Automotive Engine Market Size

Q: What is the overall size of the automotive engine market?

The automotive engine market is projected to reach USD 392.1 billion by 2031.

Q: What is the CAGR of the automotive engine market during the forecast period?

The automotive engine market is expected to grow at a CAGR of 4.4% during the forecast period.

Q: What role do automotive engines play in hybrid vehicles?

In hybrid vehicles, engines work in tandem with electric motors to provide power, improve fuel efficiency, and reduce emissions.

Q: What technologies are shaping the future of automotive engines?

Variable valve timing, direct injection, turbocharging, and lightweight engine materials are key innovations driving engine efficiency and performance.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Automotive Engine Market Size | Growth, Forecast & Industry Trends 2025

Code: MTA5225

Publication Date: Jul 2025

How big is the automotive engine market?

According to 绿帽社 internal database and industry insights, Global automotive engine market was valued at approximately USD 290.4 billion in 2024 and is projected to reach USD 392.1 billion by 2031. The market is expected to grow at a CAGR of 4.4% during the forecast period.

The growth is driven by sustained demand for internal combustion engines (ICE) in emerging markets, the hybridization of traditional engines, and innovations in fuel efficiency and emission control.

Key Growth Factors of the Automotive Engine Market

Rising vehicle production, especially in developing countries
Technological advancements in turbocharging and fuel injection systems
Increasing adoption of hybrid powertrains in passenger and commercial vehicles
Stringent emission norms pushing engine innovation and compliance upgrades
Growing demand for light-duty and heavy-duty commercial vehicles
Focus on improving engine thermal efficiency and downsizing trends

Automotive Engine Market Trends

Automotive manufacturers are increasingly investing in hybrid engine platforms combining ICE with electric drives. There is growing emphasis on downsized turbocharged engines that deliver better power-to-weight ratios. Moreover, integration of advanced combustion technologies and low-friction components is becoming widespread. Engine control units (ECUs) are being enhanced with predictive analytics and real-time diagnostics for performance optimization.

Emerging Developments in the Automotive Engine Market

Recent developments include variable compression ratio engines for fuel optimization, hydrogen ICE development, and biofuel-compatible engines. Automakers are exploring engine architectures with reduced moving parts and smart actuators to reduce emissions and maintenance. Collaborations between OEMs and fuel technology companies are also driving innovation in alternative combustion strategies.