Revving up: Improving car sales will support demand, but alternate engines will stifle growth

Revenue for the Automobile Engine and Parts Manufacturing industry is expected to gradually expand over the five years to 2018. Bolstered by improvements in the economy, the automotive sector has demonstrated strong growth. Industry revenue grew rapidly at the start of the period, driven by strong auto sales as individual spending grew in response to increased income and consumer sentiment. Although revenue is expected to grow overall, performance in the second half of the period is expected to be much worse. An emerging threat to industry demand has been the introduction of electric vehicles (EVs) from key large automakers, as well as smaller companies specializing in the technology...purchase to read more.

Industry Statistics & Market Size
Revenue
$35bn
Annual Growth 13-18
0.5%
Forecast Growth 18-23
Profit
Employment
53,849
Businesses
856

Industry Threats & Opportunities

  • An emerging threat to industry demand has been the introduction of electric vehicles from key large automakers
  • Technological change has caused shifts in industry structure
  • Nonlegislative incentives are expected to continue to drive automaker behavior
  • Industry Report - Starting a New Business Chapter

    Large-scale engine production has very high barriers to entry. Manufacturers that seek high-volume production need to invest in robotics and equipment to handle molten metal, as well as high-efficiency machine tools. Most light-vehicle manufacturers produce their engines in-house, leaving little room for new entrants to sell to major automakers. New entrants are essentially confined to the niche aftermarket performance and engine restoration markets. The opportunity exists for companies to carve out a space in the industry through a remanufacturing facility, however, these typically only operate on a regional level. New...purchase to read more.

    Additional Insights for the Automobile Engine & Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile Engine & Parts Manufacturing Industry are

  • Access to automated manufacturing technology
  • Ability to meet environmental regulations
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as New car sales and Consumer Confidence Index in the Automobile Engine & Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Automobile Engine & Parts Manufacturing Industry?

    Companies in this industry manufacture motor vehicle gasoline engines and related parts including valves, pistons, crankshafts, camshafts, fuel injectors and pumps. This industry does not include hybrid engines, electric vehicle (EV) motors or diesel engines.

    Industry Products
  • Fuel-injection systems
  • Fuel and water pumps
  • Camshafts, crankshafts, pistons, piston rings, valves and carburetor
  • Rebuilt gasoline engines
  • New gasoline engines
  • Industry Activities
  • Crankshaft
  • Camshaft
  • Fuel injection system
  • Carburetor
  • Piston and piston ring
  • Fuel pump
  • Timing gear and chain
  • Engine valve
  • Gasoline engine block and assembly
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • New car sales
  • Consumer Confidence Index
  • Trade-weighted index
  • World price of crude oil

  • Current Performance
  • Industry products and profit
  • Industry structure
  • Appreciating currency
  • Chart: Revenue Growth

  • Industry Outlook
  • Legislation and rising competition
  • Autonomous and electric
  • Jobs and trade
  • Table: Automobile Engine & Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile Engine & Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Truck & Bus Manufacturing
  • Auto Parts Wholesaling

  • Key Selling Industries
  • Aluminum Manufacturing
  • Iron & Steel Manufacturing
  • Metal Stamping & Forging
  • Metalworking Machinery Manufacturing

  • Products & Services
  • New gasoline engines
  • Rebuilt gasoline engines
  • Camshafts, crankshafts, pistons, piston rings, valves and carburetor
  • Fuel-injection systems
  • Other
  • Fuel and water pumps
  • Chart: Automobile Engine & Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Original equipment manufacturers
  • Exports
  • Aftermarket supplies and engine rebuilds
  • Chart: Major Market Segmentation for the Automobile Engine & Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Automobile Engine & Parts Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automobile Engine & Parts Manufacturing Industry

  • Industry Globalization
    General Motors, Fiat Chrysler Automobiles NV, Honda Motor Co. Ltd., Toyota Motor Corporation, Ford Motor Company,
  • Table: General Motors - financial performance
  • Table: Fiat Chrysler Automobiles NV - financial performance
  • Table: Honda Motor Co. Ltd. - financial performance
  • Table: Toyota Motor Corporation - financial performance
  • Table: Ford Motor Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile Engine & Parts Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Automobile Engine & Parts Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • New Car Sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Big Three
  • Another name for the top US automobile manufacturers, which are General Motors (GM), Ford and Chrysler.
  • Corporate Average Fuel Economy (Cafe)
  • US regulations intended to improve the average fuel economy of cars and light trucks.
  • Electric Vehicle
  • A plug-in vehicle that eschews gasoline in favor of an electric battery.
  • Hybrid
  • Any automobile that uses multiple power sources to power the drive-train. They are typically a gas-electric hybrids.
  • Oem
  • Original Equipment Manufacturer. Companies that use components produced by other manufacturers to fashion their final products.
  • Powertrain
  • Collectively, the engine, transmission and axle of an automobile. It describes the chain of components that transfers energy from the engine to the axle.
  • Turbocharger
  • Component attached to an engine that uses excess energy to force air into the engine chamber to improve ignition efficiency.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Automobile Engine & Parts Manufacturing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Automobile Engine & Parts Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Automobile Engine & Parts Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Automobile Engine & Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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