Vehicle Engine And Engine Parts Global Market Report 2024

The vehicle engine and engine parts market size has grown strongly in recent years. It will grow from $427.27 billion in 2023 to $458.54 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth witnessed during the historic period can be attributed to significant factors such as the industrial revolution, mass production of automobiles, the implementation of environmental regulations, and the globalization of automotive manufacturing.

The vehicle engine and engine parts market size is expected to see strong growth in the next few years. It will grow to $590.78 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. In the forecast period, growth can be attributed to several key drivers, including the electrification of vehicles, the development of autonomous vehicles, a focus on lightweighting and fuel efficiency, the integration of 5G and connectivity technologies, and the increasing adoption of green energy and hydrogen as power sources. Notable trends in the forecast period encompass the utilization of advanced materials, the proliferation of hybrid powertrains, digitalization and IoT (Internet of Things) integration, advancements in 3D printing and additive manufacturing, and the emphasis on a circular economy approach in the automotive industry.

The vehicle engine and engine parts market is anticipated to experience growth due to the increasing manufacturing of automobiles. Vehicle manufacturers rely on various engine components and parts for vehicle production. According to data from the International Organization of Motor Vehicle Manufacturers, a global automotive trade association based in Paris, the total global vehicle production from January to September 2021 rose to 57.2 million units from 52.1 million units during the same period in 2020. Consequently, the rising production of vehicles worldwide is expected to drive the growth of the vehicle engine and engine parts market.

These components can be categorized into two main types are vehicle engines and vehicle engine parts. Vehicle engines encompass the diverse propulsion systems used to power vehicles, and these engines rely on various engine parts for their operation. Vehicle engines can be further classified based on their arrangement, which includes in-line engines, W engines, and V-types. Additionally, the type of fuel used can vary, including options like gasoline (petrol), diesel, natural gas, and other fuel types.

The vehicle engine and engine parts market research report is one of a series of new reports that provides vehicle engine and engine parts market statistics, including global market size, regional shares, competitors with a vehicle engine and engine parts market share, detailed vehicle engine and engine parts market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle engine and engine parts industry. This vehicle engine and engine parts market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

The vehicle engine and engine parts market is expected to experience significant growth in the coming years, driven by the increasing production of autonomous vehicles. Autonomous vehicles, also known as driverless cars, can operate and perform essential functions without human intervention, thanks to their ability to perceive and respond to their surroundings. Vehicle engine and engine parts play a crucial role in providing reliable and robust solutions for the development and deployment of autonomous driving applications. This growing production of autonomous vehicles will lead to a heightened demand for complex software and hardware systems, consequently expanding the market for vehicle engine and engine parts. For instance, a report published by the Insurance Institute for Highway Safety, a U.S.-based non-profit organization focused on road safety, estimated that there would be 3.5 million self-driving automobiles on American highways by 2025 and 4.5 million by 2030. This projection underscores how the increasing production of autonomous vehicles is a driving force behind the growth of the vehicle engine and engine parts market.

The market's growth is hindered by the surging popularity of electric vehicles (EVs) worldwide. Electric cars, powered by batteries, are not only easier to maintain but also have a positive environmental impact by reducing air pollution. The popularity of the electric car market is further bolstered by various government incentives, such as those in Norway, where zero-emission vehicle drivers enjoy exemptions from road taxes, a 25% reduction in VAT on sales, lower road and ferry tolls, reduced parking costs, and access to bus lanes. In 2020, the number of electric cars on the road reached 10 million, and China remained the world's largest car market in 2021, as reported by mobi.com. According to the International Energy Agency (IEA), electric car sales in 2021 more than doubled, reaching 6.6 million units, accounting for nearly 9% of the global car market. The growing popularity of electric vehicles has led to reduced demand for engine-operated vehicles, resulting in an overall decline in the demand for vehicle engine and engine parts, impacting the market's growth.

The vehicle engine and engine parts market faces limitations in growth due to decreasing sales in the automobile sector. The reduced demand for automobiles across different economies results in a decreased need for new engine production and engine parts from manufacturers. As per data from the International Organization of Motor Vehicle Manufacturers, global car production witnessed a substantial 16% decline in 2020. For instance, in India, the Society of Indian Automobile Manufacturers reported a decline in passenger car sales, dropping from 1,541,866 units in 2021 to 1,467,056 units in 2022.

Companies within the vehicle engine and engine parts market are actively investing in enhancing the fuel efficiency of internal combustion engines. They are manufacturing engines that not only offer increased power but also contribute to improved fuel economy. This focus on enhancing fuel efficiency represents an economically viable solution and contributes to reduced emissions of harmful pollutants into the atmosphere. For example, companies are directing their investments toward 'direct fuel injection' technology. This involves direct injection systems that spray a fine mist of fuel directly into the engine's cylinder, helping to manage the engine's temperature and ultimately leading to improved fuel efficiency. According to the U.S. Department of Energy, direct fuel injection can enhance engine efficiency by as much as 12%. As environmental concerns mount and consumers seek better value for their money, companies in this market are prioritizing investments in fuel efficiency improvements.

In February 2023, LKQ Europe, the largest provider of vehicle parts and services in Europe, completed its acquisition of the Dutch-based Rhenoy Group ('Rhenoy'). This strategic acquisition positions LKQ Europe to offer convenient and environmentally sustainable mobility solutions across European markets. LKQ Europe is leveraging its expertise and remanufacturing capabilities as part of its broader European strategy. Rhenoy Group, a Netherlands-based company, is a prominent player in the automotive industry, known for its proficiency in repairing damaged new, remanufactured, and used automotive parts.

Major companies operating in the vehicle engine and engine parts market include Cummins Inc., Toyota Motor Corporation, DENSO Corporation, Delphi Technologies PLC, Federal-Mogul LLC, MAHLE GmbH, Bayerische Motoren Werke Aktiengesellschaft, General Motors Company, Volkswagen AG, Fiat Chrysler Automobiles N.V., Volkswagen Group, Daimler AG, Stellantis N.V., Hyundai Motor Group, Nissan Motor Co. Ltd., Subaru Corporation, Volvo Group, Caterpillar Inc., Navistar International Corporation, Deere & Company, MAN Truck & Bus SE, Scania AB, PACCAR Inc., Wärtsilä Corporation, Perkins Engines Company Limited, MTU Friedrichshafen GmbH, Isuzu Motors Limited, CNH Industrial N.V.

Asia-Pacific was the largest region in the vehicle engine and engine parts market in 2023. Western Europe was the second largest region in the vehicle engine and engine parts market. The regions covered in the vehicle engine and engine parts market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the vehicle engine and engine parts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The vehicle engine and engine parts market consist of sales of engine, transmission, driveshaft, axles, head, block, oil sump and differential. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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