Market Type,
Size and Growth Rate

Primemovers market is dynamically reorienting itself rapidly to adapt to global Climate change regulation needs. The shift to electrification, green fuels and renewables within the transport and energy sector is inevitable. We see convergence of new technologies and erasing conventional segment demarcations in each sector. I.C.E markets today cover vast range of equipment’s within various sectors and broad segmentation contours of Engine technology business is discussed below. In land transport it includes passenger cars, SUV, HCV, LCV, long haul trucks, trailers, tractor, rail, Agro-machines, material handling and earth moving equipment etc. The new technology engine development and integration services business has its typicality’s in each of the segment.

Automotive Sector

This is a high-volume market evaluated at over $300 billion globally [9], $185 billion in passenger vehicle alone, $51 billion in commercial vehicles, $24 billion in off-road, and $40 billion in other applications. OEM’s are at the top of the food chain here and service the end user demand for products. Engines are accessory system of their products. The industry serving OEMs is segregated along following functions.
1. Engine Components Manufacturing (generally dedicated to 1 OEM (TIER 1)
2. Specialised service for e.g. Emission tech; Engine D&D, test’s/ certification; AI & Auto drive. (TIER-2).
3. Suppling non-specialized materials to TIER 1 or OEM, (Seats, Lights) (TIER3)
4. Assemblage, Integration, Validation, homologation, sales, Customer support functions. (OEMs).

Automotive segment is sub-segmented into 50-200 HP, 200-300 HP and >300HP. Our target is the Tier II Powertrain Engineering services’ in automotive and road transport market. D&D here has high cost due to saturation of existing technologies and ‘extreme specialization’ involving sophisticated Software’s and competencies. OEM’s focus from its core business activities of Mass manufacturing, branding, marketing, sales, customer support, supply chain management etc.

OEM’s compete on marginal Differentiators gained form fractional improvement in conventional technologies, which again are obscenely cost intensive. We shall address this pain-point and provide a reprieve to OEM’s with new breed of Engines adaptable to future fuels and electrification.

The global Automotive Powertrain Engineering and ‘D&D’ services (including Light, Medium and Heavy Commercial Vehicles) market is projected to cumulatively grow at a CAGR of 6.18% , to reach USD 17.86 billion (approx. $13 billion for Powertrain) by 2026, with from an estimated USD 9.81 Billion in 2016^[10]. The stringent emission norms, and adoption of new technologies such as hybrid transmission are driving the automotive transmission engineering services outsourcing Market. The top ‘prime-mover technology and engineering services companies are ‘AVL’s, FEV, IAV, Ricardo, Woodward, Sedemac MKS, HORIBA and AeroVironment. New companies with their highly novel engine technologies are MCE-5, Infinity, Grail, Achates Gomacsys, Scuderi, & Liquid Piston. European Automotive Industry is Europe’s key industrial sectors manufacturing nearly one quarter of all the cars in the world employing over 12.1 million people^[11]. The market is driven by global megatrends of CO₂ and climate legislation and with over 1 billion cars (260 mil in EU alone) Primemover market is enormous

Non-Automotive Sector

The global ICE market in this sector is highly competitive and diversified due to the presence of many regional and international vendors who are increasingly investing in R&D of eco-friendly engine. Key players are: Caterpillar, Cummins, Doosan Infracore, Hyundai Machinery and MAN. They supply Primemover engines to OEM’s in medium to heavy machinery used in transport, Material-Handling, Earth Moving, Power Generation, marine propulsion etc. These machineries have decades long shelf life and are ‘capital goods’ used for direct revenue generation. The OEM’s of these machines procure their engines from dedicated engine manufacturers who cater to cross-segment applications (depending on power rating and the fuel used).
The These Engines have high output rating than automotive engines. Some high-performance automotive engine ratings (450-600 HP), overlaps with the lower end rating applications of non-automotive sector. These applications are of keen interest to us as it allows to cover wide range industry segments. The global Engines market is anticipated to grow at a steady rate and will post a CAGR of around 7%. Market is set for incremental growth of 230 million units by 2025 in volume^[1].

The major I.C.E industry segment applications are: –

Hybrid drives for locomotives multi occupancy and mass transport utilities which is a rapid growth area driving global hybrid drive market .

The Maritime sector sub-segmented into, 1,001 – 5,000 hp, 5,001 – 10,000 hp, 10,001 – 20,000 hp, and above. The 5,001 – 10,000 hp accounts for the largest market share within engine market, mainly dependent on the shipbuilding industry and a market of strategic interest for us. This includes small ships, recreational vessels ferries, dredgers, fishing trawlers, large tankers. There is a significant rise in LPG/LNG trade which is driving Dual-Fuel Engine demand that uses LPG boil-off while transport.

Energy for power-generation application ranges from domestic, community, commercial, captive plants in industry, marine and powerplants.

Standalone Drives include Agro, pumping, Construction site, special purpose heavy engineering Equipment’s and Machines.

Aviation. The light aviation, drone and UAV applications engines too have similar rating as in light passenger vehicles. These segment players are seeking newer drive solutions with clients open to new prime mover tech opportunities compared to all others in transport sector.

Priority Segments

The Maritime Segment. There exists precedence of acceptability to our business model in this segment. The business structure here includes licensed manufacture of engines by shipyards and dedicated engine Manufacturers.
The Automotive OEM. We have a precedence here and RVCR will be pitched as an enabler of compact integrable green power-pack supplement to batteries, extending EV/PHEV’s operational range, life/power density & resale value.
Heavy Commercial vehicles and Locomotive
Generic Stand-alone Engine Manufacturers. And supply chain partner for product batch manufacture.

Competition

We are abreast of newer developments in technologies globally.

Maritime propulsion trend is towards Dual-Fuel (DF) engines by (MAN_B&W). Hydrogen fuel is being explored for both I.C.Engine and Fuel cell technologies.
The VCR and new engine technology competitors are in 3 categories: 2 are established industry players with inhouse VCR engine
OEMs like Peugeot, Citroën, Volvo, Saab, Honda,
Tier-2 powertrain services companies with focus VCR projects like AVL, FEV.
3^rd -New engine technologies (Scuderi, Geo-Motors, Liquid Piston, Achates, Lotus)

The Key Automotive industry players, such as Volkswagen, General Motors, and Honda, believe battery-electric to be the propulsion method of the future. Tesla has made electric vehicles their flagship product.

Toyota and Honda remain key proponents of hydrogen fuel cell vehicle. Toyota views plug-in hybrid and battery vehicles as ‘bridge’ to longer-term hydrogen powered future. Hydrogen powered fuel-cell needs rare Earth metal in its construction and has functionality limitations in Low temperatures.

Experiments show feasibility of H2 as fuel in engines to be cheaper and advantageous than Fuel Cell, yet it is not a full-fledged solution for limitations of slider crank mechanism.

In power generation LPG based fuel cell technologies is pursued by bloomenergy.

Commercialization

Our is a B2B2C model focused on getting into ‘Mutually beneficial Symbiotic Relationship’ with strategic Industry partners/ OEMs. We provide background IPR and Technology Integration services contract in consideration to resourse partnering for perticula product development.

We help you with understand the RVCR engine business case which covers: – high-level roadmap; current market evaluation. its dynamics and future projections; and business gains from RVCR in terms of Market share, growth, revenues etc. and most importantly compliance to future climate regulations.

The overall gain is valuated to approximation (setting off cost of Project) which is worked back to the NPV of the project. The project costs also include KGYAT Technology integration service charges (Project operations, D&D, testing, validation, Change Management, Marketing, customer Care) to cover our base cost.

We work on a retainership fee and royalty part which is based on ROI that accrued as receivables to KGYAT after its adjusted for deviations of initially evaluated cost approximations against real cost at agreed milestones. This arrangement provides clients with fair control over costs and serves our prioritising growth over profits motive. This also ensures that the project cost is adjusted in real-time against deviations. This is the route till we have inhouse facility to develop final products independently.

The large-scale commercialization will be achieved by maximizing the RVCR technology coverage of all possible segments ranging from Heavy Land & Maritime transport, Industrial process handling. Several of these applications will be sufficed with the same output rating and Design. But would be treated as separate verticals.

M&A The post Covid scenario and the economic downturn is prompting revamping of conventional approaches. Such re-structuring will be opportunity for RVCR as our operations scaleup. We intent to prioritize merger with a powertrain D&D company 1^st to gear up for further opening more fronts. The 1^st major gain of strengths in terms of facilities, capabilities, competencies, operations structure, brand value; sales channels, will be leveraged for attracting Sophisticated investors to match the immense potential of growth

RVCR Market

The Total Addressable Market (TAM) of RVCR innovation is enormous and the product D&D architecture is tuned around parametric design modules for easy scale up/down of output rating and customizing RVCR systems in multiple ways to suit varying segments. Hence: –

The TRL 8 proto spec (MVP 75-150 Hp Modular Proto Primemover engine) is carefully deduced to cover ‘across sector’ applications and easy to customize into pilot product to be offered to prospective client OEM’ for seamless Ph III projects.
Our business operations architecture is modelled for easy to erect parallel teams for a new JV project with OEM’s on short notice. The JV and engagements will be nurtured by prioritizing the aligning of all necessary initiative, interface, and integration processes. Each project will be a segregated vertically.

We chose RVCR technology Multi–Fuel VCR Engine as 1^st Primemover application for commercialization as its design challenges are extreme compared to all other Primemover. This is to ensure D&D capability preparedness for rapid expansion into simpler downstream applications ranging from RVCR Wind/ hydro-motors as they pose lesser D&D stringency and are easy derivatives of Engine Design.