The title is pending but Dying Light 2 will make use of what is called the C-Engine graphics engine and, it will take advantage of Ray Tracing. Some more details have been shared by Techland.

In an interview with OPM, Techland director Tomas Szakowski spoke about Ray Tracing's effects on the game . This was what he said:

“Dying Light 2 is the largest game we’ve created using our in-house C-engine. It is very important for us to achieve our ambitions in terms of graphics, which is why this will be the first Techland production to support ray tracing. We are implementing it in cooperation with Nvidia [on PC] and using the latest achievements in this domain.”

According to the developer, Techland will use Ray Tracing for the game’s shadows and Global Illumination effects. Moreover, it will further enhance the game’s Ambient Occlusion effects.

“Thanks to this technology, our shadows in sunny weather look like they really would (among other reasons, because they take into account the size of the sun in the sky). Ambient occlusion effects have gained spatial stability and no longer suffer from compromises tied to the specifics of effects affecting screen space (they operate only on what is visible on the screen. As such, the floor under a table doesn’t affect the displayed image when we look down at the tabletop)

Dark Zones are an important element of our game, which is why we are experimenting with secondary illumination (reflected off surfaces) from artificial light sources (such as the player’s flashlight), which will make the experience of exploring these regions even more intense.”

There is no ETA on when Dying Light 2 will come out. In January 2020, Techland announced that the game will miss its Spring 2020 release. Unfortunately, we don't yet know when Dying Light 2 will be released . In January of this year, Techland announced that the title would be delayed .

Techland talks a bit about Ray Tracing in Dying Light 2