Press Releases

Global Vehicle Engines and Engine Parts Manufacturing Market On Upswing

January 31, 2018

Additional Reports

WELLESLEY, Mass., Jan.31, 2018 – Continued economic growth, positive demographic trends, increasing income levels and cheap labor are driving solid growth in the global vehicle engine and engine parts manufacturing market. In a new report, Vehicle Engine And Engine Parts Manufacturing: Global Markets to 2020, BCC Research estimates this market to reach $323.7 billion in 2020, up from $261.3 billion in 2016, indicative of an compound annual growth rate (CAGR) of 5.5%.

The market is marginally fragmented with a few large players and a number of smaller companies. Major players in the market include Cummins, MAHLE, DENSO Corporation, Delphi Automotive PLC and Federal Mogul Corporation. Vehicle engine parts accounted for the largest share of the market for vehicle engine and engine parts manufacturing in 2016 at 74%. The highest growth is projected to come from vehicle engines market, which is forecast to grow at a CAGR of 6.0%.

Low oil prices and increased economic activity due to a rise in disposable income have lifted the market, thanks to big growth in the automotive manufacturing sector in countries such as Asia, South America and Africa. Meanwhile, a jump in emission control regulations and automobile recalls have slowed growth. Despite those hindrances, by 2020 emerging markets should account for two-thirds of the total automotive profit, with China as the major market. Also, increasing urbanization across most parts of the world has led to a large-scale migration from rural centers to cities, thus increasing the demand for transportation and, in turn, demand for combustion engines installed in motor vehicles.

Research Highlights

  • Asia-Pacific is the largest market for vehicle engine and engine parts manufacturing, accounting for 40.7% of the global market.
  • The market is challenged by increasing environmental concern regarding the use of fossil fuels, reduction in free trade and narrowing cost price gap over the forecast period.
  • China is the largest market in terms of value for vehicle engine and engine parts manufacturing. India and China are expected to have the fastest growth, growing at a CAGR of 8.6% and 8.1%, respectively.

“New technologies such as advanced combustion methods, integration of drive systems and controlled valve operation systems to optimize fuel economy will be key drivers for engine manufacturing through 2020,” said Gordon Nameni, BCC Research Senior Editor. “We expect that original equipment manufacturers will consistently develop new engines and their prototypes. For example, Audi developed a TFSI 4-cylinder engine, which is the most efficient 2-liter engine in its class. Toyota introduced a prototype of Free Piston Engine Linear Generator which is a combination of a two-stroke engine and electrically operated valves. Development of homogeneous charge compression ignition (HCCI) engines also is expected to push market growth.”

Editors/reporters requesting analyst interviews should contact steven.cumming@bccresearch.com.

Vehicle Engine And Engine Parts Manufacturing: Global Markets to 2020( MFG041A )
Publish Date: Dec 2017    

Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC, 49 Walnut Park, Building 2, Wellesley, MA 02481, Telephone: 866-285-7215; Email: editorial@bccresearch.com as the source and publisher. Thank you.