Automotive Engine Market
Report ID: SQMIG25AG2024
Report ID: SQMIG25AG2024
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Report ID:
SQMIG25AG2024 |
Region:
Global |
Published Date: March, 2025
Pages:
195
|Tables:
88
|Figures:
71
Automotive Engine Market size was valued at USD 65.46 Billion in 2024 and is poised to grow from USD 66.64 Billion in 2025 to USD 76.86 Billion by 2033, growing at a CAGR of 1.8% during the forecast period (2026–2033).
The demand for the automotive engine depends directly on automotive production. Hence, increasing passenger cars & commercial vehicles sales and emerging economies are driving the global automotive engine market growth. Factors such as the stringent regulatory standards for fuel efficiency and the growing demand for technologically advanced powered engines with improved vehicle performance are driving the market growth. Consumer preference for high-performance and fuel-efficient automobiles and significant developments and prototypes from the leading automobile manufacturers and OEMs are also driving the growth. New technologies in engines, including Variable Displacement Engines (VDEs), hydrogen, and hybrids are furthering the growth of the automobile engine business. VDE and hybrid engines typically have good performance and economy.
Rising demand for luxury cars and using high-power engines for racing are the other factors that would positively impact the future growth of the automotive engine market. Many companies are currently assessing the emissions levels produced by their reduced compact automobiles. From the growing demand for higher engine performance and better fuel efficiency to comply with government rules on reducing emissions from vehicles, pollution-free engines have developed. Furthermore, many OEMs are looking at hydrogen engines and hydrogen fuel cells, as hydrogen engines consume hydrogen as fuel, are more fuel-efficient, and give out lesser emissions. Therefore, room for better performance is being created.
Market snapshot - 2026-2033
Global Market Size
USD 64.3 billion
Largest Segment
Passenger Car
Fastest Growth
Commercial Vehicle
Growth Rate
1.8% CAGR
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Global Automotive Engine Market is segmented by Engine Type, Fuel Type, Engine Size, Application and region. Based on Engine Type, the market is segmented into Internal Combustion Engine, Hybrid Engine, Electric Engine and Hydrogen Fuel Cell Engine. Based on Fuel Type, the market is segmented into Gasoline, Diesel, Natural Gas and Ethanol. Based on Engine Size, the market is segmented into Small Engine, Medium Engine and Large Engine. Based on Application, the market is segmented into Passenger Vehicles, Commercial Vehicles and Heavy-Duty Vehicles. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Vehicle Type
As per the 2024 global automotive engine market analysis, the passenger car segment held the largest share. With the rise in vehicle ownership continuing globally, automakers are looking to manufacture a number of different engine styles for different categories of passenger cars. Advanced technologies such as multi-fuel engines, VVT, turbocharger technology, and CRDI have greatly increased the efficiency of engines. These attributes enable the high power and torque delivered, which is the base requirement for luxury and high-performance vehicles. The increase in demand for fuel-efficient, environmentally sound, and technologically advanced engines favors the growth of the passenger cars segment in the automotive engine market.
Consumer demands for commercial vehicles are expected to witness tremendous growth during the forecast period due to increasing freight transportation and logistics demand. These include the growth of e-commerce and the rising requirements for efficient high-performance engines in trucks, buses, and other commercial vehicles. Innovations in engine technologies, including electric and hybrid powertrains, are now gaining more importance in the commercial vehicle segment due to fuel consumption reduction and tighter emission regulations from companies. Apart from that, governments of most countries are investing in infrastructure and promoting the adoption of cleaner and sustainable commercial vehicles, thereby propelling demand for advanced automotive engines.
Analysis By Fuel Type
Based on the 2024 global automotive engine market forecast, the gasoline category dominated the market due to the availability of a large number of advantages, such as lower noise and vibration levels and the advantage of low prices of fuel. Gasoline is widely used within passenger cars because of its efficiency, lightweight design, and economical nature. They are highly preferred due to easy acceleration and good performance, thereby generating a better driving experience. Gasoline engines further have an environmental advantage; gas engines, however, generate very low emission level of NOX and Particulate, where diesel emissions meet the pollution laws of stricter urban atmosphere conditions. Overall, these factors ensure continued momentum in the passenger automobiles segment due to its extensive sales in that.
Overall growth in diesel would be relatively big during the next forecast years. Diesel engines are found in a variety of applications, including medium-duty trucks, power generators, and even large vessels such as cruise ships. Among the major factors for the use of diesel engines is their excellent fuel efficiency, which translates into reduced operating costs. Diesel engines are also highly reliable, operating at slower revolutions per minute (RPM), resulting in lower wear and tear and a longer life cycle for the engine. The technical advantages of this type, along with the high demand for heavy vehicles and industrial machinery, are expected to contribute to the diesel engine segment's steady growth in the global automotive engine market.
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In 2024, the automotive engine industry of North America will maintain a leadership position and dominate the market. The prime reason behind this dominance is due to well-established economies such as the U.S. and Canada, where mature automotive industries prevail. This provides the region with a robust platform that was well set up long ago by old OEMs that ensured stable growth in the market. Investments in infrastructural facilities, such as those relating to new drives, further stimulate market growth. The local development of global supply chains combined with the rising requirement for commercial automobiles will ensure significant growth of the automotive engine market in North America.
Asia-Pacific is another prominent region and accounts for the most shares in the automobile engine market; it is anticipated to grow through the projection period. The emerging economies, such as China and India, are earmarked to fuel this expansion. In India, the fresh "Make in India" campaign is expected to attract significant investments in the state, making use of cost-effective labor and raw materials. Moreover, the large logistics networks and great supply chains cutting across the region, especially China and India, are key for the demand of automotive engines. Demand for more advanced and fuel-efficient automotive engines will go up as the economies of these countries continue growing and industrializing at a breakneck pace.
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Automotive Engine Market Drivers
Technological Advancements in Engine Efficiency
Growing Demand for Commercial Vehicles
Automotive Engine Market Restraints
Volatility in Raw Materials Price
Lack of Charging Infrastructure for Electric Vehicles
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The global automotive engine market is marked by the existence of many prominent players, such as General Motors, Toyota, Ford, Volkswagen, and Honda. These companies fight for market supremacy by focusing on technological developments such as hybrid and electric powertrains. The need for maintaining competitive advantage is important and, hence, requires cooperation with suppliers that possess advanced technologies in engines. The organizations are investing heavily in research and development to meet the ever-increasing demand for fuel-efficient, sustainable engines and also meet stringent emission regulations.
Top Player’s Company Profile
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the constant growth in the global automotive engine market is further spurred by the technological advancements, growing demand for fuel efficient and environmentally favorable solutions, and increasing adoption of electric and hybrid powertrains. Even though the absolute and dominant share of traditional internal combustion engine (ICE) vehicles continues, the momentum now builds toward a shift into electric vehicles and hybrids, particularly given the stringent emission regulations and sustainability initiatives. The key stakeholders are investing hugely in research and development in the direction of improving the efficiency and performance of engines. But the challenges remain the same, such as infrastructure constraints, fluctuating raw material prices, and high development costs for electric vehicles. Therefore, in the future expansion of the market, it will bank on the ability to overcome such challenges and maintain innovation to suit the changed consumer and regulatory requirements.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 65.46 Billion |
| Market size value in 2033 | USD 76.86 Billion |
| Growth Rate | 1.8% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Automotive Engine Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Engine Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Engine Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Engine Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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