Engine Encapsulation Market Report 2026

The engine encapsulation market size has grown strongly in recent years. It will grow from $6.25 billion in 2025 to $6.67 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to automotive efficiency regulations, noise reduction requirements, growth in passenger vehicle production, thermal management demand, fuel consumption reduction.

The engine encapsulation market size is expected to see strong growth in the next few years. It will grow to $8.78 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to stricter emission standards, lightweight material innovation, electric and hybrid vehicle growth, demand for engine efficiency, oem focus on thermal optimization. Major trends in the forecast period include increasing use of thermal and acoustic insulation, adoption in fuel-efficient vehicles, growth of lightweight encapsulation materials, expansion in oem installations, focus on engine efficiency.

The increase in demand for commercial vehicles is driving the growth of the engine encapsulation market. Commercial vehicles, used for transporting goods over long distances, require enhanced fuel efficiency and noise reduction solutions. Engine encapsulation minimizes fuel consumption, reduces engine noise, and controls heat transfer, making it a valuable addition to commercial vehicles. For instance, in January 2024, according to the European Automobile Manufacturers’ Association (ACEA), new commercial vehicle registrations in the European Union rose by 14.6% for vans, 16.3% for trucks, and 19.4% for buses compared to 2022, reflecting a significant increase in demand. Hence, the rising need for commercial vehicles is driving the engine encapsulation market.

Major companies in the engine encapsulation market are developing innovative solutions such as advanced EV-specific encapsulation systems to improve thermal management, reduce noise, and enhance overall vehicle performance. These systems are designed to enclose electric motors and batteries, maintaining optimal temperatures, minimizing vibrations, and extending component lifespan. For instance, in March 2024, Röchling SE & Co. KG, a Germany-based engineering plastics and components company, launched a new engine encapsulation system for electric vehicles (EVs), highlighting its commitment to supporting EV growth by improving driving comfort and efficiency while addressing thermal challenges in electric drivetrains.

In April 2023, Autoneum Holding AG, a Switzerland-based vehicle acoustic and thermal insulation company, acquired Borgers Automotive GmbH & Co. KG for $0.136 billion (€0.117 billion). This acquisition strengthens Autoneum’s engine encapsulation capabilities by integrating Borgers Automotive’s expertise in textile-based insulation, wheel-arch liners, trunk linings, and underbody shielding, supporting improved thermal management and noise reduction in engine compartments for cars and commercial vehicles.

Major companies operating in the engine encapsulation market report include ElringKlinger AG, Autoneum Holding AG, Continental AG, Roechling Group, Greiner Foam International GmbH, Trocellen GmbH, Adler Pelzer Holding GmbH, BASF SE, Furukawa Electric Co. Ltd., Evonik Industries AG, Hennecke GmbH, Compagnie de Saint-Gobain S. A., UFP Technologies Inc., Polytec Group, DBW Advanced Fiber Technologies GmbH, ZF Friedrichshafen AG, GKN plc, Schaeffler Technologies AG & Co KG, BorgWarner Inc., AVL List GmbH, Axletech International, Dana Limited, Woco Industrietechnik GmbH, 3M Company, SA Automotive Ltd, Charlotte Baur Formschaumtechnik GmbH, Carcoustics International GmbH, Uniproducts Inc., UGN Inc., Robert Bosch GmbH.

Asia-Pacific was the largest region in the engine encapsulation market in 2025.Asia-PAcific is expected to be the fastest-growing region in the forecast period. The regions covered in the engine encapsulation market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the engine encapsulation market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The engine encapsulation market consists of sales of engine encapsulation made of polyamide and glasswool. 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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