Automotive Variable Valve Timing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Automotive Variable Valve Timing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The automotive variable valve timing market was valued at USD 64.20 billion in 2021, and it is expected to reach USD 96.35 billion by 2027, registering a CAGR of 7% during the forecast period.

The COVID-19 pandemic's impact on the automotive sector led to the shutting down of assembly plants, manufacturing interruptions, and ceased export of Chinese components in the face of the lockdown situation across the world. This resulted in a significant drop in vehicle sales in early 2020, fueled by oil price fluctuations and economic slowdown in various regions. The automotive industry is recovering from the pandemic, as vehicle sales has been increased by 5% across the globe in 2021. Such an increase in vehicle sales witnessed major growth for the market.

Over the medium term, the enactment of stringent emission norms and an increase in demand for the lightweight vehicle are likely to increase the demand for variable valve timing. Growing consumer trend toward fuel-efficient vehicles, which in turn is likely to witness major growth for the market. An introduction to advanced technology such as cam phasing is likely to increase the hybridization of the vehicle, which is likely to witness significant growth for the market.

Regulatory bodies are enacting stringent rules for the emission of harmful gases from vehicles to control such situations. An automotive variable valve timing system reduces the overall carbon emission from a vehicle. This sequentially, anticipated to boost the market growth during the forecast period. The market is further driven by an increase in sales of special utility vehicles and crossover models, especially in the passenger cars segment.

The Asia-Pacific region is dominating the automotive variable valve timing market followed by Europe and North America over the forecast period. Rapid growth in the sale of passenger vehicles is one of the prime factors that boost the market growth in these regions.

Key Market TrendsElectric Cam Phaser is witnessing Major Growth

An electric cam phaser is dominating the automotive variable valve timing market in terms of revenue during the forecast period. An enactment of stringent emission norms to enhance the fuel efficiency of the vehicle is likely to enhance the demand for hybrid vehicles across the globe.

The rise in vehicle hybridization where the engine is consistently restarted as compared to an Internal combustion engine. Electric cam phasers help to reduce the torque while the engine starts and help to run the engine smoothly. Several governments across the globe are offering tax incentives that accelerated hybrid electric vehicle sales across the globe. For instance,

• In 2021, Dubai’s Roads and Transport Authority announced its ambitious plans for converting half of the Emirate’s cabs to hybrid vehicles.

Several hybrid electric vehicle manufacturers across the globe are enhancing their product portfolios to promote hybrid electric vehicle sales. For instance,

• In April 2022, Toyota Motor invested an amount of USD 383 Million in four factories across the United States to promote the production of hybrid vehicles.
• In 2021, Toyota Motors invested an amount of around USD 6.2 billion in developing a hybrid vehicle technology. The company also invested an amount of USD 13.6 billion in batteries used for electric and hybrid vehicles by 2030.

Such an increase in investment for hybrid vehicles across the globe is likely to increase the demand for electric cam phasers during the forecast period.

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 forecast period. Growing consumer interest in advanced technologies in vehicles and increasing sales of passenger and commercial vehicles in the region are expected to drive demand in the market.

The players in the region are investing heavily in research and development to provide OEMs with products that enhance the engine performance and increase the fuel efficiency of the engine. For instance,

• In December 2021, Mikuni Corporation has expanded its production facilities in India for the development of an intake variable valve timing actuator.

Furthermore, rising prices of gasoline and petrol are expected to evoke demand for fuel-efficient engines, thereby propelling the growth of VVT systems. With a considerable expectation of sales during the forecast period in the region, it is expected that people will prefer cars with advanced technology due to the presence of major developing countries, like India and China.

Competitive Landscape

The automotive variable valve timing system ( VVT) market is dominated by a few major players operating in the market such as Schaeffler AG, BorgWarner Inc., Eaton Corporation, Hitachi Automotive, Denso Corporation, and Many others. The majority of the share is occupied by them due to the expensive and complicated manufacturing process of VVT systems. Major market players are focusing on adopting various growth strategies to develop their businesses. In addition, they also emphasize R&D to improve the efficiency and functionality of the VVT systems. For instance,

• In March 2021, Eaton Corporation announced that its Vehicle Group had introduced its next-generation sodium-filled hollow-head valves, which improve fuel economy, reduce emissions, and increase performance in gas-powered engines. The valves feature a unique design that lowers the cylinder chamber temperature while mitigating engine knock.

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