Automotive Engine Encapsulation Market Size, Forecast [2030]

Report Description

The global automotive engine encapsulation market size was around USD 6 Billion in 2021 and is projected to reach USD 10.49 Billion by 2030, expanding at a compound annual growth rate (CAGR) of around 4.6% during the forecast period, 2022-2030. The market growth is attributed to the increasing carbon emission and growing demand for fuel-efficient vehicles.

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Automotive engine encapsulation refers to a process of encapsulating or layering an automotive engine to isolate it from the environment on the outside. The engine encapsulation process aids in preserving the heat that the engine emits even after it is shut off. Engines need high temperatures for initial start-ups. However, low engine temperatures at the time of ignition increase fuel consumption.

Cool engines take time to reach the necessary temperature during ignition, which affects the overall performance of these engines and automobiles in general. The automotive engine encapsulation process manages the temperature of the engine, which helps in attaining the desired engine temperature quickly while starting the engine again. It helps in reducing the motor speed and fuel consumption at the start-up.

High awareness regarding the increasing carbon emission and its negative effects on the environment has pushed several automotive manufacturers to adopt automotive engine encapsulation in the production of technologically advanced automobiles. Engine encapsulation facilitates manufacturers to offer noise-free and fuel-efficient automobiles.

Encapsulating vehicle engines helps the engines reach the desired beginning temperature quickly and carry out the overall process of ignition and starting of the vehicle smoothly. The encapsulation reduces any friction between engine parts, which helps with noise reduction as well.

COVID-19 Impact

The global automotive engine encapsulation market was affected negatively during the pandemic. The lockdown, social distancing policies, travel restrictions, and other pandemic-related regulations resulted in the decreasing demand for automobiles across the globe. The shutdown of several manufacturing units, halt in production, and disruption of the supply chain had adverse effects on the automotive industry, which in turn affected the global automotive engine encapsulation market during the COVID-19 period. Relaxation in the pandemic-related restrictions in recent years is expected to boost the global automotive engine encapsulation market during the forecast period.

Market Dynamics

The global automotive engine encapsulation market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global automotive engine encapsulation market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Major Trends:

Adoption of carbon fiber in automotive engine encapsulation systems is one of the key market trends

An increasing number of automobile manufacturers are adopting advanced materials in automotive engine encapsulation systems. Carbon fiber is an expensive material; however, it is lightweight. This makes it a popular choice among automobile companies to cover and shield vehicle engines. Carbon fibers are generally used in luxury cars.

Key Drivers:

Rising demand for fuel-efficient and noise-free vehicles boosts the global automotive engine encapsulation market

Fluctuating prices of crude oil and gasoline have increased the demand for fuel-efficient vehicles across the globe. Several automobile manufacturers are adopting an automotive engine encapsulation system to enhance fuel economy and improve vehicle performance of vehicles. Increasing awareness of noise pollution among consumers propels the demand for vehicles with less noise emission. High demand for noise-free and fuel-efficient vehicles among consumers fuels the growth of the global automotive engine encapsulation market.

Surging demand for luxury and mid-segment cars spurs the global automotive engine encapsulation market

Rapid urbanization and rising disposable income among consumers have boosted the demand for luxury and mid-segment cars across the globe. Several automobile manufacturers integrate automotive engine encapsulation systems in luxury and mid-segment cars to offer an enhanced consumer experience, which drives the global automotive engine encapsulation market.

Existing Challenges:

Increasing adoption of electric vehicles (EVs) hamper the growth of the global automotive engine encapsulation market

Growing awareness regarding the negative effects of carbon emission and automotive exhaust system on the environment among consumers have increased the demand for electric vehicles across the globe in recent years. Electric vehicles consist of fewer engine components than the internal combustion engines, which eliminates the need for automotive engine encapsulation in electric vehicles.

Various automobile manufacturers are introducing innovative and advanced electric vehicles to meet the growing demand for electric vehicles by consumers. The growing demand for electric and hybrid vehicles is estimated to restrain the global automotive engine encapsulation market growth in the coming years.

Emerging Opportunities:

Rising demand for advanced vehicles offers growth opportunities to the market players

High demand and adoption of innovative and advanced technologies such as NVH systems and thermal acoustics in automobiles propel manufacturers and market players to integrate such technologies in vehicle production. The surging adoption of such technologies to offer fuel-efficient and aerodynamically efficient automobiles to consumers offer lucrative opportunities to the market players.

Scope of the Report

The global automotive engine encapsulation market research report includes an assessment of the market trends, market segments, and regional markets. Market overview and dynamics have also been included in the report.

Market Segment Insights

Body-mounted segment dominates the market

According to product type, the global automotive engine encapsulation market is divided into body-mounted and engine-mounted. The body-mounted segment is expected to hold a key market revenue share during the forecast period, as the body-mounted automotive engine encapsulation system is compatible with various vehicles.

Body-mounted system for automotive engine encapsulation insulates all around the engine of a vehicle. Increasing demand for luxury, sports, and mid-segment passenger cars, which are increasing manufactured with body-mount automotive engine encapsulation, propels the body-mounted segment growth.

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Carbon fiber segment holds a significant market share

In terms of material type, the global automotive engine encapsulation market is segregated into polypropylene, carbon fiber, polyamide, polyurethane, glasswool, and others. The carbon fiber segment is projected to register rapid growth during the forecast period, due to the increasing adoption of advanced and high-quality materials such as carbon fiber in automotive engine encapsulation.

Carbon fibers are used mainly in luxury vehicles, as this material is light in weight and possesses excellent thermal aging performance and noise cancellation properties. These features of carbon fibers make them a popular choice for automotive engine encapsulation among automobile manufacturers. Increasing demand for sports and luxury cars across the globe fuels the carbon fiber segment growth.

Gasoline segment to grow rapidly

On the basis of fuel type, the global automotive engine encapsulation market is divided into diesel and gasoline. The gasoline segment is estimated to account for a large market revenue share during the forecast period, owing to the high production and sale of gasoline-based vehicles across the globe. Gasoline-based engine vehicles produce less exhaust in comparison to diesel-based engine vehicles. Government policies and regulations that support gasoline-based engines boost the gasoline segment growth.

Passenger vehicle segment holds a key market share

Based on vehicle type, the global automotive engine encapsulation market is segregated into heavy commercial vehicle, light commercial vehicle, and passenger vehicle. The passenger vehicle segment is projected to hold dominance over the global automotive engine encapsulation market during the forecast period, owing to increasing demand and production of passenger cars in developing countries. High demand for luxury light-duty vehicles that are equipped with advanced technologies such as thermal and acoustic management systems across the globe boost the passenger vehicle segment growth.

The light commercial vehicle segment is anticipated to register rapid growth in the coming years, owing increasing adoption of NVH systems and thermal acoustics systems in light commercial vehicles across the globe. Growing demand for advanced technologies to manage heat and engine noise generated by commercial vehicle engines drives the light commercial vehicle segment growth.

Asia Pacific to dominate the market

In terms of region, the global automotive engine encapsulation market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The automotive engine encapsulation market in Asia Pacific is expected to register a high CAGR during the forecast period, due to the increasing volume of production and sales of automobiles in the region.

Countries such as China, India, South Korea, and Japan account for almost 50% of global automobile production. The growing population, rising disposable income, and increasing production of luxury cars in the region are estimated to fuel the growth of the global automotive engine encapsulation market in Asia Pacific.

The automotive engine encapsulation market in North America is anticipated to expand in the coming years, owing to the increasing demand for fuel-efficient vehicles across the region. The high presence of the market players, increasing automobile production, and growing adoption of innovative technologies such as thermal acoustics and NVH systems in the region spurs the growth of the automotive engine encapsulation market in North America.

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