The Automotive Market
The current global automotive market is approximately 60 million vehicles each year, growing to 70 million in 2010 (CSM Worldwide).
Key Markets - USA and EUROPE
USA and Europe produce 31 million vehicles a year. This gives a turnover potential for Tier 1 suppliers of $1.9 billion a year.
Therefore, the market for our technologies could be as much as $1.5 billion a year, giving Mechadyne a potential revenue of $45 million a year.
This value, however, depends on our share of the VVA market. There is also an income lead time of approximately 4 years (to get from proof-of-concept to volume production).
VVA Market Penetration
This is currently less than 50%.
Simple VVA systems are expected to be almost universal by 2010.
Why Adopt VVA?
Vehicle and engine manufacturers are trying to make a profit.
They therefore do not introduce new technology through altruism!
Some companies e.g. BMW, Mercedes and Honda introduce new technology to maintain market positioning.
However, most new technology adoption is driven by customer pressures or legislation. More info on emissions legislation