Engine Market

Global Engine Market Size (2024 to 2032)

The global engine market was valued at USD 229 billion in 2023 and is anticipated to reach USD 240.98 billion in 2024 from USD 362.32 billion by 2032, growing at a CAGR of 5.23% from 2024 to 2032.

Internal combustion engines that use diesel as fuel are known as diesel engines, these engines are also called compression ignition engines. Furthermore, diesel engines are incorporated into heavy-duty vehicles due to their ability to produce higher torque compared to that produced by gasoline or any other engine. In an optimistic scenario, if electric vehicles live up to the expectations set by the main electric vehicle manufacturers, the deadline set by the countries to ban the sale of new ICE motors could become a reality. However, as of now, it seems highly unlikely that ICE Motors is going to close anytime soon. It will take considerable time for electric vehicles to be adopted on a large scale, largely due to the lack of sophisticated charging infrastructure in several countries and the high price of such vehicles.

Large-scale prototypes and innovations from major automakers and OEMs, along with consumer preference for fuel-efficient, high-performance cars are some of the main drivers of market growth. Original equipment manufacturers will need to constantly develop and improve advanced IC (variable valve timing and reciprocating powertrain) engines. The trend of downsizing and overcharging engines is on the rise, with automakers developing smaller engines with better fuel injection systems. The reduction changes the operation of the motor at high loads where the efficiency of the motor is high. Due to their lower weight, these engines improve fuel consumption. L4 and V6 engines dominated the automotive engine market by investment type in 2018. Disposable revenues in the Asia-Pacific region and other developing economies are on the rise. In developed economies like Norway, most customers have already switched to electric vehicles. This is due to the availability of an adequate charging infrastructure in these countries. In developing economies, customers want to buy an electric vehicle because of its profitability and improved range of mobility, but due to the high cost and lack of charging infrastructure that supports electric mobility, people are buying automotive ICs.

MARKET DRIVERS

Demand for diesel/petrol engines is likely to decline over the forecast period, due to increased stringency of emission standards and increased focus by governing bodies on vehicle production and adoption of hybrid and electric. Increasing pollution around the world is a major issue that may be driving the adoption of electric vehicles. Higher levels of pollution resulted in around 9 million premature deaths in 2016, and the air quality index of major industrial regions is steadily declining, according to a World Bank study. According to the World Health Organization, 9 out of 10 people breathe air with a high level of pollutants. Asia-Pacific and Europe face significant air quality problems due to emissions of large amounts of pollutants from manufacturing industries in these regions.

MARKET RESTRAINTS

High maintenance and higher emissions from diesel engines are key factors restricting the market for engines. Higher tariffs on diesel engines due to their greater weight increase the cost of such vehicles, which in turn, in some cases, is likely to hamper the overall market for engines.

Impact Of Covid-19 On Engine Market

The impact of COVID-19 on the global economy has affected the automotive and non-automotive markets, affecting industrial and commercial vehicle sales and fuel prices. Therefore, the slowdown in the automotive sector has also affected the world market for engines in terms of demand. Although diesel engines are more fuel efficient than gasoline engines, the incentive for automakers is lower because the tax rate for diesel vehicles is higher than that for gasoline vehicles and the emission standards. Diesel engine sales are in full-size in commercial pickup trucks and SUVs, which is estimated to increase after the first quarter of 2021.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Engine Market By End-User

The automotive segment accounted for more than 65.0% of total volume in 2017 and is expected to post the fastest growth during the outlook period. This growth is attributed to rising consumer disposable income, which translates into greater vehicle adoption worldwide. Technological developments leading to improvements in IC engines in terms of fuel efficiency, emissions and performance will also drive demand for products in the years to come.

REGIONAL ANALYSIS

In North America, most passenger cars are equipped with gasoline engines, due to the low cost of gasoline in the region compared to diesel. On the other hand, Europe is drastically reducing the production of diesel engines due to the strict emission standards in the region. The Asia Pacific region dominated the global engine market and had a significant share in 2019. A large portion of OEM earnings during the foreseen period will come from developing economies such as India and China. Some of the main drivers of market growth are the increase in car production and sales in countries such as India, China and ASEAN countries and the growth of the auto components industry. The engine parts market is also supposed to show a healthy growth rate during the conjecture period. However, the region, especially China, has seen an increase in the sales and production of electric vehicles, which is holding back the growth of the automotive engine market. In addition, in 2018, India and China saw a decline in vehicle sales due to trade tensions and fragile consumer confidence, an erratic monsoon, low demand from parties, and high costs of fuel and insurance, which also hampered market growth as vehicles slowed. Another factor responsible for this decline is the increased awareness of shared mobility.

KEY PLAYERS IN THE GLOBAL ENGINE MARKET

TAGCO Corporation, China FAW Group, Bosch, Deere & Company, Continental AG, Delphi Automotive, Mitsubishi Heavy Industries, Ford Motor, General Motors, MAN SE, Wärtsilä, Cummins, Caterpillar, Rolls-Royce. Some of the market players dominate the global engine market.

RECENT HAPPENINGS IN THE MARKET

• China FAW Group Co., Ltd. (FAW) and Toyota Motor Corporation (Toyota) will restructure their management systems with the aim of achieving sustainable growth in China.
• AGCO Corporation (NYSE: AG), a global designer, manufacturer and distributor of agricultural equipment, agreed to acquire the business of Valtra Corporation, a Finnish company owned by Kone Corporation.
• AGCO Corporation announces a new brand initiative for its engine business: AGCO SISU POWER (TM).

DETAILED SEGMENTATION OF THE GLOBAL ENGINE MARKET INCLUDED IN THIS REPORT

This research report on the global engine market is segmented and sub-segmented based on power rating, End-User, and Region.

By Power Rating

• 0.5 MW–1 MW 
• Up to 0.5 MW
• 2 MW–5 MW
• 1 MW–2 MW
• Above 5 MW

By End-User

• Automotive
  • On-Road
    • Light Vehicles
    • Medium/Heavy Trucks
    • Light Trucks
  • Off-Road
    • Industrial/Construction Equipment
    • Agriculture Equipment
    • Marine Applications
•  Non-Automotive

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa