Automotive Fuel Tank Market - Forecast(2023 - 2028)
Automotive Fuel Tank Market Overview
Automotive Fuel Tank Market is anticipated to reach $27.4 billion by 2027 at a CAGR of 4.2% during the forecast period 2022-2027. A fuel tank including reserve tanks, racing fuel cell, polymeric fuel tanks and others is a portion of an engine system where fuel is stored and then either pushed (fuel pump) or discharged (pressurized gas) into the engine. Fuel tank which is generally prepared from material including aluminum, plastic steel, magnesium alloy and others consists of the intake valve, exhaust valve, gravitation filter, and others. A key factor which is driving market expansion is rising industrialization, accompanied by a large increase in automobile manufacture and sales. The automobile industry is expanding in both developed and developing countries, fueled by rising demand for passenger cars. Moreover, governments all over the world are enacting legislation focusing on pollution reduction and greater fuel efficiency, resulting in an increase in the manufacturing of high-quality fuel tanks. Furthermore, technical breakthroughs such as the development of self-sealing gasoline tanks that can automatically seal in the event of a leak or damage are propelling the industry forward. Additionally, in order to build lightweight gasoline tanks, manufacturers are increasingly integrating plastic instead of the traditional steel and metals. Other factors, such as increased disposable income improving standards of living, are also playing a significant role. Hence, these factors will drive Automotive Fuel Tank Market size in the forecast period 2022-2027.
Automotive Fuel Tank Market Report Coverage
The report: “Automotive Fuel Tank Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Automotive Fuel Tank Market.
- North America dominated held the major market share in 2021. This is mainly attributed to early adoption of new technologies, government regulations and others.
- The demand for Automotive Fuel Tank is estimated to witness significant upsurge during the forecast period, owing to the increase in volume of automobiles globally.
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Automotive Fuel Tank Market Segment Analysis- By Capacity
By Capacity, Automotive Fuel Tank Market is segmented into <45L, 45L-70L, >70L. Automotive Fuel Tank with capacity 45L-70L held a share of 25% of the Automotive Fuel Tank Market and is estimated to witness significant market growth with a CAGR around 5.7% during the forecast period 2022-2027. Some of the major factors influencing the growth of the market include rising trend of low emission, high performance vehicles, high demographic rate, improvement in standard of living and others. To fulfil the rising demand for cars that are ideally suited for long travels have longer mileage range. Most new vehicle models produced by automotive manufacturers in the last five years have had a minimum tank size of 45 litres. Large capacity fuel tanks, on the other hand, assist to fill the empty space within the vehicle's chassis. They also improve the car's handling by adding weight. The majority of small automobiles have 45-liter fuel tanks, whereas the majority of sedans have 45-70-liter fuel tanks. Fuel tanks that hold more than 70 litres are required for SUVs. As demand for automobiles grow in many nations, including Japan, China, India, Germany, France, and Spain, the 45-70 litre capacity is expected to be the significant in the market. Thus, above mentioned factors are analyzed to drive the market in the forecast period 2022-2027.
Automotive Fuel Tank Market Segment Analysis- By Application
This market is segmented into Passenger vehicle, Light Commercial vehicle, Heavy commercial vehicle, on the basis of application. According to IndustryARC’s Automotive Fuel Tank Market report, the Passenger vehicle segment is anticipated to witness significant amount of growth with CAGR of around 4.8% during the forecast period 2022-2027. The market growth is attributed to factors including rising population, rising disposable income, and the ease with which credit and finance may be obtained. Furthermore, the market is expected to see increased demand for passenger cars as the logistics and passenger transportation sectors grow. Government programs and regulations have a big impact on the passenger car market's growth. Governments are placing pressure on passenger car manufacturers to build fuel-efficient, low-emission cars, which has compelled them to invest heavily in research and development. For instance, the European Emission Standards (EURO I, EURO II, EURO III, EURO IV, and EURO V), the Corporate Average Fuel Economy (CAFE), and the Federal Motor Vehicle Safety Standards (FMVSS) are some of the most widely used emission standards in the world. Thus, the aforementioned factors are estimated to positively impact the market growth during the forecast period 2022-2027.
Automotive Fuel Tank Market Segment Analysis- By Geography
APAC region is projected to have the fastest growth with a CAGR of 4.5% during 2022-2027. The automobile sector is booming in both developed and emerging countries in the area, fuelled by rising demand for passenger cars. In APAC, China and India have been the leading contributors to automobile sales. China is a prominent automobile producer in the world. The Automotive Fuel Tank Market is inclined to be driven by higher vehicle sales in the country. Despite the pandemic, China's automobile sales in 2020 reached 25.31 million. According to OICA, overall vehicle production in the first nine months of 2021 reached 32.67 million units, an increase of 11% over the same period previous year. Furthermore, the APAC region's expanding industrialisation and better infrastructure is propelling the rise of commercial vehicles. In addition, FDIs (foreign direct investment) are driving rapid growth in automotive manufacture and production in countries like Thailand, Malaysia, and Vietnam. The need for automobile fuel tanks rises throughout APAC as a result of the expansion in vehicle production.
Automotive Fuel Tank Market Drivers
Increasing automotive manufacturing rate tends to drive the market growth for automotive fuel tank:
In recent years, the automobile sector has seen consistent increase in car production and sales. The increase in car manufacturing can be ascribed to the rising population, improving socioeconomic conditions, economic expansion, and infrastructural development. A growth in middle-class discretionary income, particularly in emerging countries such as India and Mexico, has also led to an increase in car manufacturing and demand. As a result of the inclination for individual mobility and two wheelers being a cost-effective means of transportation, the demand for two wheelers is expanding. According to IBEF, total passenger car manufacturing in FY21 was 22,652,108. The overall production volume of passenger vehicles (excluding for BMW, Mercedes, Tata Motors, and Volvo Auto) in October 2021, three wheelers, two wheelers and quadricycles reached 2,214,745 units. Thus, the rise in market for automobile positively impacts the market growth.
Trend towards constructing cost effective fuel tank using lightweight materials is expected to propel the market growth:
Alternative fuel cars that use gaseous materials such as CNG, LNG, and hydrogen require sturdy, safe, and lightweight tanks to retain regular vehicle size, weight, and driving range. Traditional alternative fuel tanks are built of ordinary grade steel, and after time, the gas can migrate into the metal, causing it to become brittle and leak. The HDPE plastic fuel tanks are light in weight and safe to use in automobiles, contributing significantly to the total weight of the vehicle. The development of fuel cell technology has resulted in an effective method for achieving a high driving range of around 500 km and a shorter refueling time as compared to battery electric cars.
Automotive Fuel Tank Market Challenges
Rise in adoption of electric vehicle act as hindrance to the market growth for Automotive fuel tank:
The rising market penetration of electric cars is one of the significant restrictions in the fuel tank business. Rising demand for zero-emission vehicles is also expected to boost electric vehicle sales in the future. Electric vehicle technology has gotten more economical over time, with numerous countries encouraging the use of electric vehicles through tax breaks and other incentives. A considerable rise in government financial assistance in the form of tax refunds and subsidies, as well as legislation to encourage eco-friendly automobiles, has resulted in an increase in the adoption rate of electric vehicles. Furthermore, advancements in battery and charging technologies, as well as battery price reductions, have spurred demand for electric cars. As a result, the surge in electric vehicle usage is anticipated to have a substantial impact on the fuel tank market in years ahead.
Automotive Fuel Tank Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Automotive Fuel Tank Market. In 2021, the market of Automotive Fuel Tank industry outlook has been fragmented by several companies. Automotive Fuel Tank top 10 companies include
- Compagnie Plastic Omnium SA
- Kautex Textron GmbH & Co. KG
- Yachio Industry Co. Ltd
- TI Fluid Systems
- Magna International Inc.
- Unipres Corporation
- Fuel Total Systems
- Lyondell Basell
- Allgaier Automotive, among others.
- In June 2021, TI Fluid Systems, a supplier of automotive fluid systems technology, introduced new fuel system fluid handling solutions for the Hyundai Santa FE SUV hybrid electric vehicle (HEV). This Hyundai HEV app showcases the company's ability to optimise systems with lightweight solutions for better EV mode efficiency.
- In May 2021, Germany based luxury vehicle manufacturer, BMW announced about the launch of a small series of the Hydrogen NEXT in 2022, based on the current BMW X5. The SUV will be equipped with a hydrogen fuel cell e-drive that emits only water vapor.
- In January 2021, TI Fluid Systems revealed that it will provide a new generation of plastic fuel tanks that can withstand the high pressures found in hybrid electric vehicles (HEV). This plastic fuel tank was recently introduced in volume production by Volkswagen China on the Passat and Magotan plug-in hybrid electric vehicle (PHEV) models, with a wider variety of worldwide platforms to follow.
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