Global Automotive Engine Market Research Report, 2029

The automotive engine industry plays a vital role in the broader automotive sector. With the ever-evolving landscape of transportation, changes in the automotive engine industry can have far-reaching effects on how vehicles are designed, manufactured, and operated. In recent years, the industry has been at the forefront of significant innovation, grappling with the demands of regulatory changes, environmental concerns, and shifts in consumer preferences. The automotive engine industry has its roots in the development of the gasoline engine in the late 19th century. Early automobile companies were small shops that produced a few handmade cars, but a handful of companies survived and grew into large-scale manufacturers. These companies fell into three categories: bicycle manufacturers, builders of horse-drawn vehicles, and machinery manufacturers. In the United States, the automotive industry was dominated by Ford and General Motors in the first half of the 20th century. However, the situation changed in the second half of the century as western European countries and Japan became major players in the industry. The development of mass production techniques, such as the assembly line, was a major factor in the growth of the industry. The automotive engine industry is dominated by a few large multinational corporations. In the United States, the industry is led by General Motors, Ford, and Fiat Chrysler Automobiles (FCA). In Europe, the industry is led by Volkswagen, BMW, and Daimler. In Japan, the industry is led by Toyota, Honda, and Nissan. In recent years, there has been a trend towards consolidation in the industry, with companies merging or acquiring each other to gain scale and reduce costs. For example, FCA and PSA Group, the parent company of Peugeot and Citroen, merged in 2021 to create Stellantis, the fourth-largest automaker in the world. The automotive engine industry is a dynamic and evolving sector that is facing significant challenges and opportunities. The shift towards electrification, autonomous driving, and connectivity is changing the way that consumers interact with their cars, and the industry is responding with innovative new technologies and business models. The industry is also under pressure to reduce its environmental impact and adopt more sustainable manufacturing practices. According to the research report, “Global Automotive Engine Market Research Report, 2029” published by Actual Market Research, the market is anticipated to cross USD 125 Billion by 2029, increasing from USD 99.77 Billion in 2023. The market is expected to grow with 4.49% CAGR by 2024-29. The automotive industry is increasingly embracing electrification, driven by environmental concerns, government regulations, and advancements in battery technology. Automakers are investing heavily in research and development to produce more efficient and affordable electric engines. With tightening emissions standards worldwide, there is a strong emphasis on improving fuel efficiency and reducing emissions. Automakers are exploring alternative fuels such as hydrogen and biofuels, as well as technologies like turbocharging and direct injection to optimize engine performance. Advancements in autonomous and connected vehicle technologies are impacting engine design and functionality. Engine manufacturers are working to integrate these technologies, allowing for more efficient and seamless operation of vehicles. To improve fuel efficiency, automakers are using lightweight materials such as carbon fiber and aluminum in engine design. This shift not only enhances performance but also contributes to lower emissions and improved fuel economy. Production of automobiles immediately affects the desire for automotive engines. As a result, rising sales of passenger and commercial vehicles sales as well as developing countries are fueling market demand. The market is expanding as a result of factors like the strict regulatory requirements for fuel economy and the rising demand for technologically sophisticated powered engines for better car performance. The preference of consumers for high-performance and fuel-efficient cars as well as intensive research and prototypes from leading OEMs and automakers are also contributing to the rise. The COVID pandemic decreased businesses' capability for production, and the lack of semiconductors was impeding the creation of automobile motors and other machinery. However, there was a marked increase in desire for cars in the post-pandemic automotive sector. Manufacturers are concentrating on cutting-edge technologies like engine control unit repair to increase the lifespan of cars on the road and boost the demand for vehicle engines. New engine technologies like VDEs, hydrogen, and hybrids are fueling the growth of the automotive engine business. Excellent speed and fuel efficiency are offered by VDE and hybrid motors.

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Market Drivers • Consumer Demand for Sustainability: In addition to regulatory pressure, consumers are increasingly seeking sustainable and eco-friendly transportation options. There is a growing preference for vehicles with lower emissions and better fuel efficiency, driving the industry toward the adoption of electric and hybrid engines. This shift in consumer preferences is influencing automakers to invest in electric and alternative fuel engines to meet market demand and enhance their brand reputation as environmentally conscious manufacturers. • Global Market Dynamics: The automotive engine industry is influenced by global market dynamics, such as shifting trade policies, economic factors, and geopolitical tensions. These elements impact supply chains and production costs, potentially affecting the pace of innovation and adoption of new technologies. Additionally, as emerging markets grow in prominence, there is increasing competition and demand for engines tailored to different regional preferences and regulations. Market Challenges

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• Technical Complexity and Standardization: The development of electric and hybrid engines involves complex technologies such as advanced battery management systems, electric motors, and power electronics. These systems require specialized expertise and manufacturing processes. Standardization of electric vehicle charging infrastructure and components (e.g., charging ports and cables) remains a challenge. Inconsistent standards across regions can hinder the global adoption of electric vehicles. • Resource and Material Constraints: The shift to electric engines requires significant amounts of critical materials, such as lithium, cobalt, and nickel, for battery production. Ensuring a stable and sustainable supply of these materials can be challenging due to their geographic concentration and environmental impact. Traditional ICEs also face resource constraints in terms of refining fossil fuels and managing the supply chain for engine components, which can be affected by geopolitical tensions and market volatility. Market Trends • Integration of Advanced Technologies: The automotive engine industry is increasingly integrating advanced technologies such as artificial intelligence (AI) and machine learning to optimize engine performance, predict maintenance needs, and improve fuel efficiency. Connectivity features in vehicles enable real-time monitoring and data collection, allowing automakers to continuously improve engine performance and efficiency based on actual driving conditions. • Collaboration and Partnerships: Automakers are collaborating with technology companies, battery manufacturers, and other industry players to accelerate the development of electric and hybrid engines. These partnerships enable shared expertise, resources, and innovation. Cross-industry collaborations also include infrastructure development (e.g., EV charging networks) and research into new energy sources, such as hydrogen fuel cells, to diversify powertrain options and improve energy efficiency.

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The in-line engine layout is leading in the automotive engine industry due to its simplicity and efficiency in terms of design, manufacturing, and performance. The in-line engine, also known as an inline or straight engine, features a configuration where the cylinders are arranged in a single, straight line along the length of the engine. This layout offers several advantages that make it a preferred choice for many automakers. First and foremost, the design is straightforward, which simplifies the engineering and manufacturing processes. This simplicity often translates to lower production costs and easier assembly, maintenance, and repairs. The in-line engine layout also contributes to better space utilization in the engine bay, making it suitable for a wide range of vehicle sizes and types. This compact arrangement helps automakers design cars with optimized weight distribution and handling characteristics. The linear arrangement of the cylinders allows for a more balanced and smooths operation, resulting in lower levels of vibration and noise during engine function. In terms of performance, the in-line engine provides excellent efficiency. The cylinders' aligned configuration allows for efficient air and fuel intake and exhaust flow, contributing to better combustion and power output. This efficiency can lead to improved fuel economy, which is increasingly important as automakers strive to meet stricter emissions and fuel efficiency regulations. Another advantage of the in-line engine is its adaptability. Automakers can easily scale the engine size up or down by adding or removing cylinders in the line, allowing them to cater to various market segments and vehicle types, from compact cars to larger sedans and SUVs. This flexibility helps manufacturers streamline their production lines and reduce complexity across their model range. While the in-line engine configuration is often seen in smaller, lower-displacement engines, its versatility and cost-effectiveness have contributed to its continued popularity in the automotive industry. Additionally, its compatibility with modern engine technologies such as turbocharging and direct injection further enhances its appeal. As the industry continues to evolve towards more sustainable and efficient powertrains, the in-line engine remains a key player due to its proven track record of reliability, performance, and adaptability. Gasoline engines are leading in the automotive engine industry due to their widespread availability, energy density, and proven technology, providing a balance between performance, efficiency, and affordability for a wide range of vehicles. Gasoline engines have long been the dominant force in the automotive engine industry for various reasons. One of the main advantages of gasoline engines is the widespread availability of gasoline as a fuel. Gasoline is accessible globally and is supported by extensive refueling infrastructure, which makes it a convenient and reliable option for both consumers and manufacturers. This accessibility allows gasoline engines to power a wide range of vehicles across different regions, from compact cars to large SUVs and trucks. Another key benefit of gasoline engines is their high energy density. Gasoline contains a significant amount of energy per unit of mass, enabling vehicles to travel long distances on a relatively small amount of fuel. This efficiency is particularly important for long-haul travel and transportation needs, where minimizing the frequency of refueling stops is essential for convenience and productivity. Gasoline engines also offer a well-established and proven technology. They have been used in automobiles for over a century, allowing for extensive refinement and optimization over the years. This history has led to the development of engines with reliable performance, durability, and ease of maintenance. Additionally, the familiarity of gasoline engines among mechanics and consumers contributes to their continued popularity, as people feel comfortable working with and maintaining these engines. The affordability of gasoline engines is another factor contributing to their dominance in the industry. Gasoline engines are generally less expensive to produce than other types of engines, such as electric or hybrid engines, due to the mature technology and economies of scale in manufacturing. This cost advantage translates to lower vehicle prices, making gasoline-powered vehicles more accessible to a larger segment of the population. Moreover, gasoline engines are versatile and adaptable to various vehicle types and performance requirements. Automakers can tune and modify gasoline engines to meet specific performance goals, from fuel efficiency to high horsepower output. This flexibility allows manufacturers to cater to different market segments and consumer preferences. Gasoline engines have also benefited from recent technological advancements that improve their efficiency and emissions performance. Innovations such as direct fuel injection, turbocharging, and variable valve timing have enhanced the performance of gasoline engines, enabling them to meet increasingly stringent emissions standards while maintaining power and efficiency. Passenger cars play a central role in the automotive industry, not only because they cater to the majority of consumers but also due to their adaptability to various lifestyle needs. Passenger cars offer a versatile and practical means of transportation for daily commutes, family outings, and leisure activities. Their widespread appeal across different regions and demographics has made them the primary focus of automotive manufacturers and the dominant segment in the industry. One of the reasons for the leading position of passenger cars is their accessibility and affordability. Automakers have spent decades refining the production processes for passenger cars, resulting in cost-effective manufacturing methods and a variety of models across different price points. This accessibility allows a broad spectrum of consumers to purchase and operate passenger cars, making them an essential part of everyday life for many people. The versatility of passenger cars also contributes to their dominance. They are designed to cater to a wide range of preferences and needs, from compact, fuel-efficient city cars to spacious SUVs and minivans for families. Automakers continuously innovate and improve passenger car models to address various aspects of performance, safety, comfort, and technology, ensuring that there is a vehicle to suit almost every taste and requirement. In addition to practicality, passenger cars offer a sense of personal freedom and convenience that alternative transportation modes often cannot match. Individuals rely on their personal vehicles to travel on their own schedules and access locations not easily reachable by public transportation. This convenience is a significant factor in the sustained demand for passenger cars. Passenger cars are also at the forefront of incorporating the latest technologies in the automotive industry. Modern cars come equipped with advanced safety features, such as collision avoidance systems and adaptive cruise control, as well as connectivity options like smartphone integration and infotainment systems. These innovations enhance the overall driving experience, making passenger cars more attractive to consumers. The ongoing development of electric and hybrid passenger cars is a notable trend shaping the future of the industry. Automakers are investing heavily in research and development to produce cleaner, more efficient vehicles that comply with increasingly stringent emissions regulations and appeal to environmentally conscious consumers. This transition towards electrification is reshaping the passenger car segment and driving further innovation in engine and vehicle design. North America leads in the automotive engine industry due to its extensive manufacturing infrastructure, innovation in technology, strong consumer market, and supportive regulatory environment that encourages the development and production of a wide range of engine types and automotive vehicles. North America, particularly the United States, has a long-standing history of leadership in the automotive engine industry, primarily due to its extensive manufacturing infrastructure and tradition of automotive innovation. The region is home to some of the world's most prominent automakers and suppliers, including major global brands such as General Motors, Ford, and Stellantis. These companies have historically dominated the industry and continue to play a pivotal role in shaping its future. One of the main reasons for North America's leadership in the automotive engine industry is its robust manufacturing infrastructure. The regions well-established supply chains, skilled labor force, and advanced production facilities enable efficient, high-quality manufacturing of a diverse range of engine types and vehicles. This infrastructure supports the production of both traditional internal combustion engines and newer electric and hybrid powertrains. North America has also been at the forefront of technological innovation in the automotive industry. The region has driven advancements in engine design, fuel efficiency, and emissions reduction. Research institutions, automakers, and technology companies collaborate to push the boundaries of engine performance, developing cutting-edge technologies such as turbocharging, direct fuel injection, and advanced materials to enhance engine efficiency. The strong consumer market in North America plays a significant role in the region's dominance in the automotive engine industry. Consumers in the United States and Canada have a high demand for diverse vehicle types, ranging from fuel-efficient compact cars to powerful trucks and SUVs. This demand drives innovation and production across a wide range of engine types and vehicle models, stimulating competition and investment in new technologies. North America's supportive regulatory environment encourages the development and production of advanced engine technologies. Government incentives and policies, such as tax credits for electric and hybrid vehicles, promote the adoption of cleaner powertrains and drive further innovation in engine design. At the same time, emissions standards and fuel economy regulations push automakers to continuously improve engine performance and efficiency. The region's openness to international trade and investment also contributes to its leadership in the automotive engine industry. North America's trade agreements with other countries facilitate the import and export of vehicles and engine components, promoting economic growth and fostering collaboration between domestic and foreign automakers. • May 2022- Mercedes-Benz launches the most advanced C-Class in India with an ecstatic customer response; continues its product offensive for the luxury segment. • October 2022- General Motors do Brasil announced the expansion of its plant in Joinville. With the new increased production capacity in Joinville, the company will export engines and attend the launch of the new Montana in 2023, which will get assembled at its factory in São Caetano do Sul. • March 2022- Harbin DonganAuto Engine Co., Ltd. unveiled its investment plan for 2022 for building a production line for high-efficiency extended-range engines. It will involve the machining center, marking machines, tightening machines, gluing machines, and other equipment. Further, Harbin DonganAutomotive Engine Manufacturing Co., Ltd will jointly maintain the project. It is the subsidiary of Harbin DonganAuto Engine, with a total investment worth CNY 72.33 million (USD 10.38 milllion). Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Automotive Engine market Research Report with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • In-line Engine • V-type Engine • W Engine By Fuel Type • Gasoline • Diesel • Other Fuel By Vehicle Type • Passengers Car • Motorcycles • Commercial Vehicles (Trucks, Buses, Etc) • Special Purpose Vehicles (Construction machinery, agricultural machinery, etc) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Engine industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.