Variable Valve Timing VVT Market

The global variable valve timing (VVT) market is expected to witness high growth during the forecast period. The global variable valve timing (VVT) market is poised to be driven by the stringent engine emission regulations in developed countries and growing demand for enhanced fuel economy and vehicle performance. However, the growth of the market is expected to be hindered by increased sales of electric vehicles.

VVT provides higher performance at higher RPMs. Currently, VVT is incorporated by almost all automotive OEMs in the global market as it helps meet the emission standards set by organizations such as the EU, environmental protection agency (EPA), and Corporate Average Fuel Economy (CAFE). Developed countries such as the US, Canada, Germany, the UK, France, Italy, and Japan have introduced and put into effect their vehicle engine emission standards. These standards are difficult to maintain with traditional engines, which is why many automotive manufacturers use VVT equipped engines to meet the strict emissions standards.

In September 2015, the EU introduced the Euro 6 standard to reduce harmful engine exhaust emission levels in both passenger cars and commercial vehicles. This standard controls the emission of gases such as NOx, CO, HC (THC and NMHC), and particulate matter, which constitute the soot from ICE vehicles. Additionally, the EU developed the Real-Driving Emissions (RDE) test procedure, which was set to be applicable from September 2017. These stringent government norms are expected to restrain the growth of the sale of vehicles with engine systems that are not equipped with VVT. VVT enables the change of valve opening or closing in the engine at specific engine speeds. This helps continuously manage the movement of valves throughout the engine operation cycle, resulting in enhanced engine performance and reduced the emission levels from the engine. Thus, the introduction of stringent emission regulations in developed countries is expected to drive the demand for VVT in the global market during the forecast period.

The introduction of engine emission standards in developed countries is expected to increase the pressure on developing countries, such as Mexico, India, China, South Korea, and Indonesia, to implement strict regulations for vehicle engine emissions, which further adds to the demand for VVT in the global market. Therefore, the impact of stringent engine emission regulations in developed countries on the global variable valve timing (VVT) market is expected to shift from moderate to high over the forecast period.

The VVT manufacturers are investing in upgrading the traditional VVT systems to meet the demand for electrified VVT systems and camless valve actuation systems. Traditional VVT systems have high maintenance costs due to the rapid wear and tear in the components. VVT manufacturers, such as BorgWarner Inc., Aisin Seiki Co. Ltd, and Denso Corporation, are collaborating with research institutes to develop advanced electro-hydraulic camless valve actuation systems, which feature an open-loop device for fully flexible camless actuation in engine valves. These advanced systems are made using a solenoid and fast-acting three-way valve. Additionally, it is based on the energy recovery working principle, which helps enhance the performance of a vehicle significantly.

Considering the current trend, the global sale of ICE vehicles is stagnant owing to the rise in the sale of electric vehicles, which are zero-emission vehicles. However, currently, the cost of electric vehicles is very high. Therefore, the incorporation of electro-hydraulic camless valve actuation systems in ICE vehicles is expected to significantly lower the emission rates at a lower cost compared to electric vehicles. The automotive OEMs and VVT manufacturers are investing in enhancing the demand for engine-oriented vehicles and meeting the industry standards by incorporating electro-hydraulic camless valve actuation systems in these vehicles during the forecast period.

Therefore, the increasing incorporation of electro-hydraulic camless valve actuation systems is expected to create an opportunity for the players operating in the global variable valve timing (VVT) market during the forecast period.

Over the past decade, the price of crude oil per barrel has been growing rapidly, owing to the decreasing availability of crude oil. The increasing awareness regarding the impact of gasoline vehicles on the environment has created a demand for electric cars globally. Government initiatives, such as subsidies, grants, improving charging infrastructure, and increasing vehicle range, also help promote the adoption of electric vehicles. For instance, in September 2017, the Indian Ministry of Road Transport and Highways announced a list of non-fiscal incentives to ensure that electric vehicles account for 15% of total vehicle sales in the country over the next five years.

There is massive growth in the sales of electric vehicles, owing to the shifting preference for zero-emission vehicles in the global market. The growth rate for the sales of electric cars was almost 675% from 2013 to 2017. However, the VVT only has applications in engine-oriented vehicles, such as ICE vehicles, and not in electrified vehicles. Thus, the increase in the sale of electric vehicles is expected to restrain the need and demand for VVT in the global market.

The direct involvement of governments in introducing incentive schemes to increase the sales of electric vehicles to curb vehicle emissions is expected to shift the impact of the increased sales of electric vehicles on the global variable valve timing (VVT) market from low to high over the forecast period

The average cost for maintaining VVT varies from country to country. Maintaining VVT could cost the vehicle owner anywhere between USD 450 and USD 700. The VVT system requires frequent maintenance owing to rapid wear and tear in the components of the system. Moreover, it also features several complex mechanisms, which further increases the maintenance costs. The cost for the maintenance of VVT can be lowered through advancements in the component material and change the mechanism from hydraulic to electric. VVT manufacturers are focused on improving the performance of VVT. For instance, in April 2018, BorgWarner Inc. launched its variable cam timing (VCT) system for the new Hyundai Gamma II engine. This system delivers improved engine efficiency and fuel economy. These manufacturers are investing in terms of money and time on upgrading VVT by incorporating advanced technologies, including electrified camless VVT systems, which has limited wear and tear and enhances the engine life.

Thus, the high maintenance cost is expected to be a challenge for the players operating the global variable valve timing (VVT) market during the forecast period.