Japan Automotive Engine Market Overview, 2029

Japan Automotive Engine Market Overview, 2029

The Japanese automotive engine market is dominated by internal combustion engines (ICEs), with a constant quest of fuel efficiency and emission reduction. Recent developments have resulted in a noticeable move toward direct injection gasoline (DIG) engines, which provide improved performance and fuel economy. Furthermore, the market has seen substantial advancements in hybrid electric vehicle (HEV) engines, notably for passenger cars. While electric vehicle (EV) engines are gaining popularity, their adoption remains modest, indicating that this technology is still in its early stages. Japanese engines are known for their dependability, longevity, and great performance, which distinguishes them in the global marketplace. Notably, there is a major emphasis on using lightweight materials and small designs, which corresponds to the desire for efficiency and practicality in Japanese automotive culture. This cultural emphasis is reflected in an increased interest in alternative fuels such as LPG and biofuels, indicating a communal commitment to environmental conscience. Top car engine manufacturers have vast knowledge and resources, establishing themselves as leaders in classic engine technologies. However, the introduction of new players specialising in EV or alternative fuel engines brings new competition and innovation to the industry. These entrants use advances in electric propulsion and alternative fuels to challenge old paradigms and meet changing consumer preferences for environmentally friendly transportation options.

According to the research report “Japan Automotive Engine Market Overview, 2029,"" published by Bonafide Research, the Japan Automotive Engine Market is forecasted to value at more than USD 5 Billion by 2029. The forces influencing the Japanese automotive engine market are numerous. High fuel costs are a significant motivator, encouraging the adoption of fuel-efficient automobiles equipped with sophisticated engine technologies. Furthermore, rigorous emission rules, in line with worldwide standards such as Euro 6, put pressure on manufacturers to build cleaner engines that meet environmental requirements. Furthermore, the need for compact and nimble cars is particularly strong in densely populated urban regions where space is restricted, prompting the development of engines that meet these needs. Policy and regulatory frameworks influence the layout of the Japanese automotive engine sector. Japan has tight emission restrictions in place, as well as rigorous vehicle safety standards, to ensure that engines meet stringent environmental and consumer safety requirements. Certification authorities, such as the Japan Automobile Standards Institution (JASO), play critical roles in confirming compliance with these requirements, emphasising their importance in preserving industry standards and consumer confidence. Engine size, technological sophistication, and brand reputation are all factors that influence vehicle engine pricing. This creates a fragmented market in which smaller, fuel-efficient engines meant for Kei vehicles are more inexpensive, catering to budget-conscious consumers. Larger, high-performance engines designed for luxury vehicles, on the other hand, attract higher prices due to their superior capabilities and the prestige associated with luxury brands.

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.

The growing demand for Hybrid Electric Vehicles (HEVs) and Electric Vehicles (EVs) indicates a promising future for the development of electric engines in the automobile industry. This shift towards cleaner, more sustainable modes of transportation emphasises the importance of electric engine innovation. Furthermore, the aftermarket engine parts industry has great development potential, especially given the large number of existing vehicles that require maintenance and improvements. Events like the Tokyo Auto Salon serve as platforms for presenting the latest automotive innovations, garnering global attention, and encouraging collaboration and knowledge exchange within the industry. Trade figures show Japan as a net exporter of car engines, particularly to Southeast Asia, reflecting the country's strong position in the global automotive sector. The company's sales channels are primarily focused on Original Equipment Manufacturer (OEM) channels for new vehicle sales and aftermarket engine parts distribution. New automobile sales are primarily conducted through OEM channels, which entail collaborations with car manufacturers to include the company's engines in their vehicles. Aftermarket engine components are distributed through a variety of channels, including dealerships, repair shops, and online vendors. These channels serve customers looking for replacement or improvement parts for their existing vehicles. While OEM channels assure a consistent flow of sales with new vehicle purchases, aftermarket distribution channels provide buyers with flexibility and accessibility to engine parts after the first purchase.

In comparison to adjacent countries such as South Korea and China, Japan has a more mature and established engine market. While Korean and Chinese manufacturers may offer more competitive pricing, Japanese engines are frequently praised for their better quality and dependability. This reputation has been earned through decades of meticulous engineering and adherence to strict quality standards. Despite relatively higher prices, buyers frequently regard Japanese engines as a worthy investment due to their durability and performance. This posture enables Japanese businesses to maintain a competitive advantage in the global market, especially in categories where quality is critical. The COVID-19 pandemic has had a substantial impact on the company's operations, particularly its production and sales. Chip shortages and supply chain interruptions resulted in temporary production slowdowns, interrupting the manufacturing process and causing delivery schedule delays. However, the pandemic has expedited several tendencies, most notably the increased reliance on online sales channels for aftermarket parts. As consumers turned to internet platforms for their purchase needs during lockdowns and social distancing measures, the company responded by improving its digital presence and extending its e-commerce capabilities. This move to internet sales channels is expected to have long-term consequences for the company's distribution plans and customer engagement initiatives beyond the epidemic.

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.