Variable Valve Timing (VVT) Market Size, Share & COVID-19 Impact Analysis, By Phaser Type (Hydraulic Cam Phaser, Electric Cam Phaser), By Technology (Cam-Phasing, Cam-Phasing Plus Changing), By Valvetrain Type (Double Over Head Cam (DOHC), Single Over Head Cam (SOHC)), By Vehicle Type (Passenger Car, Commercial Vehicle) and Regional Forecasts, 2021-2028

The global Variable Valve Timing (VVT) market size was USD 34.94 billion in 2020. The market is projected to grow from USD 35.20 billion in 2021 to USD 48.82 billion by 2028, exhibiting a Compound Annual Growth Rate (CAGR) of 4.8% during the forecast period.  The global impact of novel coronavirus disease 2019 has been unprecedented and staggering, with the variable valve timing system witnessing a negative impact on demand across all regions amid the COVID-19 crisis. Based on our analysis, the global market exhibited a decline of -2.32% in 2020. The sudden rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the COVID-19 crisis is over.

The growing penetration of commercial vehicles and passenger cars is causing escalating vehicular emissions across the world, becoming a foremost concern towards producing automobiles with fuel-efficient systems. To meet the stringent emission norms and sustainability concerns, the Original Equipment Manufacturers (OEMs) are concentrating on developing new engine technology that can improve the engine's performance. One of the major focuses on accomplishing this objective is to control the valve’s timing within the engine control unit with the help of VVT systems. VVT system is an essential system of an engine control unit with a combination of the mechanical and electrical system, which controls the lift and duration of the valve.

COVID-19 Impact

Supply chain disruption caused by COVID-19 adversely affected the market

In 2020, the COVID-19 crisis considerably affected manufacturing operations worldwide. The COVID-19 outbreak has produced disturbances in some businesses and has hammered the logistics, resulting in delayed deliveries. It has affected the production and demand of the variable valve timing system because supply chains are in jeopardy and hence negatively impact the market in 2020.

The VVT system is used to strengthen the opening and closing movement of the valves at various engine speeds. This system offers better vehicle performance and is used for the reduction of vehicular emissions. It also provides maximum power at high Revolutions Per Minute (RPM) and also provides idle at low RPM. Several factors drive the market growth, such as the demand for improving fuel efficiency and vehicle performance, the growing hybridization of vehicles, and stringent emission regulations in developed and developing countries. Furthermore, the increasing adoption of Electric Vehicles (EVs) can be considered as the main obstacle in the growth of the global market.

LATEST TRENDS

Increasing Demand for Fuel-Efficient Vehicles Expected to Drive Market Growth

The rising demand for fuel-efficient automobiles is creating growth opportunities in the global market in the coming years. Further, several surveys and reports have found that customers expect and want to buy more fuel-efficient automobiles. For instance, a study conducted by Consumer Reports, Inc. shows that 60 percent of all Americans are willing to pay extra for more fuel-efficient cars, and 70 percent think standards for fuel efficiency should be higher. Such growth trends across the world encourage OEMs to adopt variable valve timing systems, which is the next step in engine evolution.

DRIVING FACTORS

Increasing Demand for Omni-Channel Insights Favoring the Market Growth

An automotive variable valve timing system drags out motor life as it skillfully improves discharges, efficiency, or execution. Automotive variable valve timing systems enhance motor-cycle, upgrade burning, decrease fuel utilization, reduce emissions, diminish discharges, and improve the motor force. They also help to limit start glitches in the sparkle plug and improve the emanation controller system. Further, the variable valve timing system helps to adjust the valve timing as per the IC engine cycle, in this manner lowering the level of carbon emission, eventually encouraging the global variable valve timing (VVT) market growth.

RESTRAINING FACTORS

Increasing Adoption of Electric Vehicles (EVs) to Restrain Growth

The growing vehicular emission by traditional fuel-based vehicles has been a key concern for government authorities. Owing to growing global pollution levels worldwide, governments are giving financial benefits in terms of subsidies or exemption from tax to those purchasing EVs. According to the International Energy Agency (IEA), global electric car sales rose by 41% in 2020 despite the coronavirus crisis-induced economic downturn that drove down global car sales by 6%.

Further, since electric vehicles run on batteries, there are no carbon or gaseous emissions from these vehicles. This mode of transportation is gaining penetration amongst environmentally conscious commuters. This, in turn, is estimated to restrain the IC engine vehicles market in the coming years. The function of the VVT system is directly related to the internal combustion engine (ICE) of the vehicle, and any impact on the internal combustion engine (ICE) is likely to hamper this market.

SEGMENTATION

By Phaser Type Analysis

Hydraulic Cam Phaser Held the Largest Share of the Market Owing to Most Commonly Used Cam Phaser Type

Based on phaser type, the market is segmented into hydraulic cam phasers and electric cam phasers. The hydraulic cam phaser type segment holds the major share in the market. The hydraulic cam phaser is the most commonly used cam phaser type. The hydraulic cam phasers only adjust one position during engine start. Even though the hydraulic cam phaser concept is robust and has proven itself in various applications, it quickly reaches its technical limitations. Dynamic adjustment is interrelated to the engine oil pressure. To decrease fuel consumption, modern engines are being designed to be highly efficient. However, the electric cam phaser type segment is anticipated to grow faster during the forecast period. Further, electric cam phaser systems enable higher phasing speeds than hydraulic cam phaser systems.

By Technology Analysis

The Cam-Phasing Method segment holds a Significant Share of the Market, Being the Most Common, Cheapest, and Simplest Utilized Mechanism

Based on technology, the market is segmented into cam-phasing and cam-phasing plus changing. Its use extremely influences the increased adoption of the cam-phasing VVT technology in passenger vehicles. Also, the cam phasing method as variable valve timing systems is extensively employed in the automotive industry. Cam-phasing variable valve timing is the most common, cheapest, and simplest utilized mechanism. Thus, the cam-phasing technology segment holds a substantial variable valve timing (VVT) market share.

By Valvetrain Type Analysis

Double Over Head Cam (DOHC) Expected to Dominate the Market Owing to its limited offering airflow at higher engine speeds

Based on the valvetrain type, this market is segmented into Double Over Head Cam (DOHC) and Single Over Head Cam (SOHC). The Double Over Head Cam (DOHC) type segment accounts for the major market share and is also projected to dominate the market during the forecast period. This is attributable to its capacity to make the engine cooler because it has double exhaust and inlet valves compared to SOHC. They offer limited airflow at higher engine speeds.

By Vehicle Type Analysis

The Growth of the Passenger Car Segment due to the Increasing Purchasing Power in the Developing Regions

Based on the vehicle type, this market is fragmented into commercial vehicles passenger cars. The passenger car segment accounts for the highest market share and is likely to lead the market over the forecast period. This is ascribable to the increasing passenger vehicle sales. Owing to aggressive competition in the premium passenger car segment, luxury carmakers such as Mercedes Benz, BMW, Audi, and others have increased their emphasis on fuel efficiency and advanced technologies supported by electric cam phasers.

REGIONAL INSIGHTS

On the basis of geography, this market is classified into Europe, Asia Pacific, North America, and the Rest of the World. The Asia Pacific region will dominate the market and is expected to be the fastest-growing market in the coming years. This is due to the presence of emerging markets such as India, Japan, South Korea, and China. Moreover, significant demand for VVT systems from the developing countries in South Asia and ASEAN. An increase in per capita income of consumers, availability of customized financial schemes, and a drop in car loan interest rates are some significant factors driving the production of passenger cars, which in turn is anticipated to drive the global market in the region over the forecast period.

Further, the regulatory authorities of the European countries are planning to cut carbon emissions by at least 55% by 2030, compared with 1990 levels. The increased numbers of transport industries in major countries of Europe like Austria, Spain, Italy, the U.K., France, Germany, and the rest of Europe are the key factor for the regional growth. In addition, North America is also expected to show significant growth in the market due to the stringent vehicle emission regulations.

KEY INDUSTRY PLAYERS

Key Market Players Are Focusing on Collaborations and Partnerships Strategies to Gain Competitive Edge

The VVT market is highly competitive and fragmented in nature, with the presence of key players such as Mitsubishi Electric Corporation, Schaeffler Technologies AG & Co. KG, DENSO CORPORATION, BorgWarner Inc., and Eaton. The key companies are focusing on acquisitions, expansions, and collaborations strategy to strengthen their position in the market.

LIST OF KEY COMPANIES PROFILED:

• Mitsubishi Electric Corporation (Tokyo, Japan)


• Schaeffler Technologies AG & Co. KG (Herzogenaurach, Germany)


• DENSO CORPORATION (Aichi, Japan)


• BorgWarner Inc. (Michigan, U.S.)


• Hitachi Ltd. (Tokyo, Japan)


• Eaton (Dublin, Ireland)


• Hilite International (Texas, U.S.)


• Mikuni American Corporation (California, U.S.)


• TOYOTA MOTOR CORPORATION (Aichi, Japan)


• Camcraft (Illinois, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2020: Eaton Expanded its Portfolio of Valvetrain Solutions Eaton expanded its product lineup of valvetrain solutions for diesel off-highway vehicles to improve fuel economy and help original equipment manufacturers to reduce emissions with hydraulic lash adjustment (HLA) function.


• July 2019: Hyundai Motor Company launched the world’s first Continuously Variable Valve Duration (CVVD) technology Hyundai Motor Company launched CVVD technology to feature in future Kia and Hyundai vehicles. The Continuously Variable Valve Duration (CVVD) technology optimizes both fuel efficiency and engine performance while also being eco-friendly.

REPORT COVERAGE

The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation