Automotive Engine Encapsulation Market Size Expected to Grow at a CAGR over 5.4% from 2022 to 2030

Pune, India, August 2020, MRFR Press Release/- Market Research Future has published a Cooked Research Report on the Global Automotive Engine Encapsulation Market.

Market Overview

Global Automotive Engine Encapsulation Market is expected to gain a value of USD 1.5 Billion by 2025, at a 5.4% CAGR during the forecast period, 2022–2030.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Automotive Engine Encapsulation market Research Report

The report covers segmentation and drivers for a better glimpse of the market in the coming years. Automotive engine encapsulations have registered significant growth in adoption rates over the past few years in developing countries such as China, Australia, and Brazil, owing to the rising automotive production and growing automotive aftermarket. The automotive engine encapsulation market is mainly dependent upon the automobile production and sale. Thus, the fluctuation in demand for automobiles has an impact on the market. The global passenger and commercial vehicle production volume in 2019 was almost 91 million units and is expected to witness a steady growth rate in the coming years

Competitive Analysis

Global Automotive Engine Encapsulation Market is a highly fragmented market with the presence of a high number of market players. The automotive engine encapsulation market has significant scope for improvement in the coming years. The manufacturers/service providers are operating at the regional level. The players are adopting strategies such as mergers & acquisitions, product development, partnerships, joint ventures, and expansions to improve their positions in the market, both regionally and globally. High competition, rapid technological changes, and integrated solutions by industry participants are the key factors that affect market growth. Vendors compete in terms of cost, product quality, reliability, and the size of the automotive engine encapsulations. These players need to offer cost-effective and superior products and services to succeed in the competitive market environment.

The growth of market vendors depends on market conditions, government support, and industry development. Thus, they should focus on improving their products, expanding their regional presence, and offering a variety of engine encapsulations to suit the requirements of the projects. Greiner Foam International GmbH, Adler Pelzer Holding GmbH, ElringKlinger, Rochling, and AUTONEUM are top five players, holding a 25% market share.

Segmental Analysis

The global market for automotive engine encapsulation is segmented based on vehicle type, construction type, distribution channel, and region. By type, the global automotive engine encapsulation market is bifurcated into engine mounted and body-mounted. The engine mounted encapsulation system allows the engine to retain much of its heat for up to 36 hours. This helps in reducing emissions and wear and tear while starting the engine, especially in colder climates. The engine mounted encapsulation is widely used owing to properties, such as superior acoustic and thermal performance. Thermal performance refers to heat storage, cooling system performance, manufacturability, and thermal safety of the engine and accessory components. Engine mounted encapsulation is majorly used in the small segment and sports utility vehicles.

By vehicle type, the global automotive engine encapsulation market is divided into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The rise in the sale of fuel-efficient vehicles due to the increasing purchasing power of consumers is paving the way for the adoption of engine encapsulation systems. Moreover, stringent government regulations regarding vehicle emission are expected to further contribute to the adoption of such systems in automobiles. To curb the adverse environmental impact of vehicle emission, the European Union has introduced the European emission standards — Euro 6

By material, the global automotive engine encapsulation market is segmented into carbon fiber, polypropylene, polyurethane, polyamide, and others. Carbon fiber is used as one of the primary materials in engine encapsulation as a part of engine covers and shields as it exhibits superior mechanical and tensile strength and low thermal expansion. Carbon fiber-enabled engine encapsulation systems are expensive and are mainly adopted in luxury cars.

By the sales channel, the global automotive engine encapsulation market is bifurcated into OEM and Aftermarket.

Regional Analysis

Based on region, the report on the global automotive engine encapsulation market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world.

Europe accounted for the largest market share of 35.7% in 2019, with a market value of USD 1.4 billion and is expected to register a CAGR of 5.2% during the forecast period. The region is the fastest-growing market for automotive engine encapsulation owing to the presence of several well-established OEMs in Germany and the UK. Stringent emission standards such as Euro 6 and the downsizing of engines to reduce vehicle weight have resulted in the increased demand for engine encapsulation.

Asia-Pacific was the second-largest market in 2019, valued at USD 1.2 billion and is projected to register the highest CAGR of 7.5%. The automotive industry in Asia-Pacific was growing at a fast pace till the beginning of 2020, due to the increase in production in developing nations such as China and India. The demand for technologically advanced cars was increasing with the growth of the information and communication technology (ICT), automotive, and transportation industries, resulting in the rising demand for advanced engine management systems.