Crate Engines Global Market Report 2024

The crate engines market size has grown strongly in recent years. It will grow from $24.76 billion in 2023 to $26.58 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The historical period's growth can be attributed to factors such as cultural influence and lifestyle trends, the appeal of nostalgia and retro styles, the demand for comfortable riding experiences, targeting a diverse consumer base, the prevalence of urban commuting and short trips, and the ongoing trends in customization and personalization.

The crate engines market size is expected to see strong growth in the next few years. It will grow to $33.54 billion in 2028 at a compound annual growth rate (CAGR) of 6%. The anticipated growth in the forecast period can be attributed to evolving consumer preferences, a heightened focus on sustainable transportation, increasing urbanization, the promotion of recreational riding, and global economic development. Major trends expected in the forecast period include the integration of advanced connectivity features, a focus on lightweight and performance-oriented designs, increased options for customization and personalization, the introduction of adaptive cruise control, the incorporation of advanced rider assistance systems (ARAS), and the development of retro-modern aesthetics.

The anticipated surge in motorsports racing is expected to drive the growth of the crate engine market in the future. Motorsports racing encompasses competitive athletic activities involving motorized vehicles, and crate engines have become integral to this domain by offering a balance between affordability, performance, and reliability. They contribute to the diversity and inclusivity of racing competitions. According to Motorsport Network in March 2023, there was a noticeable increase in enthusiasm for international car championships, with a reported overall spectator attendance of 5.7 million for the Formula 1 car racing championship, marking a 36% increase over 2019. Similarly, F1 car racing revenues rose by 20%, from $2.136 billion in 2021 to $2.573 billion in 2022. Therefore, the upsurge in motorsports racing is a key driver behind the growth of the crate engine market.

The growing demand for fuel-efficient vehicles is expected to propel the growth of the crate engine market. Fuel-efficient vehicles are those with 27 miles per gallon or higher of highway fuel economy, and their efficiency depends on the speed and timing of internal combustion engines. Crate engines are designed to enhance fuel efficiency, optimizing both performance and efficiency. This can lead to reduced fuel consumption and improved overall fuel efficiency for vehicles. According to the International Energy Agency, in 2021, 92% of light-duty vehicle sales worldwide were powered by fossil fuels, while electric vehicles accounted for the remaining 6.8 million sales. Therefore, the increasing demand for fuel-efficient vehicles is driving the growth of the crate engine market.

The shift towards electrical and hybrid engines poses a challenge and may limit the market's expansion during the forecast period. The emphasis on eco-friendly solutions, including electric and hybrid engines, promotes sustainable travel and lower greenhouse gas emissions. This shift may lead to a decrease in demand for traditional crate engines. For example, in September 2023, the Energy Information Administration reported that hybrid, plug-in hybrid, and battery-electric vehicle sales constituted 16% of light-duty vehicle sales in the United States in the second quarter of 2023. This shift indicates the increasing preference for electric and hybrid vehicles. Therefore, the emphasis on electrical and hybrid engines is hindering the growth of the crate engine market.

Leading companies in the crate engine market are strategically focusing on the development of cutting-edge products, exemplified by the Direct Connection supercharged Hellephant series of crate engines, to secure a competitive advantage. This series stands out as a collection of the world's most powerful production crate engines, offering three additional models equipped with enhanced hardware and fuel systems to boost power output. This includes the iconic 1,000-horsepower Hellephant 426 Supercharged crate engine. Dodge Inc., a U.S.-based crate engine manufacturer, introduced this innovative and high-horsepower Direct Connection crate engine series in November 2022, featuring models such as A30 Crate Engine, A170 Crate Engine, C30 Crate Engine, and C170 Crate Engine. The series boasts an impressive lineup of GEN III HEMI-powered aluminum and cast-iron engines, delivering power ranging from approximately 900 to over 1,100 horsepower. Notable upgrades include a new 3.0L IHI supercharger with an enhanced intercooler, a larger snout, and a 3.02-inch pulley for increased boost. The cylinder heads also feature upgraded valve guide and seat materials to optimize cylinder pressure capability, ensuring maximum performance on premium or E85 fuel configurations.

In February 2023, LKQ Europe, a Switzerland-based company operating in the crate engines market, completed the acquisition of Rhenoy Group for an undisclosed amount. This strategic move underscores LKQ Europe's ongoing commitment to providing affordable and sustainable mobility solutions in European markets. The acquisition aligns with LKQ Europe's European strategy plan, aiming to leverage the expertise of Rhenoy Group in conjunction with their remanufacturing capabilities. Rhenoy Group, based in the Netherlands, specializes in the production of remanufactured engines, complementing LKQ Europe's objectives in the deconstruction of scrap automobiles for the refurbishment of OEM parts.

Major companies operating in the crate engines market report are Bayerische Motoren Werke AG, American Honda Motor Company Inc., Hyundai Motor Company, Mahle GmbH, North American ATK Corporation, Harley-Davidson Inc., Jasper Engines and Transmissions, Dart Machinery Ltd., Summit Racing Equipment, Edelbrock LLC., FCA US LLC, Roush Performance, Blueprint Engines, Yoshimura R&D of America Inc., Trick Flow Specialties, DSR Performance, West Coast Engines, Hennessey Performance Engineering, Texas Speed & Performance Ltd., Proformance Unlimited Inc., ATK High Performance Engines, Isky Racing Cams, Nelson Racing Engines NRE, Mast Motorsports LLC, S&J Engines Inc., Chevrolet Performance Parts, Ford Performance Parts, Custom Crate Engines, Speedmaster, Herrod Performance Engines.

North America was the largest region in the crate engines market in 2023. The regions covered in the crate engines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the crate engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A crate engine refers to a fully assembled and factory-built internal combustion engine that is sold as a standalone unit. These engines are intended to save time and money, providing a quicker and more efficient option compared to waiting for individual parts and undertaking a rebuild. This helps in reducing labor costs and minimizing downtime during installation.

The primary types of engines used in crate engines include new engines, rebuilt engines, remanufactured engines, and used engines. Rebuilt engines, also known as refurbished engines, undergo a process of disassembly, cleaning, inspection, repair, and reassembly to meet the standards set by the original manufacturer. Crate engines are available in various fuel types, including gasoline and diesel, with different capacity ranges such as 600-1000 cc, 1000-3000 cc, 3000-5000 cc, and >5000 cc. They are distributed through various sales channels, including the original equipment market and the aftermarket.

The crate engines market research report is one of a series of new reports that provides crate engines market statistics, including crate engines industry global market size, regional shares, competitors with a crate engines market share, detailed crate engines market segments, market trends, and opportunities, and any further data you may need to thrive in the crate engines industry. This crate engines market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The crate engine market consists of sales of stock crate engines, performance crate engines, diesel crate engines, and custom crate engines. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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