Automotive Fuel Tank Market
Automotive Fuel Tank Market Analysis by Material Type (Plastic, Steel, Aluminium), by Capacity (Less than 45 L, 45-75 L, Above 75 L), by Sales Channel (OEM, Aftermarket), by Vehicle Type (PC, LCV, HCV) and by Region - Global Forecast 2022-2032
Analysis of Automotive Fuel Tank market covering 30+ countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Automotive Fuel Tank Market Outlook for 2022-2032
The automotive fuel tank market size has garnered a market value of US$ 30 Billion in 2022, anticipated to register a positive CAGR of 6% in the forecast period 2022-2032 and reach a value of US$ 53.8 Billion.
Fuel tanks made out of plastic will continue to gain market share due to their lightweight and fuel-efficient qualities. The passenger vehicle segment will continue to drive maximum sales of automotive fuel tanks, presenting a significant additional development opportunity to automotive fuel tank manufacturers through 2032 and beyond.
Market Size in 2022
US$ 30 Billion
Projected Market Value in 2032
US$ 53.8 Billion
Global Growth Rate (2022-2032)
Market Share of the U.S
Revenue Share of U.K
Growth Rate of India (2022-2032)
Growth Rate of China (2022-2032)
Key Companies Profiled
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Demand Analysis of Automotive Fuel Tanks 2017-2021 vs. Market Outlook 2022-2032
Demand for automotive fuel tanks expanded at a moderate CAGR of 5% in terms of value from 2017 to 2021, projected Fact.MR- a market research and competitive intelligence provider.
Increasing sales of automotive fuel tanks in the commercial vehicle sector (both HCVs and LCVs) will likely generate a higher level of revenue in the coming years. In terms of volume, automotive fuel tanks with capacities between 45 and 75 liters will continue to dominate in terms of sales, representing over half of the overall market value during the projected period.
Amidst the COVID-19 pandemic, the sales of fuel tanks for personal and commercial vehicles experienced a sharp decline. Due to logistical limitations, the demand for commercial vehicles declined in the first few months of COVID-19. However, in the forthcoming months, this disequilibrium dissipated, allowing for the demand-supply gap to be filled. Several types of vehicles generated exponential demand on the market, but the demand for passenger cars increased most dramatically in the market.
By value, passenger cars are projected to continue to hold the largest market share of more than 40%. The automotive fuel tank market is set to gain a substantial boost over the next few years with the introduction of lightweight and self-sealing fuel tanks in the market. The steady growth of lightweight vehicles to prevent fuel emission has raised the demand for automotive fuel tank substantially, with the market slated to expand at a CAGR of over 6% through 2032.
Plastic Automotive Fuel Tank to Remain the Top Selling Variant?
With the growing demand for vehicle production all across the world, the demand for automotive fuel tanks is also increasing rapidly. Recently the innovative plastic fuel tanks have taken over the market of steel fuel tanks and have become one of the major parts of vehicle production.
A shift from metal automotive fuel tanks to plastic automotive fuel tanks has been witnessed in the recent past. In comparison with metal fuel tanks, plastic tanks are better suited to solving the problems because the plastic is processable, easy to mass-produce, simplifies manufacturing processes, and is safer to work with. Plastic automotive fuel tank offers flexible design using which customizations can be made according to customer requirements.
Moreover, features such as lightweight, high durability, and high corrosion resistance of plastic automotive fuel tanks have fueled the adoption of the plastic automotive fuel tank as a sought-after, reliable fuel carrying source.
However, a steel automotive fuel tank still remains an ideal option while using bio-diesel and diesel owing to its low evaporative emission requirements coupled with high stiffness and inherent strength during changing pressurized applications.
The market growth of the automobile industry is attributed to numerous factors, aside from the increasing production of automobiles. One such factor is the lightweight fuel tanks, which will allow the vehicles to get a longer driving range and improve fuel efficiency. In addition to being cost-effective, plastic automotive fuel tanks are also durable. This has attracted the attention of auto manufacturers, which has directly led to increased market demand.
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In what ways has R&D contributed to the market growth of Automotive fuel tanks?
With the rising demand for vehicle production, the need to produce more efficient and durable automotive fuel tanks has become one of the major parts of research. Throughout the years, researchers have been doing research on how to increase the stability of vehicle construction with the help of hydrogen-fueled tanks.
Currently, researchers are working on the development of smaller volume automotive fuel tanks, which will fit at least 70 mpa of compressed hydrogen fuel, to reduce the volume of the fuel tanks and make them lighter. The Tochigi Researcher and Development Centre has also been doing research on evaluating and checking the performance of fuel tanks in order to make them more fuel-efficient and durable.
TI Fluid Systems has also started to research the manufacturer of pressure-resistant fuel tanks and zero-emission fuel tanks in order to provide the global market of automotive fuel tanks to grow rapidly in this competitive era.
Why is China Considered an Opportunistic Market for Automotive Fuel Tanks?
A Flourishing Automotive Industry to Impel Sales of Automotive Fuel Tanks
The contemporary global automotive fuel tank market can be regarded as in the growing phase and the growth has been steady. However, the Asia-Pacific region can be regarded as one of the fastest-growing parts of the world in regards to the growing market demand.
China has become one of the largest manufacturers of automotive fuel tanks with the support of major companies such as Yachio Industry Co. Ltd and Kautex Texton GmbH & Co. KG. These companies have indulged themselves in the production of plastic fuel tanks as well as zero-emission fuel tanks, which has helped the growing demand for vehicle production. China also has excelled in exporting automotive fuel tanks all over the world. The HEV plastic fuel tanks of TI Fluid Systems have also helped to raise the demand for automotive fuel tanks in the market.
China has also become the most important part of the production of automotive fuel tanks as it can be regarded as the first region to provide lightweight automotive fuel tanks to meet the demand in the market. For example, Farecla accelerates its China-based zero-emission hydrogen strategy. Faurecia with CLD will participate in the development and construction of high-quality hydrogen storage tanks homologated for the Chinese market. Fact.MR expects the Chinese market to register a CAGR of 9% through 2032.
Growing Industrialization to Spur Market Growth in India?
India has also secured its place in the global list as one of the major regions to sell cars in the low and mid-size segments, which has helped to raise the demand for automotive fuel tanks. Despite the downturn in the macroeconomy, the automotive industry has continued to expand in the region, driven largely by a growing demand for passenger vehicles. Due to the increasing sales of cars, the demand for plastic fuel tanks has been growing rapidly in this region.
India has been experiencing a rapid increase in the number of commercial vehicles on the road, and the sector contributes a substantial share to the country's GDP. Furthermore, as a result of increasing industrialization and improvements in infrastructure in this region, commercial vehicles are experiencing rapid growth. A CAGR worth 7.6% is projected for the Indian market.
What Factors Contribute to the growth of Automotive Fuel Tanks in the U.S.?
With keeping in mind the safety of the environment and climate, the automotive fuel tanks market growth in the U.S. can be regarded as growing steadily. The membrane and carbon composite automotive fuel tanks have started to help in the manufacturing of different fuel cells for heavy cars. The integration of hydrogen in the fuel cells has been the major aim of this membrane and carbon composite fuel tanks, which in return helped to stimulate the market growth.
The production of plastic fuel tanks has also helped to follow the rules and regulations of the U.S government in regards to emission control and safety, which has also become one of the major driving factors behind the growth of automotive fuel tanks in the market of this region.
The production of EVAL automotive fuel tanks has also become another major factor in the growth of fuel tanks in the market U.S as it has the capability to combine the mechanical properties of HDPE and the chemical properties of EVAl. This combination can help the fuel tank to become chemically resistant and it can have a remarkable barrier for the gas making the tank water-resistant. A market share of 45% is projected for the U.S market.
How Much Demand is there for Automotive Fuel Tanks in the UK?
The demand for automotive fuel tanks was steady in the European region for the last few years, however, due to the outbreak of the COVID-19 pandemic, vehicle production along with all the automotive parts companies have started to face a decline. Only from the second half of 2021, the industry has started to regain its growth, which has insinuated the demand for automotive fuel tanks in the market.
The demand for automotive fuel tanks in the UK has also been rising rapidly with the help of the new multi-layer fuel tank production in the region. The recent development in government regulations requiring that vehicles be designed in innovative ways to improve their fuel efficiency, as well as to reduce their fuel consumption, has resulted in a steady increase in the market for automotive fuel tanks. The market is expected to acquire a market share worth 42% in 2022 and beyond.
Less than 45 liters of capacity are expected to dominate the market?
Based on the capacity type, the market is segmented into less than 45 liters L, 45-75 liters, and above 75 liters’ automotive fuel tanks. Less than 45 liters of capacity automotive fuel tanks hold the largest share of the global market. With the rising demand for long-term fuel tank health and long-term fuel tank life, the market is demanding tanks with capacities of less than 45 liters in the market.
A growing trend towards low emission, lightweight, and performance-oriented vehicles has attracted the millennial market, thus propelling the future growth and development of this market. An increasing sales of SUVs and trucks have resulted in stronger market demand for smaller fuel tanks for vehicles that are able to fulfill those needs. A CAGR of 6.3% is projected for this segment by Fact.MR.
Automotive Fuel Tanks for Passenger Cars to account for the Largest Share?
Passenger vehicles account for the largest global automotive fuel tank market share, accumulating a revenue share of 40%. Due to the rising demand for plastic automotive fuel tanks, the demand for small and medium-sized passenger cars has also started to increase rapidly. Considering the different functions and uses of passenger cars, they can be considered multifunctional vehicles.
With the rise in disposable incomes and consumer lifestyles, the market demand for automotive fuel tanks in passenger vehicles is rising at a rapid pace. An increase in urbanization, advancement in technology, improved standard of living, and the high growth rate has added to the market demand for fuel tanks in passenger vehicles.
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Strategic collaborations enable manufacturers to increase production and meet consumer demand which will increase revenue and market share. New products and technologies will enable manufacturers to offer products that are low in emissions.
- In September 2021, Agility Auto Parts Inc. (Agility) has announced its acquisition of the assets of Automotive Parts Distribution International LLC (ADPI). As a result of this acquisition, Agility will be able to expand its customer base, diversify its product range, and become the major automotive parts supplier.
- In July 2021, Magna International Inc. announced its agreement on the acquisition of Veoneer. This acquisition would help Magna International Inc. not only to gain the leading position in the market but also would help to expand the business to other regions and countries.
Key Segments Covered in the Industry Report
By Material Type
- Less than 45 Liter
- 45 - 75 Liter
- Above 75 Liter
By Sales Channel
- Sales via OEMs
- Sales via Aftermarket
By Vehicle Type
- FAQs -
The global automotive fuel tanks market size is likely to be worth US$ 30 Billion in 2022
From 2017 to 2021, automotive fuel tank sales grew at a CAGR of 5%, as per Fact.MR
The automotive fuel tank industry is expected to reach nearly US$ 53.8 Bn by 2032
According to Fact.MR, the automotive fuel tank market is forecast to flourish at a CAGR of 6% from 2022-2032
In the U.S, automotive fuel tanks are estimated to contribute 45% of the global market revenue
With respect to automotive fuel tanks, the U.K is likely to accumulate 42% revenue
Yes, automotive fuel tank sales are expected to surge at a CAGR of 7.6% in India
China is expected to be the fastest growing market for automotive fuel tanks, growing at a CAGR of 9%
Automotive fuel tanks for passenger cars are expected to account for 40% of the global market revenue
Plastic automotive fuel tanks are expected to be most widely demanded, registering a CAGR of 7%