United Kingdom (UK) Automotive Engine Market Overview, 2029

United Kingdom (UK) Automotive Engine Market Overview, 2029

The UK automotive engine market, a historical powerhouse, stands at a fascinating crossroads. While the nation retains a robust engine manufacturing base, a silent revolution is brewing under the hood. Firstly, the UK boasts a unique heritage – it's not just a manufacturer, but an innovator. Formula One racing teams like Mercedes-AMG High Performance Powertrains (formerly Ilmor) and Renault F1 Team base their engine development in the UK, fostering cutting-edge technology that trickles down to commercial vehicles. This culture of high-performance innovation positions UK-made engines as a premium choice for global car manufacturers seeking an edge. Secondly, the market is witnessing a fascinating tug-of-war between electrification and internal combustion engines (ICEs). On one hand, the UK government's aggressive push for net-zero emissions by 2050 has significantly boosted electric vehicle (EV) sales. Notably, 2023 saw a record-breaking increase in market share for EVs, a clear indicator of consumer preference shifting. However, a recent plot twist emerged. The global chip shortage, impacting EV production, has led to a resurgence in demand for high-efficiency ICEs. This presents a unique opportunity for UK manufacturers. Leading companies like JLR (Jaguar Land Rover) are spearheading the development of next-generation, ultra-low-emission ICEs, potentially extending their lifespan in the market. This hybrid approach – focusing on both electrification and cleaner ICE development – could be the UK's winning formula. UK-based companies like Johnson Matthey are pioneering the production of clean, synthetic fuels derived from renewable energy sources. These fuels, when used in conjunction with advanced ICE technology, offer a near-zero-emission solution, potentially revitalizing the ICE market while aligning with sustainability goals.

According to the research report ""The United Kingdom Automotive Engine Market Overview, 2029,"" published by Bonafide Research, the UK Automotive Engine market is projected to be valued at more than more than 5 Billion USD by 2029. The UK automotive engine market is at a crossroads, driven by a confluence of factors specific to the region. On one hand, there's a strong push for cleaner, more efficient engines due to stringent government regulations aimed at reducing CO2 emissions and air pollution. This is prompting significant investments in research and development of electric vehicles (EVs) and plug-in hybrids (PHEVs), along with next-generation internal combustion engines (ICEs) with improved fuel economy and lower emissions. Government incentives like grants for EV purchases and the upcoming ban on the sale of new petrol and diesel cars by 2035 are expected to accelerate the adoption of these technologies. This shift towards electrification presents a significant opportunity for the UK engine market. The country boasts a robust automotive supply chain with a rich heritage in engine manufacturing. This expertise can be leveraged to develop and produce electric motors, battery systems, and other key components for EVs. Additionally, the UK government is actively supporting the development of battery technology research centers and Gigafactories to establish a strong domestic EV ecosystem. This could position the UK as a major player in the global EV market, creating new export opportunities and potentially offsetting job losses in traditional ICE production. However, the road to a fully electric future isn't without its challenges. Range anxiety, the limited availability of charging infrastructure, and the higher upfront cost of EVs compared to ICE vehicles are significant hurdles to widespread consumer adoption. Furthermore, a substantial portion of the UK's electricity grid still relies on fossil fuels, meaning EVs might not translate to zero-emission transportation in the short term. The transition also presents challenges for the workforce. While new jobs will be created in the EV sector, the skills required for manufacturing electric engines differ from those needed for traditional ICEs. Reskilling and upskilling initiatives will be crucial to ensure a smooth transition for the existing workforce and maintain the UK's position as a global leader in automotive engineering.

Dominant in the UK passenger car segment, particularly smaller and mid-sized vehicles (Segments A-C according to the Society of Motor Manufacturers and Traders – SMMT), inline engines offer a good balance of fuel efficiency, power output, and packaging efficiency, making them ideal for urban driving and maximizing cabin space. Four-cylinder in-line engines are particularly popular due to their compact size and lower production costs. However, the trend towards downsizing and turbocharging engines to meet emissions targets may see a rise in three-cylinder units in the future. Traditionally associated with performance and larger vehicles, V-type engines (particularly V6 and V8 configurations) hold a niche position in the UK market. They are primarily found in premium sedans, SUVs, and high-performance sports cars. While offering superior power and torque compared to in-line engines, V-type engines are generally heavier, more complex, and less fuel-efficient. Stricter emissions regulations and the rising popularity of performance-oriented electric vehicles may lead to a decline in the V-type engine segment in the long term. A relatively uncommon configuration in the UK market, W-type engines offer packaging advantages over traditional V-type engines while maintaining similar power outputs. However, their complex design and higher production costs limit their adoption to a handful of high-performance and luxury vehicles. The future of W-type engines in the UK remains uncertain, as manufacturers may prioritize electrification or more cost-effective engine configurations to comply with regulations.

Despite the rise of alternative fuels, gasoline engines remain the dominant fuel type in the UK automotive engine market, particularly for passenger cars. This is due to a well-established infrastructure for gasoline refueling stations, the relatively lower upfront cost of gasoline vehicles compared to electric or hybrid alternatives, and the continued development of cleaner and more efficient gasoline engines. However, stricter emissions regulations and increasing government incentives for electric vehicles are expected to gradually erode gasoline's market share in the coming years. Diesel engines have traditionally been popular in the UK for larger vehicles like SUVs and commercial vehicles (trucks, buses) due to their superior torque and fuel efficiency over gasoline engines for long-distance travel and hauling heavy loads. However, recent concerns regarding particulate matter emissions from diesel engines and government crackdowns on diesel vehicles in urban areas have led to a significant decline in their market share. This trend is expected to continue, with commercial vehicle manufacturers likely to explore alternative fuel sources like compressed natural gas (CNG) or even hydrogen fuel cells. The ""Other Fuel"" segment in the UK market is a niche category encompassing alternative fuel sources like Liquefied Petroleum Gas (LPG), electric hybrids, plug-in hybrids, and battery electric vehicles (BEVs). While still a relatively small segment, it is experiencing significant growth driven by government incentives, increasing consumer awareness of environmental issues, and advancements in electric vehicle technology. The UK government's ambitious goals for zero-emission vehicle adoption are expected to further accelerate the growth of this segment, with BEVs likely to become a major contender in the passenger car market within the next decade.

The UK automotive engine market caters to a wide range of vehicle types, each with distinct engine requirements. Passenger cars, the most numerous vehicle type on UK roads, primarily utilize the aforementioned in-line engines with a focus on fuel efficiency. However, engine options can vary depending on car size and segment. Smaller city cars might utilize even smaller, two-cylinder engines for ultimate fuel economy, while larger executive cars or SUVs might offer larger, more powerful engines for a more luxurious driving experience. Motorcycles in the UK market present a niche segment with a preference for smaller, high-performance engines. These engines prioritize power-to-weight ratio and agility, catering to a specific rider demographic. Commercial vehicles, a crucial segment for the UK economy, require engines that prioritize reliability, durability, and torque. Diesel engines have traditionally dominated this segment due to their ability to deliver high torque at low revs, essential for hauling heavy loads. However, with stricter emission regulations and the emergence of cleaner alternative fuel options, the commercial vehicle market is also experiencing a gradual shift towards cleaner technologies. Hybrid and even fully electric options are emerging for smaller commercial vehicles operating in urban areas. For larger trucks undertaking long-distance haulage, cleaner burning diesel engines with advanced emission control technologies are likely to remain the dominant choice in the near future, although hydrogen fuel cell technology holds promise as a long-term solution. Special purpose vehicles, a diverse category encompassing construction machinery, agricultural machinery, and other specialized applications, utilize a wide range of engine types depending on the specific function.

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.