How Big Is the Automotive Engine Market | Growth Trends & Outlook 2025

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Code: MTA3803

Publication Date: Jun 2025

Automotive Engine Market Size Growth Rate

As per 6Wresearch, Global Automotive Engine Market size is anticipated to reach a valuation of USD 154.8 billion by 2031, growing from USD 108.4 billion in 2025, driven by a CAGR of nearly 6.9%. A key factor accelerating this growth is the rapid development of hybrid and advanced internal combustion engines that offer better fuel efficiency while meeting tightening global emission standards.

How Big Is the Automotive Engine Market?

The automotive engine market is substantial and continues to grow at a consistent pace. The market is driven by the increasing demand for vehicles worldwide, including passenger cars, commercial vehicles, and electric vehicles (EVs). With rapidly developing economies and rising urbanization, the demand for vehicles has surged, thus fueling the growth of the engine market. Factors such as technological advancements in engine efficiency and the push for sustainability have further contributed to its expansion. This dynamic market is poised for steady growth, offering numerous opportunities for manufacturers across the globe.

Growth Drivers in the Global Engine Market

Several key factors drive the growth of the global engine market. One major driver is the rising consumer demand for fuel-efficient and low-emission engines, spurred by environmental regulations and shifting consumer preferences toward greener technologies. Another factor is the rapid industrialization and urbanization in emerging economies, which has led to increasing transportation needs. Additionally, innovations in hybrid and electric powertrains have complemented traditional internal combustion engines, expanding the spectrum of offerings in the market. Government initiatives to promote energy-efficient vehicles and tax benefits for eco-friendly technologies are also playing a crucial role in accelerating market growth.

Emerging Trends Transforming the Engine Market

The automotive engine market is undergoing significant transformation due to emerging trends. One such trend is the growing adoption of electric and hybrid powertrains, as automakers strive to meet stricter emission norms and cater to environmentally conscious consumers. Advances in materials science have also given rise to lighter, more durable parts, leading to engines with better performance and fuel efficiency. The integration of artificial intelligence and machine learning into engine management systems is another key development, offering improved diagnostics and performance optimization. Additionally, a focus on modular engine designs provides greater flexibility and reduces production costs, signaling a shift towards smarter manufacturing practices within the industry.