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The automotive engine encapsulation market size is forecast to increase by USD 2.43 billion, at a CAGR of 6.72% between 2022 and 2027. The market's growth is propelled by various factors, including increasing fuel efficiency and emission reduction requirements imposed by regulations worldwide. Advancements in material technology are driving innovations in engine encapsulation materials, enhancing their effectiveness in reducing noise pollution and improving overall vehicle performance. Furthermore, rising urbanization necessitates quieter and more environmentally friendly vehicles, making engine encapsulation a crucial solution for automakers striving to meet these demands. This market research and analysis report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market refers to the business sector involving the production and sale of Automobile engine encapsulation. These systems, also known as engine covers or engine dress-up kits, are designed to protect the engine from external elements and enhance the vehicle's aesthetic appeal. The use of carbon fiberis a growing trend in the market, with companies like Carbon Fiber 2 offering these products. The emissions issue is a significant concern in the automotive industry, and encapsulation systems can help reduce emissions by improving engine efficiency. Additionally, the growing demand for eco-friendly vehicles and the increasing popularity of autonomous vehicles are expected to drive the growth of the market in the coming years. The market also caters to the needs of various vehicle types, including cars, trucks, and buses, and stands to benefit from the ongoing advancements in engine technology.
The market refers to the business sector involving the production and sale of these systems for automobiles. These systems, also known as engine-covers or thermal management systems, are designed to insulate the engine compartment and reduce heat transfer to the vehicle cabin. The Manufacturers use various materials such as Carbon Fiber, Fiberglass, and Lightweight Metals for the production of these encapsulation systems. The Encapsulation Market is driven by the increasing demand for fuel efficiency and reduced emissions in the Automotive Industry. The Engines produce a significant amount of heat, which can negatively impact the vehicle's performance and fuel economy. The Encapsulation systems help in maintaining optimal engine temperature, thereby improving fuel efficiency and reducing emissions. Moreover, the growing trend of Electric and Hybrid Vehicles is also expected to boost the demand. The Lightweight and Insulating properties of these materials make them ideal for use in Electric Vehicles, where weight reduction and thermal management are critical factors. The Market is expected to grow significantly in the coming years due to the increasing focus on reducing emissions and improving fuel efficiency in the Automotive Industry. The Thermoplastics and Composites sector is expected to dominate the market due to the superior insulating properties of these materials. In conclusion, the market is a growing business sector that caters to the production and sale of these systems for automobiles. These systems help in reducing heat transfer to the vehicle cabin, improving fuel efficiency, and reducing emissions. The Market is driven by the increasing demand for fuel efficiency and reduced emissions in the Automotive Industry and is expected to grow significantly in the coming years. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing fuel efficiency and emission reduction is notably driving the market growth. It supports engines to attain their optimal operating temperatures rapidly and maintain a stable temperature range. This leads to enhanced combustion efficiency, lowered friction, and lower fuel consumption, contributing to enhanced fuel efficiency. It aids in streamlining the airflow around the engine bay, lowering drag and enhancing vehicle aerodynamics. This results in less resistance while driving, which can have a positive impact on the efficiency of fuel, especially at more elevated speeds.
In addition, optimal engine temperatures facilitated by encapsulation lead to more efficient combustion, which in turn lowers the production of harmful emissions such as nitrogen oxides (NOx) and particulate matter. This aligns with stringent emission standards and regulations. As customers increasingly prefer fuel efficiency and environmental considerations, automakers incorporate it to make vehicles that satisfy these preferences, which will fuel the growth of the market in focus during the forecast period.
Increasing consumer awareness of engine encapsulation benefits is an emerging trend shaping the market growth. Consumers are becoming more aware of the costs of fuel and the demand for efficient vehicles. It'ss contribution to enhanced fuel efficiency coupled with cost-conscious consumers, constructing it an attractive feature. Growing environmental awareness, consumers are seeking vehicles with lowered emissions. Moreover, information about automotive technologies is readily available through media, online platforms, and automotive publications. In addition, automakers often boost engine encapsulation and its advantages as part of their marketing efforts.
As a result, consumer awareness increases and emphasizes the value of the feature. Therefore, the rising consumer awareness and its effectiveness is leading to improved demand for vehicles equipped with this technology. Automakers are responding by incorporating engine encapsulation across a wider range of models and making it a standard or optional feature, which, in turn, will facilitate the growth of the market during the forecast period.
The high cost of engine encapsulation is a significant challenge hindering market growth. Substantial research and developmental investments are needed to develop effective and efficient solutions which includes testing different materials, designs, and manufacturing processes to achieve optimal results. In addition, the cost of high-quality, lightweight, and thermally efficient materials used for encapsulation can influence the overall cost of the vehicle. Sourcing specialized materials and components can lead to supply chain challenges, affecting cost, availability, and production timelines.
Moreover, due to the need for design modifications and potential disruptions in the production line, retrofitting existing vehicle models with engine encapsulation can be more expensive. Therefore, the high cost will hinder the growth of the market during the forecast period.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
The product segment of the market encompasses a range of offerings designed to meet the diverse needs of OEM and automobile manufacturers across different vehicle segments. These products include lightweight engine covers made from low weight reinforced thermoplastics, specifically tailored for luxury vehicles, high end vehicles, and mid variant vehicles. These solutions utilize advanced thermal insulation materials and thermoplastic casing to enhance thermal efficiency, reduce carbon dioxide emissions, and comply with pollution standards and emissions restrictions imposed by various economies globally. Moreover, these products address concerns related to airborne noise emissions, meeting stringent noise emission standards set for luxury automobiles as well as lower end vehicles. Overall, it serves as a crucial component in improving vehicle performance, fuel efficiency, and environmental sustainability across the automotive industry.
The body mounted segment is estimated to witness significant growth during the forecast period. Generally, the engine is mounted to the chassis to equip structural integrity and support for the engine in vehicles. Body mounts are structured to absorb vibrations and shocks generated by the engine operation, preventing excessive vibration from being transferred to the vehicle body and cabin.
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The body mounted segment was the largest segment and was valued at USD 2.70 billion in 2017. Positioning encapsulation materials on the body panels could assist in managing heat generated by the engine which could lower heat transfer to the vehicle interior and external surfaces, contributing to enhanced overall thermal management. Also, engine noise escaping through the engine compartment could be reduced by encapsulating the body panels, resulting in a quieter exterior environment. Therefore, such factors lowered exterior noise reduction and better weight distribution will contribute to the growth of the body-mounted segment of the global automotive market during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. The market in the APAC region is driven by factors including environmental regulations, consumer demands, and technological advancements. It includes acoustic insulation and body mounted or engine mounted options, enhances vehicle performance, efficiency, and environmental responsibility. Rapid urbanization in countries like India and China increases air pollution concerns, leading consumers to seek fuel-efficient, aerodynamically efficient vehicles. Automakers respond with advanced technologies such as downsizing engines, carbon fiber encapsulation, and compatibility with emission control devices. Economies in the region face fuel consumption and CO2 emission concerns, leading to fuel efficiency standards and a shift towards electric cars and vehicles with reduced emissions.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co. - The company offers automotive engine encapsulation solutions that encase the entire part or chamber to protect the components inside.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing demand for lightweight and fuel-efficient vehicles. Carbon fiber and other advanced materials are being used to encapsulate engines, reducing weight and improving thermal management. This technology is particularly popular in the luxury and performance vehicle segments. Additionally, encapsulation helps to reduce engine noise and improve overall vehicle acoustics. Companies such as Carbon Revolution, Cummins, and Magna International are leading innovators in this space, offering advanced encapsulation solutions for various vehicle types. The market is expected to continue growing as automakers seek to meet stringent emissions regulations and consumer demand for more efficient and quieter vehicles. The use of advanced materials and manufacturing techniques is driving down costs and increasing the adoption of this technology across the automotive industry. Luxury automobiles are increasingly integrating thermoplastic casing to meet emissions restrictions. Carbon fibre is employed in engine components to enhance durability and reduce emissions, optimizing engine thermals in diesel engines.
In the realm of automotive innovation, the market is witnessing significant growth driven by advancements in technology and the pursuit of sustainability. Original Equipment Manufacturers (OEM) and automobile manufacturers are increasingly turning to low weight reinforced thermoplastics to create lightweight engine covers for vehicles across various segments, from luxury vehicles to mid variant vehicles, high end vehicles and lower end vehicles. These covers not only enhance the aesthetic appeal but also contribute to thermal insulation and improve thermal efficiency while meeting stringent carbon dioxide emission and pollution standards. With rising concerns about emissions, including CO2 emissions, and noise, automakers are focusing on developing encapsulation solutions that comply with noise emission standards, catering to the evolving needs of the automotive market while prioritizing environmental sustainability.
This market growth and trends report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.72% |
Market growth 2023-2027 |
USD 2.43 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.74 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Adler Pelzer Holding GmbH, Autoneum Holding Ltd., BASF SE, Carcoustics Shared Services GmbH, Continental AG, ElringKlinger AG, Evonik Industries AG, Furukawa Electric Co. Ltd., Hennecke GmbH, Rochling SE and Co. KG, SA Automotive Ltd., Trocellen GmbH, and Woco Industrietechnik GmbH |
Market dynamics |
Parent market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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