Vehicle Engine and Engine Parts Market Report 2026

The vehicle engine and engine parts market size has grown strongly in recent years. It will grow from $437.46 billion in 2025 to $460.53 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to global vehicle production growth, dominance of ICE engines, demand for engine performance, aftermarket parts demand, automotive manufacturing expansion.

The vehicle engine and engine parts market size is expected to see strong growth in the next few years. It will grow to $581.64 billion in 2030 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to ev transition acceleration, demand for low-emission engines, hydrogen engine development, smart engine control systems, advanced materials adoption. Major trends in the forecast period include shift toward hybrid and ev powertrains, adoption of lightweight engine components, growth of turbocharged engines, integration of advanced ecus, focus on fuel efficiency.

The increasing manufacturing of automobiles is expected to drive the growth of the vehicle engine and engine parts market going forward. Automobiles are motor vehicles designed to transport passengers and goods, including passenger cars, commercial vehicles, and electric vehicles. The rise in automobile production is fueled by growing global demand, economic recovery, rising consumer incomes, and technological advancements in the automotive sector. Vehicle engines and engine parts are essential for automobile performance, ensuring efficient power delivery, durability, and compliance with emission standards. For instance, in April 2024, according to the Serbian Association of Vehicle and Parts Importers, a Serbia-based professional automotive organization, 93,546,599 vehicles (including 67,133,570 passenger vehicles) were produced worldwide in 2023, up from 84,830,376 vehicles in 2022, highlighting a significant increase in global automotive output. Therefore, the increasing manufacturing of automobiles is driving the growth of the vehicle engine and engine parts market.

Major companies in the vehicle engine and engine parts market are focusing on technological advancements in automotive engineering, such as high power and torque engines to deliver superior performance and towing capability in heavy-duty trucks. High power and torque refer to an engine’s ability to generate substantial horsepower and rotational force for heavy loads. For instance, in January 2025, Cummins Inc., a U.S.-based global leader in diesel and alternative-fuel engines, launched the 2025 6.7L Turbo Diesel Pickup engine system for Ram Heavy Duty Trucks. This engine delivers up to 430 horsepower and 1,075 lb.-ft. of torque, featuring a variable-geometry turbocharger, high-pressure fuel injection, and optimized airflow, enhancing drivability, fuel efficiency, and reliability.

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 report 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.

Asia-Pacific was the largest region in the vehicle engine and engine parts market in 2025. 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 include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle engine and engine parts market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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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