Crate Engines Market Report 2026

The crate engines market size has grown strongly in recent years. It will grow from $28.07 billion in 2025 to $29.53 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to automotive repair demand, motorsports popularity, aging vehicle fleet, availability of standardized engines, cost-effective replacement needs.

The crate engines market size is expected to see strong growth in the next few years. It will grow to $36.33 billion in 2030 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to performance vehicle customization, electric engine alternatives, demand for emission-compliant engines, growth of aftermarket sales, engine efficiency improvements. Major trends in the forecast period include demand for performance engines, growth of engine replacement market, rising use in motorsports, expansion of remanufactured engines, preference for quick installation solutions.

The increasing demand for fuel-efficient vehicles is expected to propel the growth of the crate engine market going forward. Fuel-efficient vehicles are those achieving 27 miles per gallon or higher of highway fuel economy. Vehicle fuel efficiency depends on the speed, timing, and optimization of internal combustion engines, which provide excellent drivability and durability. Crate engines are designed for improved performance and fuel efficiency, helping reduce fuel consumption and enhance overall vehicle efficiency. For instance, in January 2024, according to a report published by Kelley Blue Book, a US-based Cox Automotive company, in 2023, a record 1.2 million car buyers in the United States chose electric vehicles, accounting for 7.6% of the total U.S. vehicle market, up from 5.9% in 2022. Therefore, the rising demand for fuel-efficient vehicles is driving growth in the crate engine market.

Major companies in the crate engine market are focusing on high-performance supercharged engine solutions to enhance horsepower, torque, and drivability for automotive enthusiasts and professional racers. High-performance supercharged engines are ready-to-install packages that use superchargers to boost combustion efficiency, delivering significantly increased power and torque. For instance, in October 2024, Dodge Direct Connection, a US-based automotive performance division, launched the Hellephant A30 426 and Drag Pak 354 supercharged crate HEMI engine blocks, along with new 6.2L supercharger kits. These engines and kits enable vehicle owners and builders to achieve extreme performance levels while simplifying installation and customization for street and drag racing applications. By offering plug-and-play high-horsepower solutions, Dodge Direct Connection drives innovation and growth in the performance crate engine segment.

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 include Harley-Davidson Inc., Jasper Engines and Transmissions, North American ATK Corporation, Blueprint Engines, Roush Performance, Chevrolet Performance Parts, Ford Performance Parts, Mast Motorsports LLC, Nelson Racing Engines (NRE), ATK High Performance Engines, West Coast Engines, S&J Engines Inc., Custom Crate Engines, Herrod Performance Engines, Edelbrock LLC, Summit Racing Equipment, Dart Machinery Ltd., Trick Flow Specialties, Isky Racing Cams, Speedmaster, Hennessey Performance Engineering, Texas Speed & Performance Ltd., Proformance Unlimited Inc., DSR Performance.

North America was the largest region in the crate engines market in 2025. The regions covered in the crate engines market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the crate engines market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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