The companies with a futuristic approach take steps pro-actively and leave the competitors to follow them
From the present scenario of the automotive industry and the pace of innovation in the same sector, one can make an estimated guess about the situation of this industry in the coming five years. Automotive engine market is saturated and it is hard to see any new entry but the veterans keep developing their technologies and inventing what matches the modern day needs.
The companies with a futuristic approach take steps pro-actively and leave the competitors to follow them. Self-driven cars have been focused and the inclusion of modern tech is leading towards the achievement of this big objective. Customers are now much interested in automated driving vehicles and these are using platoon feature which let you have a short distance between the moving vehicles.
This and so many other features are purposefully designed to react faster than a human response. Cars are also becoming autonomous with such developments. It is also taken as a vehicle safety tech as it will allow efficient and safe road travelling. The innovation and inclusion are not only to make cars smarter but safer too.
Better road space utilization is another advantage of it thus multiple benefits are present in this progress. The compound annual growth rate (CAGR) of the automotive industry is expected to remain between 4 to 8 per cent.
Such cutting edge technology inclusion
Another interesting development is cars connected through the internet so they can remain informed about the events happen on the route. Similarly, the use of smart/intelligent tire will make things easier for the driver as it would communicate its condition.
Things are moving towards technological accuracy so you do not need to just make a guess as the modern features would let you know perfectly exact situation you are up to. Such cutting edge technology inclusion is possible only for the upscale luxury cars in the present forecast as the price of these features remains high for the first half of the third decade of the century too.
The estimated demand for global automotive engine market would be around 22 million units from 2019 to 2023. Both gasoline engines and diesel engines are included with a variety of cylinder arrangement. Hybrid and variable displacement engines are being developed due to their fuel efficiency and ability to outperform the previous units.
On the other hand, variable displacement power units are
At present Hybrid engines are widely used and there is a small sale of diesel reconditioned engines as well but in coming years the use of VDEs will also be increased according to the forecast reports on automotive engine sector. The reason for shifting from one kind of engine to the other could be high price and less reliability of the components of Hybrid engines.
Another big reason will be the fuel efficiency, as of Hybrid engines it is only possible when it moves at slow speed. On the other hand, variable displacement power units are capable of activating and deactivating of cylinders as the power requirement varies during a drive. In this way, these units proved to be more fuel efficient than the other.
As these two types of power trains will be developed in the forecast period so their demand will also increase and bring profit for the investors. There are many players in this sector and none of them is in a position to impact the market alone in a significant manner.
The glance at the future of automotive engine market gives a realistic view to the investors as well as leading manufacturers. The possible future trends in the industry also allow them to steer their finances in the right direction.
Gasoline engines form the biggest portion of this market
All the major engine producers are taken into account while making a report about the future of automotive engine sector in next 4 to 5 years. Gasoline engines form the biggest portion of this market and diesel engines are on further retreat due to carbon emission charges and environmental issues.
So the highest share of the former will continue to persist in the near future. The geographical regions like America, APAC (Asia Pacific) and EMEA (Europe, Middle East and Africa share the overall growth not in an alike manner but these three regions are going to witness the increase in demand.
Asia Pacific region will probably see the highest growth in the forecast period of 2019 to 2023 than the other two regions as far as automotive engine sector is concerned. Multiple factors are behind this analysis like the present century is called the century of Asia and the undeveloped continent will observe the great development. More manufacturing units are being shifted to this region and the prosperity would definitely become a cause of more sales of vehicles.
There will be certain factors that pose a challenge to the growth
The consumer behaviours are changing as they come across technological advancements and they think with a futuristic approach while deciding for a car purchase. While making a guess about the industry in the coming five years these factors also are taken into consideration and a comprehensive estimation is afforded after logical deliberations.
There will be certain factors that pose a challenge to the growth of the sector in years to come and how the sector will coop with all these possible impediments come under discussion while predicting about the scenario in next five years.
What is market size at present and what it would be till the end of the forecast period will help the people to understand where the industry will lead? There is a possibility of new entrants in this sector and they would surely challenge the leaders.
In the ever-changing world it is hard to foresee but
Every glance at the coming years of an industry based upon the previous and present situation. The data collected from different sources and its synthesis provides liberty to the researchers to predict about the future.
In the ever-changing world, it is hard to foresee but at the same time, the data available surely gives us reason to make a prophecy. The automotive engines are going to be more environmentally friendly through their fuel-efficient features and lesser carbon emission in order to combat climate change.
At the same time, the cars will become more automated which results in lesser road accidents in the coming five years.