An up-to-date intelligence study by Transparency Market Research (TMR) has detected that the global VVT & start-stop systems market is mostly consolidated in the present scenario, with a handful of global companies holding the majority shares. The TMR report identifies Mitsubishi Electric Corporation, Robert Bosch GmbH, Continental AG, Magna International Inc., Delphi Automotive PLC, Hitachi Ltd., BMW, Eaton Corporation plc, Toyota Motors, Johnson Controls, Inc., Denso Corporation, Aisin Seiki Co. Ltd., Valeo S.A., and Schaeffler AG as some of the prominent companies currently operating in the global VVT & start-stop systems market .
Demand for VVT Start-Stop Systems Incrementing at CAGR 9.4% until 2022
As per the projections of the TMR report, the demand in the global VVT & start-stop systems market will increment at an impressive CAGR of 9.2% during the forecast period of 2017 to 2025. The report has evaluated that the opportunities in the VVT & start-stop systems market, across the globe, were worth US$41,734.7 mn in 2017, and the revenue will go up to US$64.895.9 mn by 2022. With this apparent lucrativeness of the market, the existing participants are expected to stay aggressive in their strategies to counter the competition. New product development is expected to extract the maximum focus of the participants of the VVT & start-stop systems market, while most of them are also expected to indulge in geographical expansion processes to add to their demand-share. The possibilities of new entrants making a market in the global VVT & start-stop systems market is slender, owing to the requirement of technological expertise and manufacturing set-up.
Product-wise, the global VVT & start-stop systems market gains maximum demand for the segment of dual over-head cam (DOHC), which represented nearly 59% of the total demand of this market in 2017, equivalent to US$24,635.3 mn. The DOHC segment is expected to produce a revenue of US$2,657.5 mn annually over the course of the forecast period, during which the demand for it is estimated for a CAGR of 9.0%. Region-wise, Asia Pacific except Japan (APEJ) is foreseen as the most lucrative market, exhibiting an above-average CAGR of 10.2% during the said forecast period.
Increasing Production of Semi-Luxury Vehicles Driving Demand
Some of the key factors driving the global VVT & start-stop systems market are: stringent emission norms across various developed and developing countries, depleting fossil fuel and increasing focus on fuel-efficient technologies, hybridization of vehicles, and increasing fuel prices. Owing to rapid urbanization and increasing disposable income in various emerging economies, the production of passenger cars across the globe has increased, including luxury and semi-luxury vehicles. In the near future, the vendors of the VVT & start-stop systems market are expected to gain new opportunities from the growing demand of cam-less actuation, increasing production of start-stop vehicles, and growing preference of consumers for diesel cars as they offer better fuel efficiency. Especially in the emerging economies such as India and China, the demand for diesel-powered vehicles has escalated in the recent times. In addition to that, improving socio-economic conditions in China, India, Thailand, and Indonesia is resulting in the growth of premium segment passenger cars, which in turn is augmenting the demand in the global start-stop systems market.
High Cost of the VVT Start-stop Systems Hindering Market’s Prosperity
The global VVT & start-stop systems market is challenged by a number of factors too, such as increasing share of alternative fuels, the growing need for technological up-gradation over a period of time, high cost of VVT start-stop systems, difficulty in procuring complex internal parts, limitations of aftermarket supplies, and high maintenance cost of the vehicles. The vendors operating in this market will have to overcome these obstructions to make the most out of this highly potential market.