Timing Belt Market is Forecast to Reach $9.5 Billion by 2025, Growing at CAGR 4% During 2020-2025
iCrowdNewswire Jan 14, 20203:03 AM ET
Timing belt market is forecast to reach $9.5 billion by 2025, growing at CAGR 4 % during 2020-2025 owing to the increase in the sales of crossover utility vehicles and light commercial vehicles. Timing belt in IC engines, synchronizes the crankshaft’s rotation with and the cam shaft, which opens and closes the engine valves. Some of the components used along with the timing belt include tensioner, idler pulley, shield/cover and the sprocket. The timing belt is mounted over idler pulley, along with the crankshaft and camshaft pulleys to route the timing belt in its correct position.
Additionally, the growing adoption of hybrid light and heavy commercial electric vehicles during 2020-2025 is also set to play a major role is assisting the market growth. The stringent government regulations towards moving to EURO VI emission norms and the growing investment by the OEMs towards development of the EURO VI engine is set to open up new opportunities for Internal Combustion Engine (ICE) vehicles towards the mid of forecast period 2020-2025.
- Light Commercial Vehicles segment for timing belt market to witness the highest growth majorly accounted due to increase in demand for LCVs during the forecast periods
- Timing belt market for Plug in Hybrid Electric Vehicle (PHEV) is set to grow at the highest rate owing to the lower GHG emission from hybrid vehicles as compared to pure electric vehicles in economies with fossil dominated power generation mix
- APAC dominated the global timing belt market in terms of share as well as growth rates owing to the blooming demand of automobiles in South East Asia in 2018.
- Growing demand for Pure Battery Electric to challenge the growth timing belt market during 2020-2025
ICE Vehicle Type – Segment Analysis
By ICE vehicle type the timing belt market has been segmented by passenger vehicles and commercial vehicles. Passenger vehicle segment hold the largest market share of the market in 2019, however, the commercial vehicle segment is estimated to witness the highest growth rate owing to increase in the sales of light commercial vehicles across the globe. The growing competition in the e-commerce sector is resulting to the increase in emphasis towards quicker delivery and support services for the products to improve customer experience. Owing to this, the inbound and outbound logistics companies are growing their fleet size of light commercial vehicles. Apart from this, these companies are also spending significantly to maintain their fleet vehicles in proper condition by regular maintenance and repair, for expanding their reach and reduce the delivery times otherwise impeded due to breakdown of old vehicles. This is analyzed to drive the commercial vehicle timing belt market from 2020 to 2025
Hybrid Vehicle Type – Segment Analysis
Plug-in Hybrid vehicles segment is analyzed to hold the largest share of the hybrid electric vehicle timing belt market and it is also estimated to experience the highest growth of CAGR 7.4% during 2020-2025 owing to the growing establishments of the charging stations where these vehicles can also be charged for extended mileage. As per recent International Energy Association research findings, CO2 emissions savings are prominently higher for pure battery electric vehicles where the power generation mix is dominated by low carbon sources. For countries dominated by fossil based power generation sources, hybrid vehicles exhibit lower emission than pure battery electric. This is set to drive the hybrid vehicle market is countries such as in India, the U.S., China, Australia and so on, thereby providing a pull force for timing belt market as well
Geography – Segment Analysis
APAC acquired the major market share of 42% of the timing belt market in 2018 and it is also estimated to witness the highest growth rate during 2020-2025, owing to growing demand of automobiles in the South East Asian region. As per The Organization International des Constructers d’Automobiles (OICA), the production of vehicles in South East Asian countries including Indonesia, Malaysia, and Thailand increased by 10%, 12.6% and 9% respectively in 2018 as compared to that of 2017. Various Japanese automakers have sought to open new assembling plants in Thailand to avoid growing labor pay in the domestic market. Mahindra and Mahindra, the Indian auto giant is planning to set up additional plants in North Africa, South East Asia to grow its footprint across these regions
Drivers – Timing Belt Market
- Paradigm Shift to EURO VI Emissions Standards
The growing environmental concerns from vehicular emissions, has resulted in the shift to the EURO VI or similar emission standard with the government of countries like China, India, Germany, Italy, the U.K. and so on planning to initiate the implementation of the same for light and heavy duty vehicles from 2020 onwards. Some of the automakers such as Volvo group, Group Renault and so on to be the front runners in EURO VI engine technologies and the others investing significantly towards development of the same. The launch of EURO VI or similar emission norm based engine technology during 2020-2025 is set to buoy the timing belt market growth.
Challenges – Timing Belt Market
- Growing adoption of Pure Electric Vehicle
Since these vehicles are based on electronics control and motor drive system, does not require any type of timing belt as in case of internal combustion engines. Pure Battery Electric Vehicles (PVEB) being the best alternative to ICE based vehicles in terms of emissions are witnessing significant growth in demand in the recent years. As per International Energy Association, the global electric passenger car stock surpassed 5 million units in 2018 which was an increase over 63% on a year on year basis from 2017. The Battery electric vehicle accounted for around 64% of the global electric car fleet in 2018.
Some of the key players operating in the timing belt market includes Continental AG, BorgWarner, Schaeffler, SKF, NTN Corporation, Aisin, Tsubakimoto, B&B Manufacturing, ERIKS, Gates Corporation and among others. The timing belt market is highly fragmented with prominent presence of local players in the market especially operating in the aftermarket space and high degree of competition.
Expansion and Acquisition
- In October 2019, Continental acquired assets and business of CPR’s Industries’ Continental related belts and bet kits program for bringing all its Continental Branded aftermarket belt products under its North American Business
- In July, 2018 Gates Corp, opened a new Headquarters in Denver, and the U.S.
- In April 2017, Gates Corp, opened a regional headquarters in Shanghai, China and Singapore to improve customer experience in these locations
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