According to the study over three million engines are produced annually in the UK, a 29% increase since 1999.
Annual exports have reached nearly £800m a year.
Trade and Industry Minister, Alun Michael MP, says: “The automotive engine sector is an undoubted success story of UK manufacturing and this study shows a buoyant industry that can look to the future with confidence.”
Christopher Macgowan, SMMT chief executive, says: “In the last five years, the UK has emerged as a world force in engine production with three million units leaving UK-based factories this year.
This report is our opportunity to reflect on this success story and to send a clear message to the rest of the world; we are leading the world in engine design, production and development.”