Automotive Engine Market In-Depth Analysis and Forecast Report By 2030

Posted on 2023-06-07 by researchinsights in Internet & Online // 0 Comments

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.

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

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.

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