The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The Automotive Variable Valve Timing market?is anticipated to register a CAGR of about 7%, during the forecast period (2020 – 2025).
- The global variable valve timing (VVT) market is majorly being driven by their various?advantages such as increased fuel economy, increased power output, widen engine power band and decreased emissions.
- The fuel economy is achieved by the reduction of charge cycle work, optimization of the burning process and the reduction of the friction. The market is further driven by an increase in sales of special utility vehicles and cross-over models, especially in the passenger cars segment.
- The year 2020 was expected to be a transitional year after a couple of years of decline in sales but due to the Covid-19 pandemic, sales are expected to remain flat. This might be a deterring factor for the market being studied.
Key Market Trends
Increasing Adaption of Electric Vehicles is a Restraint for the Market
Due to increasing global pollution levels across the world and government giving financial benefits to those who are purchasing Electric vehicles. End users are preferring electric vehicles over gasoline engines which use Variable valve timing. Also, the maintenance cost of internal combustion engines is also a reason why people are switching to electric vehicles. Sales of electric vehicles grew at a CAGR of 53% over the period of 2012-2018. The governments around the world are providing incentives for EV sales and are also spending heavily on increasing the necessary infrastructure for charging stations. For instance, the Norway government provides exemption of road tax, no import and export tax, exemption from 25% VAT for electric vehicles adopters and others. The Norway government aims at 100% EVs on roads by 2025.
Asia-Pacific is Expected to be the Fastest Growing Region
Asia-pacific accounts for almost 60% of the world’s population and hence, the demand for vehicles is expected to be the highest in the region for the forecasted period. Also, the government regulations are becoming strict in the region. For instance, BS-VI standards have been enforced by Govt. of India to regulate the expelled pollutants from motor vehicles.
With considerable expectation of sales during the forecast period in the region, it is expected that people will prefer cars with advanced technology because the area consists of two major developing nations India and China.
The income level of people is also increasing in the region, so people are more inclining towards technological advanced vehicles. The players in the region are investing heavily in research and development to provide OEMs with products that enhance the engine performance and increases the fuel efficiency of the engine. For instance, in April 2018, BorgWarner developed variable cam timing system that delivers improved engine efficiency and fuel economy for the new Hyundai Gamma engine.
The Automotive Variable Valve Timing market is fragmented one with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the market are Denso, Schaeffler, Delphi, Hitachi and others. Companies are investing heavily in research and development for the innovation of new and advanced products. In this market, some automobile manufacturers also develop their own VVT systems. For instance, in January 2019, Honda patents Variable Valve Timing technology, in this VVT tech, each cylinder is equipped with four valves which in turn receive two dedicated lobes on the cam each.
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