Global Variable Valve Timing System Market in Marine Engines 2016-2020

Overview of the variable valve timing (VVT) system market in marine engines

Extensive research carried out by the analysts at Technavio has shown that the global variable valve timing (VVT) system market in marine engines is anticipated to witness impressive growth and will post a staggering CAGR of more than 17% during the forecast period. One of the major factors driving this market’s growth is the considerable fall in fuel prices over the last few years. Moreover, the prices of crude oil have also declined by nearly 65% compared with the price in 2014. This is primarily because the market has witnessed an increase in the supply of oil compared with the demand. Earlier, OPEC countries like Saudi Arabia, Qatar, Iran, and UAE had a monopoly over the supply of oil and formed a cartel to regulate the price of fuel. But in the recent times, the US and Russia have increased the production of oil. Also, the demand for oil has come down due to an economic slowdown in China. The decrease in oil prices will encourage consumers to indulge in more recreational activities like boating, which, in turn, will indirectly boost the sales of VVT systems for marine engines over the coming years.

Over the last few years, most traditional fishing boats are becoming more sophisticated and powerful, which is one of the recent trends gaining significant traction in the market. Since 2014, more Americans are participating in outdoor adventure activities like hunting and fishing, reversing the two-decade long decline among adults. Since the economic downturn, the boating industry and the process of boatbuilding have undergone some radical changes. Boat manufacturers are now working to provide high-quality products that are affordable, meet the needs of consumers, attract existing and new audiences, all the while maintaining safety and regulatory compliance and keeping their own costs down. The newly designed boats boast a lot of additional features to turn a deck boat into a fishing boat. This is only possible if the boat has a powerful engine that can meet the demands of each of the unique applications. Moreover, these powerful engines also need to be economical at the same time, which will, in turn, propel the adoption of variable valve timing system in such boats.

Competitive landscape and key vendors

The global VVT systems market in marine engines is highly competitive due to the presence of a limited number of well-established vendors. The key vendors in the market are growing their customer base and increasing their investments in R&D. The competitive environment should intensify with advancements in technology, government regulations, and entry of new competitors. There are a few barriers to the entry of VVT systems in the market. However, substitutes like diesel engines with direct injection and two-stroke direct injection technologies continue to take up a major share of the target market, especially in Europe.

Key vendors in this market are -

• Delphi
• Denso
• Aisin
• Eaton
• Hitachi Automotive Systems

Segmentation by engine power output and analysis of the VVT system market in marine engines

• Mid-power output engine
• High-power output engine

During 2015, the high-power output engine accounted for the maximum market shares and will continue to lead the market over the next four years. The US is the biggest market for high-power output engines and about 25% of the outboard motors sold in the US have a power output of more than 150hp. The majority of OEMs have started incorporating VVT systems into their high-power engines to increase their power output and fuel efficiency. Also, VVT systems enable quick throttle response in high-power output marine engines when boating through waves. This is expected to boost the adoption of VVT systems in high-power engines in the future.

Geographical segmentation and analysis of the VVT system market in marine engines

• EMEA
• US
• ROW

In terms of geography, the US was the highest revenue generating region in the global market and will continue to dominate the market over the coming years. The US market has the highest concentration of VVT systems due to the preference for high-power output marine engines. Moreover, an increase in the number of boat shows, growing popularity of boat races, decrease in the prices of fuel, and growing purchasing power of customers are driving the market for high-power output marine engines, which will, in turn, propel the growth of the VVT systems market in the country until the end of 2020.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global VVT systems market in marine engines?
• What are the key market trends impacting the growth of the global VVT systems market in marine engines?
• What are the challenges to market growth?
• Who are the key vendors in the global VVT systems market in marine engines?
• What are the market opportunities and threats faced by the vendors in the global VVT systems market in marine engines?
• What are the trending factors influencing the market shares of the US, EMEA, and ROW?
• What are the key outcomes of the five forces analysis of the global VVT systems market in marine engines?

Technavio also offers customization on reports based on specific client requirement.

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