Automotive Engine Components Market Set to Grow at 4.54% CAGR, Hitting USD 130.46 Billion by 2034

According to Towards Automotive consultants, the global automotive engine components market is projected to reach approximately USD 130.46 Billion by 2034, increasing from USD 83.68 Billion in 2024, at a CAGR of 4.54% during the forecast period 2025 to 2034.

Ottawa, July 09, 2025 (GLOBE NEWSWIRE) -- The global automotive engine components market size is valued at USD 87.48 Billion in 2025 and is expected to grow to USD 130.46 Billion in 2034, as noted in a study published by Towards Automotive, a sister firm of Precedence Research.

The automotive engine components market is growing spontaneously with a huge hike due to a rise in global vehicle production, advancements in technology, advancements in engine technology, and improved after-sales service of vehicles.

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Key Highlights of the Automotive Engine Components Market

By region, Asia Pacific dominated the automotive engine components market in 2024 due to rising production of automotive in the region.
By region, North America is observed to grow notably due to rising companies of automotive production and high investment in the segment in the region.
The passenger car segment dominated the automotive engine components market due to the high demand for SUVs globally.
The gasoline engine segment is growing notably in the foreseen period due to the high demand for petrol vehicles.

Market Overview

Rising disposable incomes, improved standard of living, improving automotive technology, and availability of multiple types of automotive have helped in the growth of the automotive engine components market in recent years. People today treat owning a vehicle as a necessity and not a luxury. People need vehicles for routine work such as going to their offices, schools, or college, or for traveling for various other reasons. Under such situations traveling by private vehicle helps one in convenient traveling and avoiding the rush observed in public transportation. Hence, the maximum population today prefers to travel through their private vehicle leading to a surge of demand for vehicle production.

People of different income groups and different age groups prefer their vehicles. Many people prefer to own a motorbike helping them in easy traveling and avoid public transport. While many people prefer a four-wheeler vehicle depending upon the comfort and economic background of an individual. Hence, such demands and attitudes of people help in the growth of the automotive engine components market in various regions. Along with the vehicle its engine components matter equivalently as its proper functioning involves proper maintenance helpful for a healthy vehicle life.

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China & India’s Engine Component Industry: Countries to Boom in the Upcoming Period

China and India are rapidly reshaping the global automotive engine components market, each leveraging unique strengths to exceed traditional manufacturing powerhouses. China leads in scale and innovation, backed by its "Made in China 2025" initiative and dominance in electric vehicle (EV) supply chains. In 2023, it was the largest producer of internal combustion and electric engine components in Asia, with global leadership in EV batteries, accounting for over 75% of global output. China's auto giants like BYD and Weichai Power are investing heavily in hybrid and turbocharger technologies, making the country a global R&D hub for next-gen engine systems.

India is emerging as a competitive exporter, fueled by cost-effective manufacturing, government incentives (such as the $3.2 billion PLI scheme), and increasing localization of supply chains. In FY25, India recorded a $453 million trade surplus in auto parts, with exports growing 8% to nearly $23 billion. The domestic market is also booming, up 11.3% in the first half of FY25 driven by strong demand for two-wheelers and passenger vehicles. While India benefits from low production costs and strategic trade alliances, it still relies on China for critical raw materials like rare-earth magnets, creating a strategic vulnerability in its EV component supply.

New Trends in the Automotive Engine Components Market

High demand for electric and hybrid vehicles has given rise to the demand for automotive components specific to such kinds of vehicles. It has helped in the rise of the component segment of the market in recent years.
Companies today are manufacturing automotive engine parts by using lightweight materials such as aluminum and composites. It helps in improving the fuel efficiency of the vehicle along with lower emissions.
Different types of helpful technologies and AI such as advanced engine management systems, electronic fuel injection, sensors, and other technologies have helped in the growth of the market. Such technologies help in the timely maintenance of the engine for better performance of the vehicle.
Improvements in emission control systems of vehicles and the robustness of diesel engine systems have also helped in the growth of the automotive engine components market in recent years.

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Market Dynamics

Drivers

What are the major growth factors of the Automotive Engine Components Market?

A hike in the production of vehicles and their sales is one of the major reasons for the growth of the automotive engine components market. People today prefer to own a vehicle rather than opt for public transportation having the way for the growth of the market. Technological advancements in the engine components segment are also helping in the growth of the market. Such advancements help in lowering emissions, improving vehicle performance, and allowing for timely maintenance of the engine for improved vehicle performance. It also helps to make a vehicle fuel efficient and helpful for the market’s expansion.

Challenges

What are the obstacles faced by Automotive Engine Components Market in its growth?

Various issues may act as a barrier to the growth of the automotive engine components market. Rising demand for electronic vehicles is one of the major challenges faced by the market. People today are highly inclined towards buying EVs leading to less demand for vehicles operating on combustion engines. Mandatory emission regulations designed by the government lead to the redesigning of combustion engines accordingly to follow the set rules is also a challenge faced by the market.

Opportunity

Advanced Technologies Helping in the Growth of the Market

The advancement of technology helping in designing engines to meet the required needs is one of the major opportunities for the growth of the automotive engine components market. It helps in lowering emissions to help promote a healthier environment. Advanced technologies also help in designing engines with the help of lighter materials. It helps in efficient fuel usage and improved vehicle performance. Advanced technology involving the use of sensors and AI to improve engine performance along with improving the performance of overall vehicles also helps in the growth of the automotive engine components market.

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Automotive Engine Cooling Systems Market - The global automotive engine cooling systems market size is calculated at USD 35.94 billion in 2024 and is expected to be worth USD 57.71 billion by 2034.
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Small Marine Engine Market - The global small marine engine market is forecast to grow from USD 9.45 billion in 2025 to USD 17.09 billion by 2034, driven by a CAGR of 6.93% from 2025 to 2034.
High-speed Engine Market - The global high-speed engines market is forecasted to expand from USD 26.97 billion in 2025 to USD 39.95 billion by 2034, growing at a CAGR of 4.83% from 2025 to 2034.
Turboprop Engine Market - The global turboprop engine market is forecast to grow at a CAGR of 6.5%, from USD 1.44 billion in 2025 to USD 2.53 billion by 2034, over the forecast period from 2025 to

Segmental Insights

By Component Type

The valve segment dominated the automotive engine components market in 2024. High demand for high-performance and efficient engines has led the segment to dominate the market. Stricter emission standards by the government for combustion engines help the segment rule the market. Hence, the manufacturing companies have to design the engines accordingly to meet the regulatory standards involving redesigned valves for proper controlling of airflow during the combustion process. Hence, the segment had a huge share of the market in 2024.

The connecting rods segment of the automotive engine components market is observed to be the fastest growing in the forecast period. The connecting rods help in converting linear motion into rotational motion helpful for the movement of a vehicle. The rods when manufactured with light-weight materials help in the power efficiency of a vehicle along with improved vehicle performance. Hence, the segment is about to be the fastest growing in the expected timeframe. Rising vehicle production and sales along with rising economies also help in the expansion of the segment along with the market.

By Vehicle Type

Passenger vehicles dominated the automotive engine components market in 2024 due to various reasons helpful for the expansion of the segment. One of the major reasons for the growth of the segment involves the high production of vehicles and sales leading to a rise in demand for engine components as well. It helps in improving the engine performance along with maintaining fuel efficiency.

Passenger vehicles dominated the market due to their high demand to cater to the needs of the growing population. People today prefer their vehicles for traveling rather than opting for public transportation options. The heavy commercial vehicles segment is observed to be the fastest-growing segment of the automotive engine components market in the foreseen period. Heavy commercial vehicles are crucial for the functioning of a region as they help in the functioning of different types of domains.

Their continuous movement for the transportation of people and goods from one place to another increases demand for robust and fuel-efficient engines. Such vehicles are essential for the management of various domains and systems hence the vehicles involved in the procedure need timely maintenance as well. Hence, the components required for the segment hold a major value in the foreseen period.

By Fuel Type

The gasoline segment dominated the automotive engine components market previously. People preferred vehicles operating on gasoline engines as their production was high and were comparatively lower in prices compared to EVs. Availability of gasoline engine vehicles was easy compared to EVS hence people preferred to buy such vehicles.

The electric vehicle segment is observed to be the fastest-growing segment of the automotive engine components market in the foreseen period due to multiple reasons contributing to its growth. Sustainability concerns are one of the major issues of higher adaptability of EVs. They help people to follow the no-emission policy for a cleaner environment.

Hence, government initiatives to promote electric vehicles are also helping in the growth of the automotive engine components market. Today people highly prefer buying an EV compared to gasoline engine vehicles due to the multiple benefits hidden behind its purchase.

By Sales Channel

The OEM (Original Equipment Manufacturer) segment dominated the market of automotive engine components market in 2024. The original equipment of a vehicle is always high in demand for its authenticity and for allowing a vehicle to perform its best. Hence, their high demand led to the growth of the automotive engine components market. The OEM directly transports the original equipment to vehicle manufacturers to avoid any issues in the performance of the vehicle. The procedure also helps in maintaining quality control easily without any obstruction.

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Regional Insights

Which Region Dominated the Automotive Engine Components Market in 2024?

Asia Pacific dominated the automotive engine components market in 2024 due to high vehicle production and sales leading to the expansion of the market in the region. Countries like China, Japan, and South Korea highly contribute to the growth of the market in the region. High manufacturing of different types of vehicles to cater to the needs of the growing demands is one of the major reasons for the growth of the automotive engine components market in the region. High disposable incomes, improved standards, and high demand for private vehicles are also some of the reasons contributing to the growth of the market.

What Region is Seen to Grow at the Fastest Rate in Automotive Engine Components Market?

North America is observed to be the fastest-growing region of the automotive engine components market in the foreseen period. North America is observed as the fastest-growing region of the automotive engine components market in the foreseen period due to high vehicle manufacturing in the region. The high manufacturing done to cater to the needs of the demands of people to own a private vehicle is also one of the major reasons for the growth of the market in the expected timeframe.

Advanced technologies in the engine and its component manufacturing helpful for improved performance of the vehicle is also fuelling the growth of the market. Advanced technology in the development of the engine and its components such as the involvement of sensors and AI to detect defaults at the right time and help in timely maintenance is also helping the growth of the market in the region.

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Recent Developments in the Automotive Engine Components Market

In March 2025, Stellantis invested $41 million in its plant in Italy for the manufacturing of electric engines for its upcoming small-size models.
In October 2024, Dodge’s Direct launched the Hellephant A30 426 and Drag Pak 354 supercharged crate engine blocks. The brand also introduced a trio of supercharger kits for the 6.2-litre crate engines.

Top Companies of Automotive Engine Components Market

Bosch
Denso
Continental AG
Mahle GmbH
Magna International
Aisin Seiki
Hyundai Mobis
Bosch Ltd
Motherson Sumi Systems
Bharat Forge

Segments Covered in the Report

By Component Type

Pistons
Valves
Crankshaft
Camshaft
Connecting Rods
Others

By Vehicle Type

Passenger Cars
Light Commercial Vehicles
Heavy Commercial Vehicles
Others

By Fuel Type

Gasoline
Diesel
Electric
Hybrid

By Sales Channel

OEM
Aftermarket

By Region

North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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