Today, prominent automotive fuel system manufacturers are in the process of transition to plastic fuel tanks. Polypropylene fuel tanks are produced by extrusion or rotational molding. In comparison with aluminum and steel fuel tanks, plastic tanks are resistant to scratches and chipping, have lower weight, require no welding, have lower costs, and are non-corrodible. Furthermore, polypropylene offers advantages of durability and lightweight. Extruded polypropylene OEM components help decrease overall vehicle weight and fuel consumption.
In recent years, the adaptability of polypropylene (PP) has gained significant attraction from manufacturers. Therefore, it is expected that, polypropylene (PP) consumption will continue to increase in automotive components in the foreseeable future.
Investments to Boost Production of Fuel Systems against Backdrop of Surging Demand
Manufacturers in the automotive fuel system market are focusing on gaining a competitive advantage and improving technologies in their product portfolios for the transformation of auto ancillary industry, since the automotive fuel system market is high-volume and fairly fragmented.
Offering Customized or Demand-specific Automotive Fuel Systems
Most manufacturers in the automotive fuel system market focus on product differentiation in order to maintain a competitive advantage in the landscape. Automakers are introducing rapid changes in automotive and related automotive fuel system designs in order to cater to ever-changing consumer preferences.
Automotive fuel system manufacturers have responded to these market conditions by offering customized or requirement-specific fuel systems, such as brushless fuel pumps, fuel tanks, and compact pumps, for automakers. Offering such fuel systems is a potential opportunity for players in the market to secure long-term supply contracts from automakers.
Increasing Investments in infrastructure Development to Support Market Growth
The private sector is emerging as a significant player across numerous infrastructure segments, from roads and communications to power and airports. For the completion of these projects, governments require high efficiency construction equipment and machines that can complete projects within the stipulated time and consume less fuel. Moreover, these projects may create growth opportunities for players in the automotive fuel system aftermarket, owing to the need for replacement of many components such as air filters and fuel filters that are frequently required to maintain the life of off-road vehicles.
Automotive Fuel System Market: Structure Analysis
The automotive fuel system market is fairly fragmented, as several small-scale players are noted to operate in the landscape. These cumulatively account for a significant proportion of the market in terms of volume. Key participants in the automotive fuel system market are Plastic Omnium, Denso Corporation, Robert Bosch GmbH, YAPP Automotive Systems Co., Ltd, and TI Automotive, among others.
Growing Vendor Consolidation by Leading Players
Over the last few years, the automotive fuel system market has been observing a surge in the number of collaborations and acquisitions by prominent market participants to strengthen their footprint in regional markets. For instance, in 2016, TI Fluid Systems acquired Millennium Industries Corporation, which strengthened the company’s product portfolio, expertise, and manufacturing reach.
COVID-19’s Impact on Automotive Fuel System Market
COVID-19 is exhibiting a negative impact on the global automotive industry, and the effect of the outbreak is expected to persist in the near term. East Asia - the leading region in the automotive fuel system market - being the epicenter of the initial outbreak, is sending ripples of disturbances across the globe. Furthermore, the Chinese city of Wuhan - the worst affected region - has been a major manufacturing hub for automobiles and automotive systems. Besides, the sector would face pressure from not only the supply side but also the demand side and exports, if the spread of COVID-19 persists for more than two months globally. While production has drastically declined, key players are prepared to face the adverse effects of the outbreak. On this premise, Plastic Omnium, a key player, issued a statement regarding the organization’s preparedness to overcome the challenges due to the pandemic.
A detailed view of the global automotive fuel system market has led our analysts to conclude that, the market is developing at a decent rate on the back of increasing automotive production and sales, worldwide. The automotive fuel system market is anticipated to be characterized by advanced product development based on vehicle type, over the forecast period. South and East Asia are likely to be opportunistic markets in terms of sales, over the coming years.
Automotive Fuel System Market – Report Scope
Persistence Market Research (PMR) recently published a study report on the global automotive fuel system market. The report provides detailed valuation on key market dynamics, such as the drivers, trends, opportunities, and restraints, along with detailed information about the automotive fuel system market structure. This market report presents exclusive facts and figures about how the automotive fuel system market is expected to grow over the forecast period of 2019-2029.
Key indicators of market growth, such as value chain analysis and supply chain, compounded annual growth rate (CAGR), and year-on-year (Y-o-Y) growth of the market, are explained in PMR’s report in a comprehensive manner. This information helps readers understand the quantitative development projections of the automotive fuel system market for the forecast period.
The study is relevant for stakeholders in the automotive fuel system market, such as manufacturers, distributors, suppliers, and investors, as it can help develop effective strategies for growth. Stakeholders, investors, industry experts, researchers, and journalists, as well as business researchers in the automotive fuel system market can leverage the information and statistics presented in PMR’s market report.
The report includes facts & figures related to the macro- as well as micro-economic factors that are impacting the growth of the automotive fuel system market. The study also offers actionable insights based on the trends in the automotive fuel system market. Furthermore, regional players and new entrants in the automotive fuel system market can also use the information presented in this report to make winning business decisions and gain momentum in the market.
Key Segments of Automotive Fuel System Market
PMR’s report divides the automotive fuel system market into four significant segments - component type, engine type, vehicle type and region. This report offers comprehensive data and information about important market dynamics and growth parameters related to these categories.
Key Questions Answered in PMR’s Automotive Fuel System Market Report
Automotive Fuel System Market: Research Methodology
In PMR’s research report, an exclusive research methodology is utilized to conduct comprehensive research on the development of the automotive fuel system market to reach conclusions on future growth prospects. In this research methodology, secondary and primary research is utilized by our analysts to ensure precision and reliability of the conclusions.
Secondary resources are referred to by analysts during the evaluation of the automotive fuel system market study, which comprises facts and figures from World Bank, OEM websites, government websites, white papers, trade journals, and external and internal databases. Analysts have thoroughly interviewed several industry experts, such as sales operation managers, product portfolio managers, sales supervisors, senior managers, market intelligence managers, marketing/product managers, and production managers to provide insightful information.
Comprehensive information acquired from primary resources and secondary resources is validated from companies operating in the automotive fuel system market to make PMR’s projection on the growth prospects of the market more accurate and reliable.