LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global variable valve timing (VVT) system market in marine engines to grow at a CAGR of close to 18% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global VVT system market in marine engines for 2016-2020. To calculate the market size, the report considers the bottom-up approach where the volume of the marine engines equipped with VVT system has been taken into consideration.
|The global VVT system market in marine engines are mainly driven by sales of high- and mid-power output outboard engines. OEMs have been using VVT systems to improve power output at lower rpm and flat torque curve at higher rpm. Since high- and mid-power output outboard engines are mainly used for leisure purposes, the market for VVT systems caters to a niche segment of customers.|
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Technavio automotive analysts highlight the following three factors that are contributing to the growth of the global VVT system market in marine engines:
- Growth of boating industry
- Strong recovery of the US market
- Fall in fuel prices
Growth of boating industry
Sales of powerboats in the US has increased about 80% in 2014. Wakeboard/ski boats, personal watercraft, aluminum fishing boats, pontoon boats, and fiberglass runabouts consisted most the powerboat sales in the US. One of the main drivers for the same is the increase in the number of boat shows in the US and the rise in the number of American participants for the same.
Praveen Kumar, a lead powertrain analyst at Technavio, says, “Recreational boating in Canada contributes a significant part to their economy. The boat industry in Canada shows an increase in its preference for personal watercrafts. Sales of new personal watercraft boats increased by 10% since 2014. There has also been an increase of about 4% in the retail sales of boats and engines sold in 2015, reaching about USD 2 billion.”
Strong recovery of US market
In 2014, the US accounted for approximately 25% of the global outboard motor sales, which used to be approximately 38% before 2008-2009. Approximately 40% of the outboard motor sales that happen in the US is for high-powered engines (>75KW). The boats fitted with these high-power engines are primarily used in water sports where both the low- and mid-range torque is essential for planning of the watercraft. VVT plays a major role in boosting the required torque at that speeds, which ultimately results in less time taken for planning.
“The financial downturn of 2008-2009 had a major impact on outboard motor sales in the US since expenditure on recreational boating is closely related to the number of jobs, disposable income, and consumer confidence,” adds Praveen.
Fall in fuel prices
The price of fuel has gone drastically down and have been touching its low since 2009, which is acting as a growth driver for the marine outboard engines. Even the prices of crude oil have fallen more than 65% compared with the price in 2014. The reason for the decline in the prices of oil is increase in the supply of oil compared with the demand. Earlier, OPEC countries such as Saudi Arabia, Qatar, Iraq, Iran, UAE had a monopoly over the supply of oil prices and formed a cartel to regulate the price of fuel.
The OPEC countries have not curtailed the production of oil, as they fear that they can lose out their market share and the US and the other countries will take over their market share. They are continuing with the earlier level of production of oil and have not decided to decrease it. All these factors have led to the decrease in oil prices.
- Hitachi Automotive systems
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