The Asia Pacific Automotive Bearing market is anticipated to register a CAGR of about 3.9% during the forecast period (2019 - 2025).
Key Highlights
- Around 380 million heavy-duty vehicles and 1.2 billion light-duty vehicles (LDVs) in the world run on IC engines. In 2019, the daily demand for fuel oil had exceeded 11 billion litters. However, all alternatives to IC engines or alternatives to petroleum-based liquid fuels, still face very significant barriers to fast adoption, indicating a positive growth for the High-Performance IC Engine market.
- Primary, growth of the global IC engine market is attributed to rising disposable income levels with ownership towards self-driven vehicles. The Asia Pacific will see the most significant increase for IC engines
- Nevertheless, advancements are seen in IC engine technology as well. The pollutant level is down a 1000-fold compared to past decades. Moreover, electric vehicles are powered by batteries, come with a considerable cost, weight, and other limitations and cannot be fueled only by renewables sources such as wind and solar to meet the entries of the world’s energy supply.
Key Market Trends
Reliance on Oil will Drive the Demand for High-Performance IC Engine
About 25% of the world’s internal combustion (IC) engines operate on fossil fuel oil, which contributes towards 10% of the world’s greenhouse gas (GHG) emissions. In the case of automobiles, 90% of global cars run on internal combustion. Due to recent emission scandals, the reputation of IC engines has taken a massive blow. Many governments today are proposing schemes to replace vehicle IC engines with electric-drives to reduce fuel consumption and GHG emissions.
Although the market remains positive for various reasons, affordable energy remains an essential aspect, particularly in developing countries like China and India. Even, today the burning of the fossil has been the only reliable source of energy. Massive transportation networks and infrastructure are primarily based on the IC engine, which would require humongous expense to replace it altogether. EV’s need a highly sophisticated charging infrastructure with relatively higher pricing, which many countries cannot procure in the present scenario.
Technological developments in IC engines domain in terms of efficiency and performance will also boost the product demand for Higher-performing IC engines. High-performance IC engines emit lesser carbon emissions and offer several combustion modes such as homogeneous charge compression ignition (HCCI), which would further escalate the growth of High-Performance IC engines.
Asia-Pacific Remains Largest Market
In the Asia Pacific, the rise in the Indian economy and increased levels of income, especially amongst the middle-class consumers will drive the growth of the automotive market. This, in turn, will improve market opportunities for the IC engine industry as well. India is one of the largest manufacturers of automotive IC Engines, with one of the lowest production prices in the world. With a steady increase in sales of vehicles, India is expected to lead the growth of the markets. Although today automotive sales are expected slowdown in dominant markets like China, causing the Chinese government to impose numerous measures to increase sales of cars.
Indian IC engine manufacturers received 100% FDI from the government of India. With increasing production of vehicles in the country and the Bharat Stage-VI (BS-VI) norms have led to the growing demand for High-Performance IC Engines. Interestingly, GST on automotive IC engine related products was also slashed. Such factors will contribute to the growth of the IC engine in India.
Although the future for mobility will be characterized as mix electric battery vehicles, hybrid electric vehicles, and other conventional vehicles, depending on consumer preference. Nevertheless, the combustion engine will still play a central role for power generation or for powering the vehicle itself, even in strongly electrified powertrain configurations. As a result, there is considerable interest in improving the thermal efficiency of IC engines without significant increases in the purchase and operating costs.
Competitive Landscape
The High-Performance IC Engine Vehicle Market is consolidating with existing players such as Honda, Toyota, Volkswagen, Hyundai, and General Motors hold the most significant shares. To have the edge over its competitors’ companies is making joint-ventures, partnerships, launching new products with advanced technology. For instance,
In 2019, VW was one of the world’s largest manufacturer for IC engines and shipped over 10 million units in 2018. It is more commonly known for relatively small engines for optimal usage. VW adopted towards the less powerful 1.4-liter engine for the 2019 variant VW Golf while taking into consideration of its upgraded IC engine that will ensure a stable power output.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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