Engine Encapsulation Market Report 2025

The engine encapsulation market size has grown strongly in recent years. It will grow from $5.98 billion in 2024 to $6.33 billion in 2025 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to fuel efficiency concerns, noise, vibration, and harshness (NVH) reduction, emission control regulations, focus on aerodynamics in vehicle design.

The engine encapsulation market size is expected to see strong growth in the next few years. It will grow to $8.46 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to stricter emission standards, electrification of vehicles, integration with advanced cooling systems, continued emphasis on fuel efficiency, adoption of lightweight materials. Major trends in the forecast period include active engine encapsulation systems, integration with vehicle thermal management, sustainable and recyclable encapsulation materials, customization for electric vehicles, advanced computational simulations for optimal design.

The increase in demand for commercial vehicles is driving the growth of the engine encapsulation market. Commercial vehicles are used for the transportation of goods over long distances, increasing the need for better fuel efficiency. Commercial vehicles are used for the transportation of goods over long distances, increasing the need for better fuel efficiency. Engine encapsulation saves fuel and minimizes engine noise and heat transfer, making it an attractive solution for commercial vehicles. For example, in July 2022, according to Pandaily, a Beijing-based technology media company, the sales volume of commercial vehicles was 168,000, up 49. 4% year-on-year. Also, in May 2021, demand for new commercial vehicles in Germany increased by 46. 4% over the previous year. Hence, the increasing demand for commercial vehicles is expected to drive the growth of the engine encapsulation market in the forecast period.

The increase in demand for passenger vehicles in developing economies will support the growth of the engine encapsulation market going forward. The improved economic conditions, increased consumer disposable income and a desire for personal mobility in the face of public health concerns has led to a rise in demand for passenger vehicles. As more individuals sought out these vehicles for their convenience, comfort and advanced features, the demand for engine encapsulation also increased. For instance, according to the Society of Indian Automobile Manufacturers (SIAM), an India-based not-for-profit national body, total Passenger Vehicle Sales increased from 3,069,523 to 3,890,114 units. Sales of passenger cars also increased from 1,467,039 to 1,747,376, and vans 113,265 to 139,020 units, in FY-2022-23, compared to the previous year. Therefore, the surge in demand for passenger vehicles will support the growth of the engine encapsulation market.

New product innovation is becoming a key trend in the engine encapsulation market, as companies focus on developing advanced solutions to strengthen their market position. For instance, in March 2024, Röchling SE and Co. KG, a Germany-based manufacturer of engineering plastic systems and components, introduced a new engine encapsulation system designed specifically for electric vehicles (EVs). The primary goal of this system is to improve thermal management and extend battery life, addressing the unique challenges of electric drivetrains. The encapsulation system is engineered to optimize the thermal environment around the electric motor and battery, which is critical for maintaining performance and longevity. Additionally, the system aims to reduce noise and vibrations, enhancing the overall driving experience - an important feature in EVs, where the lack of engine noise makes other sounds more prominent.

Companies operating in the engine encapsulation market are focusing on new technological innovations, such as AI-based aircraft engine analysis tool to reinforce their position. An AI-based aircraft engine analysis tool is a computer vision product that operates on top of the Awiros Video Intelligence Operating System (OS) and is designed to automate the inspection of aircraft engines. For example, in June 2023, Pratt & Whitney, a US-based aerospace manufacturer, in collaboration with Awiros, an Indian provider of video intelligence analytics software solutions for retailers, launched an advanced AI-based aircraft engine analysis tool called Percept, which automates inspection and reduces time by approximately 90%. The tool is a computer vision product that operates on top of the Awiros Video Intelligence Operating System (OS). Its a cloud-based interface allows users to capture images and videos of engines on mobile devices and receive real-time responses on parts availability, which enables a faster and more cost-efficient turnaround of leased engine assets.

In April 2022, Cummins Inc., a US-based engine, filtration, and power generation products company, acquired Jacobs Vehicle Systems (JVS) for an undisclosed amount. Through this acquisition, Cummins gains access to JVS’s strong product portfolio and adds new technologies to provide growth opportunities for Cummins’ current and future advanced diesel engine platforms. Jacobs Vehicle Systems is a US-based company that develops and manufactures engine braking, cylinder deactivation, start and stop, and thermal management technologies.

Major companies operating in the engine encapsulation market include ElringKlinger AG, Autoneum Holding AG, Continental AG, Roechling Group, Greiner Foam International GmbH, Trocellen GmbH, Adler Pelzer Holding GmbH, BASF SE, Furukawa Electric Co. Ltd., Evonik Industries AG, Hennecke GmbH, Compagnie de Saint-Gobain S. A., UFP Technologies Inc., Polytec Group, DBW Advanced Fiber Technologies GmbH, ZF Friedrichshafen AG, GKN plc, Schaeffler Technologies AG & Co KG, BorgWarner Inc., AVL List GmbH, Axletech International, Dana Limited, Woco Industrietechnik GmbH, 3M Company, SA Automotive Ltd, Charlotte Baur Formschaumtechnik GmbH, Carcoustics International GmbH, Uniproducts Inc., UGN Inc., Robert Bosch GmbH.

Engine encapsulation slows motor cool-down and increases the likelihood of a high initial temperature at the next engine start, resulting in a shorter warm-up time and less friction between engine parts. The engine encapsulation is used to insulate the engine from the outside environment and retain heat in the engine after it has been turned off, offering high thermal and acoustic insulation.

The main types of products in engine encapsulation are body-mounted and engine-mounted. Body-mounted engine encapsulation refers to engine encapsulation on parts attached to the body, covering all sides of the engine. The different material types include polypropylene, polyurethane, polyamide, glass wool, and carbon fiber and involve several vehicle classes, such as economic, mid-priced, and luxury. The several fuel types include diesel and gasoline and are distributed through various channels such as original equipment manufacturer (OEM) and aftermarket.

The engine encapsulation market research report is one of a series of new reports that provides engine encapsulation market statistics, including engine encapsulation industry global market size, regional shares, competitors with an engine encapsulation market share, detailed engine encapsulation market segments, market trends and opportunities, and any further data you may need to thrive in the engine encapsulation industry. This engine encapsulation 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 engine encapsulation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the engine encapsulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the engine encapsulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The engine encapsulation market consists of sales of engine encapsulation made of polyamide and glasswool. 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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