Automotive Engine Cylinder Block Market - Growth, Trends, and Forecasts (2022 - 2027)

The Automotive Engine Cylinder Block Market*was valued at USD 11.27 billion in 2021 and is expected to reach USD 15.13 billion by 2027 registering a CAGR of around 4.5% during the forecast period.

The COVID-19 pandemic had a negative impact on the market during 2020 due to a halt in manufacturing activities and supply chain disruptions due to restrictions imposed by governments worldwide. However, post-pandemic as economic activities restored the demand started gaining momentum owing to notable growth in production and sales of vehicles across major countries like the United States, China, India, and others.

Over the medium term, rising vehicle production and rising demand for technologically sophisticated powered engines for improved vehicle performance are expected to drive demand in the market over the forecast period. In addition, Furthermore, expansion of the automotive engine industry coupled with the growing inclination of customers toward high-end automobiles is likely to offer lucrative opportunities for players operating in the market. For instance, Audi has created a TFSI 4-cylinder engine, the most efficient 2-liter gasoline engine on the market. Such technical advancements will undoubtedly enhance market growth, elevate the need of efficient engine cyclinder blocks as it forms crucial integral part in the automotive engines.

Apart from these factors, demand for improved engine performance and higher fuel efficiency to comply with government regulations to reduce vehicle emissions has led to the development of engines producing lesser carbon emissions. These developments are further impacting the market growth positively. However, growing adoption of electric vehicles and key players initiatives in this regard to comply implementation of stringent laws like ban on diesel, petrol engines across key European countries to slowdown demand in the market.

Furthermore, Significant investments in research and development and commitment with focus on developing an latest technologies such as such as engine control unit replacement, on increasing the average vehicle's lifespan and engine's lifecycle anticipated to offer lucrative opportunities for players operating in the automotive engine cyclinder block market.

Asia-Pacific is projected to grow substantially over the forecast period owing to the technological advancements in automotive engine industry. Moreover, rising demand for mid and high-end segment cars with powerful engines and budget-friendly prices to attract mid-income level consumers to drive demand for engine cyclinder blocks in the region. In North America, and Europe the demand for engine cyclinder blocks to be driven by commercial vehicles as key countries in this region are rising infrastructure investments. Further, technological advancements in propulsion, and the continued growth of regional to global supply chain networks projected to spur growth in these regions.

Key Market Trends

Passenger Car Segment Likely to Hold Majority Share in the Market

The Passenger car segment of the market expected to grow significantly over the forecast period owing to rising vehicle production and growing customer base across the world. For example, In 2021, some 56.4 million passenger cars were sold globally, up by about five percent year-on-year. At just under 21.5 million units, China was the world's largest regional market for automobiles in 2021. Further, In passenger cars, the automotive engine cylinder block supports an internal combustion engine.Motion is transmitted from the vehicle's crankshaft through the transmission and onto each wheel by the powertrain.When you accelerate or apply pressure to your brakes, the crankshaft, on one end, rotates, and the wheels, on the other, slow down.

Several key OEMS are actively launching new models and are focusing on enhancing their existing IC engine portfolio which in coming years expected to enhance overall demand in the market. For instance,

• In November 2020, Volkswagen de Mexico announced an investment of USD 233.5 million for the production of the new EA211 engine at the Silao engine plant in Guanajuato and said engine will be integrated into the production of Volkswagen models in the North America region. For its production, the Silao plant installed a new complete engine assembly line, as well as new production lines for the block, crankshaft, cylinder heads and connecting rods.

Furthermore, with the growing focus on improved fuel economy and reduced exhaust emissions, are expected to witness fast growth during the forecast period. However, growing electric vehicles result in decline in demand for engine cyclinder blocks, despite the fact that EVS are on rise the majority of the market is still dominated by IC engines. It is anticipated that the rising demand for high-end automobiles and the use of high-power engines in racing will soon contribute to the expansion of the automotive engine market. Therefore, the above mentioned trends and developments in market expected to contribute for growth of passenger car segment of the market studied over the forecast period.

Asia-Pacific Region Anticipated to Grow at Significant Level During the Forecast Period

Asia-Pacific region is likely to hold a significant share in the automotive engine cylinder markret owing to the growing demand for passenger cars across major countries like China, India, Japan, etc. Further, the presence of key automakers coupled with the presence of numerous aftermarket manufacturers in the region is anticipated to enhance the demand in the market during the forecast period.

The Asia-Pacific region are anticipated to grow significantly over the forecast period owing to the presence of key economies such as India, China, etc. which contribute majority of vehicle production across the world. For example, The total volume of automobile industry sales in China reached 26.2 million units in 2021, around 21.5 million units out of which were passenger cars. Further with key companies playing active role region expected to grow significantly over forecast period. For instance,

• In March 2022, Harbin Dongan Auto Engine Co., Ltd. ( unveiled its investment plan for 2022. There are two special investment projects. The first one is building a production line for high-efficiency extended-range engines, involving the transformation of the machining center, marking machines, tightening machines, gluing machines and other equipment. This project will be built by Harbin Dongan Automotive Engine Manufacturing Co., Ltd. (DAE), a subsidiary of Harbin Dongan Auto Engine, with a total investment of CNY 72.33 million. The second project is a process capability improvement project, involving cylinder head automatic grinding equipment and cylinder block final cleaning machines. This project will be built by Harbin Dongan Auto Engine with a total investment of CNY 24 million.
• In March 2022, the Competition Commission of India (CCI) approved the proposed combination involving the acquisition of the stake in ISMT Limited by Kirloskar Ferrous Industries Limited. Kirloskar Ferrous is presently engaged in the business of manufacturing and sale of pig iron and grey iron castings such as cylinder blocks, cylinder heads, transmission parts, and different types of housings required by automobile, tractor, and diesel engine industries.

Additionally, vehicle replacement rates in this region are rising at a faster rate than they were a few years ago owing to active developments in the aftermarket sector of the automotive industry coupled with presence of several local and regional players.This region is also popular for engine rework and reassembling, which will propel the automotive engine cylinder blocks market's expansion.In order to meet OEM and aftermarket demand, players in the region are rapidly expanding to expand their supply capacity.Thus, Asia-Pacific market is expected to benefit from all of these factors.

Competitive Landscape

The Automotive engine piston rings market is fragmented, with several players vying for a considerable share in the market. Some of the prominent companies in the Automotive Engine Cylinder Block market are Cummins, Perkin's Engine Co., Fiat Chrysler automobiles and others. Companies are investing heavily in research and development for the innovation of new and advanced products and technologies. In March 2020, Fiat Chrysler Automobiles announced that they will be investing USD 400million to use their transmission plant in Indiana to build engines. For instance,

• In March 2021, Stellantis officially started the new production line for GSE Turbo engines, inside the Fiat Powertrain Technologies plant in Betim, Brazil, making it the largest powertrain production plant in Latin America, with an annual capacity of 700,000 engines and 500,000 transmissions. With an area of 12,000 square meters, the plant has two machining lines for cylinder heads and engine blocks and an assembly line, divided into three cycles: cylinder head, short block and long block.
• In April 2021, ASIMCO announced that construction of its automotive component manufacturing site project commenced in the city of Yuncheng, Shanxi Province. The project has received a total investment of CNY 1.05 billion and will mainly produce cylinder blocks and covers for 10-15L diesel engines, with an annual output expected to reach CNY 1.5 billion. Casting production lines and intelligent processing lines will be built with a designed capacity of 60,000 tons.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support