In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
An automotive piston is a cylindrical piece of metal that moves up and down inside the cylinder of an engine. It generates mechanical energy that provides necessary force to drive the shaft and run the wheels of the vehicles. Piston system comprises of piston, piston rings, piston pins, hence this system transfers the generated power to the crankshaft through connecting rod.
Automotive piston market is expected to expand at a CAGR of 5.1% over the forecast period i.e. 2017-2024. Moreover, the automotive piston market is anticipated to reach around USD 15,910 Million by 2024. As a piston is a main part of an internal combustion engine, the demand for pistons is directly coupled with the automobile production. Owing to the continuous developments, the automobile segment is observing increased demand for lightweight pistons, which is expected to drive the growth for the global automotive piston market.
Asia-Pacific is estimated to be the largest automotive piston market due to the fact that it is the dominating region in automotive industry as piston is an integral part of automotive industry. China and India are the major contributors in Asia-Pacific region. China grabbed the largest revenue share in automotive piston market in the region, marked a market share of around 35% in the Asia-Pacific automotive piston market 2016. With the rise in manufacturing costs, existing piston manufactures in the US and Europe is shifting their operation to Asia-Pacific region due to low labor costs and easily accessibility of raw materials.
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Europe is the second largest market for the automotive piston in 2016. Europe is expected to perceive a moderate growth in the near future owing to high market saturation. France, UK and Germany are expected to lead the overall demand for this regional automotive piston market. North America is also a major market for automotive piston owing to the increase in sales for light commercial vehicles.
Our in-depth analysis segmented the market in the following segments:
Global automotive piston market is further classified on the basis of region as follows:
Increasing urbanization coupled with changing lifestyle of population are the factors for escalation in the demand for automobiles, especially two wheeler segments in emerging economies such as India which is anticipated to impel the demand for piston over the forecast period. Advancement in technology such as installation of cooling channels in piston is likely to be the dynamic factor behind the rapid growth of automotive piston market. In addition, rise in demand for light weight piston developed from composite carbon, silicon and magnesium is expected to unfold various opportunities in this market in the coming few years.
However, the growth of this market is likely to be hindered by increasing penetration of electric vehicles, which do not use pistons. Further, the automotive industries are downsizing their engine for better fuel economy, as fuel rates are increasing globally. Using technologies such as turbochargers, the automotive industry have been able to downsize their engines by reducing cylinders are believed to dampen the growth of global automotive piston market over the forecast period.