European Market for Next Generation Diesel Engine Technologies

Research Overview

Increasing Penetration of Diesel Engines in the European Market

Diesel engines are gaining in popularity in Europe, penetrating even those vehicle segments that have traditionally been considered gasoline engine strongholds. For instance, the luxury and sports vehicle segments are beginning to favour diesel engines for their improved performance and power density as well as greater refinement in terms of superior noise, vibration and harshness (NVH) characteristics. Market share of diesel engines has been steadily increasing, from a more or less constant 14 per cent between 1987 and 1991 to 33 per cent in 2000 and then to around 45 per cent in 2003, largely due to the introduction of sophisticated technologies such as direct injection (DI), variable geometry turbocharging and common rail direct injection (CRDI).

This Frost & Sullivan research provides a strategic analysis of the developing European diesel engine technologies market, charting the evolution of these technologies over the period 2001-2012. It examines individual diesel technologies in great detail and provides unit and revenue forecasts for their overall penetration in the European market. Penetration rates of individual technologies and their revenue forecasts are also provided.

Boosting Technologies and Fuel Injection Equipment to Witness Sustained Development

Boosting technologies contribution to diesel engine technology revenues is expected to remain steady over the study period (2001-2012), with fixed geometry turbocharging anticipated to gradually give way to variable geometry and multi-stage turbocharging. "Although these systems are currently featured in upper segment vehicles, the technology is likely to trickle down to the lower vehicle segments as penetration rates and production volumes increase," notes the analyst of this research service. A significant case in point is the 5-Series from BMW for multi-stage turbocharging, which the company expects to penetrate other vehicle models.

However, fuel injection technologies are anticipated to contribute the bulk of revenues ? about ?5.25 billion in 2012. Among these, CRDI and unit injector technologies along with multiple injection events and variable nozzle characteristics are expected to attract the maximum interest in the European market.

DPFs Register Higher Growth than other Technologies

Exhaust gas after-treatment systems such as diesel particulate filters (DPFs) are expected to significantly grow during the study period with penetration rates likely to reach 35 per cent in 2010. Vehicle manufacturers (VMs) are favouring DPFs because of their huge potential with regard to particulate matter and oxides of nitrogen reduction. Governments are also doing their bit to encourage the adoption of DPFs, offering fiscal incentives for vehicles equipped with such solutions. VMs and suppliers are taking full advantage of these benefits, thereby increasing the penetration rates of DPFs.

"Frost & Sullivan estimates that the revenues generated by DPFs will reach ?1.47 billion in 2012 with the number of units in the region of 4.2-4.4 million," says the analyst. "The most important contributor to this is expected to be the increased penetration rates of DPFs due to increasingly strict emission norms."