Market Size (2017)
2017
$3.94B
Vertical: AutoBase Year: 20189 Sections
Market Size (2017)
2017
$3.94B
Projected (2025)
2025
$5.57B
CAGR (2017–2025)
4.4%
4.4%Key Players
110+
The increased demand for fuel-efficient vehicles along with stringent regulations to minimize engine noise and CO2 emissions are expected to spur industry growth. The global automotive engine encapsulation market has been segmented based on type, material, sales channel, and vehicle type.
Based on type, the global market has been segmented into engine mounted, and body mounted. In 2018, the engine-mounted segment accounted for the larger market share of 67.6%, with a market value of USD 2,794.7 million. It is projected to record a CAGR of 5.32% during the projected timeframe.
Based on material, the global market has been segmented into polyurethane, carbon fiber, polypropylene, polyamide, and others. In 2018, the polyurethane segment accounted for the largest market share of 36.9%, with a market value of USD 1,527.3 million. It is projected to record a CAGR of 4.31% over the forecast period.
Based on sales channel, the global market has been segmented into OEM and aftermarket. In 2018, the OEM segment accounted for the larger market share of 67.4%, with a market value of USD 2,786.9 million. It is projected to exhibit a CAGR of 6.25% during the study timeframe.
Based on vehicle type, the global market has been segmented into passenger car, LCV, and HCV. In 2018, the passenger car segment accounted for the largest market share of 61.4%, with a market value of USD 2,538.7 million. It is projected to record a CAGR of 5.50% during the study timeframe.
Based on region, in 2018, Europe accounted for the largest market share of 35.9%, with a market value of USD 1,483.9 million. It is projected to register a CAGR of 5.23% over the projected period.
The Automotive Engine Encapsulation Market market is projected to grow at a CAGR of 4.4% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansThe automotive engine encapsulation insulates the engine from the environment and maintains engine temperature for long durations even when the engine is turned off. This 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.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansMichael Porter’s Five Forces model provides a framework to study the global automotive engine encapsulation market. Strategic business managers, trying to gain an edge over competing firms in the global automotive engine encapsulation market, can utilize this model to better comprehend the industry in which the firm operates. The components of each of the forces and the degree or impact of each component in the context of the global automotive engine encapsulation market have been broken down and analyzed.
1.1.1 Threat of New Entrants
The global automotive engine encapsulation market is expected to grow due to the increasing need to minimize engine noise and CO2 emissions and rising demand for fuel-efficient vehicles. The need for moderate initial investments, the easy formation of a client base, and moderate technology requirements, the entry of new players is increasing in the market. Moreover, the market already has well-established players with a wide geographic reach. Hence, it is difficult for new entrants to achieve economies of scale, which the leading players already possess. Therefore, new entrants present a moderate threat to the major stakeholders in the market.
1.1.2 Bargaining Power of Suppliers
The suppliers are providers of raw materials such as carbon fiber, polypropylene, polyurethane, and polyamide. Encapsulation manufacturers expect their raw material suppliers to supply consistent and uniform products as the performance of the encapsulation depends entirely on the quality of raw materials; manufacturers are focused on improving the design and testing of encapsulations to enhance performance. Moreover, due to a greater number of suppliers in the market, and their dependency on buyers for raw material approval, the bargaining power of suppliers is expected to be low in the market.
1.1.3 Bargaining Power of Buyers
Buyers can be broadly categorized as the manufacturers of passenger, light commercial, heavy commercial, and electric vehicles as well as players in the aftermarket. There is a limited application for automotive engine encapsulation as the product is only required in cold climates. However, these buyers are highly reliant on successful and established manufacturers. Hence, the bargaining power of buyers in the global automotive engine encapsulation market is projected to be moderate.
1.1.4 Threat of Substitutes
Encapsulations are mounted around the engine to insulate it from the cold, thereby maintaining engine temperature long durations. This helps increase fuel efficiency and reduce CO2 emissions. There are several methods for the preheating of fuel and the engine. However, they are not as efficient as engine encapsulation. Therefore, the threat of substitutes in the market is low.
1.1.5 Intensity of Rivalry
There is moderate competition among the existing players in the market as engine encapsulation is only required in cold environments. However, due to the rising demand for fuel-efficient vehicles, the manufacturing of engine encapsulations has increased in the last few years. Moreover, there are a limited number of international and local encapsulation manufacturers in the global market. Thus, the intensity of rivalry in the market is moderate.
Market estimates by geography (2025)
InsightEurope leads with $1.94B by 2025, while Asia Pacific is projected to grow fastest at a 6.2% CAGR.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $1.11B | $1.02B | $1.80B | 6.2% | 32% |
| Rest of the World | $455.03M | $401.92M | $689.63M | 5.3% | 12% |
| Europe | $1.42B | $1.19B | $1.94B | 4.0% | 35% |
| North America | $951.38M | $749.99M | $1.15B | 2.4% | 21% |
| Total | $3.94B | $3.36B | $5.57B | 4.4% | 100% |
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View Subscription PlansTotal Market Size
$5.57B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Engine Mounted | $3.67B | 4.4% | 89% |
| Body Mounted | $1.91B | 4.4% | 66% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Automotive Engine Encapsulation Market covering market dynamics, competitive landscape, and strategic outlook.
The Automotive Engine Encapsulation Market market is projected to reach $5.57B by 2025, growing at 4.4% CAGR. The Engine Mounted segment holds the largest share.
The global market for automotive engine encapsulation is growing rapidly due to an increased demand for fuel-efficient vehicles and stringent regulations to minimize engine noise and CO2 emissions. However, the growth of the 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. Engine encapsulation helps maintain engine oil and lubricant temperature and, thus, reduces the friction between engine parts and the warm-up time for the engine, thereby, enhancing fuel efficiency. As per the Chalmers University of Technology in Sweden, the use of engine encapsulation has the potential for up to 3.1% of savings of the fuel consumed by a non-encapsulated engine in a cold environment. However, the amount of fuel saved depends primarily on engine mass and size, encapsulation design such as thickness and degree of coverage, ambient temperature, and time of inactivity between engine shutdown and start-up. Therefore, the demand for fuel-efficient vehicles is expected to drive the demand for engine encapsulation during the forecast period.
The increasing awareness about the impact of gasoline vehicles on the environment is driving the demand for electric vehicles across the world. Government initiatives are also promoting the adoption of electric vehicles. For instance, in September 2017, The Indian Ministry of Road Transport and Highways announced a list of non-fiscal incentives to ensure that electric vehicles account for 15% of total vehicle sales in the country over the next five years.
Engine encapsulation is primarily used in gasoline vehicles in the engine, motor, fuel supply system, sensors, actuators, and powertrain systems. However, electric vehicles lack components such as transmission motors, fuel supply systems, and powertrains, thereby, limiting the application of engine encapsulation. Hence, the increasing sales of electric vehicles are expected to hinder the demand for engine encapsulation during the forecast period.
In countries around the world, population growth and urbanization have resulted in traffic congestion. Hence, several governments are focusing on developing public transport systems and reducing the use of private vehicles to ease congestion on the road and address traffic issues. For instance, in 2016, the World Bank and the Urumqi Municipal Government in China officially launched the Urumqi Urban Transport Project II to complete three new bus rapid transit (BRT) lines of 52 km and mark the completion of the city’s development of a seven-line, 128 km BRT system envisioned in its 2010–2020 Comprehensive Transport System Plan. Moreover, in 2016, the Indian Ministry of Road Transport and Highways announced the provision of central assistance to states, union territories, and state road transport undertakings to strengthen the public transport systems. The International Association of Public Transport is also focused on increasing the use of public transport in India by partnering with private players. The limited need for engine encapsulation in commercial vehicles considering the focus on public transportation is expected to prove a challenge for the growth of the global automotive engine encapsulation market during the assessment period.
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Profiles of 110 companies operating in the Automotive Engine Encapsulation Market market, including revenue, employee count, and market positioning where available.
Showing 110 of 110 companies
Continental Corporation
Company Headquarters: Germany Founded: 1871 Workforce: 235,473 Company Working: Continental Corporation offers products and services for the automotive industry. The company develops intelligent technologies, products, and services for transporting people and their goods. Continental Corporation is divided into two groups, namely, automotive and rubber. The automotive group comprises three divisions—chassis & safety, interior, and powertrain. The tire and the ContiTech divisions fall under the rubber group. The powertrain division is divided into five business units, viz. engine systems, fuel and exhaust management, hybrid electric vehicles, sensors and actuators, and transmission. The company operates in 554 locations in 61 countries including China, Brazil, France, Germany, Canada, and the US.
SA Automotive
Company Headquarters: US Founded: 1983 Workforce: NA Company Working: SA Automotive manufactures automobile interior parts, package trays, cargo covers, load floor and spare tires, and cargo management, among others. The company has implemented world-class processes for vacuum forming, compression molding, compression blow molding twin sheet, proBond forming, PP/GF structural composite, cutting/trimming, edge wrapping/lamination, and assembly. It has a team of acoustical experts and engineers to analyze, test, develop, and engineer a complete solution for customers.
Trocellen GmbH
Company Headquarters: Germany Founded: 2001 Workforce: ~600 Company Working: Trocellen GmbH (Trocellen) is one of the leading manufacturers of physically and chemically cross-linked polyolefin foams. It operates as the wholly owned subsidiary of Furukawa Electric Co., Ltd. It operates through the automotive, insulation, sports, leisure, and home, ProGame tatami, adhesive tapes, footwear, packaging, business solutions, and industrial foam business units. Engine encapsulations that are made from Trocellen polypropylene foam is used as acoustic absorbers in the engine compartment. The company has production plants in Germany, Italy, Spain, Hungary, and Malaysia.
Carcoustics
Company Headquarters: Germany Founded: 2001 Workforce: ~2,600 Company Working: Carcoustics specializes in the design and manufacture of acoustic and thermodynamic solutions. In September 2016, the company was acquired by Liaoning Dare Industrial Company Ltd, a long-term strategic investor and solution provider to the automotive industry. Carcoustics provides solutions for industrial applications and commercial vehicles. The major customers of the company are General Motors, BAIC Group, Iveco, Nissan, and SAIC Group. Carcoustics has production facilities in Germany, Spain, Belgium, Austria, Slovakia, the US, Mexico, and China. The company’s revenue was approximately USD 361.5 million in 2017. Carcoustics, was acquired by Dare Group in the year 2016. Dare Group is a long-term strategic investor. With the existing executive board Dare Group is seeking to support Carcoustics’ expansion in China also worldwide.
Woco Industrietechnik GmbH
Company Headquarters: Germany Founded: 1956 Workforce: ~5,750 Company Working: Woco Industrietechnik GmbH (Woco) manufactures polymer-based products and components for automotive and non-automotive applications. It offers mechatronics solutions, sealing, damping, and powertrain technologies, industrial anti-vibration systems, measuring and control systems, piping systems, and rail track systems. The firm partners with key players across the supply chain such as BorgWarner Inc., Kautex, Kromberg & Schubert, Mann+Hummel, Magna International Inc., Mahle GmbH, Valeo SA, Yazaki Corporation, and ZF Friedrichshafen AG. Its major customers include Audi, Bentley, BMW, Ford, General Motors, Jaguar Land Rover, Maruti Suzuki, Volkswagen, and Volvo. The company has 20 manufacturing facilities across the globe.
Greiner Foam International GmbH
Company Headquarters: Austria Founded: 1868 Workforce: ~3,700 Company Working: Greiner Foam International GmbH (Greiner Foam) is one of the leading manufacturers of special foams in the global market. It is a wholly owned subsidiary of Greiner Holding AG. The company specializes in the production for flexible and composite foams. It offers products and solutions for various applications such as mattresses, upholstered furniture, automobiles, aircraft seats, acoustics and soundproofing, leisure and sports, environment and industry, packaging solutions, and medicine and health. It primarily offers aircraft seat cushions, boiler insulation, automotive interior parts, and sound insulation for cars. The company manages its business from more than 63 locations in 18 countries. It primarily operates in Central and Eastern Europe, Mexico, Malaysia, the UAE, India, Iran, Brazil, Egypt, Turkey, and South Africa. The major subsidiaries of Greiner Foam are Greiner Perfoam GmbH, Greiner MULTIfoam GmbH, Eurofoam GmbH, Greiner Foam South Africa (Pty) Ltd, Greiner PURtec GmbH, and Greiner Aerospace GmbH.
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Automotive Engine Encapsulation Market