A senior market analyst, at Future Market Insights (FMI) talks about the newest developments in the automotive camshafts market and the response of manufacturers towards the same.
While the automotive market has slowed down significantly in developed countries in the past few years, demand for passenger and commercial vehicles is still going strong in the emerging economies, owing to increased investments in the road infrastructure of these regions. These factors are anticipated to boost the automotive camshaft market in the years to come.
Being the largest auto manufacturing market in the world, what are some promising opportunities China offers to automotive camshaft manufacturers?
China is anticipated to account for more than a quarter of the global production and consumption of automotive camshafts owing to its high rate of production for passenger automobiles and light/heavy commercial vehicles, which is creating a strong competition for established countries such as Germany and the United States. With an annual production of more than 20 million cars, and supportive efforts from the government in Beijing, to support threats to the local market, through measures such as tax cuts and subsidies are anticipated to keep the growth of the automotive camshaft producers in the region, strong, for the foreseeable future.
What are the crucial innovations driving the development of modern automotive camshafts?
With the increasing inclusion of the Internet of things (IoT) in the automobile manufacturing process, modern camshafts have been designed as an essential component for gathering data in terms of vehicle performance. Moreover, this has led to camshafts being designed with machining equipment, instead of being manufactured in their conventional raw form, which reduces weight and increases efficacy.
Owing to increasingly stricter government regulations regarding emission control, intelligent valve actuators are increasingly being used instead of conventional camshafts to achieve superlative fuel consumption control. The reduction in cost and time, along with higher component strength with these new innovations in the industry will encourage growth for the long term.
Do electric vehicles threaten automotive camshaft manufacturers?
Around the world, the growing awareness about environment issues has significantly increased the sale and use of electric vehicles. The power systems of these vehicles are projected to potentially make conventional combustion engine systems obsolete. In such a situation, the demand for automotive camshafts is also anticipated to be hit severely, which can curtail manufacturing activity to a great extent. On the other hand, electric vehicles have started to gain popularity only in recent years, while combustion engines are anticipated to hold sway over the automotive market for many more years. This is projected to keep the demand for automotive camshafts steady in the near future.
What does falling gasoline prices mean for automotive camshaft producers?
Based largely on the prices of crude oil, the recent global fall in gasoline prices is expected to increase the average spending power of the buyer, resulting in increased purchases of larger vehicles, lower production costs, and affordable costs of personal transport for end users. This is especially true of Europe and United States, where the reduction of prices is being used to boost the economic state of the countries, and increasing adoption of camshafts that are produced for automatic vehicles as well.
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