According to a PMR study, the COVID-19 pandemic continues to hamper automotive production activities across the globe, as some of the most affected countries are major automotive production hubs, such as China, Germany, the U.S, and Japan, among others. The COVID-19 outbreak is likely to significantly impact consumer demand in the short term, with car sales in China already registering an 86% drop in Feb 2020. Tier 2 and especially tier 3 suppliers of automotive fuel systems are likely to be most affected by pandemic-related disruptions.
Prominent automotive fuel system manufacturers have started searching for local part manufactures for their assembly lines. Most companies’ assembly plants in North America and Europe depend on China for certain automotive parts such as fuel tanks molds, fuel level sensors, and others. China’s Hubei province, the pandemic’s epicenter, has been a key automotive part manufacturing cluster.
According to PMR’s recent market research study, the global automotive fuel system market is estimated to be valued at US$ 55 Bn in 2019, and is projected to exhibit a CAGR of 3.4% during the forecast period (2019–2029), with a limited impact of the current situation on long-term growth forecasts.
Key Takeaways of Automotive Fuel System Market Study
- The rising usage of fuel injection systems in gasoline-based vehicles will further impel demand in the automotive fuel system market.
- Many automotive fuel system manufacturers are offering customized or requirement-specific fuel systems, such as brushless fuel pumps, fuel tanks, and compact pumps, for automotive manufactures. Offering such fuel systems is a potential opportunity for players in the market to secure long-term supply contracts from automotive manufactures.
- Growing number of players in the automotive fuel system market have been driving manufacturers to incorporate forward integration, by offering installation, product consultancy, and after-sales support, to build upon the existing market base and also gain the growing aftermarket client base.
- Based on vehicle type, passenger cars are expected to create significant opportunity in the coming years for the automotive fuel system market, on the back of the lower prices of these vehicles.
- East Asia is likely to retain its leading position in the global automotive fuel system market throughout the forecast period, in terms of value as well as volume.
“While the demand for automotive fuel systems is primarily driven by elevated automotive production, aftersales service is a key winning strategy for market participants, owing to frequent replacement of air & fuel filters. Also, the ongoing corona virus (COVID-19)-related crisis can alter how companies organize their supply chains in the coming years, with more stress on decentralization,” says a PMR analyst.
Automotive Fuel System Market: Competitive Landscape
The global automotive fuel system market is highly competitive, with the presence of a large number of regional players in the landscape. Prominent players in emerging markets are poised to expand their business operations and increase value-addition in their product offerings through portfolio rationalization. Market participants are also investing in R&D activities to develop new products with efficient fuel consumption. Moreover, manufacturers are developing customized, cost-effective automotive fuel systems to cater to the specific requirements of automotive vehicle manufactures, with an optimum level of operational efficiency.
COVID-19’s Impact on Automotive Fuel System Market
East Asia, the leading region in the automotive fuel system market, has been badly affected by the pandemic, being the epicenter of the initial outbreak. With mounting travel restrictions and the implementation of a lockdown in China’s Wuhan city - which is the leading region for the manufacturing of automotive systems - the impact on the global automotive fuel system is certainly inevitable. On the other hand, the situation in China is gradually getting better. According to the China Association of Automotive Manufacturers (CAAM), by the last week of February, more than 90 percent of over 300 automotive parts suppliers outside Hubei had resumed production. However, as the number of cases in Europe and North America explode, the market is expected to stand still in the near term.
Find More Valuable Insights on Automotive Fuel System Market
PMR, in its new research report, offers an unbiased analysis of the global automotive fuel system market, presenting historical demand data of 2014-2018 and forecast statistics for 2019-2029. The report provides a perceptive study of the global automotive fuel system market through four different segments – component type, engine type, vehicle type and region. The market research study provides component usage in various vehicle types, prevailing technologies, and trends in the market. Furthermore the report also provides an inclusive supply chain analysis regarding product usage, pricing analysis, and detailed supply chain analysis.
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