Automobile Engine & Part Manufacturing Market

Automobile Engine & Part Manufacturing Market Outlook (2024 to 2034)

Revenue from the global automobile engine & part manufacturing market is analyzed at US$ 410.21 billion in 2024. The market is projected to increase at a remarkable 8.3% CAGR and reach a size of US$ 912.97 billion by the end of 2034.

The need for automotive aftermarket parts is growing because of the increasing car ownership rates in several countries. There is a growing requirement for high-quality replacement engine components as more buyers look for reasonably priced repair options to preserve their older cars.

Because aftermarket parts are less expensive than original manufacturer parts, they are a desirable option for price-conscious customers. Vehicle maintenance is valued more highly than buying new cars, which is driving the aftermarket industry growth.

Other than this, the investment in hybrid engine technologies is increasing, which is also positively influencing the automobile engine & part manufacturing market growth. Internal combustion engines (ICE) and electric power components are combined in hybrid automobiles to increase fuel efficiency and lower pollutants.

Because of this combination, hybrids are becoming a desirable choice for governments and people who want to lessen their environmental footprints without making the switch to electric vehicles. Consequently, there is now a greater need for hybrid-specific parts, such as electric motors, specialist batteries, regenerative braking systems, and others.

Key Market Growth Drivers

• The growing demand and adoption rate of electric vehicles are contributing to the automobile engine & part manufacturing market size expansion as these manufacturers are heavily investing in electric train components, such as motors, batteries, controllers, and others.
• Sales of specialized parts that support electric drivetrains and battery management systems are growing continuously, which is driven by the rising purchasing rate of EVs.
• Several countries are implementing strict emission laws, particularly for conventional combustion engines. Manufacturers are focusing on creating advanced, effective engine parts, such as exhaust systems, turbochargers, and lightweight materials, which improve fuel economy and lower emissions, to comply.
• One of the key automobile engine & part manufacturing market trends is increasing investment in advanced engine technologies, such as lightweight materials, variable valve timing, direct fuel injection, and others. This increasing investment is helping to manufacture premium and precisely engineered engine parts, which is positively affecting the market growth.
• Demand for hybrid engine parts is increasing because hybrid cards require a combination of electric and internal combustion engine (ICE) components.
• A bridge between conventional and completely electric vehicles, hybrid powertrains are becoming more popular as governments and customers demand lower-emission options.
• The need for replacement engine parts is rising in the aftermarket due to longer vehicle lifespans and rising vehicle ownership in several countries. Quality aftermarket parts are in increasing demand due to the popularity of affordable repair options.

Report Attributes	Details
Automobile Engine & Part Manufacturing Market Size (2024E)	US$ 410.21 Billion
Forecasted Market Value (2034F)	US$ 912.97 Billion
Global Market Growth Rate (2024 to 2034)	8.3% CAGR
North America Market Value (2024E)	US$ 81.66 Billion
South Asia & Pacific Market Growth Rate (2024 to 2034)	10% CAGR
Motor Vehicle Engines Segment Value (2034F)	US$ 660.98 Billion
Original Equipment Manufacturers Segment Value (2034F)	US$ 572.03 Billion
Key Companies Profiled	Cummins Inc.; General Motors; Ford Motor Company; Toyota Motor Corporation; Honda Motor Co.; Volkswagen Group; Fiat Chrysler Automobiles (Stellantis); Hyundai Motor Company; Daimler AG; Nissan Motor Co.; BMW AG; Magna International Inc.

Which Factors are Positively Transforming the Market for Automobile Engine & Part Manufacturing?

“Growing Adoption of EVs Driving Up Demand for Specialized Components”

Key players in the automobile engine & part manufacturing market are investing in developing specialized components, such as electric motors, batteries, controllers, and others because of the growing popularity of electric vehicles (EVs). Automobile manufacturers are focusing on innovating and expanding the manufacturing of electric powertrains because of this trend.

Advanced battery systems, effective drivetrains, and associated infrastructure are becoming more in demand as EVs are becoming more popular. This trend is driving the development of a specialized supply chain for EV components, which is crucial for sustaining the future of green transportation.

What Challenges are Faced by Automobile Engine & Part Manufacturing Companies?

“Requirement of High Development Costs for Electric and Hybrid Vehicles”

The automotive industry is negatively impacted by the high costs of innovative technology, especially for electric and hybrid vehicles. Research, development, and manufacturing processes need higher investment to design and produce complex components, such as electric motors, battery management systems, and advanced powertrains.

Higher car prices are primarily the result of these additional expenses passed on to customers. This discourages prospective buyers in price-sensitive markets who instead choose more reasonably priced conventional automobiles. Because of this, even while manufacturers work hard to innovate and adhere to strict pollution rules, the cost of advanced engine technology somehow prevents their widespread acceptance, especially among consumers on a tight budget.

Country-wise Insights

The North American region is analyzed to lead with a significant worldwide automobile engine & part manufacturing market share throughout the assessment period (2024 to 2034). The reason behind this is the higher emphasis on advanced engine technologies in the North American market, especially in the United States, and there is an increasing trend towards electric and hybrid vehicles.

Market expansion in the region is further supported by the existence of a strong supply chain and government incentives for electric vehicles.

What is the Secret Behind Producers’ Success in the United States?

“Ongoing Advancements and Innovation in Engine Technologies”

Attribute	United States
Market Value (2024E)	US$ 73.2 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 161.17 Billion

The continuously ongoing developments in the automotive manufacturing industry in the United States are contributing to the market expansion. The prime focus of these developments is technological improvements in engine technologies. Manufacturers are now able to develop more complex engine components in the United States that increase performance and fuel efficiency due to innovations, such as enhanced fuel injection systems, turbocharging, advanced engine management systems, and others.

For example, accurate fuel distribution is made possible by contemporary fuel injection technologies, which improve combustion and lower emissions. While advanced management systems increase overall vehicle responsiveness and efficiency, turbocharging increases engine power without enlarging the vehicle.

Why is Japan a Lucrative Market for Automobile Engine & Part Manufacturers?

“Presence of Well-Established Automotive Manufacturing Companies”

Attribute	Japan
Market Value (2024E)	US$ 51.72 Billion
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 100.81 Billion

The automotive sector plays a crucial role in the economy of Japan and one of the reasons behind this is the presence of well-known international companies including Toyota, Honda, Nissan, and others. These companies' significant presence is not only increasing domestic demand for engines and parts but also establishing Japan as a vital link in the worldwide automotive supply chain.

These businesses are investing more in engine manufacturing by innovating and growing their production capacities, which advances efficiency and technology. This expanding automotive sector is driving up competition and cooperation between manufacturers and suppliers, which is eventually helping the market growth for engines and parts made in Japan.

Category-wise Insights

Based on major market, the aftermarket & service segment is evaluated to expand at 8.1% CAGR over the next ten years because vehicle components require constant maintenance, repairs, and replacements throughout their lives. There is a constant need for aftermarket products as cars get older since they need to have their parts replaced and serviced continuously to maintain maximum performance and safety.

Why is Demand for Motor Vehicle Engines Increasing Globally?

“Increasing Sales of Cars and Expansion of the Aftermarket for Replacement Parts”

Attribute	Motor Vehicle Engines
Segment Value (2024E)	US$ 283.14 Billion
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 660.98 Billion

The demand for motor vehicle engines is increasing at a faster pace in comparison with other products and services. Increasing sales of vehicles is creating the need for effective and efficient engines. Customers looking for greener solutions are attracted to engines with higher fuel efficiency and lower emissions due to technological improvements.

Automobile manufacturing companies are continuously spending money on creating new engine technology, because of the rising popularity of electric and hybrid vehicles. The demand for motor vehicle engines is driven by a combination of technological innovation and aftermarket expansion.

Why Original Equipment Manufacturers Segment Hold a Significant Market Share?

“Important Role in Production and Assembling of New Vehicles”

Attribute	Original Equipment Manufacturers
Segment Value (2024E)	US$ 246.49 Billion
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 572.03 Billion

The original equipment manufacturers (OEMs) hold a sizable portion of the global market because of their vital role in the creation of new automobiles. Vehicles are designed and assembled by OEMs, which means a consistent supply of high-quality engines and parts that adhere to strict regulations is required.

OEMs are at the forefront of innovation in the automotive sector, investing extensively in R&D to improve performance and sustainability as the industry changes with technological developments, such as electric and hybrid vehicles.

Strong ties between OEMs and suppliers also guarantee manufacturing stability and dependability. The rising demand for new cars around the world is another factor contributing to this leading position.

Competitive Landscape

To meet the increasing demand for fuel-efficient and environment-friendly vehicles, prominent automobile engine & part manufacturing companies are focusing on high-demand areas, such as lightweight materials, turbocharging, electric & hybrid engine components, and others.

• In October 2024, with an illustration of its capabilities for cutting-edge electric vehicles, Magna unveiled the next iteration of its eDrive technology at CES 2024. Despite being in the experimental stage, this revolutionary electric motor is anticipated to revolutionize the design and use of most cars in the future due to its superior performance and versatility.

Fact.MR provides detailed information about the price points of key players in the automobile engine & part manufacturing market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Automobile Engine & Part Manufacturing Market Research

• By Product and Service :

  • Motor Vehicle Engines
  • Camshafts, Crankshafts, Pistons, Piston Rings & Carburetors
  • Engine Pumps
  • Rebuilt Engines
  • Fuel Injection Systems
  • Others

• By Major Market :

  • Original Equipment Manufacturers
  • Exports
  • Aftermarkets & Services

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa