Automotive Engine Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type, By Placement Type, By Fuel Type, By Region & Competition, 2021-2031F

Description

The Global Automotive Engine Market is projected to expand from USD 99.86 Billion in 2025 to USD 145.55 Billion by 2031, reflecting a CAGR of 6.48%. As the central mechanical power unit, the automotive engine utilizes internal combustion or hybrid technology to transform chemical energy into the kinetic force needed for mobility. Market growth is primarily supported by rising global vehicle production to accommodate urbanization and the burgeoning logistics sector. Furthermore, combustion engines remain indispensable within hybrid powertrains, bridging the gap between traditional propulsion and fully electric solutions while adhering to increasingly stringent emission standards.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 99.86 Billion
Market Size 2031	USD 145.55 Billion
CAGR 2026-2031	6.48%
Fastest Growing Segment	Passenger Cars
Largest Market	North America

A significant obstacle to market expansion is the rapid shift toward pure electric mobility, which removes the need for conventional engines in favor of electric motors. This transition is intensified by government mandates banning fossil fuel vehicles in key economies, forcing manufacturers to reallocate funds toward alternative technologies. Despite these headwinds, the market scope remains extensive. According to the European Automobile Manufacturers Association, global car sales hit 74.6 million units in 2024, highlighting the enduring demand for automotive propulsion systems.

Market Driver

The increasing global production and sales of passenger and commercial vehicles serve as a primary catalyst for the automotive engine market. As emerging nations develop industrial infrastructure and mature markets replace aging fleets, the demand for reliable transportation drives the manufacturing of internal combustion units. This trend is particularly notable in major production hubs, where output is scaling to meet domestic and export needs, maintaining a strong correlation between vehicle assembly and engine procurement. Data from the International Organization of Motor Vehicle Manufacturers in March 2024 indicates that global vehicle production rose by 10 percent year-on-year in 2023, totaling 93.5 million units.

Concurrently, the rapid adoption of hybrid powertrain architectures is invigorating the sector by pairing traditional engines with electric propulsion. Unlike fully electric models, hybrids retain an internal combustion engine, thereby sustaining production lines and justifying ongoing investment in thermal efficiency. This approach enables automakers to meet stricter emission rules without discarding existing fuel-based infrastructure. According to Toyota Motor Corporation's financial results for the fiscal year ended March 31, 2024, global sales of its hybrid electric vehicles jumped by 32.1 percent to roughly 3.7 million units. Further emphasizing the sector's financial significance, Cummins Inc. reported full-year sales of 11.7 billion USD within its engine segment in 2024.

Market Challenge

The rapid global shift toward pure electric mobility presents a fundamental obstacle to the automotive engine market's growth. This transition involves replacing internal combustion engines with battery-powered electric motors, thereby eliminating the need for traditional mechanical powertrains in an expanding vehicle segment. As governments implement tighter emission rules and schedule fossil fuel vehicle bans, automakers must redirect capital from engine development toward electrification. This reallocation restricts the innovation and production capacity available for conventional engines, leading to a progressive reduction in their market presence.

The impact of this trend is clearly demonstrated by the sharp decline of fossil fuel propulsion systems in key markets. According to the European Automobile Manufacturers' Association, during the first nine months of 2025, the combined market share of petrol and diesel cars in the European Union dropped to 37%, a notable fall from the 46.8% recorded in the same period of 2024. This contraction highlights how the increasing adoption of electric vehicles is actively diminishing the volume of traditional engines demanded by the industry.

Market Trends

The adoption of hydrogen internal combustion engine technology is gaining momentum, especially within the commercial vehicle sector, as manufacturers aim to decarbonize heavy-duty transport while utilizing established mechanical architectures. By combining existing piston infrastructure with zero-carbon hydrogen fuel, this technology provides a practical alternative to battery-electric systems for long-haul logistics where range and payload are crucial. This strategic move toward flexible fuel solutions is highlighted by recent industry advancements; for instance, Cummins Inc. announced in February 2025 the launch of its Cummins HELM(TM) engine platforms, designed to operate on low-carbon fuels such as hydrogen to meet future fleet needs.

At the same time, the widespread implementation of 48V mild hybrid systems is reshaping the passenger car market by offering a cost-efficient path to meeting strict emission standards. These architectures capture kinetic energy to support the internal combustion engine, significantly improving fuel efficiency without incurring the high manufacturing costs of full electrification. This technological shift is driving major changes in consumer buying habits. According to a July 2025 report by the European Automobile Manufacturers' Association, hybrid electric vehicles-including mild hybrid powertrains-achieved a record market share of 34.8% in the European Union during the first half of 2025, underscoring their dominance in the transition away from pure fossil fuel propulsion.

Key Market Players

Mercedes-Benz
Cummins Inc.
Toyota Motor Corporation
BMW
General Motors
Honda Motor Company Ltd
Hyundai Motor Company
Suzuki Motor Corporation
Stellantis N.V.
Scania AB

Report Scope

In this report, the Global Automotive Engine Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Automotive Engine Market, By Vehicle Type

Passenger Cars
Commercial Vehicle
Two-Wheeler

Automotive Engine Market, By Placement Type

In-Line
V-Type
W-Type

Automotive Engine Market, By Fuel Type

Petrol
Diesel
Other Fuels

Automotive Engine Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Engine Market.

Available Customizations:

Global Automotive Engine Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Automotive Engine Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Vehicle Type (Passenger Cars, Commercial Vehicle, Two-Wheeler)
- 5.2.2. By Placement Type (In-Line, V-Type, W-Type)
- 5.2.3. By Fuel Type (Petrol, Diesel, Other Fuels)
- 5.2.4. By Region
- 5.2.5. By Company (2025)
5.3. Market Map

6. North America Automotive Engine Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Vehicle Type
- 6.2.2. By Placement Type
- 6.2.3. By Fuel Type
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Automotive Engine Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Vehicle Type
    - 6.3.1.2.2. By Placement Type
    - 6.3.1.2.3. By Fuel Type
- 6.3.2. Canada Automotive Engine Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Vehicle Type
    - 6.3.2.2.2. By Placement Type
    - 6.3.2.2.3. By Fuel Type
- 6.3.3. Mexico Automotive Engine Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Vehicle Type
    - 6.3.3.2.2. By Placement Type
    - 6.3.3.2.3. By Fuel Type

7. Europe Automotive Engine Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Vehicle Type
- 7.2.2. By Placement Type
- 7.2.3. By Fuel Type
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Automotive Engine Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Vehicle Type
    - 7.3.1.2.2. By Placement Type
    - 7.3.1.2.3. By Fuel Type
- 7.3.2. France Automotive Engine Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Vehicle Type
    - 7.3.2.2.2. By Placement Type
    - 7.3.2.2.3. By Fuel Type
- 7.3.3. United Kingdom Automotive Engine Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Vehicle Type
    - 7.3.3.2.2. By Placement Type
    - 7.3.3.2.3. By Fuel Type
- 7.3.4. Italy Automotive Engine Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Vehicle Type
    - 7.3.4.2.2. By Placement Type
    - 7.3.4.2.3. By Fuel Type
- 7.3.5. Spain Automotive Engine Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Vehicle Type
    - 7.3.5.2.2. By Placement Type
    - 7.3.5.2.3. By Fuel Type

8. Asia Pacific Automotive Engine Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Vehicle Type
- 8.2.2. By Placement Type
- 8.2.3. By Fuel Type
- 8.2.4. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Automotive Engine Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Vehicle Type
    - 8.3.1.2.2. By Placement Type
    - 8.3.1.2.3. By Fuel Type
- 8.3.2. India Automotive Engine Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Vehicle Type
    - 8.3.2.2.2. By Placement Type
    - 8.3.2.2.3. By Fuel Type
- 8.3.3. Japan Automotive Engine Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Vehicle Type
    - 8.3.3.2.2. By Placement Type
    - 8.3.3.2.3. By Fuel Type
- 8.3.4. South Korea Automotive Engine Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Vehicle Type
    - 8.3.4.2.2. By Placement Type
    - 8.3.4.2.3. By Fuel Type
- 8.3.5. Australia Automotive Engine Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Vehicle Type
    - 8.3.5.2.2. By Placement Type
    - 8.3.5.2.3. By Fuel Type

9. Middle East & Africa Automotive Engine Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Vehicle Type
- 9.2.2. By Placement Type
- 9.2.3. By Fuel Type
- 9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Automotive Engine Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Vehicle Type
    - 9.3.1.2.2. By Placement Type
    - 9.3.1.2.3. By Fuel Type
- 9.3.2. UAE Automotive Engine Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Vehicle Type
    - 9.3.2.2.2. By Placement Type
    - 9.3.2.2.3. By Fuel Type
- 9.3.3. South Africa Automotive Engine Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Vehicle Type
    - 9.3.3.2.2. By Placement Type
    - 9.3.3.2.3. By Fuel Type

10. South America Automotive Engine Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Vehicle Type
- 10.2.2. By Placement Type
- 10.2.3. By Fuel Type
- 10.2.4. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Automotive Engine Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Vehicle Type
    - 10.3.1.2.2. By Placement Type
    - 10.3.1.2.3. By Fuel Type
- 10.3.2. Colombia Automotive Engine Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Vehicle Type
    - 10.3.2.2.2. By Placement Type
    - 10.3.2.2.3. By Fuel Type
- 10.3.3. Argentina Automotive Engine Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Vehicle Type
    - 10.3.3.2.2. By Placement Type
    - 10.3.3.2.3. By Fuel Type

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Automotive Engine Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Mercedes-Benz
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Cummins Inc.
15.3. Toyota Motor Corporation
15.4. BMW
15.5. General Motors
15.6. Honda Motor Company Ltd
15.7. Hyundai Motor Company
15.8. Suzuki Motor Corporation
15.9. Stellantis N.V.
15.10. Scania AB