Canada Automotive Engine Market Overview, 2029

Canada Automotive Engine Market Overview, 2029

The Canadian automotive engine market is a complex area influenced by a variety of factors. In recent years, there has been a noticeable trend away from traditional internal combustion engines (ICE) and toward electric cars (EVs) and hybrids, driven mostly by a global push for sustainability and lower carbon emissions. Despite this trend, ICEs continue to dominate the market, with continued advances in technology such as gasoline direct injection (GDI) and turbocharging targeted at increasing fuel efficiency and lowering emissions. Stricter pollution rules accelerate the development of cleaner engine technologies, forcing automakers to innovate in order to meet regulatory requirements. Cultural preferences and trends have a significant impact on the automotive environment in Canada. Canadians prioritise fuel efficiency and practicality, which contributes to the dominance of trucks and SUVs in car sales. However, there is a growing environmental concern among customers, which is driving up demand for electric vehicles. Government actions, such as subsidies and infrastructure development, are critical in promoting this trend by making electric vehicles more accessible and convenient for users. Despite increased interest in EVs, there are still significant barriers to wider adoption. One significant barrier is the greater initial expenses associated with EVs compared to typical ICE automobiles. Furthermore, concerns about range anxiety and limited charging infrastructure impede long-distance EV travel. Addressing these difficulties requires not only ongoing investment in charging infrastructure, but also extensive consumer education campaigns to highlight the benefits and dispel myths about EV technology and maintenance.

According to the research report “Canada Automotive Engine Market Overview, 2029,"" published by Bonafide Research, the Canada Automotive Engine Market is growing at a CAGR of more than 3% from 2024 to 2029. The growing demand for cleaner and more efficient engines in the rapidly expanding automobile sector is fostering the growth of innovative technology. Among these technologies, hybrids and hydrogen fuel cells stand out as possible solutions to the growing environmental concerns and regulatory demands. Events like the Canadian International Auto Show (CIAS) play an important role in displaying these improvements by providing a platform to attract new customers and stakeholders. With Canada's strong economic ties to the United States, the engine sector benefits from a stable and extended trading relationship. Government studies shed light on the large trade volume between the two countries, highlighting the potential for future growth and partnership in this area. In terms of policy and legislation, Canada closely follows the high emission limits established by the United States. Government subsidies for EVs and charging infrastructure are critical to accelerating industry growth and adoption. Furthermore, certification requirements for new engine technology are continually improving to keep up with automotive industry innovations, ensuring that vehicles meet environmental and safety rules. Overall, the Canadian automobile engine market is a dynamic landscape influenced by technology innovation, consumer preferences, and regulatory frameworks.

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.

Navigating the engine market pricing environment can be difficult due to the wide range of engine types, vehicle models, and dealership dynamics. Despite this intricacy, the market can be largely divided into three categories: low-cost options with smaller engines, mid-range offerings with standard engines, and premium options with high-performance engines. Canada has a thriving mining and metals industry, which provides ample access to the raw materials required for engine construction. Canada's substantial mineral reserves, including nickel, copper, and cobalt, play an important part in the worldwide automotive supply chain. These basic minerals are employed in a variety of engine components, including the batteries in electric vehicles. The country's abundant natural resources not only sustain domestic industry, but also add to its reputation as a dependable supplier to international markets. As engine demand grows, Canada's vast resource base puts it well to supply the automobile industry's needs for many years to come. When comparing Canada's electric vehicle (EV) market to that of the United States, some key distinctions appear. While Canada's EV market share is small in comparison, it is rapidly expanding, thanks in part to government incentives aimed at increasing EV adoption. These incentives, which are often more significant in Canada than in the United States, serve to offset the higher initial expenses associated with EVs, making them more affordable to customers. Despite this expansion, the entire size of the US market far exceeds that of Canada. Factors such as population expansion, infrastructure development, and consumer preferences all contribute to the discrepancy.Nonetheless, Canada's aggressive approach to encourage EV adoption places it at the forefront of the North American transition to sustainable mobility.

The COVID-19 epidemic posed unprecedented hurdles to the automotive sector, disrupting supply chains and production processes globally. Canada, like many other countries, faced brief interruptions as manufacturers dealt with lockdowns, reduced staff capacity, and unpredictable demand. These difficulties emphasised the vulnerability of global supply chains, emphasising the importance of resilience and adaptability within the business. Despite the chaos, the pandemic acted as a spur for change, particularly in attitudes toward sustainable transportation. As lockdowns resulted in lower emissions and better air in many cities, the urgency of switching to more environmentally friendly means of transportation became more obvious. This increased knowledge has the potential to expedite the transition to electric cars (EVs) and other sustainable mobility options. In response to the pandemic, governments around the world undertook a variety of stimulus measures to help the economy recover, with many focusing on green initiatives. In Canada, for example, there has been a greater emphasis on investing in sustainable energy infrastructure and encouraging the adoption of EVs through subsidies and rebates. These policies not only increase demand for environmentally friendly automobiles, but also help to establish a domestic EV industry and supply chain. Moving forward, the automotive sector confronts both problems and opportunities as it navigates the post-pandemic landscape. While the implications of COVID-19 remain undetermined, the heightened emphasis on sustainability and the growing momentum toward electric mobility provide opportunities for growth and innovation. Canada is well positioned to shape the future of the automotive sector by using its strengths in sales channels, raw material availability, and government assistance, resulting in a more sustainable and resilient future.

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.