such as cheaper raw materials and low-cost labor. Furthermore, countries such as China and India comprise large logistics networks & supply chains and are among the fastest-growing economies globally. All these factors will bode the demand for an automotive engine. 

Key Companies & Market share insights

The key players are pursuing various growth strategies, such as strategic partnerships, mergers & acquisitions, and new product launches, to strengthen their foothold in the market. For instance, in 2020, Audi created the TFSI 4-cylinder turbocharged direct-injection engine, the most efficient 2-liter engine on the market. This engine has a better response, and vibrations and noise are reduced due to active noise control and engine mounts.

Few automobile manufacturers are focusing on introducing new technologically advanced products. For instance, in 2019, Cummins Inc. unveiled its next-generation 6.7L turbo diesel engine, which boasts 1,000 pound-feet of torque, which is the most in its class. It also offers a greater horsepower output, boosting the performance of the RAM 2500 and 3500 heavy-duty pickup trucks. Some prominent players in the global automotive engine market include:

• 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

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

• By Placement Type
• In-line Engine
• V-type Engine
• W Engine
• By Fuel Type
• Gasoline
• Diesel
• Other Fuel
• By Vehicle Type
• Passengers Car
• Commercial Vehicle

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Automotive Engine Market Study:

• Growth of Automotive Engine in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Automotive Engine and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Automotive Engine Consumption Analysis
•  Automotive Engine Production Analysis
•  Automotive Engine and Management