Automotive Valve market is expected to reach $38.5 billion by 2025 at a CAGR of 5.2% during the forecast period 2020-2025. Increasing vehicle production in emerging markets and rising demand for electric cars in developed markets are analyzed to drive the market in the forecast period. Automotive manufacturers are developing advanced based automotive valves according to the requirements of the vehicles. Moreover implementation of the stringent government regulations owing to fuel efficiency is further set to escalate the market growth rate. Hence these advancements are analyzed to drive the market in the forecast period 2020-2025.
Key Takeaways
- APAC dominated the automotive valves market by market share of 35.5% followed by North America and Europe. In these regions factors such as rising automotive production and increasing installation of upgraded technology features such as Anti-lock braking system (ABS), start-stop systems, and automatic transmission are some factors expected to support valve market.
- Solenoid valves are growing at a highest CAGR of 7.5% in the forecast period, owing to their usage in standard vehicle applications such as motor starter, steering locking system, and fuel valve control.
- Government regulations and standards such as Corporate Average Fuel Economy (CAFE) and others have mandated an increase in fuel efficiency of vehicles, which in turn is driving the global automotive valve market.
- Automotive Valve top 10 companies include Borgwarner Inc., Continental AG, Delphi Automotive PLC, Denso Corporation, Eaton Corporation PLC, Federal Mogul, Johnson Electric Group, Robert Bosch GmbH, Valeo S.A., G&S Valves among others.
By Product Type- Segment Analysis
Solenoid valves are growing at a highest CAGR of 7.5% in the forecast period. Automotive solenoid valve has significant usage in standard vehicle applications such as motor starter, steering locking system, and fuel valve control. Additionally, a solenoid valve has advantages over other kinds of valves, as it is fast in operation and is suitable for electronic functions such as door locking system and anti-lock braking system. Several companies have been investing heavily for these valves. In 2020, Rheinmetall Automotive booked a $32.5 M contract for solenoid valves for exhaust-gas turbochargers with Kia motors for global engine range. Moreover advancements in these valves are also analysed to drive the market. For instance, Rotex Company showcased its range of Hydrocarbon Dosing Solenoid Valve/Modules for DPF regeneration system and AMT Control Solenoid Valve Modules for the commercial vehicle segment. In addition it also displayed new Solenoid Valves for applications like Advanced Fuel injection/metering system, Power Take-off systems, coolant and air delivery management and innovative control valves for comfort seating systems. Hence these advancements are analysed to drive the market in the forecast period 2020-2025.
By Vehicle Type- Segment Analysis
Automotive Valves in Hybrid Electric Vehicles segment is growing at a CAGR of 7.8% in the forecast period. Automotive Valves in hybrid vehicles are used to deal with the vapor emissions challenges and in other safety systems. Several Companies have been investing heavily for the advancements in these valves. For instance, Eaton has Introduced Electronic Fuel Vapor Management Valves for Hybrid-Electric Vehicles that Increase Safety and Reduce Emissions. Moreover increased investments in production of hybrid electric vehicles are analyzed to drive the market. In 2019, Volkswagen has committed to produce more than 6 million hybrid vehicles by 2029. Similarly several other manufacturers such as Ford, GM and others are also investing heavily for the production of these vehicles. Hence these investments are analyzed to drive the market in the forecast period 2020-2025.
By Geography - Segment Analysis
APAC dominated the automotive valves market by market share of 35.5%, followed by North America and Europe. The economy of APAC is majorly influenced by the major countries such as China and India. In these regions factors such as rising automotive production and increasing installation of upgraded technology features such as Anti-lock braking system (ABS), start-stop systems, and automatic transmission are some factors expected to support valve market. In addition, increasing demand for fuel-efficient vehicles and stringent emission norms are pushing manufacturers to invest in automotive valves. In 2019, Ford has committed to invest more than $1 billion for automotive production. South Korea's automobile manufacturer Kia Motors has invested around US$1.1 billion to build its first manufacturing plant in India and the facility is expected produce up to approximately 300,000 units each year. Similarly Volkswagen has committed to invest more than $2 billion for the production of vehicles with advanced features such as ABS, Start-stop systems and so on. Hence these investments and increased production rate of automotive vehicles are analyzed to bring significant opportunities for Automotive valves in the forecast period 2020-2025.
Drivers – Automotive Valve Market
- Rise in demand for Electric Vehicles
The electric car market has witnessed rapid evolution with the ongoing developments in automotive sector and favorable government policies and support in terms of subsidies and grants, tax rebates. Major manufacturers such as General Motors, Toyota, and BMW plan to release a potential of 400 models and estimated global sales of 25 million by 2025. In 2018, Ford Motor has committed to increase its investments in electric vehicles to $11 billion by 2022 and to have 40 hybrid and fully electric vehicles in its model lineup. Similarly, in 2019, Volkswagen announced to invest $66.3 billion in the next five years in digitization as well as producing more electric and hybrid vehicles. As electric vehicles require components with advanced technology, automotive valve manufacturers have been investing heavily for developing advanced valves according to the requirement of growing electrification in vehicle. Hence the rising demand for electric vehicles globally drives the automotive valves market.
- Stringent Government Regulations
Government regulations and standards have mandated an increase in fuel efficiency of vehicles, which in turn is driving the global automotive valve market. For instance, Corporate Average Fuel Economy (CAFE) regulations across the globe are prompting automakers to enhance fuel efficiency of their vehicles in the time frame proposed by government and regulatory authorities. Similarly, The National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) have set standards to improve fuel economy and reduce emission gases for passenger cars and light trucks for all new models from 2017. India has also adopted CAFÉ regulations since April 1, 2017 in order to reduce average corporate CO2 emission caused by two-wheelers, three-wheelers, passenger and commercial vehicles. Similar norms are being adopted in several countries including China to reduce fuel consumption in vehicles. As automotive valves are used to increase the fuel efficiency, these stringent regulations are analysed to drive the market in the forecast period 2020-2025.
Challenges – Automotive Valve Market
- Increasing adoption of engine downsizing by OEM's
The rising trend for engine downsizing through use of new technologies is restraining the growth of this market. Several companies have been investing heavily for downsizing the engine. For instance Ford has announced that they will be continuing their quest to downsize their engines without losing performance or affordability. Similarly, Volkswagen has also committed to reduce the size of engine. Hence engine downsizing reduce the usage of valves and hamper the market growth in the forecast period 2020-2025.
Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Automotive Valve market. In 2019, the market of Automotive Valve industry outlook has been fragmented by several companies. Automotive Valve top 10 companies include Borgwarner Inc., Continental AG,Delphi Automotive PLC, Denso Corporation, Eaton Corporation PLC, Federal Mogul, Johnson Electric Group, Robert Bosch GmbH, Valeo S.A., G&S Valves among others.
Acquisitions/Technology Launches
- In January 2020, Danfoss acquired Eaton’s hydraulics business to focus on strengthening its core business segment such as valves and others.
