Vehicle Engine and Engine Parts Market Report 2025

This Vehicle Engine and Engine Parts market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The vehicle engine and engine parts market size has grown strongly in recent years. It will grow from $459.63 billion in 2024 to $493.89 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to industrial revolution, automobile mass production, environmental regulations, globalization of automotive manufacturing.

The vehicle engine and engine parts market size is expected to see strong growth in the next few years. It will grow to $630.69 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to electrification of vehicles, autonomous vehicles, lightweighting and fuel efficiency, 5g and connectivity, green energy and hydrogen. Major trends in the forecast period include advanced materials, hybrid powertrains, digitalization and iot, 3d printing and additive manufacturing, circular economy.

The growing production of automobiles is expected to drive the market for vehicle engines and engine parts. Automobile manufacturers utilize various engine components and parts in the production of vehicles. According to data from the International Organization of Motor Vehicle Manufacturers, a global automobile trade association based in Paris, the total number of vehicles produced worldwide from January to September 2022 rose to 57.2 million units, up from 52.1 million units during the same period in 2021. As a result, the increasing vehicle production worldwide is anticipated to fuel the growth of the vehicle engine and engine parts market.

The vehicle engine and engine parts market is expected to experience significant growth in the coming years, driven by the increasing production of autonomous vehicles. Autonomous vehicles, also known as driverless cars, can operate and perform essential functions without human intervention, thanks to their ability to perceive and respond to their surroundings. Vehicle engine and engine parts play a crucial role in providing reliable and robust solutions for the development and deployment of autonomous driving applications. This growing production of autonomous vehicles will lead to a heightened demand for complex software and hardware systems, consequently expanding the market for vehicle engine and engine parts. For instance, a report published by the Insurance Institute for Highway Safety, a U.S.-based non-profit organization focused on road safety, estimated that there would be 3.5 million self-driving automobiles on American highways by 2025 and 4.5 million by 2030. This projection underscores how the increasing production of autonomous vehicles is a driving force behind the growth of the vehicle engine and engine parts market.

Companies within the vehicle engine and engine parts market are actively investing in enhancing the fuel efficiency of internal combustion engines. They are manufacturing engines that not only offer increased power but also contribute to improved fuel economy. This focus on enhancing fuel efficiency represents an economically viable solution and contributes to reduced emissions of harmful pollutants into the atmosphere. For example, companies are directing their investments toward 'direct fuel injection' technology. This involves direct injection systems that spray a fine mist of fuel directly into the engine's cylinder, helping to manage the engine's temperature and ultimately leading to improved fuel efficiency. According to the U.S. Department of Energy, direct fuel injection can enhance engine efficiency by as much as 12%. As environmental concerns mount and consumers seek better value for their money, companies in this market are prioritizing investments in fuel efficiency improvements.

In February 2023, LKQ Europe, the largest provider of vehicle parts and services in Europe, completed its acquisition of the Dutch-based Rhenoy Group ('Rhenoy'). This strategic acquisition positions LKQ Europe to offer convenient and environmentally sustainable mobility solutions across European markets. LKQ Europe is leveraging its expertise and remanufacturing capabilities as part of its broader European strategy. Rhenoy Group, a Netherlands-based company, is a prominent player in the automotive industry, known for its proficiency in repairing damaged new, remanufactured, and used automotive parts.

Major companies operating in the vehicle engine and engine parts market include Cummins Inc., Toyota Motor Corporation, DENSO Corporation, Delphi Technologies PLC, Federal-Mogul LLC, MAHLE GmbH, Bayerische Motoren Werke Aktiengesellschaft, General Motors Company, Volkswagen AG, Fiat Chrysler Automobiles N.V., Volkswagen Group, Daimler AG, Stellantis N.V., Hyundai Motor Group, Nissan Motor Co. Ltd., Subaru Corporation, Volvo Group, Caterpillar Inc., Navistar International Corporation, Deere & Company, MAN Truck & Bus SE, Scania AB, PACCAR Inc., Wärtsilä Corporation, Perkins Engines Company Limited, MTU Friedrichshafen GmbH, Isuzu Motors Limited, CNH Industrial N.V.

The vehicle engine and engine parts are components that generate the power needed to propel a car or other vehicle. The engine is the heart of any vehicle, responsible for generating the power needed to drive the vehicle's wheels.

These components can be categorized into two main types are vehicle engines and vehicle engine parts. Vehicle engines encompass the diverse propulsion systems used to power vehicles, and these engines rely on various engine parts for their operation. Vehicle engines can be further classified based on their arrangement, which includes in-line engines, W engines, and V-types. Additionally, the type of fuel used can vary, including options like gasoline (petrol), diesel, natural gas, and other fuel types.

The vehicle engine and engine parts market research report is one of a series of new reports that provides vehicle engine and engine parts market statistics, including global market size, regional shares, competitors with a vehicle engine and engine parts market share, detailed vehicle engine and engine parts market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle engine and engine parts industry. This vehicle engine and engine parts market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

Asia-Pacific was the largest region in the vehicle engine and engine parts market in 2024. Western Europe was the second largest region in the vehicle engine and engine parts market. The regions covered in the vehicle engine and engine parts market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle engine and engine parts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vehicle engine and engine parts market consist of sales of engine, transmission, driveshaft, axles, head, block, oil sump and differential. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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