U.S. Automobile Engine Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Automobile Engine Market Emerging Trends

Hybrid Electric Vehicles Are a Major Trends in the Market

• The growth in the popularity of hybrid electric vehicles (HEVs) and plug-in hybrid vehicles (PHEVs) has increased the need for engines that can be better incorporated with hybrid powertrains.
• According to the U.S. Energy Information Administration (EIA), hybrid electric vehicle (HEV) sales increased by 53% in 2023 from 2022, reaching nearly 1.2 million units.
• The stringent government regulations for emissions compel manufacturers to develop environment-friendly hybrid engines and components.
• Additionally, HEV sales in the country are driven by the developments in battery technology, which enables higher mileage, power, and speed.

Rising Demand for Higher Fuel Efficiency and Emission Reduction Drives Growth

• The continuous fuel price increase drives consumers to purchase vehicles with superior fuel efficiency, motivating car manufacturers to develop and integrate innovative engine technologies.
• In 2020, the average price of gasoline was USD 2.17 per gallon, and it rose to USD 3.30 per gallon in 2024.
• The U.S. Department of Treasury reports that from January 1, 2024, until June 12, 2024, consumers bought 150,000 cleaner, vehicles which helped them save USD 1 billion.
• Customers received a USD 1,750 average year-to-year saving fuel costs and maintenance expenses.
• The Corporate Average Fuel Economy (CAFE) standards push automakers to create engines with higher mileage and inventive technological designs.
• Manufacturers of vehicles use direct fuel injection, together with turbochargers and cylinder deactivation systems, to boost fuel efficiency and performance.
• Hybrid and plug-in hybrid vehicle production increases as an important link between gasoline-powered vehicles and pure-electric driving systems, offering advantages of both.
• OEMs are also focusing on lightweight components, combined with aerodynamic improvements, to cut emissions, while maximizing fuel usage.

U.S. Automobile Engine Market Segmentation and Category Analysis

Part Analysis

Pistons are both the largest and the fastest-growing category, with revenue of USD 8.5 billion in 2024 and an expected CAGR of 3.5% during the forecast period, respectively. The demand for new pistons is sustained by their crucial role in engines and the need for their replacements because exposure to extreme heat and physical stress causes wear. The dominance of automotive pistons will continue because of the development of lightweight yet durable materials, combined with the rising vehicle output.

The parts studied in the report are:

• Cylinder Blocks
• Combustion Chambers
• Cylinder Heads
• Pistons (Largest and Fastest-Growing Category)
• Crankshafts
• Camshafts
• Timing Chains
• Valve Trains
• Valves
• Rocker Arms
• Pushrods
• Fuel Injectors
• Spark Plugs
• Others

Engine Type Insights

Straight/inline is the largest category, generating USD 14 billion in 2024 because of its basic construction, affordable production, and utilization across all vehicle types. Manufacturers embrace inline engines because they provide easy production combined with uncomplicated maintenance procedures that customers find attractive.

Engine types analyzed in the report:

• Straight/Inline (Largest Category)
• Flat
• V (Fastest-Growing Category)

Configuration Analysis

Four-cylinder is both the largest and the fastest-growing category in this segment. The popularity of four-cylinder engines results from their capability to deliver efficient performance, which matches what the public desires from fuel-efficient yet high-performance vehicles. Moreover, because four-cylinder engines can be easily adapted to different vehicle sizes, from compact cars to midsize sedans, they have become a popular choice.

The configurations analyzed in the report are:

• Twin-Cylinder
• Three-Cylinder
• Four-cylinder (Largest and Fastest-Growing Category)
• Six-Cylinder
• Others

Fuel Insights

Hybrid Engines is the fastest-growing category as it is expected to grow at a CAGR of 5% during the forecast period. Hybrid engine technology continues to dominate market growth because of environmental activists together with emission regulations and consumer preference for fuel-efficient options. The combination of petrol and electric power in hybrids provides practical advantages because drivers need no special infrastructure to operate them and this makes them an appealing choice. The combination of government support programs with improved battery technologies makes hybrids a solid competitor against gasoline engines throughout the transforming U.S. market. Fuels studied in the report:

• Gasoline (Largest Category)
• Diesel
• Hybrid (Fastest-Growing Category)
• LPG
• CNG
• Others

End User Analysis

Original equipment manufacturers represent the larger category with 70% market share. Most engines serve new vehicles manufactured by automobile producers, many of which operate in the country, such as Ford, General Motors, Toyota, and Stellantis. Each year, millions of new vehicles are sold in the U.S., resulting in the dominance of OEMs. Manufacturers are investing in engine innovations because of the nationwide focus on fuel efficiency and lower emissions.

End users studied in the report:

• OEMs (Larger Category)
• Aftermarket (Faster-Growing Category)

Technology Insights

The naturally aspirated category dominates the market. This is because such engines have been the standard for passenger vehicles since their inception. With atmospheric pressure as their air supply method, these engines maintain a simpler design than turbocharged and other advanced variants. Because of their straightforward design, naturally aspirated engines achieve reduced manufacturing expenses and maintenance requirements, which makes them convenient for OEMs to integrate, aftermarket entities to service, and customers to own.

The technologies analyzed in the report are:

• Naturally Aspirated (Largest Category)
• Turbocharged (Fastest-Growing Category)
• CRDi
• MFPI
• Others

U.S. Automobile Engine Market Regional Growth Dynamics

The Midwest is both the largest and the fastest-growing region. This is owing to its long-standing history as the biggest center for automotive production in the U.S. and once in the entire world, specifically Detroit. The tri-state area, including Michigan, Ohio, and Indiana, houses a significant number of original equipment manufacturers, along with tier I, II, and III suppliers. The high-volume manufacturing capabilities of the Midwest are strengthened by its developed infrastructure, trained workers, and its vicinity to vital supply networks.

The regions covered during the study are:

• Northeast
• Midwest (Largest and Fastest-Growing Category)
• West
• South

U.S. Automobile Engine Market Share

• The market exists in a highly fragmented state because multiple international and domestic original equipment manufacturers and aftermarket suppliers exist in the country.
• Multiple engine and part companies, such as General Motors, Toyota, and Honda, exist in the market, which results in a highly competitive environment, without any overtly leading entity.
• Multiple small-to-medium suppliers split the market share with their wide offerings of replacement parts and performance components, which also increases product variety.
• Several unique product groups, including hybrid engine technology and conventional combustion engines, encourage the entry of multiple specialists.