Automotive Engine Encapsulation Market to Witness Exponential Growth by 2025
The Automotive Engine
Encapsulation Market is projected to grow at a CAGR of 6.13%
during the forecast period, to reach USD 6.30 billion by 2025. The market
growth is primarily driven by factors
such as the increase in demand for silent vehicles, the stringent emission
norms for the automotive industry, and the rising demand for fuel-efficient,
aerodynamically efficient, and stylish vehicles.
Increasing
stringency of emission norms and regulations has accentuated the need for vehicles
that emit a minimum amount of CO2
gas into the atmosphere. Several companies are carrying out R&D activities
to develop advanced engine encapsulation systems to improve the efficiency of
automobiles and reduce the emissions in the environment. The use of engine
encapsulation helps automotive manufacturers to introduce a new solution that
conserves the heat inside the engine and reduces CO2 emissions. This is achieved
by keeping the engine warm for a longer duration of time. A cold start results
in unwanted friction within the engine during which the movement of the piston
causes more fuel to be burnt, which
subsequently leads to increased CO2 emissions. Stringent regulations
formulated to curb vehicular emissions have led to governments charging OEMs a
penalty of USD 111 (95 Euros) per vehicle for exceeding the permissible limits
of CO2 emissions.
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The Asia Pacific region is
estimated to be the fastest growing
market, in terms of value, for automotive
engine encapsulation. The Asia Pacific region is expected to be the most
promising market for automotive engine encapsulation during the next seven
years due to strong growth in vehicle sales year on year. Additionally, the increasing
infrastructural development, particularly in developing countries such as China
and India, is expected to drive the growth of the
automotive engine encapsulation market in the region. Europe is the second fastest growing market, by value, for automotive
engine encapsulation. The growth of the European market can be
attributed to the stringent emission norms in countries such as Germany,
UK, France, etc.
The automotive engine encapsulation market is dominated by a
few globally established players such as Autoneum (Switzerland), Continental (Germany),
Roechling (Germany), ElringKlinger (Germany), Greiner (Austria), Furukawa
Electric (Japan), Woco (Germany), Adler Pelzer (Germany), SA Automotive (US),
and Hennecke (Germany). The key suppliers in the market
are BASF (Germany), 3M (Germany), Saint-Gobain (France), Polytec (Austria), Evonik (Germany),
Carcoustics (Germany), Uniproducts (India), and UGN (US).
Body mounted
encapsulation is projected to be the fastest-growing
segment of the automotive engine encapsulation market. This segment is
estimated to have the highest growth potential in the automotive engine
encapsulation market, especially in Europe, which has a high penetration of
luxury light-duty vehicles. Currently, body mounted encapsulations are used
widely in luxury light-duty vehicles. Extensive R&D is being carried out to reduce the price of the
material of body mounted encapsulations,
which in turn would decrease the price of body
mounted encapsulation systems. The reduced prices could lead to the installation of body mounted systems in mid-priced vehicles as
well. The key players, therefore, have an opportunity to cater to the
developing regions by offering the system at economical prices.
Critical Questions:
- How will the market cope with the rise in electric vehicle
sales?
- How are OEMs planning to increase penetration of automotive
engine encapsulations in economic vehicles without having a significant
effect on their price?
- How can the price of body mounted engine encapsulations be
reduced, while still maintaining its performance, to increasingly
incorporate them in mid-priced and economy light duty vehicles?
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