Market Trends of Automotive Variable Valve Timing Industry
This section covers the major market trends shaping the Automotive Variable Valve Timing Market according to our research experts:
Electric 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.
