This strategic assessment report on Automotive Variable Cam Timing (VCT) systems studies the current penetration of the systems in different vehicle types in different regions as well as expected its future projections based on several market factors.
The outcomes of the study are derived from 15+ primary interviews conducted across the value chain and 1,000+ authentic secondary data sources. The 217-page well-structured report comprises 150+ tables and figures covering all possible market angles with an aim to provide utmost benefits to the market stakeholders including VCT system manufacturers, tier players, OEMs, as well as raw material suppliers. The report also covers the detailed impact assessment of the pandemic in both, short- as well as long-term, estimating the possible loss incurred due to the pandemic on the automotive VCT systems market at the global, regional, and country levels.
Automotive VCT Systems Market: Highlights
The variable cam timing (VCT) system is the simplest and the cheapest form of variable valve timing (VVT) systems. The system includes a phaser cavity (cam-phaser) which helps them in changing the orientation of the camshaft with respect to the crankshaft in order to obtain optimized fuel efficiency and reduced emissions. The VCT system plays an important role in the opening and closing of the cylinder valves and provides an optimum air-fuel ratio to reduce the quantum of unburnt hydrocarbons during the combustion cycle of the internal combustion engine. Thus, by affecting the intake, it reduces the amount of residual gas in the combustion and exhaust phases of the engine.
Over the past few eons, the VVT systems market has traveled remarkable miles concerning design, material, technology, etc. Continuous advancements in the systems, such as a shift from fixed variable cam-phasing systems to electrical fixed variable cam-phasing systems to recently developed continuously variable cam-phasing systems and camless technologies, undeniably increase the importance of the system, managing themselves in the list of automakers’ priority. Currently, VCT systems capture a lion’s share of the total VVT systems market; however, rapid advancements may affect its share in the VVT systems market. Key market stakeholders of the industry have heavily been investing in R&Ds in order to develop advanced products better addressing the market issues. The introduction of stringent regulations regarding carbon emissions and fuel efficiency targets further propels the innovations in the market.
Impact of COVID-19 on the Automotive VCT Systems Market
The auto industry had been witnessing a huge downturn for the past two years, encircled by several challenges including global economic slowdown led by the US-Sino trade war. The performance of VCT systems is highly proportional to the organic growth of vehicle production and any change in vehicle production usually has an analogous impact on their demand. However, a meteoric proliferation in the penetration of VCT systems in the past few years, especially in HEVs, proved to be a decisive factor, weakening the impact of industry challenges on the demand for VCT systems up to an extent.
The auto industry was hoping to record a notable recovery in 2020 but the outbreak of pandemic has exacerbated the already deteriorating automotive industry, leaving an indelible dent on the growth trajectory of the market. VCT systems, a revolutionary technology improving the engine’s performance, could not escape from the pandemic and started dwindling its demand in 2020. Nevertheless, the market participants are still an optimist about the market recovery citing the references of previous recessions/pandemics including the Great Recession (2008-2009). However, this time, the recovery may take a bit longer time than the Great Recession with huge short-term as well as long-term repercussions. The publisher's estimates based on 15+ detailed primary interviews conducted with the leading market stakeholders as well as the trendlines of past industry trends reveal that the automotive VCT systems market is expected to reach an estimated value of US$ 3.1 billion in 2025, a landmark figure that the market never touched before.
Automotive VCT Systems Market Share Analysis
It is paramount importance for the market participants to comprehend the rapidly changing dynamics of the market as well as to target low-hanging fruits available in each market segment. The publisher bifurcated this market in the most possible ways in order to assist them in building their short- as well as long-term growth strategies by targeting the low-hanging market segments available in the market.
Firstly, the market is segregated by vehicle types as passenger car and commercial vehicle, the most crucial market segment. Passenger car is estimated to remain the biggest sailor of VCT systems in the coming five years. Large production of passenger cars coupled with high penetration of VCT systems is a key factor behind the dominance of the passenger car segment in the market. Furthermore, increasing the production of hybrid electric vehicles is further corroborating the market potentials of VCT systems in passenger cars.
The use of VCT systems also varies from engine to engine. The study on the engine-based segment highlights the irrefutable dominance of the internal combustion engine (ICE) in the VCT systems market. ICE, the traditional technology, is still most prevalent across regions with a fair penetration of VCT systems. Hybrid engine, a relatively new technology, is subjected to record a higher growth post the pandemic. The high focus of automakers for the development of hybrid vehicles with the use of advanced technologies including VCT systems, aiming to curb the carbon emissions, may drive the segment’s market in years to come.
VCT systems are primarily of two types: hydraulic VCT system and electric VCT system. The study based on the types of VCT systems identifies the Hydraulic VCT system as the most dominant product type in the market. However, the electric VCT System is likely to exhibit faster growth in the long run. Electric VCT system exhibits better phasing performance as compared to conventional hydraulic VCT systems.
The assessment of the pandemic reveals a mammoth change in both short- as well as long-term regional business perspective. The outbreak of the pandemic plummeted vehicle production as well as undermined the VCT systems’ penetration rate. Despite several setbacks caused by maturing indigenous demand, fading export, and the pandemic’s impact, Asia-Pacific, the largest producer of automobile producer, is projected to maintain its dominance in the automotive VCT system market in the foreseen future in terms of both value and units.
China is estimated to maintain its leadership in the global market in the coming five years despite decreasing vehicle production in the past two years as well as a substantial plunge in the production in the year 2020 triggered by the pandemic. The country’s auto stakeholders have been meticulously investing in new automotive technologies with a high focus on HEVs comprised of VCT systems.
Europe, the second-largest market, is also likely to exhibit a sizeable demand for VCT Systems during the forecast period. The region is estimated to be one of the two worst-impacted regions of the market. The region was already facing massive decline, engulfed by several industry-related challenges including declining demand from China since 2018, the uncertainty of the Brexit, delays in adopting EVs, and diesel-gate scandal with stringing emission norms, leading to a huge decline in diesel car sales. The pandemic has exacerbated the regional market conditions by taking the key economies into its grip.
Key Players
The supply chain of this market comprises raw material suppliers, component manufacturers, VCT system manufacturers, automotive OEMs, and tier players. The key automotive VCT System manufacturers are Aisin Seiki Co., Ltd., BorgWarner Inc., Schaeffler AG, Denso Corporation, Hitachi Ltd., and Mikuni Corporation. The development of high-performance, lightweight, and compact VCT systems and the formation of strategic alliances with OEMs or engine manufacturers, are the key strategies adopted by the key players to gain a competitive edge in the market.
Research Methodology
This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with the publisher's internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. The publisher has conducted more than 15 detailed primary interviews with the market players across the value chain in all five regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market.
The following are the key features of the report:
The automotive variable cam timing systems market is segmented into the following categories:
Automotive VCT Systems Market, by Vehicle Type
Automotive VCT Systems Market, by Powertrain Type
Automotive VCT Systems Market, by Product Type
Automotive VCT Systems Market, By Region
The outcomes of the study are derived from 15+ primary interviews conducted across the value chain and 1,000+ authentic secondary data sources. The 217-page well-structured report comprises 150+ tables and figures covering all possible market angles with an aim to provide utmost benefits to the market stakeholders including VCT system manufacturers, tier players, OEMs, as well as raw material suppliers. The report also covers the detailed impact assessment of the pandemic in both, short- as well as long-term, estimating the possible loss incurred due to the pandemic on the automotive VCT systems market at the global, regional, and country levels.
Automotive VCT Systems Market: Highlights
The variable cam timing (VCT) system is the simplest and the cheapest form of variable valve timing (VVT) systems. The system includes a phaser cavity (cam-phaser) which helps them in changing the orientation of the camshaft with respect to the crankshaft in order to obtain optimized fuel efficiency and reduced emissions. The VCT system plays an important role in the opening and closing of the cylinder valves and provides an optimum air-fuel ratio to reduce the quantum of unburnt hydrocarbons during the combustion cycle of the internal combustion engine. Thus, by affecting the intake, it reduces the amount of residual gas in the combustion and exhaust phases of the engine.
Over the past few eons, the VVT systems market has traveled remarkable miles concerning design, material, technology, etc. Continuous advancements in the systems, such as a shift from fixed variable cam-phasing systems to electrical fixed variable cam-phasing systems to recently developed continuously variable cam-phasing systems and camless technologies, undeniably increase the importance of the system, managing themselves in the list of automakers’ priority. Currently, VCT systems capture a lion’s share of the total VVT systems market; however, rapid advancements may affect its share in the VVT systems market. Key market stakeholders of the industry have heavily been investing in R&Ds in order to develop advanced products better addressing the market issues. The introduction of stringent regulations regarding carbon emissions and fuel efficiency targets further propels the innovations in the market.
Impact of COVID-19 on the Automotive VCT Systems Market
The auto industry had been witnessing a huge downturn for the past two years, encircled by several challenges including global economic slowdown led by the US-Sino trade war. The performance of VCT systems is highly proportional to the organic growth of vehicle production and any change in vehicle production usually has an analogous impact on their demand. However, a meteoric proliferation in the penetration of VCT systems in the past few years, especially in HEVs, proved to be a decisive factor, weakening the impact of industry challenges on the demand for VCT systems up to an extent.
The auto industry was hoping to record a notable recovery in 2020 but the outbreak of pandemic has exacerbated the already deteriorating automotive industry, leaving an indelible dent on the growth trajectory of the market. VCT systems, a revolutionary technology improving the engine’s performance, could not escape from the pandemic and started dwindling its demand in 2020. Nevertheless, the market participants are still an optimist about the market recovery citing the references of previous recessions/pandemics including the Great Recession (2008-2009). However, this time, the recovery may take a bit longer time than the Great Recession with huge short-term as well as long-term repercussions. The publisher's estimates based on 15+ detailed primary interviews conducted with the leading market stakeholders as well as the trendlines of past industry trends reveal that the automotive VCT systems market is expected to reach an estimated value of US$ 3.1 billion in 2025, a landmark figure that the market never touched before.
Automotive VCT Systems Market Share Analysis
It is paramount importance for the market participants to comprehend the rapidly changing dynamics of the market as well as to target low-hanging fruits available in each market segment. The publisher bifurcated this market in the most possible ways in order to assist them in building their short- as well as long-term growth strategies by targeting the low-hanging market segments available in the market.
Firstly, the market is segregated by vehicle types as passenger car and commercial vehicle, the most crucial market segment. Passenger car is estimated to remain the biggest sailor of VCT systems in the coming five years. Large production of passenger cars coupled with high penetration of VCT systems is a key factor behind the dominance of the passenger car segment in the market. Furthermore, increasing the production of hybrid electric vehicles is further corroborating the market potentials of VCT systems in passenger cars.
The use of VCT systems also varies from engine to engine. The study on the engine-based segment highlights the irrefutable dominance of the internal combustion engine (ICE) in the VCT systems market. ICE, the traditional technology, is still most prevalent across regions with a fair penetration of VCT systems. Hybrid engine, a relatively new technology, is subjected to record a higher growth post the pandemic. The high focus of automakers for the development of hybrid vehicles with the use of advanced technologies including VCT systems, aiming to curb the carbon emissions, may drive the segment’s market in years to come.
VCT systems are primarily of two types: hydraulic VCT system and electric VCT system. The study based on the types of VCT systems identifies the Hydraulic VCT system as the most dominant product type in the market. However, the electric VCT System is likely to exhibit faster growth in the long run. Electric VCT system exhibits better phasing performance as compared to conventional hydraulic VCT systems.
The assessment of the pandemic reveals a mammoth change in both short- as well as long-term regional business perspective. The outbreak of the pandemic plummeted vehicle production as well as undermined the VCT systems’ penetration rate. Despite several setbacks caused by maturing indigenous demand, fading export, and the pandemic’s impact, Asia-Pacific, the largest producer of automobile producer, is projected to maintain its dominance in the automotive VCT system market in the foreseen future in terms of both value and units.
China is estimated to maintain its leadership in the global market in the coming five years despite decreasing vehicle production in the past two years as well as a substantial plunge in the production in the year 2020 triggered by the pandemic. The country’s auto stakeholders have been meticulously investing in new automotive technologies with a high focus on HEVs comprised of VCT systems.
Europe, the second-largest market, is also likely to exhibit a sizeable demand for VCT Systems during the forecast period. The region is estimated to be one of the two worst-impacted regions of the market. The region was already facing massive decline, engulfed by several industry-related challenges including declining demand from China since 2018, the uncertainty of the Brexit, delays in adopting EVs, and diesel-gate scandal with stringing emission norms, leading to a huge decline in diesel car sales. The pandemic has exacerbated the regional market conditions by taking the key economies into its grip.
Key Players
The supply chain of this market comprises raw material suppliers, component manufacturers, VCT system manufacturers, automotive OEMs, and tier players. The key automotive VCT System manufacturers are Aisin Seiki Co., Ltd., BorgWarner Inc., Schaeffler AG, Denso Corporation, Hitachi Ltd., and Mikuni Corporation. The development of high-performance, lightweight, and compact VCT systems and the formation of strategic alliances with OEMs or engine manufacturers, are the key strategies adopted by the key players to gain a competitive edge in the market.
Research Methodology
This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with the publisher's internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. The publisher has conducted more than 15 detailed primary interviews with the market players across the value chain in all five regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market.
The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, Product portfolio, New product launches, etc.
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for the existing and new players
- Key success factors
The automotive variable cam timing systems market is segmented into the following categories:
Automotive VCT Systems Market, by Vehicle Type
- Passenger Car (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Commercial Vehicle (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Automotive VCT Systems Market, by Powertrain Type
- Internal Combustion Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Hybrid Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Automotive VCT Systems Market, by Product Type
- Hydraulic VCT System (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Electric VCT System (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Automotive VCT Systems Market, By Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, the UK, Russia, Italy, and Rest of Europe)
- Asia-Pacific (Country Analysis: China, Japan, India, South Korea and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
Table of Contents
1. Executive Summary
2. Automotive VCT Systems Market Overview and Segmentation
3. Automotive VCT Systems Market - The COVID-19 Impact Assessment
4. Competitive Analysis
5. Automotive VCT Systems Market Trend and Forecast by Vehicle Type (2014-2025)
6. Automotive VCT Systems Market Trend and Forecast by Powertrain Type (2014-2025)
7. Automotive VCT Systems Market Trend and Forecast by Product Type (2014-2025)
8. Automotive VCT Systems Market Trend and Forecast by Region (2014-2025)
9. Strategic Growth Opportunities
10. Company Profile of Key Players (Profiling, Financial Information, Competition, Strategies, etc.)
Samples
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Companies Mentioned
- Aisin Seiki Co., Ltd.
- BorgWarner Inc.
- Denso Corporation
- Hitachi, Ltd.
- Mikuni Corporation
- Schaeffler AG
Methodology
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