DUBLIN--(BUSINESS WIRE)--The "Automotive Engine Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The global automotive engine market is anticipated to register a CAGR of about 6.75% during the forecast period (2019-2024).
- Extensive innovations and prototypes from major automakers and OEMs, coupled with the consumer preference for high-performance and fuel-efficient automobiles, are some of the major factors that are primarily propelling the market growth.
- Engine downsizing trend is on rise with automakers developing smaller engines with better fuel injection systems. L4 and V6 engines dominated the automotive engine market by placement type in 2018. Passenger cars are expected to continue their dominance as the major vehicle type in the market.
- Automotive emission, which accounts for over 25% of the overall greenhouse emissions, has been creating environmental concerns among consumers and governments and international environmental organizations. This, in turn, resulted in the enactment of stringent emission regulations requiring the automakers to cut down emissions and fuel economy norms. Together, these factors have been forcing automakers to develop better automobiles with lesser emission and better fuel efficiency.
Growing Sales of Electric Vehicles Hindering the Growth of the Market
The electric vehicle market has been witnessing healthy growth in the recent years, with about 1.9 million units of battery electric vehicles (BEVs) in use in 2017, compared to 109 thousand units of BEVs in 2012.
- This spike in sales has been the result of an increase in regulatory norms, by various organizations and governments, to control emission levels and to propagate zero-emission vehicles.
As a result of the aforementioned reasons, automakers have been continually working and focusing to increase their expenditure on the R&D of electric vehicles, which, in turn, is aiding the OEMs to market electric vehicles as the future.
- This strategy had a strong impact on people, as there was a considerable change in the purchase pattern from conventional IC engine vehicles to electric vehicles.
- The change has not decreased the sales of IC engine vehicles, but rather created a promising market for electric vehicles in the present as well as in the forecast period.
Governments across the world have initiated various schemes and initiatives, which encourage a buyer to choose electric vehicles over conventional vehicles.
- For instance, the California ZEV program, which aims at bringing 1.5 million electric vehicles on the road by 2025, is one such initiative that promotes the purchase of electric vehicles.
- Additionally, countries, such as India, China, United Kingdom, Korea, France, Germany, Norway, Netherlands, etc., have numerous incentives for people willing to buy an electric vehicle.
Additionally, retail stores are also working in close partnerships with the OEMs to increase the number of charging stations to help the customers and reduce their efforts.
- For instance, in April 2018, Walmart announced that it will work with Volkswagen subsidiary and Electrify America, to install fast electric vehicle chargers at 100 locations across 34 states, by the summer of 2019.
Asia-Pacific - Leading the Engine Market
Asia-Pacific region dominated the global automotive engine market and held a significant share in 2018. Some of the major factors driving the growth of the market are - growing automotive production and sales in countries like India, China, and ASEAN Countries, and rising automotive components sector. However, the region, especially China, has been witnessing a rise in the sales and production of electric vehicles, which is hindering the growth of the automotive engine market. Additionally, in 2018, both India and China witnessed a decline in vehicle sales, owing to trade tensions and shaky consumer confidence, uneven monsoon, poor festive demand, and high fuel and insurance costs, which also hindered the market growth, as the production of vehicles slowed down.
In North America, the US dominated the market. The automotive industry is a significant contributor to the country's GDP. The country has been witnessing a surge in the sales of vehicles, primarily SUVs and crossover utility vehicles; low gas prices, a stronger economy, and improvements in the design of SUVs and trucks were the primary reasons for the increased sales. This, in turn, aided in increased production of vehicles.
The automotive engine market is growing in the country as vehicle sales in the country is growing. Along with that, the OEMs are also making a significant investment in R&D projects and launching new engine technologies in the country. For instance;
- In January 2018, the state of Alabama announced that collectively Alabama's auto workers built nearly 1.6 million engines in 2018 for Hyundai, Honda, Toyota, and Navistar. Hyundai Motor Manufacturing Alabama produced 597,313 engines in 2018, Honda produced 356,439, Toyota produced 629,386 engines in 2018.
- On 19th January 2019, General Motors announced that they will be investing USD 22 million at its Spring Hill, Tennessee, manufacturing complex to build 6.2-liter V8 engines with GM's advanced Dynamic Fuel Management (DFM) technology. DFM, as the industry's first cylinder deactivation technology, enables the engines to operate in 17 different cylinder patterns to optimize performance, enabling only the cylinders needed to deliver the intended power.
The automotive engine market is likely to see a drop in the production and sales statistics over the forecast period as the consumers incline more toward green vehicles. The Environmental Protection Agency of the United States will be providing total funding of USD 40 million to the projects, with aims to reduce emissions from the nation's existing fleet of older diesel engines.
The global automotive engine market is fairly fragmented and some of the major players are Cummins, Fiat, General Motors, Toyota, Volkswagen, Ford Motor Company, amongst others. The companies are launching more technologically advanced products in the market. For instance:
- In January 2019, Cummins Inc., launched its next-generation 6.7L turbo diesel engine boasting a first-in-class 1,000 pound-feet of torque. It also has the higher horsepower output, taking the 2500 and 3500 heavy-duty RAM pickup truck customers to the next level of performance.
- In May 2019, Audi expected to offer its new A4 model line with a choice of six turbocharged engines. The power outputs range from 150ps to 347ps, in the A4 35 TFSI and the S4 TDI respectively.
- In May 2019, MAN Energy Solutions has added variable turbine area (VTA) technology to its TCA turbochargers for the MAN 51/60 engine type, marking the first time that VTA technology has been approved as standard for a large-bore MAN four-stroke engine.
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
5 MARKET SEGMENTATION
5.1 By Placement Type
5.1.1 In-line Engine
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 By Fuel Type
5.3.1 Gasoline (Petrol)
5.4.1 North America
5.4.4 South America
5.4.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.2 Cummins Inc.
6.2.3 Toyota Motor Corporation
6.2.5 General Motors
6.2.6 Honda Motor Company Ltd.
6.2.7 Hyundai Motor Company
6.2.8 Scania AB
6.2.9 Suzuki Motor Corporation
6.2.10 Mazda Motor Corporation
6.2.11 Volkswagen AG
6.2.12 Eicher Motors Limited
6.2.13 Yamaha Corporation
6.2.14 Fiat Automobiles S.p.A.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/qwc949