International. According to a report by Fact.MR, the global automotive parts and engine manufacturing market will reach an estimated value of $410 billion by 2024 and expand at a CAGR of 8.3% between 2024 and 2034.
This growth is being driven by the accelerated adoption of electric and hybrid vehicles, which has led automakers to invest significantly in specialized components, such as electric motors, batteries, and controllers.
The market is seeing a transformation towards electrification, with automotive companies focused on developing state-of-the-art electric powertrains to meet the growing demand for greener and more efficient vehicles.
The consumer trend towards low-emission and more efficient vehicles has created an urgent need for advanced battery systems and optimized powertrains. As electric and hybrid vehicles become increasingly popular, specialized supply chains for these components continue to strengthen to support the growth of this emerging sector.
North America Leads the Market
North America, particularly the United States, plays a pivotal role in this growth, with significant market share thanks to its focus on advanced engine technology and the growing popularity of electric cars. Government incentives for EV adoption, coupled with the presence of a robust supply chain, are accelerating the market expansion in the region. North America is projected to generate revenues of $81 billion by 2024.
The global automotive parts and engine manufacturing market is projected to reach 912.97 billion USD by 2034, highlighting a continuous growth trend in the industry. East Asia, with China leading the way, is shaping up to be a key region, with a turnover forecast that could reach 171.27 billion dollars by the end of the next decade. Japan, on the other hand, will experience a growth rate of 9% CAGR until 2034.
The report also reveals that the demand for vehicle engines will reach $283.14 billion by 2024, reflecting the increase in production and the need for advanced powertrains. Industry-leading companies are investing in high-demand areas such as lightweight materials, turbochargers, and components for hybrid and electric engines, reflecting a clear trend towards sustainability and efficiency in the automotive sector.
Key players in the market include Cummins Inc., General Motors, Ford Motor Company, Toyota Motor Corporation, Honda Motor Co., Volkswagen Group, and other automotive giants, which continue to invest in the innovation of electric engines and systems.
An example of this innovation is the recent announcement by Magna International, which presented the new version of its eDrive technology at CES 2024, held in October. This electric motor, which is still in the experimental phase, promises to revolutionize the automotive industry with exceptional performance and unprecedented adaptability, anticipating a radical change in the design and use of the vehicles of the future.
