The widespread use of fuel-efficient technologies and strict pollution regulations are the main reasons fueling the market's expansion. Additionally, there is an increase in demand for fuel-efficient automobiles due to rising fuel prices and environmental concerns. Compared to traditional engines, variable displacement engines offer better fuel efficiency. These engines may reduce fuel consumption by turning off half of their cylinders when full power is not needed. Additionally, as strict emission standards like Euro 6 and LEV III are put into place, manufacturers are spending more money creating a cleaner, more effective engines. By automatically altering the engine displacement in response to the load required, variable displacement engines aid in the reduction of emissions.

The automotive variable displacement engine market is necessary because its product can be applied to a wide range of automobiles. A product that can help increase a vehicle's fuel efficiency is the automotive variable displacement engine market. A product that can aid in lowering emissions from a vehicle is the automotive variable displacement engine market. Additionally, the automotive variable displacement engine market may be able to lessen the noise that cars make.

An internal combustion engine with a variable displacement in an automobile is one whose displacement may be altered while the engine is running. Although they can also be used in gasoline and natural gas engines, VDEs are more frequently seen in diesel engines. VDEs are frequently employed in situations where having a high power-to-weight ratio is desirable, such as in race cars or aeroplanes. VDEs can also be utilised in applications where having a wide range of torque output is desirable, as in trucks or construction machinery.

The market for automotive variable displacement engines is anticipated to reach USD 26.4 billion in 2031 and expand at a CAGR of 5.8% between 2021 and 2031.

Because they have various advantages over conventional engines, such as better fuel efficiency, lower emissions, and enhanced power and torque, variable displacement engines are becoming more and more common.

The market for automotive variable displacement engines faces significant challenges as a result of the high cost of these engines. These engines are more expensive than standard engines, which prevents many customers from purchasing them. The lack of consumer awareness is another issue facing the market for automobile variable displacement engines These engines are not widely known, therefore many people are ignorant of their benefits. This restricts market expansion. Another difficulty for the market for automotive variable displacement engines is the absence of standards. It is challenging for manufacturers to produce these engines in large quantities because there are no established standards for them. Nevertheless, due to the increasing demand for environmentally friendly and fuel-efficient automobiles, the market for automotive variable displacement engines is anticipated to expand quickly in the years to come.

Robert Bosch GmbH (Germany), Continental AG (Germany), Delphi Technologies PLC (UK), BorgWarner Inc. (USA), and Denso Corporation are the leading companies in the automotive variable displacement engine market (Japan). These businesses have substantial manufacturing capacities and a sizable global reach. The top players employ a variety of tactics to get an edge over rivals. Major firms are making significant investments in R&D to create cutting-edge goods and services to meet the demands of the automotive sector. The report includes in-depth analyses of the product market sizing, competitive landscape, product benchmarking, product developments, market trends, strategic analysis, financial analysis, and other factors in order to assess the impact forces and potential opportunities of the Automotive Variable Displacement Engine market. In addition, the report analyses significant market events such as product launches, agreements, acquisitions, partnerships, mergers, and so on to understand the current market dynamics and their implications for the future.

Segment Analysis

The Diesel Engine Segment emerged as the Most Lucrative Type

During the projected period, diesel engines are anticipated to dominate the market for automotive variable displacement engines. One of the main drivers propelling the growth of this category is the increasing demand for diesel-powered cars, particularly in commercial applications. Additionally, the use of diesel engines in luxury automobiles is anticipated to promote this market's expansion.

The Most Prominent Application is the Luxury Vehicle Segment

Throughout the projected period, diesel engines are anticipated to rule the automotive variable displacement engine market. One of the main drivers of this segment's growth is the increasing demand for diesel-powered cars, particularly in commercial applications. In addition, diesel engine use in premium automobiles is anticipated to promote this market's expansion.

The North American Region to render Ample Financing Opportunities

The market is divided into North America, Europe, Asia-Pacific, South America, the Middle East, and Africa based on region. North America now holds the greatest market share due to the region's high demand for luxury and commercial vehicles. It is anticipated that as consumers' disposable incomes increase, they will spend more money on new cars with cutting-edge safety features. Government rules requiring minimum vehicle safety standards are also anticipated to fuel market expansion during the forecast timeframe.

COVID-19 Impact and Market Status

The car industry has been significantly impacted by the COVID-19 epidemic, with production and sales both falling precipitously in 2020. In the near future, the market for automotive variable displacement engines is anticipated to experience a similar downturn in demand, which will result in lower output and revenue. However, as the global economy starts to recover from the epidemic in 2021 and beyond, the market is expected to rebound. Longer term, the market is anticipated to expand steadily, supported by a persistent desire for automobiles that are ecologically friendly and low on gas. Additionally, the market is anticipated to benefit from the development of new technologies like electrification.

Recent Developments in the Automotive Variable Displacement Engine Market

• Novel valve design that enables an expanded operating temperature range of up to 200°C in the System (MDS). According to the manufacturer, the MDS technology will increase fuel efficiency by about 10%. Additionally, compared to traditional four-valve engines, it is claimed to increase thermal efficiency by around five percentage points and cut emissions by roughly thirty per cent.

• At a media presentation during the Frankfurt Motor Show in October 2019, Kia Motors showcased its new turbocharged 1.6-litre Gamma petrol engine coupled with Variable Displacement technology. According to the manufacturer, the engine produces 5% more power than its previous generation, 268 horsepower, and 264 lb-ft of torque.

• The launch of a new 2.0L I4 turbocharged gasoline engine with VVEL and a Variable Compression Turbo (VC-Turbo) engine for Infiniti vehicles globally was announced by Nissan Motor Corporation in January 2020. (Variable Valve Event and Lift).

• GM introduced its new 3L DOHC I6 gas turbocharged VVT DI V6 gasoline engine with Active Fuel Management in February 2020. (AFM). This will be made available in the Cadillac Escalade in 2021. With an SAE certification, this engine produces 355 horsepower at 5,600 rpm and 383 lb-ft of torque at 4,400 rpm.

• Audi AG declared in August 2020 that its new generation of V6 TDI engines will come with an electrically adjustable exhaust gas recirculation valve and a variable displacement oil pump. According to the manufacturer, new V6 TDI engines can save up to 15% more fuel than their predecessors.

Automotive Variable Displacement Engine Market Scope

Key Segments of the Automotive Variable Displacement Market

Type Overview, 2021-2031 (USD Billion)
    • Diesel Engine
    • Petrol Engine

Application Overview, 2021-2031 (USD Billion)
    • Compact Vehicle
    • Mid-Sized Vehicle
    • Premium Vehicle
    • Luxury Vehicle
    • Commercial Vehicles
    • Sport Utility Vehicle

Regional Overview, 2021-2031 (USD Billion)

North America
    • U.S
    • Canada

Europe 
    • Germany
    • France
    • UK
    • Rest of Europe

Asia Pacific
    • China
    • India
    • Japan
    • Rest of Asia Pacific

South America
    • Mexico
    • Brazil
    • Rest of South America 
    • Middle East and South Africa