Australia Automotive Engine Market Overview, 2029

Australia Automotive Engine Market Overview, 2029

The automobile engine market in Australia is dynamic, with both classic internal combustion engines (ICEs) and a growing electric vehicle (EV) segment. Manufacturers are increasingly focusing on improving fuel efficiency and lowering pollutants with advances in gasoline and diesel engine technology. Furthermore, the industry is seeing an increase in the use of synthetic oils, driven by their potential to extend change intervals while providing higher performance benefits. Australian consumers have a strong preference for dependable and powerful engines, especially in utility vehicles (utes) and 4WDs designed for the country's varied terrain. However, in addition to this need for performance, there is an increasing awareness of environmental effect, resulting in a trend toward more environmentally friendly solutions.Despite this trend, price sensitivity continues to play a substantial role in purchase decisions. Driving over Australia's wide environment poses unique problems, such as extensive distances between service stations. As a result, there is an urgent demand for strong engines that can withstand these long voyages without sacrificing performance or reliability. This criteria emphasises the importance of durability and efficiency in engine design and maintenance. Australia follows severe Euro 5 and Euro 6 emission requirements for new automobiles, which influences engine design and development. Government incentives to promote low-emission vehicles, such as hybrids and EVs, are nudging the industry towards more sustainable options. Furthermore, stringent safety rules have a significant impact on engine performance and necessitate ongoing innovation in associated technologies to assure compliance and improve vehicle safety standards.

According to the research report “Australia Automotive Engine Market Overview, 2029,"" published by Bonafide Research, the Australia Automotive Engine Market is growing at a CAGR of more than 5% from 2024 to 2029. Australia's automotive industry is seeing a significant need for replacement engines, driven by the country's ageing vehicle fleet. This trend is exacerbated by the growth of the aftermarket performance engine business, which caters to enthusiasts' need for improved vehicle performance. Furthermore, Australia's free trade agreements with large economies such as ASEAN and South Korea open up significant import potential for engine makers. These agreements make it easier to import engines and related components, which helps to diversify the Australian market's offerings. Engine prices in Australia vary widely, depending on fuel type (petrol, diesel, electric), engine size, and power output. The market segmentation includes a wide range of alternatives, from low-cost engines ideal for compact automobiles to high-performance engines designed for luxury vehicles. The typical cost of a replacement engine in Australia ranges between AUD $3,000 to AUD $10,000, reflecting consumers' differing preferences and spending power across various segments. Recent changes in Australia's automobile sector show a dynamic landscape created by shifting consumer demands and technology improvements. The shutdown of the Holden and Ford manufacturing factories marks a strategic shift toward importing vehicles to meet domestic demand. Concurrently, government attempts to improve EV infrastructure and charging networks demonstrate an increasing commitment to sustainability and emissions reduction. This is consistent with the growing popularity of electric utes and SUVs designed for the Australian market, indicating a broader trend toward environmentally friendly transportation alternatives.

The engine market encompasses a variety of product types catering to diverse needs and preferences. Inline engines, characterised by their cylinders arranged in a single row along the crankshaft, offer simplicity, compactness, and cost-effectiveness, making them prevalent in smaller vehicles with 3, 4, or 6 cylinders. In contrast, V-type engines feature cylinders arranged in two banks forming a ""V"" shape, offering compactness and good power output, suitable for a wider range of vehicles, including configurations like V6, V8, and V12. Less common are W engines, with three banks of cylinders arranged in a ""W"" shape, providing a high cylinder count in a compact space but are complex and costly to manufacture, limiting their usage. Fuel type plays a pivotal role in engine performance and application. Gasoline, derived from petroleum, is a common fuel for spark-ignition engines found in cars, motorcycles, and lawnmowers, offering volatility and efficiency. On the other hand, diesel, also from petroleum, powers compression-ignition engines in trucks, buses, and ships, boasting higher energy density and efficiency. Alternative fuels such as biodiesel, sourced from renewable materials like vegetable oils, and electricity for electric vehicles, offer sustainable options, diversifying the fuel landscape. These engines serve various vehicle types, including passenger cars, motorcycles, commercial vehicles like trucks and buses, and special-purpose vehicles such as construction and agricultural machinery. Each engine type and fuel choice align with specific vehicle applications, driving innovation and adaptation to meet evolving consumer demands for performance, efficiency, and sustainability in the automotive industry.

Australia's engine sales channels are diverse. Traditional dealership networks continue to dominate the sale of new car engines, leveraging established relationships with manufacturers and consumers. These networks offer a full platform for promoting and selling engines, which are frequently combined with automobiles. Independent repair shops and component wholesalers play an important role in engine maintenance and replacement. Their agility and specialisation match aftermarket demand by providing a comprehensive choice of engine options and parts. Furthermore, e-commerce platforms are growing in popularity, providing simplicity and accessibility while acquiring engine parts and accessories. This trend reflects changing consumer preferences for internet purchasing and the digitization of retail. Raw material availability has a huge impact on Australia's engine manufacturing business. With little domestic manufacture of engine components, the country is severely reliant on imports for crucial resources. However, free trade agreements promote a stable supply chain, ensuring continuous access to critical materials for engine manufacture. Despite problems brought by worldwide events such as the COVID-19 pandemic, which resulted in supply chain interruptions and price increases, Australia's engine sector has responded by adopting online sales channels. The pandemic has expedited the transition to digital commerce, encouraging businesses to emphasise online platforms for selling engines and parts. Furthermore, the pandemic's long-term impact on customer preferences for personal automobiles is unknown, as distant work habits may influence future demand for engines and automotive products.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Automotive Engine market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• In-line Engine
• V-type Engine
• W Engine

By Fuel Type
• Gasoline
• Diesel
• Other Fuel

By Vehicle Type
• Passengers Car
• Motorcycles
• Commercial Vehicles (Trucks, Buses, Etc)
• Special Purpose Vehicles (Construction machinery, agricultural machinery, etc)

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Engine industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.