The global automotive engine encapsulation market is estimated to reach a valuation of USD 5500 million by the year 2030. The automotive engine encapsulation insulates the engine from the environment and maintains engine temperature for long durations even when the engine is turned off which slows down the engine cooling rate, providing initial heat during start-up. Hence, encapsulation reduces the friction between engine parts and provides a short warm-up time for the engine, which ultimately helps minimize CO2 emissions.
The global automotive engine encapsulation market is growing rapidly due to an increased demand for fuel-efficient vehicles and stringent regulations to minimize engine noise and CO2 emissions. For this, noise control materials are used with automotive soundproofing and heat shielding solutions. However, the growth of the said market may be hindered by limited applications of engine encapsulation in electric and hybrid vehicles. The demand for fuel-efficient vehicles is on the rise all over the globe to reduce greenhouse gas emissions and minimize the carbon footprint. Furthermore, fuel-efficient vehicles improve mileage and decrease fuel costs. Hence, automotive OEMs are continuously working to develop new methods and components that could perform as proper vehicle noise reduction solutions.
The new-age trend of driving a vehicle with better sound acoustics and fuel economy is aiding the market's growth.
Engine encapsulation comprises thermoplastics and casings that are affixed to the engine in order to shield it from the elements and maintain its temperature for an extended period, and for this, thermal insulation technologies are employed. By maintaining engine temperature, these Low Weight Reinforced Thermoplastics (LWRT) not only reduce undesirable engine friction but also decrease vehicle fuel consumption. Therefore, the implementation of thermal engine encapsulation or engine compartment enclosure for internal combustion engines contributes to environmental conservation by preventing the combustion of each gram of fuel, thereby diminishing our ecological impact.
Carbon fibre is an innovative material utilized in the encapsulation of automobile engines. Despite its high cost, carbon fibre remains a popular material with its ability to fabricate lightweight engine shields and covers. Because body-mounted engine encapsulations typically encase the engine on all sides and are installed in luxury vehicles, lightweight material is favoured in their manufacturing. In light of the aforementioned considerations, carbon fibre is the material of choice for luxury vehicles.
Additionally, body-mounted encapsulation is most prevalent in luxury vehicles. Despite this, several mid-range luxury vehicles also employ this system. The body-mounted encapsulation devices utilized in high-end vehicles are predominantly constructed from carbon fibre materials. Body-mounted encapsulation is anticipated to reach USD 3,193.7 million by 2025, expanding at a faster CAGR than engine-mounted encapsulation.
The global automotive engine encapsulation market is primarily divided into mounting type and vehicle type segments.
In the Mounting type segmentation, the market is further divided into body-mounted and engine-mounted.
Body-mounted encapsulation systems (BMEs) are rectangular constructions that envelop the engine on all sides, thereby enhancing thermal insulation and promoting fuel economy within the vehicle. At present, body-mounted encapsulation is predominantly observed in high-end automobiles. The body-mounted encapsulation devices utilized in high-end vehicles are predominantly constructed from carbon fibre materials. Body-mounted encapsulation is anticipated to experience a higher compound annual growth rate (CAGR) compared to engine-mounted systems, owing to its perceived advantageous contribution to the engine encapsulation industry.
The rapid attainment of the ideal temperature is facilitated by the engine-mounted systems, resulting in a reduction of carbon emissions and fuel consumption. The engine undershield systems of this system are composed of thermoplastic materials arranged in multiple layers. A high volume of enclosed air pores renders these lightweight, reinforced thermoplastics optimal for use in underhood insulation systems for the engine compartment design.
Considering the vehicle type segmentation of the automotive engine encapsulation market, passenger cars are the dominant segment in terms of application, this is due to the increasing emphasis on fuel efficiency and increasingly stringent emissions regulations, which create a critical need for efficient engine encapsulation. Encapsulation contributes to enhanced fuel economy, improved thermal management, and decreased aerodynamic turbulence. Passenger automobiles must have a quiet and pleasant interior environment for their occupants. Ensuring efficient acoustic encapsulation is of paramount importance in mitigating engine noise, thereby augmenting the rider's comfort and tranquillity.
The global automotive engine encapsulation market is primarily studied across four prominent regions, namely North America, Europe, Asia-Pacific and the Rest of the World.
Europe accounted for the largest market share of 35.7% in 2019, with a market value of USD 1.4 billion and is projected to register a 5.70% CAGR during the forecast period. The region is the fastest-growing market for automotive engine encapsulation owing to the presence of several well-established OEMs in Germany and the UK. Stringent emission standards such as Euro 6 and the downsizing of engines to reduce vehicle weight have resulted in the increased demand for engine encapsulation in the region. A multitude of prominent automotive manufacturers and suppliers are situated within the region. The prevalence of automotive manufacturing facilities and research institutions in the region has significantly increased the need for sophisticated engine encapsulation solutions.
Asia-Pacific was the second-largest market in 2019, valued at USD 1.2 billion and is projected to register the highest CAGR of 7.5%. The automotive industry in the region was growing rapidly till the beginning of 2020, due to the increase in production in developing nations such as China and India. The demand for technologically advanced cars was increasing with the growth of the information and communication technology (ICT), automotive, and transportation industries, resulting in the rising demand for advanced engine management systems.
The automotive exports of China are significantly impacted by environmental regulations and the global economy. Exports of vehicles from China have been marginally impacted by the COVID-19 pandemic. Over the past several years, China has dominated the global automobile manufacturing industry.
Automobile sales increased annually in 2021 for the first time since 2017. Year-over-year, automobile sales increased by 3.8% to 26.28 million units. In other automobile markets, Chinese automobile brands enjoy a substantial cost advantage over imported vehicles from international automakers. Therefore, Chinese automotive manufacturers primarily target emergent markets and other developing nations as their export destinations, which is eventually helping the APAC market witness growth.
The automotive engine encapsulation market is complex and divided, featuring a multitude of both domestic and international participants. Prominent market participants consist of Autoneum Holding AG, Trocellen Automotive, BASF SE, Continental AG, and Roechling Group, among others. Principal companies rely on OEM contracts as their primary revenue generator. In addition to increasing the demand for thermal reduction, OEM expansions are anticipated to increase the national demand for engine encapsulation.
February 2021 -
In February 2021, BASF declared that it is enhancing its range of high-temperature polyamide products through the development of a novel heat-stabilized variant of Ultramid B3PG6 BK23238. Polyamide, which is reinforced with 30% glass fibres, has gained recognition for its exceptional resistance to thermal ageing and vibration in hybrid and electric vehicle (EV) applications.
October 2021 -
In October 2021, By announcing supply contracts for engine mounts to several vehicle manufacturers in Europe, the United States, and China, Continental demonstrated its ability to provide customized solutions through partnerships with original equipment manufacturers (OEMs).
February 2023 -
In February 2023, the Swiss automotive provider Autoneum Holding AG acquired the French manufacturer of lightweight insulation materials Trocellen Automotive. By acquiring Autoneum, the company will be able to strengthen its position in the automotive engine encapsulation market and broaden its range of products.
| Report Attribute/Metric | Details |
| Market Size | 2030: USD 5,500 Million |
| CAGR | 5.4 % CAGR (2022 to 2030) |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Historical Data | 2019 & 2020 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Vehicle Type, Material and Sales Channel |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | Röchling Group (Germany), Adler Pelzer Holding GmbH (Germany), Autoneum (Switzerland), ElringKlinger AG (Germany), Greiner Foam International GmbH (Austria), Woco Industrietechnik GmbH (Germany), Carcoustics (Germany), Trocellen GmbH (Germany), SA Automotive (US), and Continental Corporation (Germany) |
| Key Market Opportunities | Growing rapidly due to an increased demand for fuel-efficient vehicles Stringent regulations to minimize engine noise and CO2 emissions |
| Key Market Drivers | Growing awareness about the environment Increase in demand for low noise vehicles will further drive the market |
Automotive Engine Encapsulation Market Highlights:
Frequently Asked Questions (FAQ) :
Greiner Foam International (Austria), ElringKlinger AG (Germany), Furukawa Electric Co., Ltd. (Japan), and Woco Industrietechnik GmbH (Germany) are the opponents in the market.
An approximate CAGR of 5.4% is appraised to be achieved in the market.
The region in the Asia Pacific is anticipated to govern the growth of the market.
The intensification in the claim for low noise vehicles is expected to influence the market in the coming period.
sales, application, type, material, fuel, and regions are the segments made in the global market.
Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
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